Viral marketing- social advertising or commercial endeavour: an experimental research

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This research paper aims to shed light on the theoretical understanding of viral marketing concept and its main components that have direct and indirect impact on any relational approach. This research is a combination of experimental and theoretical analysis of viral marketing.

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Nội dung Text: Viral marketing- social advertising or commercial endeavour: an experimental research

International Journal of Management INTERNATIONAL (IJM), ISSN 0976 JOURNAL – 6502(Print), ISSN 0976(IJM) OF MANAGEMENT - 6510(Online), Volume 6, Issue 5, May (2015), pp. 53-62 © IAEME ISSN 0976-6502 (Print) ISSN 0976-6510 (Online) IJM Volume 6, Issue 5, May (2015), pp. 53-62 © IAEME: http://www.iaeme.com/IJM.asp ©IAEME Journal Impact Factor (2015): 7.9270 (Calculated by GISI) www.jifactor.com VIRAL MARKETING- SOCIAL ADVERTISING OR COMMERCIAL ENDEAVOUR: AN EXPERIMENTAL RESEARCH Dr. Madhulika Ajay Sonawane Associate Professor, School of Management Studies, North Maharashtra University, Jalgaon,(M.S). India Prof. Dr. Pramod R. Chaudhari Dean- Commerce & Management, M.J.College Jalgaon ABSTRACT The Business organisations in India are looking forward to enter the new more challenging and expanded opportunities for doing business in light of the ‘Make in India’ policy. A new trend and a kind of new horizons are opening forth for entrepreneurs through advanced technology, investment and ease of doing business pattern. The changing patterns and scope of marketing has lead to the need of exhaustive, targeted and focused business strategies that will make the organisation to not only sustain the competition but also to set path for a long run competitive advantage in global competition. Viral marketing is not an age old term but the most effective competitive positioning strategy used in manufactured as well as service sectors for marketing. Several Authors and researchers tried to define the concept of viral marketing through different components, concepts and variable assumptions; however they do not give a standard definition. there exists some similarities in coverage of the idea in experiments and practice , so expressed in different forms author to author. This research paper aims to shed light on the theoretical understanding of viral marketing concept and its main components that have direct and indirect impact on any relational approach. This research is a combination of experimental and theoretical analysis of viral marketing. Key words: Viral Marketing, Business Strategies, Competitive Positioning. PREAMBLE The Changing business environment has always led challenges in strategising for the commercial motives of the business firms both domestic & MNC’s. The trends in each and every sector broadly of manufacturing and services has taken a shift from its conventional business pattern 53
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 6, Issue 5, May (2015), pp. 53-62 © IAEME to the modern more sophisticated , professional and goal oriented marketing strategies. various techniques and tools of marketing are been innovated ,created and restructured as per the requirement of the competition and changing patterns of doing business. The customers have also changed their preferential ways of buying and choosing the products time to time and location to location. In this current era of technological advancement the tools and mediums of advertising and making customer aware of the product/ services has changed. Now more effectively influencing customers in every segment targeted by the businessmen has an option to reach customer within seconds and place the product features to him for deciding to buy. Though viral marketing is not a recent term or strategy used in business world it is more deliberately & exhaustively being used now-a-days through access to e- Facilities like Internet & Mobile apps. In broad terms ‘viral marketing’ is the online work-of-mouth is a marketing technique that seeks to exploits existing social networks to produce exponential increases in brand awareness. Passing along email is even easier than writing comments. Beyond this, pass-along email seems particularly well suited for the spread of images and/or verbal content that is too detailed to be disseminated via word of mouth. The Internet has radically changed the concept of work-of-mouth, so much so that the term Viral Marketing was coined by venture capitalist Steve Jurvetson in 1997. The term was used to describe Hotmail’s e-mail practice of appending advertising for itself to outgoing mail from its users. The assumption is that if such an advertisement reaches a ‘susceptible’ user, that user will become ‘infected’ i.e. sign up for an account and can then go on to infect other susceptible users. In the Hotmail case, the viral activity turned out to be one of the most successful viral marketing campaigns of all time: simple text advertisement appended to each user’s e-mail service spent a mere $50,000 on traditional marketing and still became the world’s leading e-mail provider almost overnight, with 75 million users (Phelps et al., 2004). OBJECTIVES OF THE STUDY 1. To study the concept & usage of viral marketing strategy (tool) by business organisations. 2. To review the literature on viral marketing. 3. To find out the experimental results for small car (video & images) through viral marketing. CONCEPTUAL FRAMEWORK & LITERATURE REVIEW Definition Viral marketing can be defined as a marketing technique that seeks to exploit pre-existing social networks to produce exponential increases in brand awareness, through viral processes similar to the spread of an epidemic. It is word-of-mouth delivered and enhanced online; it harnesses the network effect of the Internet and can be very useful in reaching a large number of people rapidly. From a marketing perspective, it is the process of encouraging individuals to pass along favourable or compelling marketing information they receive in a hypermedia environment: information that is favourable or compelling either by design or by accident. Motives for viral marketing The broader motives of viral marketing are tactical market positioning of product at either the launching stage or when any innovation or test marketing is to be done. The creation of technologies such as SMS technology, satellite radio and Internet ad blocking software are driving a fundamental shift in the way the public consumes media and the advertising often tied to it. Television advertisements, radio spots, online ads and even e-mails are facing increasing competition for effectively capturing the viewer’s attention and provide positive returns on investment (ROI) for the 54
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 6, Issue 5, May (2015), pp. 53-62 © IAEME marketer. More about the consumers are becoming increasingly immune to mass marketing and advertising, so this form of marketing offers something that does not feel like they are being sold to, making them more receptive to the offer. This competition, coupled with the rising cost of media buys, has caused marketers to search for an alternative means to reach the customer. Viral marketing is an attractive solution because it utilizes the free endorsement of the individual rather than purchasing mass media to spread the word. Because the distribution model is free, viral can potentially be lower cost and more effective than traditional media. For instance to better understand the concept a study by sharp Partners (Business Wire, 2006), is referred here which depicts the efforts taken by award-winning interactive marketing agency, this study revealed that 89 % of adult Internet users in the United States share content with others via e-mail. Furthermore ‘Sharpe Partners’ study on viral marketing also found that 63 % of the respondents share content at least once a week, with 25 % sharing daily or almost daily, and as many as 75 % of the respondents forwarding this content to up to six other recipients. ADVANTAGES OF VIRAL MARKETING • It incurs very little expense since the individual passing on the referral carries the cost of forwarding the brand message. Viral marketing offers SMEs the opportunity to target a whole new set of customers while keeping distribution costs to a minimum. • Unlike traditional advertising viral is not an interruptive technique. Instead, viral campaigns work the Internet to deliver exposure via peer-to-peer endorsement. • Viral campaigns, whether ultimately liked or disliked, are often welcomed by the receiver. The act of forwarding electronic messages containing advertising is voluntary rather than a paid testimonial or a mass ad campaigns and thus may be viewed more favourably by the recipient. The focus is on campaigns containing material that consumers want to spend time interacting with and sp4reading proactively. • Those forwarding the messages will be more likely to know which of their friends, family members and work colleagues have similar interests and are thus more likely to read the message: hence, more effective targeting. Here, the term interests’ refers not only to the narrow sense of just the product or service but also includes the way the message is presented, such as the humour, the artwork, or the medium itself. DISADVANTAGES OF VIRAL MARKETING Viral marketing, like all marketing is hit or miss. However, viral marketing by nature is often more risky or controversial than traditional marketing. If done improperly viral marketing can backfire and create negative buzz: • If particular software is needed that is not widely used, then people will not be able to open or view the message • Many people receive viral marketing messages while at the office, and company anti-virus software or firewalls can prevent people from receiving or viewing such attachments. • For a viral marketing campaign to be successful, it must be easy to use. For example, if the promotion is some sort of game or contest, then asking for referrals should be an option immediately after the game, not as a condition to play. 55
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 6, Issue 5, May (2015), pp. 53-62 © IAEME In the same line the researchers Danilo Cruze & Slough (UK) 2008 stated that-Two forms of viral marketing were identified, “random” and “placed virals”. The paper presents a viral marketing evaluation framework that identifies three key objectives and their particular evaluation criteria. Financial objectives and the need to measure the return on investment were identified as previously undocumented key issues. Using the framework to measure the success of a campaign can help clients and agencies be more accountable and effective with respect to viral campaigns. A Study into the Effectiveness of Viral Marketing over the Internet conducted by Victoria Fairbank 2008 at University of Gloucestershire UK files that- The study investigates the use of viral marketing on the Internet, and assesses its effectiveness, in terms of generating potential sales, and increasing brand awareness. Many viral marketing techniques are being used to target consumers, however it has been concluded that not all techniques are being utilised in an effective way on the Internet. The general attitude towards viral marketing, from the point of view of consumers, is that the information provided in viral marketing campaigns, is useful for making purchasing decisions. This study has concluded that businesses need to use a variety of viral marketing techniques, in order to market effectively over the Internet. Recent studies have shown that the majority of people who receive some kind of email advertisement will forward it on. A study by Zimmerman (2001) found that 81% of recipients will forward a message to at least one other person and 49% will send it to two or more others. When considering those percentages, it becomes clear how quickly these viral messages spread, and therefore why businesses need to harness them to aid their marketing objectives Spero and Stone (2004) suggest that the digital world is the place in which a brand communicates with its young market, with one in four people aged between seven and sixteen estimated to have replaced watching television with online activities in recent years. As Chaffey (2003) says, the recipient of email marketing campaigns is not usually given significant opportunity to opt-in or output of a campaign. Companies don’t usually like to ask beforehand whether the individual would like to take part in an online game for example, as this takes away from immediacy of playing the game. However email addresses under the Data Protection Act are classed as personal data and this decision to opt-in or out should be recognised RESEARCH METHODOLOGY This research is designed based on a combination of review of marketing strategy used by business organisation and experimentally putting a viral marketing campaign and analysis of the results through questionnaires sent to those who were send viral information through email & whatsApp (mobile app), as a review and video of a small car to be launched in India . The results of these questionnaires systematically recorded & are analysed to reach the conclusion. Both Primary data through questionnaire & secondary data through books, Journals and internet links is used as a tool of data collection. The sample size was limited to 100 friends groups on whatsapp and email of the researcher all of these variables were stratified to be aspirants of buying a four wheel small car. Data interpretation & Analysis 1. Preference to buying due to viral communication Responses Yes No N.a Total No of respondents 37 52 11 100 56
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN SSN 0976 - 6510(Online), Volume 6, Issue 5, May (2015), pp. 53-62 © IAEME Preference to buying due to viral commnication 100 52 37 50 11 No of respondents 0 yes no n.a 2. Reasons for buying the products/services due to e- e recommendations Responses Not required Not trusted No budget Total No of respondents 23 51 26 100 No of respondents 26 23 Not required Not trusted No budget 51 3. How did you feel after receiving the video and review of small car from your friend? Responses Like Dislike undecided Total Results % 48 23 29 100 acceptance of video & review 29 Like 48 Dislike undecided 23 57
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN SSN 0976 - 6510(Online), Volume 6, Issue 5, May (2015), pp. 53-62 © IAEME 4. Do you know about this product (small car)? car) Results Yes No not replied Total Responses % 67 21 12 100 Awareness of small car 100 67 50 21 12 Results% 0 Yes No not replied 5. How did you come to know about this car? car Sources Co’s.. website Television Ad WhatsApp email others Results% 8 0 53 24 15 source of communication others email Whatsap Results% Television Ad co. website 0 10 20 30 40 50 60 6. Would you be interested in buying the car as recommended by your friend? Responses Yes No not replied Total Results % 34 57 9 100 Interest in buying car due to recommendation from friend 100 57 34 50 9 Results % 0 Yes No not replied 58
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN SSN 0976 - 6510(Online), Volume 6, Issue 5, May (2015), pp. 53-62 © IAEME 7. Would you forward this video to your other friends? Reponses Yes No not replied Total Results % 38 27 35 100 Initiation to forward the information to other friends 35 38 Yes No 27 not replied 8.. What medium will you prefer to forward and send a review this video of new small car? car Sources Face to face Telephonic Whatsap email others Results% 12 4 36 41 2 Preference to medium of forwarding others email Whatsap Results% Telphonic Face to face 0 10 20 30 40 50 9. What kind of feedback are you likely to write your review of the car? Reponses Positive Negative Neutral Total Results % 42 25 33 100 59
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN SSN 0976 - 6510(Online), Volume 6, Issue 5, May (2015), pp. 53-62 © IAEME preference to type of feed back 45 40 35 30 25 Results % 20 15 10 5 0 Positive Negative Neutral 10. Have you ever written a online review or given feed back about a product or service Frequency Monthly Quarterly Half yearly Yearly None/ no Total Results% 6 18 19 10 47 100 no of online reviews monthly 50 40 30 47 none/ no 20 6 quarterly 10 18 0 Results% 10 19 yearly half yearly 11. Have you ever provided a company with a friends email address or mobile no. & was incentive provided for doing so? Responses yes no not replied total Results% 47 32 21 100 Incentives provided 14 18 68 100 60
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN SSN 0976 - 6510(Online), Volume 6, Issue 5, May (2015), pp. 53-62 © IAEME 100% 90% 80% 70% 60% Incentives provided 50% 40% Results% 30% 20% 10% 0% yes no not replied 12.. Would you purchase the car after reading the good review from about 53% of your friends? Reponses Yes No not replied Total Results% 39 36 25 100 Purchase decision based on recommendations 25 Yes 39 No 36 not replied FINDINGS The study was as experimental activity backed with the questionnaire but the exact replies and replies to the feed back questions very verified and then the results were noted. The friends group selected as sample were all those who are aspirant four wheeler buyers. and also on whatsApp and email contact. The Respondents 48 % liked that they were sent this information but only 31% trusted on the information and 39% accepted the purchase decision based on viral marketing. marketing. The results indicate that the use of incentivised viral marketing is not being effectively effect utilised enough on the Internet. This is because the majority of users stated they do not provide businesses with an additional email address, of a friend or acquaintance, when prompted to, which suggest that incentives are not being provided. This Th study has initiated that online user reviews are an effective way in gaining potential sales for businesses, and the results also found that users are more likely to write good reviews on a product or service than bad ones. 61
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 6, Issue 5, May (2015), pp. 53-62 © IAEME This suggests that businesses should not feel uneasy about giving users control in advertising their products, as the comments written are likely to be in their favour. It has been concluded from results of the experiment that viral marketing material created by companies needs to include information that enables users to identify the products being promoted, so that it is effective in generating potential sales. CONCLUSION Now a days the mobile networks and appa provide an ease of viral marketing .While e-mail may have been the original catalyst, the advent of social networks, online communities and chat- rooms provide the ability to distribute information exponentially faster than ever before. Where word-of-mouth marketing could take weeks or months to reach a thousand people, viral marketing can reach hundreds of thousands or millions in a matter of days or hours. The spread of an effective viral marketing campaign is akin to an epidemic outbreak of a virus, limited only by the potency and relevance of the marketing message. Through this study again it is been found that a personal recommendation is more powerful than any advertising campaign, and viral marketing’s strength is based on the fact that people are more likely to respond to a marketing message or take interest in a product if it comes with the endorsement of a friend. Finally, it is concluded that the majority of users will pass-on marketing material to one another. This suggests therefore, that businesses need to target these users effectively to enable their viral campaigns to be successful in generating sales. REFERENCES 1. Marketing Strategy & Competitive Positioning, (2010), Graham Hodey, Nigel, Brigiffe, Pearson Publications. 4th Edition. 2. Tapan K Panda (2012), Marketing Management Text and Cases 2nd Edition, Himalaya publications ltd. N.D. 3. S. Sumathi P. Saravanavel (2009), Marketing Research & Consumer Behaviour, Vikas publishing house Mumbai. 4. Dr. P.D. Patil & Dr. M.A.Sonawane ‘Customer Service—Dimension in Marketing Management’, Spectrum’ E- Journal of KBSCMR, ISSN No. 0973-1513, Vol. 1, Feb.2010 Pg. 94-95. 5. Danilo Cruze & Slough (UK) 2008, Viral Marketing’, Journal of Marketing Practice: Applied Marketing science, Marketing intelligence & planning ISSN No. 0263-4503. 6. Dr. M.A. Sonawane & Dr. A.N. Chaudhari, ‘ Significant Advances in Information Technology for Organisational Management’, International Journal of advances in Management, Technology & Engineering sciences- ISSN 2249-7455, vol 1. Issue 10, July 2012. Pg.no. 57-60. 7. Victoria Fairbank 2008, A Study into the Effectiveness of Viral Marketing over the Internet- University of Gloucestershire (UK files.) 8. Dr. K. G. Nalina and B. Palanivelrajan, “Micro Level Empirical Study on Viral Marketing In Madurai” International Journal of Management (IJM), Volume 6, Issue 1, 2015, pp. 233 - 238, ISSN Print: 0976-6502, ISSN Online: 0976-6510. 9. Dr. Mrs. M.Muthuchitra, “Micro Level Empirical Study on Viral Marketing In Madurai” International Journal of Management (IJM), Volume 4, Issue 4, 2013, pp. 82 - 85, ISSN Print: 0976-6502, ISSN Online: 0976-6510. 62