The Impact of Viral Techniques on Marketing Communications in Ireland

Transcription

1 The Impact of Viral Techniques on Marketing Communications in Ireland Introduction The phenomenon of word-of-mouth communication is not new; it has occurred within human society for centuries (Buttle, 1998; Arndt, 1967). Customers discuss their experience with a product or service and recommend it to family, friends and contacts (Kozinets et al., 2010; Dunay, 2012). The traditional, face-to-face, direct and brief format of word-of-mouth is shifting to one centered on electronic and digital media, (Buttle, 1998; Hennig-Thurau et al., 2004). Marketers have begun to harness the power of the internet to encourage communication in a more effective way, giving rise to word-of-mouse marketing (Goldenberg et al., 2001, p. 212). According to the Word of Mouth Marketing Association (WOMMA, 2007), viral marketing is one of eleven types of word-of-mouth techniques (see Appendix 1). Within these subgenres, buzz marketing is commonly used to describe viral marketing; with both terms used interchangeably to describe the other (Rohtak, 2011). Wilson (2005, p. 1) describes viral marketing as any strategy that encourages individuals to pass on a marketing message to others, creating the potential for exponential growth in the message s exposure and influence. A viral message is a fashionable idea that propagates through a section of the population, teaching and changing and influencing everyone it touches (Godin, 2000, p. 14). The distribution of the viral message across digital media including blogs, websites and social networks, is facilitated when an individual s interest is met. Viral marketing has emerged as a contemporary, effective technique employed by marketers to generate positive word-of-mouth in a digital setting. Trusov et al. (2009) note consumer attitudes towards traditional advertising have decreased significantly. Supporting the findings of Nail (2005, cited in Trusov et al., 2009, p. 90), 59% fewer individuals buy products because of advertisements and 49% fewer individuals find advertisements entertaining. These findings suggest the need for more creative marketing techniques to renew consumer interest in marketing messages. Understanding and implementing new techniques to satisfy these evolving consumer attitudes is a necessary tactic for engaging current and prospective customers. Brands increasingly use social media to communicate and interact with their customers. Viral marketing through videos and social networking content is commonplace on websites such as YouTube and Facebook. Organisations worldwide use social media to generate buzz and awareness for their product or brand, but Irish companies overall are less progressive in using digital media to enhance awareness relative to their UK and American counterparts. This research investigates how viral marketing is practiced within an Irish landscape by reviewing pertinent campaigns and assessing their success in strategically targeting human emotions. Viral marketing s advantages, limitations and relevance to marketing practice is examined. The research outlines the components for a best-practice guide for SMEs in creating and implementing viral marketing campaigns. The Virus of Digital Marketing The term viral originates from the similarity between the working process of a viral marketing campaign and that of a virus; both processes infect people and spread without the requirement of any further effort once taken hold (Dobele et al. 2005). Although the virus term has negative connotations due to its association with harmful biological viruses and destructive computer software viruses, the self-sustained viral marketing message spreads ideas and messages among target audiences with the intent of achieving positive effects. Viral marketing has emerged as a central topic in digital marketing research; however, what is required is a deeper understanding of how organisations can plan and create the viral effect 1

2 through their marketing efforts. Viral marketing campaigns can be created at low cost to generate interest and buzz across various digital media. As marketing is about communicating messages, nothing is more effective at quickly and cheaply spreading a message with maximum impact than a virus (Meerman-Scott, 2008). Wilson (2005), Pousttchi and Wiedemann (2007), and Rayport (1997) have identified the factors critical for viral marketing success (See Appendix 2). Some critics of viral marketing argue successful viral marketing is the outcome of fortunate circumstances and variables marketers cannot control (Pousttchi and Wiedemann s, 2007, p. 3). These critics view the strategy instigated by the marketer as irrelevant. By comparing and contrasting these authors perspectives, a more comprehensive list of factors may be developed (see Appendix 3). Three hierarchical stages a consumer must experience before deciding if they are to pass on a viral message are identified by De Bruyn and Lilian (2005); these are the awareness stage, the interest stage, and the final decision stage. In an effective campaign, the organisation has an indirect exchange with the first few receivers of the viral message. Receivers then take up the role of intermediaries and reach out to additional customers, who in turn become intermediaries themselves (Helm, 2000). Cakim (2006, p. 114) highlights several necessary external factors which affect the communication between a company and its customers, including the ideas of cross-cultural communication, creative appeal of the content and the audiences familiarity with the brand, product and company. A number of factors that influence the success of a viral campaign are yet to be examined extensively. One such factor relates to the reasons why an individual may choose to forward on the marketer s viral message. Ho and Dempsey (2010) examined the inspirations behind forwarding viral messages and identify four probable motivations manipulating an individual s communicative behaviour: personal growth, group membership, standing out, and altruism. Marketers leverage emotions as a way to encourage customers to gratify their needs (McWilliam, 2010). At least one of six emotions (i.e., surprise, joy, sadness, anger, fear and disgust) should be the basis of a viral marketing strategy, provided it is appropriately relevant to the brand, product or message (Lindgreen and Vanhamme, 2005). An appropriate emotion attracts the most suitable customers to view and appreciate the message, and the more suitable the receiver, the greater the likelihood they will convey the message to others. Although there are copious studies in the area of viral marketing, none concentrate on developing a bestpractice guide for organisations to employ when executing a viral marketing campaign. Methodology Having already established the basis of this research, it is necessary to reflect upon how the evidence was collected to support the objectives of the study. Finding reliable and valid practitioners of viral marketing in Ireland was a challenge for the researcher. The researcher used a collection of databases and internet search engines using keyword search techniques to locate SMEs who at some period were actively engaged in the use of viral marketing. The theoretical framework applied to this research relates to social media and digital marketing. In designing the research, a combination of exploratory and descriptive research was identified as the most suitable method in achieving the research objectives (Malhotra, 2010). Exploratory research s flexibility provided the freedom to refine the study when new information became available during the research process (Burns and Bush, 2010). The researcher recognized the access to Irish SME practitioners would mean findings were credible and original and a case study approach was developed through the use of individual in-depth interviews with each SME. Case studies were carried out on Batchelors Peas, MicksGarage, and Hairy Baby Clothing Company. 2

3 Batchelors Peas used a four week campaign to generate buzz about the company. The campaign involved a competition between three Irish bachelor farmers to see who would be crowned Ireland s Bachelor of the Year. MicksGarage carries out giveaways each week to consistently reengage with their fans and generate excitement about the brand. Hairy Baby Clothing s held a design your own t-shirt competition over a two month period, involving existing customers in the design process of a t-shirt with the winning design going to print. A series of in-depth interviews ascertained the underlying motivations, attitudes, beliefs and opinions on the specific viral campaign and each lasted an average of 45 minutes. The rationale for using in-depth interviews to gather information developed from the researchers awareness that an interview would allow for valid information to be gather in relation to the SMEs motivation to engage in viral marketing. The findings from the case studies are analysed against the questionnaire findings to assess their legitimacy. Descriptive research allowed the accumulation of the requisite information relating to consumers viral behaviour. A questionnaire, designed to draw specific information from respondents, relating to their behaviour, attitudes and stimulants to viral messages was distributed to a representative sample of internet users. As it was not possible to locate published demographic data outlining the proportion of the Irish population engaging in online word-of-mouth behaviour through social networks, a combination of area and judgement sampling was employed to gain a more precise sample of the Irish population. The questionnaire aimed to establish the respondent s knowledge of social media and assess the relationship between emotions and the motivation to circulate a marketing message. 52% of the useable questionnaire responses were completed by male participants representing an almost even split between male and female, signifying biased findings relating to gender as not associated with the questionnaire. The type of emotion carried by a message also has a bearing on the receiver s likelihood to forward the message. Findings In the case studies on Batchelors Peas, MicksGarage, and Hairy Baby Clothing, a direct channel was provided by which to assess each organisations perception of viral marketing and experience in using viral techniques. Each organisation believed viral marketing should be embedded within a firm s marketing strategy and, relative to traditional marketing techniques; viral marketing is a low-cost way of engaging with current and prospective customers. The firms motivations for developing viral marketing campaigns centred on: targeting younger audiences via social media; providing another channel through which to extend customer; and communicating brand messages through social media. Batchelors Peas target market of females aged 30 to 44 saw an increase in advertising awareness of 85% to 13% of the overall market. The viral themed competition drove traffic and conversation to both Facebook and Twitter with the Facebook App achieving 6,800 individual downloads. MicksGarage began using social media to assist the customer service aspect of the business. They then used a weekly giveaway to generated excitement for the brand and each Friday through the giveaway, the company experiences a surge in interaction from customers which brings on average 40 new engagers each week. The use of viral techniques came naturally to Hairy Baby Clothing, as the fun and positive nature of the products being sold was a good fit with social media. Over last two years, Hairy Baby has ceased advertising spend on traditional media and have become the leader in its sector of the retail industry. Placing an emphasis on viral marketing techniques, the company won the Irish Web Awards Best e-commerce Site of 2011.They discovered viral campaigns were easy to implement and fulfilled objectives not possible with traditional marketing. Through embedding viral techniques within the marketing strategy, they are now the third most followed Irish retailer on Facebook, with over 33,000 likes. 3

4 The three case studies carried out, although offering valid and authentic insight into the practice of viral marketing would be better supplemented by doubling the number of case studies carried out to six. The lack of available knowledge on companies engaged in viral marketing made it difficult for the researcher to gain access to the desired amount of organisations; with whom the in depth interviews were carried out. Appendix 4 highlights the research findings carried out on the three Irish SMEs. The questionnaire provides insights into the behaviour of individuals online and the likelihood of respondents to engage in viral behaviour, where 83% disclosed likeliness to join a group. The behaviour exhibited by the respondents cannot be deemed viral behaviour as such, but it does illustrate the existence of viral communication already present among the Irish population. The case studies indicated the motivation for developing viral campaigns revolve around customers possessing a strong digital presence on one or more social networks. The questionnaire strongly supports the claim that most customers have a presence on at least one social network with Facebook, Twitter, Google+, YouTube and LinkedIn being cited as the most popular. The most popular social network was Facebook, as 97% of the questionnaire respondents have Facebook membership, and 92% accessed their Facebook accounts daily. The sample size of 100 respondents although appropriate is too small to guarantee accurate results across the entire Irish population. In any future study on this area, a minimum sample size of 500 respondents would guarantee the accuracy of the findings. The questionnaire sought to understand the level of viral marketing being practised in Ireland; respondents were asked to provide up to three examples of viral marketing campaigns with which they are familiar. Although respondents gave 51% gave examples, only 6% of examples given related to Irish firms. Hence, viral marketing via social networks represents an untapped path for Irish firms to boost their business and brand image. By using a variety of viral tools, a brand can boost its presence on the internet, leading to a rapid increase in web traffic, gaining more links and seeding of the viral message. Similarly, 32% of questionnaire respondents indicated humour was the greatest influence in forwarding a message. Both Batchelors Peas and Hairy Baby Clothing grounded their campaigns in humour and surprise. In a cross analysis of the case studies and questionnaire, the researcher has drawn a number of correlations: Having a digital presence where a firm s customers may be accessed is vital; if the company is not communicating where the customers are engaging; it is challenging to generate business. Irish individuals demonstrate a tendency to participate in viral behaviour by engaging in word-of-mouse with friends and associates. Irish organisations partaking in viral marketing benefit greatly from the success of the brand s message being distributed among potential customers. Social networking is the predominant location for a brand s message to gain its virality as communication between customers is most prevalent there. Viral messages with humour and surprise are most likely to be forwarded. The Halo of Viral Marketing Viral marketing among Irish companies is attributed to the company s ability to encourage word-of-mouse. Although some Irish firms avail of viral marketing, it is not employed extensively. Professionals and consumers awareness of Irish organisations using viral marketing is low. The Irish population demonstrate considerable propensity to participate in viral behaviour by engaging in word-of-mouse with friends and associates, classifying the 4

5 prospective channel for organisations to reach out and communicate their brand message strategically. Advertising spend is significantly condensed by using viral marketing as the alternative to traditional print and media advertisements. Hairy Baby Clothing carries out most marketing activities through viral techniques and is the third most followed Irish retailer on Facebook. The organisation uses consistent viral campaigns, employing nostalgia and humour to deliver its message. Through an assortment of viral tools, a brand can enhance its presence on the internet, leading to the rapid upsurge in web traffic, attaining more links and establishing seeding of the viral message. Viral marketing offers organisations, irrespective of size, an equal platform in which to compete for awareness and interest. A viral message can deliver an influential and long lasting message for any organisation. Irish organisations low level of viral marketing is likely due to an absence of information to guide the creation of viral campaigns. The findings indicate Irish companies use viral marketing to achieve cost saving, influential and long-term marketing communications with target markets. There is scope for improvement in the way organisations implement digital technology to reach consumers and engineer interest in a brand. The benefits associated with viral marketing campaigns outweigh the risks. To encourage viral marketing amongst Irish organisations and to facilitate the application of viral campaigns, the author draws on the research to develop a best practice guide, termed The Halo of Viral Marketing. The halo denotes the factors pertinent to viral marketing success; the study concludes by detailing the model further (See Table 1 for a full description of the model). Each of the nine factors identified in the halo must be included to heighten a campaigns prospect of success. Table 1 The Halo of Viral Marketing 1. Purpose The aim of the campaign is decided, e.g. to create awareness; develop buzz about the brand; increase sales; or improve relationships with customers. 2. Audience The target customer is determined by the organisation as the viral campaign will be 3. Brand Personality 4. Core Benefit 5. Elaborate Plan 6. Emotions to Influence tailored around what interests the target customer. Five types of brand personality: excitement, sincerity, ruggedness, competence and sophistication (Investopedia.com, 2012). The organisation recognises its type and uses an appropriate emotion to deliver it e.g. if your brand creates excitement, then a campaign themed around fun and surprise is appropriate. The campaign should reflect the offering of the brand. If the company for example is a mobile network provider, the campaign may focus around communication to make it relevant to the brand. The difficult part of the process is creating the idea, which best covers the first four steps and results in the message going viral. Tools used by marketers include: e- books, software, free templates or product samples; tell-a-friend links, and video. It best to come with an idea, which has no direct link to the organisation or brand as it may be perceived by receivers as being too commercial. A campaign can use any of the following emotions to generate the desired response of viral message forwarding: surprise, joy, sadness, anger, fear, or disgust. 7. Seeding 8. Tracking If the message is not exposed to the widest possible number of receivers, it is unlikely to go viral unless it is an exceptionally high quality viral. Well known video sites, social networks and the use of popular individuals to seed the message are vital. If it is a good message with good content, the spread of the message will occur organically. The dispersion of the message should be tracked to gather feedback on its success and to determine what is effective and what is not. Learn who is interacting with the message and identify the type of places to further seed the message (i.e., brand advocate social media pages, and popular websites). 5

6 9. Assessing and Improving A viral message will not always work the first time. It may require a number of attempts before becoming effective. The campaign should be evaluated to determine what worked and what didn t work as well as how the content could be improved. What is learnt from one campaign can be used to better the next. References Arndt, J. (1967). Word of mouth advertising a review of the literature. New York: Advertising Research Foundation. Buttle, F.A., (1998). Word of mouth: understanding and managing referral marketing. Journal of Strategic Marketing, 6(1) pp Cakim, I., (2006). Online opinion leaders: a predictive guide for viral marketing campaigns, in Kirby, J., and Marsden, P., (eds.) Connected marketing: the viral, buzz and word of mouth revolution. London: Elsevier Ltd. De Bruyn, A., and Lilien, Gary., (2008). A multi-stage model of word-of-mouth influence through viral marketing. International Journal of Research in Marketing, pp Dobele, A., Lindgreen, A., Beverland, M., Vanhamme, J. and van Wijl, R., (2007). Why pass on viral messages? Because they connect emotionally. Business Horizons, 50(1) pp Dobele, A., Toleman, D., and Beverland, M., (2005). Controlled infection! Spreading the brand message through viral marketing. Business Horizons, 48(1) pp Dunay, P. (2012). Social Media Darwinism. Available at: Godin, S., (2000). Unleashing the ideavirus, [Online] Available at: Goldenberg, J., Libai, B. and Muller, E., (2001). Talk of the network: a complex systems look at the underlying process of word-of-mouth. Marketing Letters, 12(3) pp Helm, S., (2000). Viral marketing establishing customer relationships by word-of-mouse. Electronic Markets, 10(3) pp Hennig-Thurau, T., Gwinner, K.P., Walsh, G. and Gremler, D.D. (2004). Electronic word-ofmouth via consumer-opinion platforms: what motivates consumers to articulate themselves on the internet. Journal of Interactive Marketing, 18(1) pp Ho, J., and Dempsey, M., (2010). Viral marketing: motivations to move forward online content. Journal of Business Research, 63(9-10) pp Kozinets, R.V., Valck, K.D., Wojnicki, A.C., and Wilner, S.J.S., (2010). Networked narratives: understanding word-of-mouth marketing in online communities. Journal of Marketing, 74(1) pp Lindgreen, A., and Vanhamme, J. (2005). Viral marketing: the use of surprise, in Clarke, I., and Flaherty, T., (ed) Advances in electronic marketing, pp [Online]. Available at: alse Malhotra, N. (2010). Marketing research: an applied orientation, 6 th Edn. London: Prentice Hall. McWilliam, G., (2010). Building stronger brands through online communities. Sloan Management Review, 41(3) pp Meerman-Scott, D., (2008). The new rules of viral marketing: how word-of-mouse spreads your ideas for free. [Online] Available at: Pousttchi, K., and Wiedemann D.G., (2007). Success factors in mobile viral marketing: a multi-case study approach. International Conference on Mobile Business, 1(1) pp Rayport, J., (1997). The virus of marketing. Fast Company, 6(1) pp

7 Rohtak, M. (2011). Guerrilla Marketing. Marque Blog, January 11, Available at: Stelzner, M.A., (2012) social media marketing industry report: how marketers are using social media to grow their businesses. Social Media Examiner. Trusov, M., Bucklin, R.E., and Pauwels, K., (2009). Effects of word of mouth versus traditional marketing: findings from an internet social networking site. Journal of Marketing, 73(1) pp Wilson, R.F., (2005). The six simple principles of viral marketing. Web Marketing Today, pp WOMMA, (2007). Word of Mouth 101. Word of Mouth Marketing Association, pp. 1-8, Available at: 7

8 Appendix 1 Techniques Creating Positive Word-of-Mouth Communication. Techniques for Creating Positive Word-of-Mouth Strategy Definition Viral Marketing Creating entertaining or informative messages that are designed to be passed along in an exponential fashion, often electronically or by . Buzz/Guerrilla Marketing Using high-profile entertainment or news to get people to talk about your brand. Influencer Marketing Identifying key communities and opinion leaders who are likely to talk about products and have the ability to influence the opinions of others. Community Marketing Forming or supporting niche communities that are likely to share interests about the brand (such as user groups, fan clubs, and discussion forums); providing tools, content, and information to support those communities. Grassroots Marketing Organizing and motivating volunteers to engage in personal or local outreach. Evangelist Marketing Cultivating evangelists, advocates, or volunteers who are encouraged to take a leadership role in actively spreading the word on your behalf. Product Seeding Placing the right product into the right hands at the right time, providing information or samples to influential individuals. Cause Marketing Supporting social causes to earn respect and support from people who feel strongly about the cause. Conversation Creation Interesting or fun advertising, s, catch phrases, entertainment, or promotions designed to start word of mouth activity. Brand Blogging Creating blogs and participating in the blogosphere, in the spirit of open, transparent communications; sharing information of value that the blog community may talk about. Referral Programmes Creating tools that enable satisfied customers to refer their friends. Source: The Word of Mouth Marketing Association. Available at: (Accessed: 8 January 2013). 8

9 Appendix 2 Wilson (2005) Three Theories for Implementing a Successful Viral Marketing Campaign Successful Viral Marketing Campaign Theories Pousttchi and Wiedemann Rayport (1997) (2007) 1. Give away products or services 2. Provide for effortless transfer to others 3. Scales easily from small to very large 4. Exploit common motivations and behaviours 5. Use existing communication networks 6. Take advantage of others resources 1. Perceived usefulness by recipient 2. Reward for communicator 3. Perceived ease of use 4. Free mobile viral content 5. Initial contacts 6. First movers advantage 7. Critical mass 8. Scalability 1. Stealth is the essence of market entry 2. What s up-front is free; payment comes later 3. Let the behaviours of the target community carry the message 4. Look like a host, not a virus 5. Exploit the strength of weak ties 6. Invest to reach the tipping point Source: Adapted from Wilson (2005), Pousttchi and Wiedemann (2007), and Rayport (1997). Appendix 3 Factors Necessary for a Prosperous Viral Marketing Campaign Factors for a prosperous Viral Marketing Campaign 1. The message is perceived as beneficial, relevant and rewarding. 2. The message must be free to receive, view, use and forward. 3. Relevant and influential initial contacts used to spread the original message 4. The content is uncomplicated to view, use, and forward on. 5. Common human emotions and behaviours are exploited by the message 6. Reaches the tipping point and copes with surges in communication of the content Source: Adapted from Wilson (2005), Pousttchi and Wiedemann (2007), and Rayport (1997). 9

10 Appendix 4 In-Depth Interview Findings In-Depth Interview Findings Batchelors Peas MicksGarage Hairy Baby Clothing Company Background Employs over 230 people. Part of Valeo Foods Group. Produces baked beans, peas and pulse Large online retailer of car parts and accessories Began operation with 3,000 parts and stocks over 1,500,000. Provides nostalgic t- shirts and hoodies about Ireland Brand based around fun and nostalgia. Should Irish companies engage more in viral marketing? Yes Yes Yes Interview Participants View on Viral Marketing Motivation for choosing to engage in viral marketing Viral Campaign Name Lower budgets require the need to be innovative in how companies use money. Viral activities are less expensive than traditional marketing. Younger demographic targeted and it was identified many customers had a presence on social media. Decided a Facebook app and video content would generate buzz for the brand. Batchelors Bachelor of the Year Award Social Media should be integral part of the overall marketing strategy. Excellent for communicating and interacting with existing and new customers. Original reason for using social media was to assist the customer service aspect of the business. The viral aspect was incorporated later to interact with new customers and re-engage existing ones. Free-Friday Giveaway Should be an integral part of a company's strategy and it suits young smart companies who provide either an easy to remember brand, motto or product. Came natural to the company through the fun and positive nature of the products being sold. Easy to implement campaigns based on viral techniques. The Muppets Design a T Competition Duration Four Weeks On-going Two Months Did the campaign take a traditional or viral approach to marketing? The Results Viral - Mix of offline buzz marketing and online viral marketing. Advertising awareness of target market of females aged 30 to 44 increased 85% to 13% of overall market. Competition drove traffic and conversation to both Facebook and Twitter. Facebook App used 6,800 individual times Viral Generated excitement for brand through Free-Friday Giveaway competitions. Each Friday, company experiences surge in interaction from customers bringing on average 40 new engagers each week. Viral - Let the customers and fans on Facebook become part of the brand by involving them in the creation of a new t-shirt design. Over last two years, Hairy Baby has ceased advertising spend on traditional media. Leader in its sector of the retail industry. Viral marketing techniques helped the company win Best e-commerce Site