University*of*Southern*Denmark,*Sønderborg**************************************************************Delivery*date*:*27.05.2015*

***********************Faculty*of*Business*and*Social*Sciences**************************************************************************Characters*(no*spaces):*22.243*

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!Social*Media*&*Viral*Marketing*

Implications!for!Companies!

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Image:*http://comunidad.iebschool.com/andr3smg/files/2014/11/viralOmarketing_.jpg*

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Author:*Thomas*Kersig****************************************************************************Supervisor:*Peter*Enger*

200589O3537*********************************************************************************************Course:*Internet*Commerce*

Economics*and*Business****************************************************

Administration********************************************************************

Sworn&Statement&!I!hereby!solemnly!declare!that!I!have!personally!and!independently!prepared!this!paper.!All!quotations!in!the!text!have!been!marked!as!such!and!the!paper!or!considerable!parts!of!it!have!not!previously!been!subject!to!any!examination!or!assessment.!!Thomas!Kersig!!!!

Thomas'Kersig'

Table&of&Contents&&1.'Introduction………………………………………………………………………………………………………………………1'

'''1.1'Motivation'and'Problem'Statement……………………………………………………………………………..1'

'''1.2'Methodology………………………………………………………………………………………………………………..1'

2.'Social'Media'and'Viral'Marketing………………………………………………………………………………………2'

'''2.1'Social'Media…………………………………………………………………………………………………………………2'

'''2.2'Types'of'Social'Media……………………………………………………………………………………………………3'

''''''''2.2.1'Social'Networking'Sites…………………………………………………………………………………………3'

''''''''2.2.2'Blogs……………………………………………………………………………………………………………………..3'

''''''''2.2.3'Content'Communities……………………………………………………………………………………………4'

''''''''2.2.4'Collaborative'Projects……………………………………………………………………………………………4'

''''''''2.2.5'Virtual'Worlds……………………………………………………………………………………………………….5'

'''2.3'Implications'for'Companies………………………………………………………………………………………….5'

'''2.4'Viral'Marketing…………………………………………………………………………………………………………….7'

3.'The'Impact'of'Social'Media'Based'Viral'Messages'on'Firms…………………………………………….10'

'''3.1'Positive'Examples……………………………………………………………………………………………………….10'

'''3.2'Negative'Examples……………………………………………………………………………………………………..11'

4.'Conclusion……………………………………………………………………………………………………………………...12'

5.'References………………………………………………………………………………………………………………………13'

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Thomas'Kersig'

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1.#Introduction#

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1.1'Motivation'and'Probem'Statement'

Since' the'early' stages'of'WEB'2.0,' social'media'have'evolved' in'near' record' time.'A' large'

number' of' different' applications' and' platforms' have' emerged' during' the' years' and'

facilitated' the' interaction' of' individuals' around' the' globe.' Today,' around' 15' years' later,'

social' media' connect' an' unbelievable' number' of' around' two' billion' people' from' all'

countries'(Statista,'2015).'That'almost'makes'up'1/4'of'the'entire'world'population.''Given'

this'remarkable'development'and'the'fact'that'consumers'are'turning'away'from'traditional'

sources' of' advertising' (Mangold' &' Faulds,' 2009),' social' media' have' become' increasingly'

important' for' companies.' The' opportunity' of' reaching' a' large' number' of' people' without'

huge'financial'efforts'have'opened'up'a'range'of'new'possibilities'for'marketers.'However,'

the' fact' that' social' media' have' changed' the' rules' of' communication' likewise' implies'

challenges.' While' B2C' communication' has' become' considerably' easier,' especially' C2C'

communication'has'undergone'a'downright'revolution.'Today,'consumers'engage'with'and'

discuss'products'and'services'as'never'before.'This'is'well'illustrated'in'various'“stories”'that'

have' gone' “viral”,' i.e.' spread' over' the' Internet' in' no' time.' The' fact' that' companies' are'

unable'to'control'those'messages'can'imply'huge'advantages'as'well'as'result'in'corporate'

disasters.'

While&extensive&research&has&been&done&to&identify&ways&of&how&firms&can&use&social&media&

for& commercial& purposes,& this& paper& seeks& to& evaluate& its& implications& for& viral&marketing.&

Specifically,& four&different&examples&will& be&presented& to& show& the& chances&and& risks& social&

media&based&viral&messages&imply&for&companies.&&

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1.2'Methodology''

In' order' to' examine' the' role' social' media' based' viral' messages' play' for' companies,' it' is'

essential' to' introduce' some' relevant' concepts' with' respect' to' social' mediaU' and' viral'

marketing.' Therefore,' I' will' start' out' with' presenting' clear' definitions' of' the' terms' and'

provide'an'overview'of'some'of'the'most'popular'social'media'channels'(2).'Having'sketched'

the' theoretical' background,' I'will' provide' four'examples' to' illustrate' the' influence'of' viral'

messages' on' businesses' today' (3).' Important' implications' are' summarized' in' the' final'

conclusion' (4).' All' information' given' in' this' paper' is' obtained' by' synthesizing' existing'

research' and' literature' on' digital'marketing,' as'well' as' publicly' available' online' statistics.'

This'includes'both'anecdotal'and'empirical'data.'

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2.#Social#Media#and#Viral#Marketing#

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2.1'Social'Media'

Throughout'existing'research'and'literature'various'definitions'of'social'media'are'observed.'

Kaplan' &' Haenlein' (2010)' stress' the' fact' that' this' leads' to' confusion' and' makes' people'

mistakenly' use' related' terms' such' as' WEB' 2.0' and' user' generated' content' (UGC)' as'

synonyms.' In' order' to' clarify' what' social' media' are' and' what' role' they' play' in' today’s'

business'world' it' is' therefore'a'good' idea' to' start'out'by'briefly' introducing' these' related'

concepts.''

WEB&2.0'is'broadly'defined'as'the'second'generation'of'the'internet'that'enables'people'to'

come'together'and'share'information'online.'It'is'referred'to'as'the'transition'from'a'virtual'

world'characterized'by'static'web'pages'(WEB'1.0)'to'a'more'dynamic'environment'(Fu'et'al,'

2008).'While'WEB'1.0'was'driven'by'companies'as'Netscape'providing'traditional'software'

as'a'foundation'for'internet'usage,'WEB'2.0'is'the'era'of'internet'companies'such'as'Google'

and' Yahoo' providing' different' kinds' of' web' services' (O’Reilly,' 2005' a).' Considerable'

technological' progress' in' the' form' of' increased' broadband' availability' and' hardware'

capacity'has'not'only'made'the'WWW'accessible'to'a'huge'amount'of'people,'it'has'likewise'

eased'its'usage'and'opened'up'a'number'of'new'possibilities.'Thus,'it'has'made'the'Internet'

qualitatively'different'(O’Reilly,'2005'b).'The'innovations'brought'by'this'evolution'comprise'

applications'that'facilitate'communication'and'interaction'of'users'around'the'globe.'Hence,'

WEB' 2.0' emphasizes' active' participation' and' collaboration' and' encourages' users' to'

contribute' to' the' virtual' experience' by' creating' and' sharing' their' own' user' generated'

content'(Chaffey'&'EllisUChadwick,'2012).'

User& generated& content& is' described' as' any' form' of' media' content' fulfilling' certain'

requirements'and'created'by'endUusers.' In'order' to'be' labelled'UGC,' content'needs' to'be'

available' on' a' publicly' accessible'website' or' retrievable' for' a' selected' group' of' people' in'

social'networks.'Content'exchanged'by'means'of'private'messages'or'email'is'thus'excluded.'

Further,'it'must'be'creative'to'a'sufficient'degree,'i.e.'content'that'is'a'repetition'of'already'

existing'content,'such'as'a'not'modified'copy'of'a'newspaper'article,'is'not'considered'UGC.'

Finally,'UGC'must'be'created'outside'professional'environments.'Therefore,'it'also'excludes'

content' created' for' commercial' purposes.' While' user' generated' content' is' not' a' new'

phenomenon' and' already' existed' under'WEB'1.0,' it' has' reached' a'whole' new'magnitude'

under'the'new'generations'of'the'Internet'(Kaplan'&'Haenlein,'2010).'

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Bearing'in'mind'the'two'concepts,'social'media'can'be'defined'as'“a'group'of'internetUbased'

applications'that'build'on'the'ideological'and'technological'foundations'of'WEB'2.0,'and'that'

allow'the'creation'and'exchange'of'User'Generated'Content”'(Kaplan'&'Haenlein,'2010:61).'

Hence,' the' term' social' media' comprises' various' sources' of' online' information' that' is'

published' and' shared' with' the' intention' to' educate' its' users' about' a' variety' of' things,'

ranging' from' products' and' brands' to' personalities,' issues' and' events' (Mangold'&' Faulds,'

2009).' As' the' sources' differ' in' their' functionality' and' popularity,' they' imply' different'

possibilities' with' regard' to' business' (Chaffey' &' EllisUChadwick,' 2012).' Therefore,' the'

following' sections' occupy' with' some' of' the' most' popular' categories' of' social' media'

identified'by'Kaplan'&'Haenlein'(2010)'and'explain'their'characteristics.''

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2.2'Types'of'Social'Media'

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2.2.1'Social'Networking'Sites'

Social' networking' sites' (SNS)' are' platforms' for' users' to' express' themselves' via' personal'

profiles'and'form'and'maintain'online'friendships.'Here,'members'are'connected'based'on'

bilateral'agreements,' implying'that'they'are'free'to'decide'whom'they'want'to'share'their'

contents' with.' They' further' offer' services' as' private' messaging,' calendars' and'

entertainment' in' the' form' of' online' games' (Fu' et' al,' 2008).' SNS' encourage' its' users' to'

provide' and' share' any' kind'of' information' including'photos,' videos,' audioUfiles' and'blogs.'

They' are' of' tremendously' high' popularity' especially' among' younger' Internet' users' and'

attract' outrageous' many' people.' SNS' Facebook,' for' instance,' recently' (March' 2015)'

registered'an'average'of'936'million'daily'active'users' (Facebook,'2015).'Many'companies'

have'recognized'the'huge'potential'of'SNS'and'use'them'to'promote'the'creation'of'brand'

communities' to' engage' customers' with' their' products' and' services' (Mangold' &' Faulds,'

2009).'Due'to'the'fact'that'adults'and'Internet'users'of'age'65'and'older'increasingly'make'

use'of'social'networks'(Duggan'et'al,'2015),'SNS'are'also'well'suitable'for'marketing'research'

(Kaplan'&'Haenlein,' 2010).'Other' famous' examples' of' SNS' include'MySpace' and' LinkedIn'

(Chaffey'&'EllisUChadwick,'2012).'

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2.2.2'Blogs'

Blogs'(short'for'web'logs)'are'the'earliest'form'of'social'media'and'can'be'seen'as'modern'

personal' web' pages.' They' are' often' personal' online' journals' frequently' updated' by'

individuals,'the'soUcalled'bloggers,'and'have'several'functions'such'as'diaries'or'tutorials.'

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Blogs'provide'a'basis'for'communication'in'that'they'allow'followers'to'comment'on'entries.'

They'exist'in'a'variety'of'formats.'For'instance,'they'can'be'text'or'video'based'(vUlogs)'(Fu'et'

al,'2008).'Companies' today'utilize'blogs' for' the'purpose'of'updating'employees'as'well'as'

customers' on' important' developments' and' future' projects.' Blogs' can' thus' enhance'

communication' between' firms' and' consumers' and' improve' a' company’s' transparency.'

Likewise,'they'bear'risks' in'that'they'offer'dissatisfied'customers'a'platform'for'presenting'

and' accumulating' complaints.' This' can' possibly' result' in' publicly' accessible' negative'

information'(Kaplan'&'Haenlein,'2010).'

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2.2.3'Content'Communities'

Content'communities'enable'users' to' share'different' forms'of'media'content'via'different'

channels.' Among' others,' the' contents' can' include' texts,' photos,' videos' and' PowerUpointU

presentations.'In'this'regard,'content'communities'are'similar'to'SNS,'although'they'typically'

do'not' require' their'users' to' signUup'and' create'a'personal'profile' in'order' to'participate.'

However,' this' possibility' is' given' and' normally' implies' extra' services,' as' for' example' the'

display'of'suggestions.'From'a'business'point'of'view,'those'communities'can'be'seen'both'

as'a'threat'and'a'chance.'On'the'one'side,'they'bear'the'risk'of'being'abused'as'places'for'

the' sharing' of' copyright' protected' content' as' books,'music,' TV' series' and'movies.'While'

many' of' the' communities' have' strict' guidelines' prohibiting' the' distribution' of' illegal'

material,' it' is' easy' for' users' to' overcome' those' barriers.' Once' shared,' it' takes' time' to'

identify' and' delete' banned' content.' On' the' other' side,' they' can' serve' as' communication'

channels'enabling'companies'to'promote'products'and'services.'Popular'communities'such'

as'YouTube,'serving'more'than'100'million'videos'per'day,'are'well'suitable'for'encouraging'

customers'to'partake' in'contests'to'create'and'share'product'related'videos'that'have'the'

potential'to'raise'brand'awareness'(Kaplan'&'Haenlein,'2010).'

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2.2.4'Collaborative'Projects'

Collaborative' projects' comprise' soUcalled' wikis,' such' as' the' free' online' encyclopedia'

Wikipedia,' that' enable' users' to' add' text' to' and' change' existing' articles,' and' social'

bookmarking'sites,'such'as'Delicious,'allowing'groupUbased'collection'and'rating'of'Internet'

links' and' content.' Given' the' fact' that' collaborative' projects' are' expected' to' become' the'

main'source'of'information'for'many'consumers'–'Wikipedia'contains'millions'of'articles'in'

more'than'230'different'languages'–'they'are'potentially'a'threat'for'companies'in'that'they'

might'contain'rumors'and'wrong'information.'In'contrast,'collaborative'projects'can'be'used'

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by' firms' to'updating'employees'about' certain'events' such'as'product' status'and' facilitate'

the'exchange'of'ideas'through'the'use'of'internal'wikis'(Kaplan'&'Haenlein,'2010).'

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2.2.5.'Virtual'Worlds'

Virtual'worlds'comprise'two'kinds'of'parallel'universe.' In'virtual'game'worlds,' for'example'

seen' in' multiplayer' online' roleUplayingUgames' such' as' World' of' Warcraft,' individuals' can'

take'the'form'of'fictional'characters'and'meet'others'as'they'would'do'in'real'life.'They'can'

thus' represent' themselves' within' a' certain' range' defined' by' the' games.' Virtual' social'

worlds,'as'for'instance'seen'in'the'online'application'Second'Life,'are'platforms'that'work'in'

the'same'way,'though'without'rules'restricting'the'range'of'interaction.'Here,'users'can'do'

everything'that'is'possible'in'real'life,'such'as'speaking,'taking'a'walk,'lying'in'the'sun,'and'so'

on.'Further,'users' can'create'content'and'sell' it' to'others' in'exchange' for'virtual' currency'

that' is' traded' against' the' US' dollar.' In' fact,' some' users' thereby' earn' real' money.' In' a'

commercial'sense,'virtual'worlds'can'be'used'for'inUgame'advertising.'Though'they'are'less'

popular'than'for'instance'SNS'or'content'communities'yet,'the'fact'that'they'mirror'real'life'

to'the'highest'extent'imply'interesting'opportunities'for'companies,'as'for' instance'to'gain'

valuable'information'related'to'consumer'behaviour'(Kaplan'&'Haenlein,'2010).'

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2.3'Implications'for'Companies'

Due'to' their'high'popularity'and'ability' to'connect'a' large'number'of'people' from'all'over'

the' world,' social' media' not' only' allow' individuals' to' utilize' different' channels' for' the'

purpose'of'staying'in'touch'with'friends,'virtually'represent'themselves'and'enjoy'hours'of'

all' kinds' of' entertainment' daily,' they' likewise' become' increasingly' interesting' in' a'

commercial'sense.'For'instance,'companies'have'the'possibility'to'gain'data'online'that'can'

be'relevant'for'analysing'consumer'behaviour.'Likewise,'they'can'actively'engage'customers'

with' their'products'and' services'by' creating'and' sharing'brand' related'content'on'various'

platforms'(Gensler'et'al,'2013).'Further,'they'can'harness'the'power'of'viral'messages.''

Herein,' the'choice'of' the'right'means'can'be'of' relevance.'Kaplan'&'Haenlein' (2010)'state'

that'social'media' types' that' require'and'promote'high' levels'of' selfUpresentation'and'selfU

disclosure' as' well' as' imply' high' degrees' of' social' presence' and'media' richness' have' the'

greatest' potential' to' be' utilized' for' commercial' purposes,' especially' advertising,' as' they'

potentially' influence' consumers' to' a' higher' extent.' While' social' presence' denotes' the'

acoustic,' visual' and' physical' possibilities' of' contact' between' consumers' media' richness'

describes' the' amount' of' information' different' channels' are' able' to' transmit' in' a' given'

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period' of' time.' Thus,' textUbased' blogs,' for' instance,' offer' very' few' possibilities' to' rapidly'

attract' different' human' senses' to' a' lot' of' information' in' comparison' to' virtual' worlds.'

However,'blogs'usually'provide'a'high'potential'for'selfUpresentation,'i.e.'enable'consumers'

to' control' the' impressions' other' people' form'of' them'by' presenting' themselves' in' a'way'

that'is'consistent'with'their'own'desires,'usually'through'selfUdisclosure.'That'is,'by'revealing'

personal'information.''

Figure'1'outlines'the'identified'social'media'types'and'classifies'them'according'to'the'social'

presence/media'richness'and'selfUpresentation/selfUdisclosure'dimensions.''

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Figure#1####Classification'of'Social'Media'by'Social'Presence/Media'Richness'and'SelfU

presentation/SelfUdisclosure'

'Source:'Kaplan'&'Haenlein,'2010'(p.'62)'

'

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From' the' figure' it' appears' that' virtual' social' worlds' potentially' imply' the' greatest'

opportunities' for' advertising,' as' they' offer' acoustic,' visual' and' physical' ways' for' selfU

presentation.'However,'since'social'networking'sites'have'a'much'larger'userUbase'(yet)'and'

enable' companies' to' reach' people' with' entirely' different' geographic' and' demographic'

backgrounds,'SNS'appear'to'be'most'suitable'with'respect'to'viral'marketing'(Chu,'2011).''

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2.4'Viral'Marketing'

Viral' marketing' is' often' referred' to' as' an' electronic' form' of' wordUofUmouth' (WOM)'

marketing' (Chaffey'&'EllisUChadwick,'2012).'WordUofUmouth'can'be'described'as' “informal'

communication' between' a' perceived' nonUcommercial' communicator' and' a' receiver'

regarding'a'brand,'a'product,'an'organization'or'a'service”'(HarrisonUWalker,'2001:63).'It'can'

take' on' both' positive' and' negative' forms.' Customers' who' engage' in' positive' WOM'

communication' can' be' referred' to' as' market' mavens.' They' are' typically' interested' in'

consumption'in'general'and'are'potentially'valuable'for'companies'in'that'they'hold'useful'

information'for'others'about'products'and'services.'Likewise,'consumers'can'be'a'threat'in'

that'they'might'feel'the'urge'to'express'and'release'their'anger,' irritation,'disappointment'

and'frustration'in'case'they'are'dissatisfied'with'a'product'(Evans'et'al,'2009).''

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Research'has' shown' that'WOM'potentially'has' a' great' impact'on' consumer'attitudes'and'

behaviour.'This' is'because'wordUofUmouth'messages'are'often'exchanged'between'friends,'

and'friends'are'perceived'as'unbiased'sources'of'information.'In'fact,'WOM'has'shown'to'be'

up' to' seven' times' more' effective' than' traditional' print' advertising' (Kaplan' &' Haenlein,'

2011).'This'especially'holds'true'when'one'considers'the'opportunity'to'reach'a'much'larger'

number' of' people' over' the' Internet' than' would' be' possible' in' real' life.' Therefore,' viral'

marketing,' defined' as' electronic' WOM,' is' a' popular' tool' for' companies' to' harness' viral'

effects'by'creating'messages'that'seek'to'promote'different'aspects'of'their'businesses'with'

creative'content' that'catch'customers'and'make' them'send' it'on' to' their'peers' (Jobber'&'

Fahy,'2009).''

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This' can' be' done' in' several' ways.' Product' related' videos' shared' in' content' communities'

such'as'YouTube'as'well'as'free'giveaways'in'the'form'of'gift'certificate'codes'sent'via'email'

are'popular'means'to'utilize'the'power'of'viral'messages'(Jobber'&'Fahy,'2009).'Given'their'

characteristics' with' respect' to' userUbase,' social' presence/media' richness' and' selfU

presentation/selfUdisclosure,'especially'SNS'are'popular'tools'for'viral'marketing'(Chu,'2011).'

They' enable' company,' brand' or' product' related' messages' to' spread' in' an' exponentially'

growing' way.' That' is,' each' receiver' passes' the'message' to'more' than' one' other' person,'

implying'a'reproduction'rate'greater'than'one.'In'this'regard,'the'diffusion'of'the'intended'

message'can'be'compared'to'the'spread'of'a'virus'(Rayport,'1996).'

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Figure'2' summarizes' and' synergizes' the' related' concepts'of'wordUofUmouth,' social'media,'

exponential'growth'and'viral'marketing.'

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Figure#2####Relationship'Between'WordUofUmouth'and'Viral'Marketing'

'

''

Source:'Kaplan'&'Haenlein,'2011'(p.'254)'

'

'

According'to'Kaplan'&'Haenlein'(2011),'successful'viral'marketing'requires'the'fulfilment'of'

three' vital' criteria.' First,' the' essence' of' every' virtual' “epidemic”' is' a' message' that' is'

memorable' and' interesting' for' the' target' audience.' Different' techniques' can' be' used' to'

make'the'message'persuasive,'ranging'from'the'use'of'humor'and'the'spread'of'rumors'to'

involving'true'stories'about'real'people'(Evans'et'al,'2009).'Designing'it'in'a'way'such'that'it'

triggers' emotional' responses' increases' the' chances' for' an' outbreak' (Kaplan' &' Haenlein,'

2011).'A'bit'of'creativity,'however,'is'required'(Jobber'&'Fahy,'2009).'

Second,' the' choice' of' a' suitable' audience' to' spread' the'message' is' important.' The' right'

people' must' be' identified' and' approached.' Given' their' reputations' as' “consumerist'

hobbyists”' (Evans'et' al,' 2009:365)'market'mavens'are'often' targeted'as' the' first' group'of'

consumers.'They'share'the'message'in'their'networks'where'it'is'received'by'so'called'social'

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hubs,'users'with'an'outrageous'high'number'of'social'contacts.' In' theory,' this' is' the'point'

where' the' “virus”' really' starts' to' spread.' To' make' sure' that' the' message' reaches' social'

hubs,'sales'people'can'be'deployed'additionally'(Kaplan'&'Haenlein,'2011).'

'

Third,' the' choice' of' the' right' environment' is' crucial.' This' implies' to' avoid' spreading'

messages'too'broadly,'as'the'market'mavens'typically'only'pass'on'the'message'when'they'

think'it’s'new'to'their'peers.'Rather'than'randomly'forwarding'the'virus'to'as'many'people'

as'possible,'companies'should'concentrate'on'communicating'the'message'to'a'number'of'

different' subcultures.' In' addition,' the' right' time' plays' an' important' role.' Spreading' viral'

messages'when' the' Internet' community' already' is' occupied'with' certain' epidemics'might'

prevent' from'major' outbreaks.' Given' such' unpredictable' factors,' designing' and' executing'

promising' viral' marketing' campaigns' is' complex' and' requires' a' certain' degree' of' luck'

(Kaplan'&'Haenlein,'2011).'Hence,'bearing'in'mind'and'fulfilling'the'three'conditions'is'by'no'

means' a' guarantee' for' success,' but' sets' the' foundations' for' “infectious' viruses”' that' can'

help' companies' achieve' their' goals' fast,'with' little' budget' and'maximum' effect' (Rayport,'

1996).''

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The' final' sections' of' this' paper' now' turn' to' four' famous' examples' of' viral' messages'

transmitted' by' means' of' social' media.' They' illustrate' how' “viruses”' can' either' benefit'

(positive'examples)'or'challenge'(negative'examples)'companies.''

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3.#The#Impact#of#Social#Media#Based#Viral#Messages#on#Firms#

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3.1'Positive'Examples'

Burger&King&(2008):&American'burger'giant'Burger'King'provides'a'good'example'of'how'to'

utilize' SNS' to' kickUstart' a' successful' viral'marketing' campaign.' In'December' 2008' the' fast'

food'chain'created'a'Facebook'application'that'encouraged'users'to'delete'10'virtual'friends'

in'exchange' for' a' free'Whopper' sandwich.'After' removing,' the'users'were'asked' to'enter'

their' addresses' and' Burger' King' consequently' sent' coupons' by' regular'mail.' At' the' same'

time,' the' application' sent' a' note' to' each'of' the'banished' contacts' stating' that' they'were'

abandoned' for' a' free' burger,' and' that' they' likewise' had' the' opportunity' to' partake' and'

enjoy' a'Whopper' (Wortham,' 2009).' Before' Facebook' deactivated' the' application' 10' days'

after' it' was' launched,' more' than' 82.000' users' downloaded' the' software.' Overall,' the'

message'reached'233.906'“unlucky”'users'and'in'the'end'generated'about'35'million'media'

impressions.'Burger'King'was'thus'given'a'platform'to'highlight'the'value'of'its'products'with'

the' words:' “Americans' love' the'Whopper' more' than' they' love' their' friends!”' (Kaplan' &'

Haenlein,' 2011:259).' This' case' highlights' the' positive' effects' of' picking' an' interesting' and'

memorable' message' (the' sarcastic' idea' of' exchanging' friends' for' a' free' Whopper)' and'

spreading'it'in'a'suitable'environment'(research'have'shown'that'Facebook'friendships'most'

often'display'acquaintances'rather'than'real'friendships,'implying'that'different'friends'have'

different'networks)'(Lewis'et'al,'2008).'

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Coca& Cola& /& Mentos& (2006):& ' In' November' 2005,' lawyer' Steven' Voltz' and' his' friend,'

comedian'Fritz'Grobe,'conducted'a'number'of'experiments'to'find'out'what'happens'when'

you'drop'some'Mentos' tablets' into'a'bottle'of'diet'coke.'The' result'was'a'massive'geyser'

effect.'In'spring'2006,'they'dropped'500'Mentos'into'100'bottles'of'diet'coke'by'means'of'a'

cleverly' thought' out' system' and' recorded' the' show' on' video.' Later,' they' posted' it' to'

content'communities'YouTube'and'Revver.'Within'24'hours,' the'video'was'watched'4.000'

times'with'views'increasing'by'about'1.000'per'hour.'As'of'today,'the'clip'reveals'more'than'

17.5'million'hits' (YouTube).'The'company'behind'Mentos,'Perfetti'Van'Melle,' immediately'

recognized' the' potential' of' this' test' and' shipped' thousands' of' free'Mentos' to' Voltz' and'

Grobe' to' promote' their' experiments.' Likewise,' the' company' launched' a' website' and'

encouraged'customers'to'carry'out'and'upload'their'own'experiments'in'exchange'for'free'

iTunes'downloads.'As'a'consequence,'the'sales'of'Mentos'increased'by'around'20%'during'

summer'2006.'After'a'period'of'uncertainty'of'how'to'deal'with'this'encounter,'Coca'Cola'

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some'weeks'later'also'provided'platforms'for'customers'to'share'UGC'related'to'“The'Coke'

Show”' on' their' corporate' websites.' This' way,' customers' ran' a' hugely' successful' viral'

marketing'campaign'for'both'brands'(Kaplan'&'Haenlein,'2011).'

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3.2'Negative'Examples'

AOL&(2006):'Mangold'&'Faulds' (2009)' refer' to' the'example'of'blogger'Vincent'Ferrari'who'

recorded' a' telephone' encounter' with' a' representative' of' American' company' AOL’s'

customer'service.'The'representative'refused'to'cancel'Vincent’s'account'while'persistently'

trying' to'make' him' change' his' mind' and' convince' him' to'maintain' his' subscriber' status.'

After' Ferrari' posted' the' sound' file' to' his' blog,' around' 300.000' people' attempted' to'

download'it.'As'a'result,'the'story'quickly'went'viral'and'was'shared'in'other'blogs'and'on'

different' websites.' It' spread' over' the' Internet' in' no' time' and' even' caused' mainstream'

media'as'the'New'York'Post,'The'New'York'Times'and'NBC'to'cover'the'case.'For'AOL,'this'

encounter'implied'a'“shitstorm”'resulting'in'considerably'bad'publicity.'It'shows'the'power'

and'possible'negative'impact'of'intense'consumerUtoUconsumer'communication'fostered'by'

risky'behaviour'of'companies'(Mangold'&'Faulds,'2009).'

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Sony& PSP& (2006):& In' 2006,' Japanese' electronic' entertainment' giant' Sony' tried' to' take'

advantage'of'a'viral'message'by'creating'a'fake'blog.'The'blog'was'supposedly'maintained'

by'a'child,'Charlie,'who'was'a'lucky'owner'of'a'PSP'console'and'tried'to'convince'the'parents'

of'his'friend,'Jeremy,'to'get'their'son'one'for'Christmas.'Moreover,'the'blog'should'provide'a'

platform'for'parents'who'had'not'yet'decided'whether'to'get'a'PSP'for'their'children.'The'

intention' was' to' engage' them' with' the' product' and' persuade' them' to' acquire' one.' In'

addition,'new'characters,'as'for'instance'Charlie’s'fictional'cousin'Pete'were'introduced'and'

contributed' with' own' UGC' in' the' form' of' product' related' music' videos.' The' blog' was'

presented'in'such'a'professional'way'that'every'attempt'of'Sony'to'make'it'appear'real,'e.g.'

through' the' use' of' language' that' they' perceived' were' typical' for' the' audience,' failed.'

Consequently,'the'blog'went'viral'and'resulted'in'a'huge'disaster'for'the'company,'which'in'

the' end'was' forced' to' admit' and' apologize' for'making' a' big'mistake' in' trying' to' fool' its'

customers.' This' case' is' a' good' example' of' how' the' abuse' of' viral'marketing' can' backfire'

(Kaplan'&'Haenlein,'2011).'

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4.#Conclusion#

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This'paper'evaluates'the' implications'of'social'media'on'viral'marketing.' In'particular,' four'

examples' are' presented' to' show' the' chances' and' risks' social'media' based' viral'messages'

imply'for'companies.''

The'possibilities'of'WEB'2.0'have'revolutionized'B2C'and'C2C'communication.'The'fact'that'

social'media'allow'marketers' to' reach'a' large'number'of'people'on'a'global' scale'without'

huge' financial' efforts' make' them' especially' suitable' for' introducing' messages' that' gain'

momentum' and' spread' like' viruses.' Companies' have' recognized' this' potential' and' use'

different'channels'to'create'viral'outbreaks'with'the'purpose'of'promoting'various'aspects'

of'their'businesses.'While'the'case'of'Burger'King'has'shown'that'successful'viral'marketing'

requires'forwarding'the'right'message'to'the'right'people'under'the'right'circumstances,'the'

case'of'Mentos/Coca'Cola'illustrates'how'consumers’'engagement'with'products'can'go'viral'

and' substantially' benefit' firms.' Likewise,' the' examples' of' AOL' and' Sony' indicate'

considerable' risks' and' potential' threats.' As' these' cases' show,' unacceptable' and' ignorant'

behaviour' can' lead' to' ' “shitstorms”' that' are' beyond' control' and'most' likely' result' in' bad'

publicity.'

Unpredictable'factors'make'it'difficult'to'propose'a'definite'formula'for'successfully'benefit'

from' viral' messages' transmitted' through' social' media.' Playing' after' certain' rules,' and'

bearing' in'mind' the' risks,' however,'may' be' a' good' start' to' help' companies' achieve' their'

objectives.''

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The' fact' that'web' functionality'evolves' rapidly' raises' the'question'whether' some' types'of'

social' media' possibly' become' less' important' in' the' future' while' others' gain' popularity.'

Specifically,' given' their' enormous' potential,' it' will' be' interesting' to' observe' the'

development'of'virtual'worlds'in'upcoming'years.'Given'the'fact'that'it'describes'the'status'

quo' of' social' media' with' regard' to' business,' this' paper' can' serve' as' a' starting' point' for'

future'research'on'that'topic.'

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5.#References##Chaffey,'D.'/'EllisUChadwick,'F.'(2012).'Digital&Marketing:&Strategy,&Implementation&and&Practice&(5th&Edition).'Pearson.''Chu,'S.'(2011).'Viral'advertising'in'social'media:'Participation'in'Facebook'groups'and'responses'among'collegeUaged'users.'In'Journal'of'Interactive'Advertising'Vol.'12'No.'1'(2011)'30U43.''Duggan,'M.'/'Ellison,'M.'/'Lampe,'C.'/'Lenhart,'A.'/'Madden,'M.'(2015).'Demographics&of&Key&Social&Networking&Platforms.&Retrieved'24.05.2015'(16:33)'at:'http://www.pewinternet.org/2015/01/09/demographicsUofUkeyUsocialUnetworkingUplatformsU2/''Evans,'M.'/'Jamal,'A.'/'Foxall,'G.'(2009).'Consumer&Behaviour&(2nd&Edition).&Wiley.''Facebook'(2015).'Retrieved'at:'http://newsroom.fb.com/companyUinfo/''Fu,'F.'/'Liu,'L.'/'Wang,'L.'(2008).'Empirical&analysis&of&online&social&networks&in&the&age&of&Web&2.0.&In'Physica'A:'Statistical'Mechanics'and'its'Applications'Vol.'387'issues'2U3'(2008)'675U684.'Elsevier.'''Gensler,'S.'/'Völckner,'F.'/'LiuUThompkins,'Y.'/'Wiertz,'C.'(2013).'Managing'Brands'in'the'Social'Media'Environment.'In'Journal'of'Interactive'Marketing'27'(2013)'242U256.'Elsevier.''HarrisonUWalker,'J.'L.'(2001).'The&Measurement&of&WordTofTmouth&Communication&and&an&Investigation&of&Service&Quality&and&Customer&commitment&as&Potential&Antecedents.&In'Journal'of'Service'Research'Vol.'4'No.'1'(2001)'60U75.''Jobber,'D.'/'Fahy,'J.'(2009).'Foundations'of'Marketing'(3rd'Edition).'McGrawUHill.''Kaplan'&'Haenlein'(2010).'Users&of&the&world,&unite!&The&challenges&and&opportunities&of&Social&Media.&In'Business'Horizons'53'(2010)'59U68.'Elsevier.''Kaplan'&'Haenlein'(2011).'Two&hearts&in&threeTquarter&time:&How&to&waltz&the&social&media/viral&marketing&dance.&In'Business'Horizons'54'(2011)'253U263.'Elsevier.''Lewis,'K.'/'Kaufman,'J.'/'Gonzalez,'M.'/'Wimmer,'A.'/'Christakis,'M.'(2008).'Tastes,&tied&and&time:&A&new&social&network&dataset&using&Facebook.com.'In'Social'Networks'30'Iss.'4'(2008)'330U342.''Mangold,'W.'G.'/'Faulds,'D.'J.'(2009).'Social&media:&The&new&hybrid&element&of&the&promotion&mix.&In'Business'Horizons'52'(2009)'357U365.'Elsevier.''O'Reilly,'T.'(2005'a).'What&is&Web&2.0?&Retrieved'25.05.2015'(14:30)'at:'http://www.oreilly.com/pub/a/web2/archive/whatUisUwebU20.html''O'Reilly,'T.'(2005'b).'Not&2.0?&Retrieved'25.05.2015'(15:05)'at:'http://radar.oreilly.com/2005/08/notU20.html''Rayport,'J.'(1996).'The'Virus'of'Marketing.'Retrieved'26.05.2015'(17:10)'at:'

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http://www.fastcompany.com/27701/virusUmarketing''Statista'(2015).'Number&of&social&network&users&worldwide&from&2010&to&2018&(in&billions).&Retrieved'24.05.2015'(18:22)'at:'http://www.statista.com/statistics/278414/numberUofUworldwideUsocialUnetworkUusers/''Wortham,'J.'(2009).'The&Value&of&a&Facebook&Friend?&About&37&Cents.'The'New'York'Times.'Retrieved'26.05.2015'(19:40)'at:'http://shawndra.pbworks.com/f/the+Value+of+a+Facebook+Friend+About+37+Cents+U+NYT.pdf'#