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Viral marketing and oline communities Essay Example

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Viral marketing and oline communities

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The main problem associated with this paradigm is that it assumes a known social network over which the product recommendation spreads with a single parameter specifying the infectiousness of the recommendation. Contrary to expectation, Leskovec, Adamic and Huberman, found that the chances of infection decreases as interaction increases (Leskovec, Adamic and Huberman, 2007, P. Therefore, marketers should avoid providing excessive incentives for customers to recommend products due to the corresponding weakening of credibility after the first recommendation. They also found that individuals have influence over only a few friends in network based epidermic models. Leskovec, Adamic and Huberman, recommend that smaller tightly knit groups are more conducive to viral marketing (Leskovec, Adamic and Huberman, 2007, P.Viral marketing exploits the established social networks between people by encouraging customers to share product experience and information with friends. It is important for marketers to understand the context in which viral marketing works and the qualities of products for which it is most effective. This is important in order to ensure that the right strategy is adopted to create favorable customer attitudes towards a product (Blythe, 2005, P.It can be argued that some services used by people to communicate are naturally suited to viral marketing because such products can be advertised as part of communication. Examples of such products are email services like Yahoo and Hotmail which were adopted very fast because every message sent through them was an advertisement for the service and the service was free. Hotmail spent only $50 000 on traditional marketing but still acquired 12 million users in 18 months. By the end of 2000, Hotmail had over 70 million users with 270 000 new accounts opened each day. Google’s Gmail grew rapidly in spite of the fact that customers had to sign up for the mail service through a referral (Lee, 2001, P.Most products cannot be advertised in this way; in any case, the choice of products on offer has increased as a result of the emergence of online marketers who can supply a wide variety of products. Another aspect of online retail is the fat tail phenomena, where a large portion of the sales consists of obscure products. For instance, at Amazon.Com 20 to 40 percent of unit sales fall outside the top 100 000 ranked products. Some online marketers argue that the

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Leskovec, J., Adamic, L. and Huberman, B., (2007). The Dynamics of Viral Marketing.


Blythe, J., (2005). Principles and practice of marketing. London: Thomson Learning.

Lee, O., (2001). Internet marketing research: theory and practice. Hershey, Pa.: Idea Group Pub.

Hastings, G., (2007). Social marketing: why should the devil have all the best tunes? Burlington: Elsevier Science.

MINDCOMET (2008). Viral marketing; understanding the concepts and benefits of viral marketing. http://cmginteractive.com/uploads/viral_marketing.pdf.

Scott, D., (2010).The new rules of marketing and PR: how to use social media, blogs, news releases, online video, & viral marketing to reach buyers directly. Hoboken, N.J.: John Wiley & Sons.

Oetting, M., (2009). Ripple effect: how empowered involvement drives word of mouth. Wiesbaden: Gabler.

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preview essay on Viral marketing and oline communities
  • Pages: 6 (1500 words)
  • Document Type: Essay
  • Subject: Marketing
  • Level: Undergraduate
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