Viral Marketing And Artificial Demand

Viral Marketing and Artificial Demand both are different concepts of Marketing but if we look closely we can find they both are similar to each other.

Viral Marketing can be defines as a marketing technique that use pre-existing social networks to produce increases in brand awareness or to achieve other marketing objectives (such as product sales) through self-replicating viral processes, analogous to the spread of pathological and computer viruses.

It can be word-of-mouth delivered or enhanced by the network effects of the Internet.

Viral promotions may take the form of video clips, interactive Flash games, adver-games, ebooks, brand able software, images, or even text messages.

One of the common example of Viral  Marketing can be the promotion of the movie Kabali. They even changed the complete look of Air Asia flight by changing the theme of the flight with the kabali movie poster. Not just through air Asia but through digital media as well. They used all kind of Marketing Channel to create a hype that the movie will be block buster. Another popular example of Viral Marketing is the song Kolaveri Di. A simple south indian song became so popular that even the people who don’t understand the language they also started listening the song. Here word of mouth publicity played a very crucial role.

Artificial Demand on the other hand is creating a hype in the market. It has controversial application in microeconomics (Pump and Dump Strategy). “Pump and dump” (P&D) is a form of microcap stock fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements, in order to sell the cheaply purchased stock at a higher price. Once the operators of the scheme “dump” sell their overvalued shares, the price falls and investors lose their money. Stocks that are the subject of pump and dump schemes are sometimes called “chop stocks”.

Here we can take the example of Reliance Jio sim launch. Few days after it was launched, it was declared that sim cards were out of stock. Do you really think an industry like reliance launched a free product without estimating its demand in the market? The actual reason is Artificial Demand. They hold the stock for some days and created a hype in the market that people are going crazy to get this product. Everyone wants it since it is free and hence the sim is out of stock. But I know so many people who never used JIO even if it was free.

Now the point is both the term artificial demand and Viral marketing have different definition and concept but what makes it similar?

It’s the hype which is common in between. Both the concepts create a hype about a product or service. So in my opinion Viral Marketing and Artificial Demand run in parallel to complement each other.

Again if we take the example of Reliance JIO then we can see how they used both of the concepts efficiently and effectively. They started promoting their product much before their product launch and they used almost all the marketing channels to promote their product. After launching they used the tactics of artificial Demand.



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