E-Commerce Trends Viral Marketing Essay - 608 Words

E-Commerce Trends: Viral Marketing For years businesses have understood the power of word-of-mouth advertising; both positive and negative. Enough negative comments spread by unhappy customers can have a devastating impact, and it is obviously desirable to have people spreading the word about the positive attributes of a businesss product or service. Yet until recently, although companies certainly have paid attention to popular buzz, marketing campaigns have not been planned based mostly, or entirely, on getting people to spread the word. E-commerce has changed this. A form of word-of-mouth marketing known as viral marketing has proven to be an effective strategy in electronic commerce. The term viral marketing describes any†¦show more content†¦Give Aways, Effortless Transfers and Common Motivations The basic concept behind viral marketing as applied on the Internet is geometric progression; similar to old-fashioned chain mail letters. Hotmail.com accomplished this by applying Wilsons first principle: give something away. They offered free e-mail accounts and included a simple tag on the bottom of all e-mails informing recipients that they too could receive a free e-mail account. They also incorporated Wilsons second principle; provide for effortless transfer by means of including a link to their site on all e-mails. Users had to do nothing to promote Hotmail.com but send e-mails to friends and acquaintances. Combined, both of these features addressed Wilsons principle of exploiting common motivations: establishing and using a Hotmail.com account was free and it was easy. Scaling From Small To Large One of the pitfalls that may come with viral marketing is the possibility of not having enough resources to accommodate a rapid growth in customer base. Hotmail.com avoided this by ensuring that they had, or had access to, enough mail servers to handle the explosion of traffic. Although not all businesses engaging in viral marketing will have to worry about providing mail servers, viral marketing by its very nature will increase traffic to a website. If offering a free download, program, graphic or hyperlink the smart e-business will make sure to have adequate bandwidth toShow MoreRelatedMarketing Analysis : The Soap Market1448 Words   |  6 Pages INTERNET MARKETING (TASK 3-4) Image Task 3 When someone starts a new business or expands existing business, there is need for market research to make stronger and better decisions and improve chances of success. 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