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Trends & Insights     >     Publications   >     Consumer Insight Magazine

Alternative Marketing Vehicles: The Future of Marketing 'To One'

Have you blogged yet? If the answer is yes, then you're either a hip Connector who is always first to be in the know, or an information-hungry Maven who wants to know everything there is to know about blogs, the latest Internet trend. Connectors and Mavens are two of the essential enablers critical to that social and marketing phenomenon known as word- of-mouth, the glue that holds together the alternative media universe.


In his best-selling book The Tipping Point, author Malcolm Gladwell asserts that trends, in everything from fashion to crime to media, develop and spread like viruses thanks to Mavens, Connectors and Salesmen. "Mavens are data banks. They provide the message. Connectors are social glue: they spread it. But there is also a select group of people—Salesmen—with the skills to persuade us."

An Array of Alternatives
Alternative media, by any other name, including word-of-mouth, is a confusing collection of attempts to reach the consumer while bypassing traditional advertising vehicles. Some refer to it as buzz marketing. Others prefer street marketing, guerrilla marketing, renegade marketing, virtual marketing, ambush marketing, vanguard marketing, ambient marketing, covert marketing, under-the-radar marketing, below-the-line marketing, diffusion marketing or viral marketing.


Regardless of the moniker, alternative media rely on the influence of Connectors, that special category of people who have mastered what sociologists call the weak tie or social acquaintance. The larger their network of social acquaintances, the more power Connectors wield in society, and the better positioned they are to trigger trends. Marketers also know them as influentials, carriers, trendsetters and evangelists.

Similarly, Mavens stand at the ready, sharing the detailed knowledge they have gleaned from reams of research, product comparisons and personal testing. As Gladwell sees it, Mavens "are the folks who willingly read the instruction manuals, test drive cars and Beta test software. They are the early adopters, the few who thrive on complexity and simply don't shut down. Their behavior is distinctive."

The Freebie Factor
Tapping into this kind of people power works. Just ask Ford Motor Company about the success of its product seeding campaign for the Ford Focus. The company gave advance models to employees of celebrities like Madonna and Adam Sandler. Why? So the cars would become de facto commercials parked in front of the hippest clubs, restaurants and parties in town. From a base of a mere 120 influential Gen Y hipsters in five key markets, Ford moved a fleet-worthy 286,166 units in its first year.


This "appe-teaser" strategy also paid off big for Hotmail when launching its free e-mail service. Each subscriber e-mail went out with a recruitment message to the recipient and the implied endorsement of the sender. The net result was what some view as the fastest new product adoption rate in history—from zero to 12 million members in just 18 months.

Tag Team Teasers
If a beautiful woman approaches you in a bar, slips a note in your pocket and whispers "Save me" in your ear, there's nothing salacious about it. Call the number to find out her fate, and instead, you'll ring through to a pitch for Majestic, a suspense/thriller game from Electronic Arts. In case you're curious, chivalry still reigns, and about 60 percent of solicited men called the number.


Vespa hired a posse of great-looking posers and dispatched them to hang out on scooters near Los Angeles hot spots like Sunset Plaza, Melrose and the Third Street Promenade. A query about the motorbikes earned the inside scoop that trendsetters like Sandra Bullock and rapper Sisqo are Vespa owners, as well as the address and phone number of the nearest Vespa boutique.

Score one for the new generation of buzz marketers. While those schooled in so-called "classical" guerrilla marketing techniques may hold that viral marketing drives consumers to the product, many new age practitioners like Big Fat, a Manhattan-based viral marketing agency, are going a step further. They recruit street marketers to take the product to the people for clients like Nestlé, Nintendo and Pepsi.

Other tag teams earning notice for their ambush marketing tactics include:

  • Lucky Strike Force crews—armed with iced coffee and beach chairs in summer, hot coffee and cell phones in winter—attempted to make exiled smokers more comfortable outside office buildings.
  • Hebrew National "mom squads" hit the road in SUVs, firing up the barbecue grill for impromptu backyard parties replete with product samples and coupons.
  • Sony Ericsson couples equipped with the new T68i cell phone/video camera wandered the streets of New York and Los Angeles pretending to be tourists. Passers-by kind enough to agree to take their picture got an unsolicited product pitch in return.

What's the Buzz About?
In a 44-page study of word-of-mouth based on Internet chat room participation, Professors David Godes (Harvard Business School) and Dina Mayzlin (Yale School of Management) define buzz as the transfer of information from someone who is in the know to one who isn't.


The study compared chat room buzz about new television shows with Nielsen ratings to determine if a statistical correlation existed. It did. Other learnings included the fact that for buzz to have some bite, chat must reach across multiple communities or newsgroups with differing demographics. Buzz, like so many other phenomena, is relatively short-lived, at least in the case of television shows. By week six, buzz had faded into background noise.

Everybody's Doing It
Word-of-mouth now influences two-thirds of all consumer product sales, according to a May 2001 report by the venerable McKinsey & Co. Once the exclusive province of renegade boutique agencies bringing counterculture products to market, viral marketing has literally spread like a cold.
One driver behind this shift in ownership is the emergence of ad-blasting technologies like TiVo. Personal video recorders (PVRs) enable consumers to block out the commercials that were once the bedrock of consumer product advertising. PVR users willingly opt out of commercials some 72.3 percent of the time, a rate ringing alarm bells among advertisers.

Another factor is economics. With the cost of a 30-second television spot pushing $450,000 for a single airing, manufacturers are game to try an alternative that boasts a price tag just a fraction of that amount. No expensive media buys, pricey location shoots or costly creative sessions. Just experiential delivery straight to the consumer.

Then there's the powerful punch of a viral message delivered in a seemingly personalized, one-to-one manner. These surprise, spontaneous encounters prove particularly appealing to the media savvy cohort born between 1979 and 1994. It's no accident that "word," as deployed by rappers everywhere, is synonymous with truth. So too is the perception of word-of-mouth.

Why Word-of-Mouth Works
Complexity gives rise to confusion, confusion to isolation, and isolation to immunity. Gladwell believes that word-of-mouth works because, in the face of complexity, "people embrace more primitive social bonds and turn to the very personal networks run by Mavens and Connectors."


The initial response to complexity is confusion. As people seek more information for clarity, it merely adds to the data overload. A second response to complexity is isolation—the need to limit social connections and media options to the trusted few. Eventually, people become immune to media influence, responsive only to known influentials.

According to Gladwell, "A great example of media immunity is the telephone. In the beginning, when the phone rang, it was a friend calling. Now we need caller ID to filter out the telemarketers. When e-mail first arrived, we'd rush home to open all four or five of them. Today we cringe at the thought of wading through hundreds of e-mails, many unsolicited."

One way to circumvent built-up media immunity: reduce market complexity by simplifying the product offering, from fewer SKUs to more versatile products. Combining conditioner with shampoo in a single product was liquid genius. So too was the convenience insight that converted the cap on a bottle of laundry detergent into a measuring cup for the product.

Co-Opting a Medium
Much like products, it appears that media may have life cycles as well, ones that read like a modern day allegorical tale. In the beginning there was a medium. And it was pure. And the marketer took it and shaped it to his own purpose. Television begat the infomercial. Telephones begat the telemarketer. The World Wide Web begat the spammer. Advertising has so saturated the media that by some estimates, the average North American encounters some 3,000 ads each day.


Gladwell cites the Blair Witch Project marketing campaign as a seminal example of the co-opting of electronic media. The first time out, film promoters took advantage of the naiveté of web surfers who accepted postings as honest and cool. The second time around, the sequel and the web campaign both bombed. The medium and the consumer had both matured.

Back to Blogs
The search for new, more believable electronic vehicles brings us back to blogs, short for web logs. According to NetLingo, the Internet dictionary, blogs are a frequent, chronological publication of personal thoughts and web links. When compared with the slick production values of corporate web sites, blogs have the same homespun appeal as flyers stapled to telephone poles: crude but credible.


Initially functioning as online diaries of a sort, many mutated in the post-September 11 world into virtual political platforms. Catherine Seipp, a contributor to the American Journalism Review, writes "Blog now refers to a web journal that comments on the news—often by criticizing the media and usually in rudely clever tones—with links to stories that back up the commentary with evidence."

Just ask Trent Lott. Blogs blotted him off the political landscape, courtesy of Internet opinion pages including Instapundit and Talking Points Memo. New York Times columnist Paul Krugman credits these two blogs with keeping the spotlight focused on Lott's controversial remarks at Strom Thurmond's 100th birthday party until conventional media were forced to act.

Blogging for Business
Given the natural progression of any media, blogs too are being commercialized. Still in their infancy as a business tool, commercial blogging pioneer Macromedia offers pointers to interested marketers on "keeping it real":

  • Appoint company evangelists to author blogs.
  • Establish guidelines for postings.
  • Accept that blogs are the voice of passionate individuals, not the company.
  • Embrace an unwavering commitment to honesty.

However, one must tread carefully when tampering with emerging media. One marketer recently experienced a stampede of negative publicity among the blogging community when it recruited some well-known bloggers to add links to a web site for a flavored milk drink.

Captive Marketing
Feel like Big Brother is watching? Can't escape the electronic eye? Then expect that sense of paranoia to increase as captive marketing catches fire. Small video screens bearing a mix of news, infotainment and commercials have migrated from airplanes to taxi cabs, elevators, stores, rest rooms and even the golf course.


Try these stats on for size:

  • Captivate Network has installed 4,200 flat video screens in 400 North American office buildings to take full advantage of the six minutes per day office workers spend in elevators.
  • Comedy Central promoted a new show by placing ads in 500 bar bathrooms in four cities.
  • Seven companies are road testing their interactive video technology in 400 New York City taxis.
  • If captive advertising tees you off, avoid the 21,960 golf carts fitted out with mounted screens.

A Cautionary Tale
In a recent Time magazine article, the Center for Digital Democracy, (an organization committed to the development and encouragement of noncommercial, public interest programming), likened guerrilla marketing to the "brand washing of America," a not-so-subtle reference to brainwashing techniques. Adbusters bemoans what it terms "cultural corruption," an unavoidable offshoot of alternative media activities.


The question for new media is simple: When do you cross the line between subtlety and subterfuge? Author Fay Weldon lost credibility when it was discovered she had been paid by Bulgari to feature the brand in her latest tome, titled The Bulgari Connection. Sony Pictures Entertainment took it on the chin when favorable critic quotes in movie ads proved to be works of fiction.

Lauren Bacall's blatant flacking for Visudyne, a macular degeneration treatment, on NBC's Today Show, prompted the competing CNN network to revise its disclosure policies. Even starchy IBM proved vulnerable to the unexpected pitfalls of under-the-radar marketing techniques. Street teams stenciling sidewalks as part of the "Peace, Love, Linux" campaign garnered tons of press... and a $100,000 fine for defacing San Francisco sidewalks.

Perhaps the most egregious example of a good thing gone bad is the New York couple, Jason Black and Frances Schroeder, who attempted to auction off naming rights to their son for $500,000. There were no takers.

The Inside Scoop
Gladwell offers the following advice to consumer packaged goods marketers who may be adding alternative media to the mix:


1. Be honest. The bromide "honesty is the best policy" transfers to the new media environment. Companies that lurk in chat rooms or hire bloggers to tout their wares can expect huge customer blowback. Brand equity in the new media world, like the old, relies on product and promotional integrity.

2. Be quick. Alternative media is all about speed. The useful life cycle of a message is much shorter than with conventional media. The biggest crime in the new media environment is being boring.

3. Be first. If you want to play the cool game with products and messaging, then you had better be in the vanguard. The next cool thing is only cool until the masses embrace it.

4. Be young. Match the medium and message to the market. Alternative media won't reach or resonate with older consumers. In fact, it may trivialize a brand in their eyes. New media keeps attracting a new fan base, one growing younger every day.

One thing is certain. Alternative media is here to stay, a permanent part of the media landscape, mutating in response to cultural changes and grassroots opportunities. As it proliferates, alternative media becomes more profuse and diffused, suggesting another name to add to the list: ubiquitous media.

Malcolm Gladwell contributed to this article. He is a former business and science writer at The Washington Post. He is currently a staff writer for The New Yorker. The Tipping Point, his first book, has become an international bestseller, with foreign rights sold in eleven countries. It can be obtained at most major bookstores or through his web site, http://www.gladwell.com.





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