Thursday, March 15, 2007

Nintendo customer spreads the word...


Over at the Nintendo headquarters, the representatives don't view their consumers as "you," but rather as "we," or shall we say Wii.

Recently, a story has leaked about how incredible the customer service is at Nintendo. A child customer, Saska, was having troubles with his Nintendo Wii system and decided to give the company a call to see what they could do. Before even completing the hold message on the phone, a cheerful representative greeted Saska with a friendly solution: why not just bring the system down to headquarters, since you live so close? To his delight, Saska was welcomed at the headquarters in Redmond, Washington, by a life-sized Mario and other game characters. Within a half on hour of arrival, the company had his system completely fixed, saved all of his progress, and even reset his warranty clock. The boy was so delighted he wrote in to tell his story to the .

Whats ironic here is that the Consumerist is usually known for their flaws and tricks around companies. This piece, however, was a warm story which really gave Nintendo some great buzz. By utilizing their friendly customer service, Nintendo was able to overwhelmingly please a customer, whom in return spread the news to many people.

A simple task like this is just what a company needs to strive on. In earlier posts, I have mentioned how it is necessary for businesses like Nintendo to rely heavily on customer satisfaction in order to gain loyalty. This maneuver has done exactly that.

With Saska happy and ready to tell the world, so are the many other that he encounters. Already, there have been numerous stories and posts about the quality of care at Nintendo, for even I am participating in this Buzz.

When all is said and done, sometimes marketing does not cost a penny. Positive word of mouth from satisfied customers can be all that a company relies on.

To check out more, read the Word of Mouth Marketing Association Blog (WOMMA), Nintendo Makes Customer Happy, Gets Buzzed About.

Tuesday, March 13, 2007

No trespassing...


When telemarketers started to invade homes, people took it personally. When the Internet was flooded with pop-ups, Internet surfers were outraged. And email, we all know about email. The more marketers intrude on personal space, the more people will do to ban these messages. Recently, consumer advocates have gotten do-not-mail bills on the agendas of legislatures in more than a dozen states. These laws will not only stop unwanted messages, but will also become a marketer's nightmare.

Many states, including NY, have this legislation passing through their judicial systems as you read this. People are becoming fed up with unwanted messages and are blocking out more and more advertising.

In my opinion, this issue is going to take several years to process for it involves both sides constitutional rights. For consumers, people will argue that their amended privacy rights are being breached. And for marketers, they will say that they have the right to free speech and expression, protected by the first amendment.

In regards to this subject, Lori Schwartz, VP-director of Interpublic's Emerging Media Lab, said "Viral marketing is really overhyped. The word viral should go back to being a medical term." I, on the other hand, strongly disagree. Sure, there are a handful of companies that blast people with emails (enlarge this, make more with that, etc), but these businesses are the exceptions. What about the successors like Hotmail, Careerbuilder, and many more. People like Schwartz argue that advertising is becoming over-invasive, but I think viral marketing is just poorly-hyped.

Advertisers need to tailor viral efforts more towards the consumers needs. Of course, it helps to be shocking, surprising and filled with the unexpected. But in the long run, marketers should be trying to fulfill the single most important question for a message to reach, "what's in it for the consumer?"

Or perhaps, instead of entering people's personal space frequently, viral marketing can take a slightly different approach. Ad Week's Do-Not-Mail article explains a new "opt-in messaging" as a solution. This involves creating an online community and allowing marketers to invite people to join the excitement. This can be seen with Quicken and Turbotax services online.

In the long run, I do not see this as an end to a chapter in advertising, or even viral marketing. It will just be another roadblock to dodge, a minor pothole really. Take TiVo for example. Advertisers were in great fear over the thought of their pricey messages being skipped. But in all reality, the better tailoring of these messages have caused consumers to still watch these commercials, and with more interest, on their recordings.

For more information, check out this interesting article.

Wednesday, March 7, 2007

The power of online marketing



For the record, there is justification to why companies invest so much time and money into new social media. I, along with many others, have been discussing how important the online community has become, and it continues to grow exponentially as time passes.

I don't know if most people were quick enough to catch, but YouTube recently had a video of a recorded breakup on Valentines Day. It was orchestrated with singers, huge masses, and dramatic arguments. In essence, it's what people entertain themselves with daily.

Well, unfortunately to most, the video was a fraud. The couple never really broke up in front of the crowds. In fact, they were never really dating. It was all a hoax to show the potential of this new form of social interaction.

The "break up" event started as an online promotion from the famous viral Facebook. Friends and peers all joined Burke's break up group and were informed about the event's location and time. When it came time, the event was then recorded by user footage and posted on YouTube, gaining nearly 800,000 views.

This event just goes to prove/justify why businesses and companies spend so much time with this new media, and if yours hasn't, to get a move on. Another very interesting point is that there was even plenty of media coverage. Online publications like Times was quick to respond to such a small, relatively minor incident (no real harm of benefit). This is not all though, if you do a Google search for the incident, you will find tons of google-links!

Again, the power of such online communities is incredible. Within days of such a video, people are posting blogs, writing news releases, and creating news stories covering the footage. This should be a hint to many companies if they have not yet started on the social media trend. The future of brand promotion and advertising is coming, and this is one of the many ways companies are becoming more involved with the personal-factor of consumers lives.

For more, check out VOX's article, or google-links

Monday, March 5, 2007

Second Life...


I very well hope that by now, we all know of Second Life, or at least heard of the software. If you haven't, SL is an Internet-based virtual world which came to international attention in late 2006 and early 2007. Linden Lab, the creators of this program, allow people to download their SL and interact with each other through motional avatars (like sims people), and do virtually anything they please. It's like the Sims on steroids, giving people the freedom to do practically anything.

The new trend of this virtual reality seems to be focusing around the corporate presence and ownership in Second Life. Companies like Text100 (PR Firm), and Starwood Hotels have entered this world with their brands and services. They create a virtual representation of their corporation/business, build their Island, and encourage people to visit their location to check out what they have to offer. This is incredible, it is like another dimensions to brand awareness and reinforcement.

As for marketing, this can be a great tool for companies to utilize. It gives the business another outlet to express their company image, and the freedom to tailor every aspect of their Island to fit their version of the company. This virtual world can be created to increase brand image, reinforcement, awareness, and customer satisfaction. By placing Real Life company executives as Avatars, they can represent your company to the highest standards in order to impress visitors. To check out how to get started, and look at a list of companies already in SL, Click HERE.

As for advertising, it is hard to say how companies will handle advertising this early on. Currently, there are "in world" (in SL) advertisements--banners, posters, streaming messages, etc--created for certain companies and events. Mostly, however, there is a great use of word-of-mouth and viral marketing. When Avatars find something cool and interesting, they are very likely to run (or fly) to tell their friend-Avatars about this new discovery. This happens with businesses, products, locations, and much more in Second Life. Even outside of the game, people discuss this virtual reality through blogging, media coverage, news, and other social networks which spread the buzz and intriguing interest involved with SL.

Just like when the Internet first started, people aren't exactly sure where Second Life is heading. Many figure, "hey, its here, people are talking about this program like crazy, its probably the lowest price to enter now, so might as well join in." Personally, I think any company that can afford the space should invest in Second Life. People are right, we have no idea where this program is headed. But if it is anything like the Internet, sign me up!

Today in Audience Research class we had a virtual meeting with Smiddy Smails from Text100 (PR Firm). We were talking about this new form of "social media" and what firms like his do in SL. He mentioned some interesting plans for some companies to actually have Avatars enter into the SL stores, try the products out, and order them directly to their RL homes. For example, a person will walk into American Apparel, try on clothes, and then have them ordered directly to their real homes, receiving clothes that fit exactly how they wanted them. This concept will hold true for many other brands and businesses.

Besides holding conferences, events, sales promotions, and more in Second Life, I bet companies will get quite original with guerrilla campaigning. Imagine a world where you can do anything, with little restrictions. I bet it would sound good to the two involved with the Turner Broadcasting scandal. Companies will soon have people walking around in world supporting their brands to the fullest, truly marketing the company.

The possibilities with this program are endless. With people talking about Second Life and discussing its capabilities, it probably is wise to invest. If you want to research more about companies in Second Life, check out this great Business Week article.

Friday, March 2, 2007

The perfect spokesman


In advertising, companies have been known to spend hundreds of thousands, even millions on sponsoring that perfect spokesman/woman. Proactive recruited Jessica Simpson (among others), Carmen Electra for Taco Bell, and Michael Jordan for...well just about any company. But why go through all of that effort and dollars when you can simply recruit spokespeople for free!?

Thats what the Chipotle chains (click on the wheel) have been doing recently, and it sure is working for them. Their success is credited, in majority, to the word-of-mouth buzz they have created with their customers, and the attention they have gained from this.

This Denver-based company avoids TV commercials and barely uses most other traditional advertising. It's quite amazing how Chipotle spends less in a year on advertising than McDonald's Corp. (former parent) spends in just 2 days(Burrito Buzz). What they rely on is the powerful word of their satisfied customers.

Its a simply procedure that has been around for years, but seems to have gotten lost in the 1000s of advertising messages we receive today: First, satisfy and please your customers with respect, great product, and friendly service. Step two, watch your satisfied customer spread the good word of your company, and in return cause increase turnover to your store. This has been happening for several years now with Chipotle, gaining them incredible amounts of success.

The owner has taken a different approach on advertising. Instead of wasting dollars on trying to tell people about the burritos, he found it fit to just give them away. These promotional give-a-ways have been the key to driving customers in the door and spreading the word. For example, when reporters were camped out in Denver (1997) for the Timothy McVeigh bombings, Chipotle delivered free burritos to them all day. This publicity is exactly what a company needs, and helps bring customers in regularly to a business.

It is such a simple concept, yet most companies fail to perceive the success and benefits from following through. It brings companies back to ground zero, or square one: please the customers with your quality service/product, and they will please you. The only difference from this principle then (when the practice of business began) and now is the title of WOM marketing attached to the successful results. If people love your product and/or company, they will love telling people. Basically, its a form of the two-step flow theory of communication, except the top information distributor is a Chipotle customer (or store), rather then the mass media.


People will much rather believe the word of a friend, family member, or coworker of the the word of an advertisement.

For more, check out Burrito Buzz.

Tuesday, February 27, 2007

The future of advertising...



Though this hasn't been officially released, at least for advertising's sake, there is a new way of displaying a message outdoors that is mind blowing. Some call it Laser Graffiti, but I think it is soon to be the next best thing in advertising.

There is not too much information out on the process yet, but one can imagine how it works. There is a projector screen hooked up to a van, and a memory sketch pad hooked up to the projector. When you trace the laser through the projector's path, the memory pad "remembers" or holds the path you traced, and displays the trace on the object it points at.

Though I haven't heard much else outside the video, the first thing I thought of was how this could be a new guerrilla/viral campaign idea. Of course, there are going to be several legal rights and restrictions involved. My prediction is that there will have to be new legislation even to regulate this act. But until then, I am wondering if any companies are going to take advantage of this free-from, non-permanent message broadcasting.

For more information, check out this awesome lab that put the genius behind it...

Monday, February 26, 2007

Ohh Rats...


Lately, I have been talking viral marketing up quite a bit. I have praised everything from funny videos to clever websites. But sometimes, a stunt can go terribly wrong. Like, for example, Turner Broadcaster's bomb scare. That sure didn't end well.

But what about about viral videos gone bad? Sure we always hear about the funny videos like Tea Partay (which promoted Bacardi), or Milaukee's Beer Cannon, but what about the ugly?

Sometimes, a customer, reporter, employee, or random person catches something pretty nasty on video, puts it on the Internet, and watches a company's value decline. If viral videos have the power to increase a brands image and popularity, then they sure have an equal power to take those qualities away, and even worse, destroy a product.

Recently in the news, Taco Bell/KFC have been under some harsh criticism for a discusting video recorded and broadcasted by New York's WNBC-TV. It shows several rats overrunning a KFC/Taco Bell chain, and was quickly uploaded to many video-sharing websites (available for anyone in the world). Not only is having a dozen dirty rats run around bad for your restaurant, but also you can see several local residents witnessing the sites. What probably will happen is these people will immediately get on their cellphones, tell their friends, whom in return will tell their friends, and the cycle will continue to grow until confirmed by the online video--increasing the rumor. It's unexpected viral marketing at its worst, something a company really cannot control until after the incident (PR).

In AdAges article about the incident, a Steven Fink is reported saying that once a video is out on the internet, there really is no end. Videos can "live" on the internet for years upon years, constantly reminding people of certain incidents like this. The article goes on to explain that nearly 600 stories were posted online, and 1000s of blogs within a days of the incident.


Another example of this negative buzz, something a little more "low key," is the incident with an apple employee. He posted a rather comical video (something that has been pulled from nearly ever website now, sorry can't find a link) showing an Apple talent show with all employees. He was asked to read some of his poetry, and he did. He read a very funny poem about falling in love with a UPS caller which made everyone laugh, everyone except the boss. He reported that 2 days later he was fired, yet two days after that he was on Comedy Central's Def Poetry reading wearing an Apple shirt. Do you think he had happy things to say about the company?

So whats the moral lesson? Well it could be for companies to stay clean, watch what they say/do, and becareful of who they fire. But in all reality, companies cannot prevent everything bad for happening, for then PR firms would go out of business. Instead, they must relaize the consequences of such actions, and that in today's world, news and actual evidence of news, can spread very fast. That videos posted on the Internet are not always good for you. Yes there is negative buzz, you can't always say "even negative publicity is publicity."

Make sure you stay focused on stories like these, monitor Taco Bell/KFC sales and public opinion, I have a feelign they will drop drastically.