Question

In: Economics

Word-of-mouth communications can be very persuasive. You’re more likely to see a movie or buy a...

Word-of-mouth communications can be very persuasive. You’re more likely to see a movie or buy a clothing brand because your friends recommended them. This is viral marketing. However, marketers are harnessing the power of viral marketing with creative tactics. So called ‘stealth marketing’ are criticized because consumers don’t know they are being marketed to. For example, Sony Ericsson came under fire when it became known that it hired actors to pose as tourists asking strangers to take their picture with the cool T68i phone. Wal-Mart was criticized for a blog about Laura and Jim RVing around America, stopping at Wal-Marts across the country and writing glowing things about the retailer. Wal-Mart never disclosed that it was sponsoring the trip.

Stealth Marketing initiatives are not openly presented as promotional tactics. Learn more about this practice by doing internet research and decide if it is ethical. Can some of the tools used in public relations be considered stealth marketing? How about product placement in movies or television shows?

Procter & Gamble, while not paying moms to talk about its products, provides samples and coupons to these influential people recruited into their Vocalpoint network (www.vocalpoint.com) in hopes that they say positive things about them to others. Is this an example of viral marketing or of stealth marketing?

Solutions

Expert Solution

Viral Marketing:

Viral marketing is something that goes viral or in other words spreads fast and wide acorss its users or audience. Here information spreads from person to person either by word of mouth or via social media platforms such as youube, whatsapp, tiktok, facebook, instagram, twitter etc.

The objective is to create exponential growth of the product or service among its users and add new users. This they do by using its users and all the above mentioned social media platforms. Since Viral marketing is done with an intended purpose as such, people and social media platform provides a perfect ecosystem.

Stealth Marketing:

Stealth marketing is a marketing tool used to advertise products and services to users without them being realised that they are being marketed to. One fine example in this case was that of Blackberry phone. Here they used beautiful lady who walks in to a bar and flirts with male patrons. Once both gets comfortable, Lady takes out her Blackberry phone for the male patron to put down his number so that they can go on a date. The intent was to make the male patron get exposed to Balckberry and its usage. So there is an undercover or unspoken approach to reach the male patron.

Upong reviewing the vocal point website, it is observed that in the beginning client makes a purchase of product and then they are offered an e-gift worth more than what they purchased. So I being a patron on receiving the e-gift would highly recommend my friends and family to use one of their products. I may also go on social media platform to talk about this e-gift benefit that one receives after the first purchase. This whole process seems very organic in advertising and promoting products. So, Vocalpoint.com is a case of viral marketing.

It will not be Stealth Marketing as there is no unpoken or undercover approach to make people get used to products. In vocalpoint.com consumer gets the option to go through product details step by step and only after they get convinced purchase takes place. E-gift works as a tool to drive word of mouth marketing ploy among friends and relatives of the consumer.


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