Viral Marketing and New Product Development Flashcards
Organic content
Content that a person feels intrinsically motivated to prepare and share
Consumer-solicited content
Invited by brands but non-compensated
A response to “call to action”
Incentivized content
Encouraged by the offer of an incentive
Sponsored content
idk it was an option
Accidental “Viral” Marketing
The “Beer Guy” Moment
Ocean Spray
Viral marketing campaign (VMC) =
companies using social interactions for distributing content, launching new products, and generating product-related WOM
__ _ __ brands are using some form of viral/influencer marketing
Nine of ten
Influencers are social media’s opinion leaders
Reward power Coercive power Legitimate power Referent power Expert power Informative power
PSI refers to a kind of psychological relationship experienced by
an audience in their mediated encounters with performers in the mass media
Media personalities perceived as friends
“illusionary” experience as if engaging in a reciprocal
relationship
Repeated PSI leads to parasocial relationship
Social media provides additional opportunities for PSR to develop
Categorization of Influencers
Mega: 1M+ followers
Macro: 100K+ followers
Micro: 10K+ followers
Nano: 500 to 10K followers
While influencers generally have a conversion rate of around 3%,
nano influencers are converting at upwards of 30% in some cases.
Influencers are required by the FTC to
disclose brand endorsements.
Warner Bros Home Entertainment was charged with failing to disclose payment to prominent YouTuber gamers to promote its game,
Middle Earth: Shadow of Mordor.
“Ford Fiesta Movement”
It was a grassroot campaign that made heavy use of online social media to build awareness and buzz for the 2011 North America Ford Fiesta
Viral Marketing
Give the products to a set of “seed” consumers so that they
can (1) experience the product and (2) then spread the word
about it to others
“Buzz” agents
Often used for relatively cheap consumer packaged goods
What is inherently social?
in social media marketing terms, a product that is naturally
talked about is inherently social
Consumers are more likely to talk about or share
information about brands or products that are inherently
social because
they are consumed with others
When a product is inherently social, customers are
intrinsically motivated to recruit/acquire new
users/customers on behalf of the company
Network externality:
exists in a good (e.g., a product,
service, or brand more generally) if the utility an individual
consumer derives from that good depends
on whether others consume it
If a consumer’s enjoyment of a product has nothing to do with
whether his or her friends are using it, the product
does not have
a network externality
If your enjoyment is increasing with the number of other
people who are using the product – we call it a
positive
network externality
If your enjoyment is decreasing with the number of other
people who are using the product – we call it a
negative
network externality
Formally: U = I + a*E.
If the product has no network externality, a = 0
If the product has a positive network externality, a > 0
If the product has a negative network externality, a < 0
The social media principle of building virality into
products to make them inherently social means you want
to maximize positive network externalities and/or
minimize negative network externalities:
You want “a” to be as large as possible, such that others’
contribution to your utility is as great as possible
If “a” cannot be positive in the context of your product, and if it
could be negative, you want it to be as close to zero as possible
