Undercover marketing
Encyclopedia
Undercover marketing is a subset of guerrilla marketing
Guerrilla marketing
Guerrilla warfare is about waging small intermittent attacks on different territories of the opponent with the aim of harassing and demoralising the opponent and eventually securing permanent footholds....

 where consumers do not realize they are being marketed to. For example, a marketing company might pay an actor or socially adept person to use a certain product
Product (business)
In general, the product is defined as a "thing produced by labor or effort" or the "result of an act or a process", and stems from the verb produce, from the Latin prōdūce ' lead or bring forth'. Since 1575, the word "product" has referred to anything produced...

 visibly and convincingly in locations where target consumers
Target market
A target market is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise. A well-defined target market is the first element to a marketing strategy...

 congregate. While there, the actor will also talk up their product to people they befriend in that location, even handing out samples if it is economically feasible. The actor will often be able to sell consumers on their product without those consumers even realizing that they are being marketed to.

Reasons for undercover marketing

An undercover campaign which aims to generate buzz, is economical, and once sufficient buzz has been generated, is almost free, as consumers "market" the product to others, through a network of referrals which grows and grows. Buzz campaigns can reach consumers isolated from all other media, and unlike conventional media, consumers tend to trust it. Marketers find it very hard to predict buzz let alone generate it on demand. However, when it works, undercover marketing does exactly that: an ideal consumer from the example above will not only begin using that product themselves, but will also tell their friends about it, inciting a planned viral marketing
Viral marketing
Viral marketing, viral advertising, or marketing buzz are buzzwords referring to marketing techniques that use pre-existing social networks to produce increases in brand awareness or to achieve other marketing objectives through self-replicating viral processes, analogous to the spread of viruses...

 campaign that looks spontaneous. Financial risk here is relatively small because such marketing approach requires fewer expenses and is usually more cost-effective as well. Undercover marketing is used when traditional marketing techniques have been exhausted and investors are looking for a new effective solution for their marketing needs.

It is the consumer's sense that this recommendation was spontaneous and unsolicited, and the resulting feeling that "one good turn deserves another", that drives the buzz. So, the "bought and paid for" aspect of the transaction must remain hidden. Overall, the person doing the marketing must look and sound like a peer
Peer group
A peer group is a social group consisting of humans. Peer groups are an informal primary group of people who share a similar or equal status and who are usually of roughly the same age, tended to travel around and interact within the social aggregate Members of a particular peer group often have...

 of their target audience without any ulterior motive for endorsing the product—employees of the company cannot do undercover marketing, nor can celebrities (except possibly to other celebrities).

Risks

If marketers fail to hide the campaign, they run considerable risk of backlash. In cases where consumers discover they have been manipulated into liking the product, they generally become angry at the marketer (and by association that product) over being misled. This has led some to apply more derogatory names to undercover marketing, such as roach baiting, likening the products marketed this way to poison
Poison
In the context of biology, poisons are substances that can cause disturbances to organisms, usually by chemical reaction or other activity on the molecular scale, when a sufficient quantity is absorbed by an organism....

. In some cases, the amount of buzz generated by a failed campaign can exceed that of a successful one, only with the opposite of the desired result.

An example of this sort of backlash can be found in Sony Entertainment's debacle with Zipatoni
Zipatoni
Zipatoni is an American marketing company that provides clients "zany" and "off-beat" marketing services, mainly through buzz marketing or viral marketing....

. Zipatoni attempted to engage in a stealth marketing campaign, which was quickly detected by the internet community. Sony immediately experienced backlash from video game enthusiasts. Their ad campaign was perceived by the community to be shallow enough that it insulted Sony's target audience by implying that they were shallow enough to fall for it.

Internet marketing

When targeting consumers known to be consistent Internet users, undercover marketers have taken a significant interest in leveraging Internet chat rooms and forums. In these settings, people tend to perceive everyone as peers, the anonymity reduces the risk of being found out, and one marketer can personally influence a large number of people. During the dot com boom at the turn of the century, stock promoters frequently used chat rooms to create a buzz and drive up the price of a stock.

Whatever the risks, undercover marketing only requires a small investment for a large potential pay off. It remains a cheap and effective way of generating buzz, especially in markets such as tobacco
Tobacco
Tobacco is an agricultural product processed from the leaves of plants in the genus Nicotiana. It can be consumed, used as a pesticide and, in the form of nicotine tartrate, used in some medicines...

 and alcohol
Alcoholic beverage
An alcoholic beverage is a drink containing ethanol, commonly known as alcohol. Alcoholic beverages are divided into three general classes: beers, wines, and spirits. They are legally consumed in most countries, and over 100 countries have laws regulating their production, sale, and consumption...

 where media-savvy target consumers have become increasingly resistant or inaccessible to other forms of advertising
Advertising
Advertising is a form of communication used to persuade an audience to take some action with respect to products, ideas, or services. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common...

.

Examples of undercover marketing

Sony Ericsson
Sony Ericsson
Sony Ericsson Mobile Communications AB is a joint venture established on October 1, 2001 by the Japanese consumer electronics company Sony Corporation and the Swedish telecommunications company Ericsson to manufacture mobile phones....

 used stealth marketing in 2002 when they hired 60 actors in 10 major cities, and had them "accost strangers and ask them: Would you mind taking my picture?" The actor then handed the stranger a brand new picture phone while talking about how cool the new device was. "And thus an act of civility was converted into a branding event." (Taken from Walker, Rob. The Hidden (In Plain Sight) Persuaders. New York Times Magazine; Dec 5, 2004; New York Times pg. 68)

Wikipedia
Wikipedia
Wikipedia is a free, web-based, collaborative, multilingual encyclopedia project supported by the non-profit Wikimedia Foundation. Its 20 million articles have been written collaboratively by volunteers around the world. Almost all of its articles can be edited by anyone with access to the site,...

 has become a tool for undercover marketing. The creation of Wikiscanner
WikiScanner
WikiScanner was a tool which consisted of a publicly searchable database that linked millions of anonymous edits on the free online encyclopedia Wikipedia to the organizations where those edits apparently originated, by cross-referencing the edits with data on the owners of the associated block of...

, for example, has revealed attempts at manipulating Wikipedia's content by a large number of business, government, and special interest groups.

The topic of undercover marketing is explored as part of the 2003 documentary film
Documentary film
Documentary films constitute a broad category of nonfictional motion pictures intended to document some aspect of reality, primarily for the purposes of instruction or maintaining a historical record...

, The Corporation, as well as in the fiction movie, The Joneses
The Joneses
The Joneses is a 2009 American film written and directed by Derrick Borte. It stars Demi Moore, David Duchovny, Amber Heard, and Ben Hollingsworth. It premiered at the 2009 Toronto International Film Festival on September 13, 2009. Roadside Attractions later purchased the United States theatrical...

, a satire which arrived in theaters in April 2010.

External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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