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TIPPING POINTS Viral Marketing Malcolm Gladwell’s best seller Thomas Schelling (Nobel Prize winner) first introduced the concept of “tipping points” in 1972 Malcolm Gladwell popularized the concept in his best seller Downside of traditional marketing/advertising Cost: TV and print ads are expensive Media clutter: It is difficult for products to stand out against the background of advertising Cynicism: Consumers, especially Gen X and Gen Y consumers, are jaded and cynical about “obvious” marketing TIVO, DVRs: Consumers can avoid TV commercials altogether Segmentation: Consumers aren’t heterogeneous, they are segmented into different markets Viral Marketing Steve Jurvetson and Tim Draper coined the term “viral marketing” in 1997. a.k.a. below the radar marketing, buzz marketing, stealth advertising Relies on word-of-mouth (WOM) endorsements like a virus, word about a product or service spreads from one consumer to another Examples, intentional and unintentional Live Strong bracelets (and the whole wrist band craze) Ipods, Iphones accessory dogs “Support Our Troops” stickers Juicy Couture handbags Hip Hop (culture as a commodity) More examples of buzz gone wild JenniCam Razor scooters Harry Potter books Wii Fit YouTube MySpace, Facebook Blogs, blogging, the blogosphere Methods and techniques Poseurs: “ordinary person at a bar, in line at a concert, at a soccer field Sony Ericcson hired 120 actors and actresses to play tourists at popular attractions around the country.The “tourists” asked passersby to take their picture with a T68i cell phone that featured a digital camera Trendsetters and early adopters Use of “cool hunters” and “trend spotters” Imitation, social modeling yellow magnetic ribbons saying “Support the Troops” Email, chat rooms, and blogs Manufactured controversies: Ambercrombie Fitch sold thong underwear in children’s sizes, with the words “eye candy” printed on the front Malcolm Gladwell’s notion of “Tipping Points” Tipping point: the threshold