1. stealth MARKETING

2. How is stealth marketing different from viral marketing? Why are there ethical concerns about stealth marketing programs? How do stealth marketing campaigns influence consumer buying decisions? essential QUESTIONS

3. stealth MARKETING concepts guerilla marketing – an unconventional system of promotions that rely on time, energy and imagination rather than a large budget. Example: Pepsi truck at Palmer High School Video clip – scratch repair, Oreo example, “Fast Lane”, Ikea, McDonald’s Video clip – scratch repairOreo exampleFast LanekeaMcDonald’s buzz marketing – term used for “word of mouth” marketing; similar to viral marketing undercover (stealth) marketing – a subset of guerilla marketing where consumers may not realize that they are seeing advertising & promotion. viral marketing and viral advertising refer to marketing techniques that use pre-existing social networks to produce increases in brand awareness or to achieve other marketing objectives (such as product sales) through self-replicating viral processes, analogous to the spread of pathological and computer viruses. It can be word-of-mouth delivered or enhanced by the network effects of the Internet. (Sample 1, 2, 3)123

4. stealth MARKETING concepts The underlying concept of stealth marketing is quite simple…maximum results with minimal costs Stealth marketing aims to generate buzz about a product, specifically a pre-launch product, among the potential buyers Financial risk in these types of campaigns is relatively small, especially compared with the potential for massive appeal to the public

5. stealth MARKETING big business Stealth marketing is BIG business According to a 2006 report, stealth marketing rakes in $100-150 million and is growing at a staggering 100% rate per year (this means $200-300m in ’07, $400-600m in ’08 and over $800m in revenues expected for ’09)

6. stealth MARKETING keys The keys to stealth marketing in a person-to- person event are “spontaneous” and “unsolicited” Overall, the person doing the marketing must look, act and sound like a peer rather than a planted sales person or advertiser (Example)Example Who produced the video? Ultimately, ALL stealth marketing is done under the radar in such a way that the consumer does not realize they are being marketed to. Jet Blue Airlines examples 1, 212

7. stealth MARKETING Define stealth marketing. How is stealth marketing different from viral marketing?

8. stealth MARKETING Stealth Marketing Video from 60 Minutes

9. stealth MARKETING risks Risks associated with stealth marketing are considerable, considering that the backlash of a failed campaign Consumers who feel “duped” by undercover marketers often become angry over being misled and begin their own viral campaign against the company

10. stealth MARKETING reality Stealth marketing is more than just marketers being in public and having people try their products Stealth marketing also relies on product placement and news releases

11. stealth MARKETING Product placement “news” release Product Placement examples

12. Stealth Marketing Examples Toyota Prius Solar Flowers with free WiFi

13. stealth MARKETING Stealth Campaigns that Worked

14. stealth MARKETING ethical issues the question facing many marketers today is whether or not the consumer should be allowed to control their exposure to advertising the goal of any marketing campaign is to change the behavior of the consumer

15. stealth MARKETING ethical issues In 2006, the FTC (Federal Trade Commission) released a report that requires marketers to be transparent about their relationship with corporations The FTC refers to the failure to act as non-obvious disclosure & has deemed it a finable offense

16. stealth MARKETING What are some of the ethical issues with stealth marketing? Why are there ethical concerns about stealth marketing programs? Is it possible to legislate/regulate ethical behavior in marketing?

17. stealth MARKETING campaigns Stealth marketing campaigns…when completed ethically…are quite simple and very important to the overall marketing strategy of the product/service

18. stealth MARKETING Step 1 – Generate Buzz (go viral) Step 2 – Strategically place your product in the public eye Step 3 – Your pitchman MUST look and sound like one of the target audience’s peers Step 4 – Place messages at the end of all e-mails Step 5 – Everything must appear spontaneous & genuine Step 6 – Have fun with your message

19. stealth MARKETING consumer behavior behavior occurs either for the individual or in the context of a group (peer influence) behavior involves both the use and the disposal of products, as well as how they are purchased the impact on society is also of relevance (i.e. fast food, easy credit, etc.)

20. stealth MARKETING consumer behavior behavior also depends on the context of the culture and the subculture researcher Gert Hofstede interviewed IBM executives in various countries and found that most cultural differences fall into one of four categories

21. stealth MARKETING consumer behavior Individualism v. Collectivism Power Distance Masculine v. Feminine Uncertainty Avoidance

22. stealth MARKETING relevance culture matters, depending on whom you are targeting for your product from a stealth marketing perspective, you have to have the right person with the right product in the right place…otherwise it will all look fake and forced, leading to a potential customer “revolt”

23. stealth MARKETING segmentation, targeting & positioning it is also imperative to determine which kinds of customers exist, select which ones are best served, and then implementing a segmentation strategy that optimizes products/services for that specific market some markets will be more susceptible to stealth marketing than others, based on behaviors, social networks, willingness to talk, etc.

24. stealth MARKETING group influences recall the concept of “ballying a tip” from Pitchmen; when someone is part of a crowd, a mob mentality can lead them to make a purchasing decision people have a desire to be part of the “in- crowd” and, as a result, will often make purchasing decisions based on what they see others doing

25. How is stealth marketing different from viral marketing? Why are there ethical concerns about stealth marketing programs? How do stealth marketing campaigns influence consumer buying decisions? essential QUESTIONS

26. Assignment: Choose a company Develop a “stealth” marketing activity or campaign for the company. Describe the activity in detail. Describe the objective of the campaign. Describe the intended response for the campaign. Present as a PowerPoint