What is viral marketing

Viral marketing harnesses the network effect of the Internet and can be effective in reaching a large number of people rapidly as a marketing message is rapidly transmitted in the same way as a natural virus or a computer virus. It is effectively an online form of word-of-mouth communications which is sometimes also known as " buss marketing". The two main forms of online viral marketing are through passalong-emails or discussions within social networks. When planning integrated campaigns, it is important to note that the online viral affect can be amplified through offline media mentions or advertising either on TV and radio or in print.(Chaffey, 2009, p. 556)

The main purpose of viral marketing is to generate brand awareness and to leave consumers with a lasting impression of the brand.(Toth, 2006)


References
Dave Chaffey (2009). Internet Marketing Strategy, Implementation and Practice, Fourth Edition, 556. England: Prentice Hall


Toth, D. (2006, September 11). Viral marketing: The cure for the common marketing campaign? Market Strategy, 45 (37), 7. Retrieved March 21, 2007, from ProQuest database

Advantages of viral marketing

• It is an inexpensive way for marketers to promote their goods and services as viral marketing can be used very inexpensively with email, chat-rooms and bulletin boards.

• It is a very cost-effective way to reach large target audiences. it adds a personal touch with the consumer, because in amny cases the email or information was forwarded to them from someone they know and/or trust. This third party endorsement is convincing and powerful because we all rely on the opinions of trusted friends and family.

• Encouragement to users spreads the information and creates the potential for exponential growth for exposure, influence and demand.

Acknowledging:

http://sbaer.uca.edu/research/mma/2002/32.pdf

Disadvantages of viral marketing

• The problem with viral marketing is that you have no control over your branding. You don't know ahead of time whom an individual is going to contact. As a result, many of your messages may end up with people outside the target audience. Moreover, in some cases, individuals may modify the message or add something to it. This leads to variability in how your brand is perceived, something you don't want.

• Viral marketing appears to be an open invitation to spammers to make some quick money by using friendship to sell their goods and services.

• Consumers are being overwhelmed by a significant number of viral marketing messages, campaigns and promotions.Consumers are becoming annoyed and frustrated at the number of e-mails addressed to them from viral marketers.

Acknowledging:

http://www.clickz.com/823941

http://sbaer.uca.edu/research/mma/2002/32.pdf

Example of viral marketing - Hotmail.com

The classic example of viral marketing is Hotmail.com , one of the first free Web-based e-mail services. The strategy is simple:

1. Give away free e-mail addresses and services,

2. Attach a simple tag at the bottom of every free message sent out: "Get your private, free email at   http://www.hotmail.com/" and,

3. Then stand back while people e-mail to their own network of friends and associates,

4. Who see the message,

5. Sign up for their own free e-mail service, and then

6. Propel the message still wider to their own ever-increasing circles of friends and associates.

Like tiny waves spreading ever farther from a single pebble dropped into a pond, a carefully designed viral marketing strategy ripples outward extremely rapidly.

[source: http://www.wilsonweb.com/wmt5/viral-principles-clean.htm]

Example of viral marketing - Samsung's LED Technology

From the video above ,we can see that Samsung tries to generate interest of their LED technology through the internet. With the powerful sharing tools from youtube.com (as shown below), the video can be shared to everyone you want. Thus, the online viral affect can be amplified.

[video source: http://www.youtube.com/watch?v=D2FX9rviEhw&feature=player_embedded]