Analysis of Blogging at BzzAgent - Case Study Example

Case Analysis of Blogging at BzzAgent Table of Contents Introduction 3 Question 4 PESTEL Analysis of BzzAgent 5 Question 2 7 SWOT Analysis of BzzAgent 7 Question 3 8 Question 4 9 Question 5 10 Marketing Mix of BzzAgent 10 Recommendations 12 Conclusion 14 References 15 Introduction BzzAgent is one of the leading companies in social marketing arena that works toward enhancing various word-of-mouth promotion activities in order to drive sales. The word-of-mouth marketing process has been adapted for many years as a major influence upon the people’s feelings and activities. It has been duly recognised from some of the researches that the word-of-mouth marketing activity is more prominent upon human behaviours compared to the other existing marketer controlled mechanisms. Moreover, the word-of-mouth activity has been focused in order to influence a variety of conditions like attitudes, expectations, perceptions and behaviours among others. The features of word-of-mouth activity include verbal and individual contact between a correspondent and a recipient for a particular product (Buttle, 1998). In the paper, the case analysis of blogging at BzzAgent along with various aspects like PESTEL analysis, SWOT analysis, marketing mix of BzzAgent and the necessary recommendations followed by a strong conclusion has been elaborately discussed. Question 1 The company conducts its operations by creating quantifiable business outcomes particularly for the marketers through a significant supportive system and commanding commitment platform along with proven logical methods. BzzAgent’s proven logical approaches and media networks allow the marketers to activate various different conversations and to understand their consequences on product sales. Moreover, the company offers a variety of programs in order to meet a marketer’s specific needs (BzzAgent Inc., 2011). The features and the access of the Internet have inspired the marketers to expand opportunities in order to take control of the word-of-mouth process. It has been realised that there are increasing volume of hiring buzz marketing agencies that maintain large numbers of volunteer consumer buzz agents who inform other consumers about a particular product that they have been familiar to and feel that they would like to talk about (Schiffman & Kanuk, 2007). In lieu of this, BzzAgent acts as such type of consulting agency that completely assists their clients in creating word-of-mouth selling operations. For instance, for chicken sausage producers and a publisher of mass appeal books, the agents of BzzAgent help these clients to get an idea about these products and ultimately raise their market success (Schiffman & Kanuk, 2007). PESTEL Analysis of BzzAgent In relation to word-of-mouth companies, the concept of street teams is regarded as a variation of the strategy from political environment viewpoint in order to strengthen the groups of volunteers and creating local buzz among others. In very practical ways, there lie not so much of differences between political volunteer groups and artist street teams particularly in the word-of-mouth companies such as BzzAgent (Hutchison & et. al., 2009). By the year 2007, BzzAgent had begun to diversify its business. The core business had been profitable since its primary quarter of finance operation. At the initial stage, the company accepted two rounds of financing which eventually increased the growth of the business along with the emergence of huge numbers of employees and agents. The top line of 2007 revenues grew by 60% as compared to 2006 (Godes, 2008). BzzAgent not only provided significance in managing a process for people to business books but the company is also concerned about creating a self defined social group. For many agents, BzzAgent is a form of community and also acts as a proxy for the outside world (Godes, 2008). In relation to the technological factors, BzzAgent has been using a particular technology called “Address Verifications Feature-A Primer” in order to improve the emailing information systems of the agents (Godes, 2008). In relation to the environmental factors, BzzAgent established a solid foundation by emphasising entirely new way of thinking about marketing and brand building. The company had to make an initial strategic choice whether to sell the service straight to the clients or through advertising agencies (Godes, 2008). In connection with the legal factors, BzzAgent moved full time into promotions by offering customised as well as legalised promotional logo products for corporate promotions. In order to fulfil this objective, the company merged with a full service technology based promotional agency in order to carry out its business operations (Godes, 2008). BzzAgent’s network of agents continued to expand reaching almost a significant level i.e. 400,000 agents. By using the funds from their sources of financing, the firm reengineered their technology and process platform along with hiring various key executives. Finally, the market was clearly showing signs of recognising BzzAgent and eventually it achieved its market position to a certain extent (Godes, 2008). Question 2 SWOT Analysis of BzzAgent Strengths Weaknesses a.) Cheapest marketing tool b.) Higher efficiency due to its credibility c.) Most effective d.) More customer friendly a.) Long term strategy & time consuming b.) Limited influences upon certain consumer purchase decisions Opportunities Threats a.) Provides competitive advantage b.) Prepares the associated companies for a well sustained driven future a.) Failures become immediately public b.) Permanent record of rumours and untruths c.) Certain uncontrollable factors By following the above SWOT analysis, BzzAgent’s value proposal can be compared with that of other traditional ways from marketing point of view. However, after having a brief idea upon the SWOT analysis of BzzAgent, the company then provided certain strategic focus upon attracting the group of agents that would spread within their networks information about the firm and its products. Moreover, the company also focused regarding the findings of people who were really engaged with their brands along with conveying them about the company’s new ideas and products (Godes, 2008). Question 3 The diffusion theory of any company is one of the most crucial marketing approaches which leads towards the innovation of the products that a particular organisation deals with and ultimately strengthens the competitive position of the company. The development of BzzAgent lies in the launching of innovative word-of-mouth campaigns in order to identify the right consumers to spread information about their products (BzzAgent Inc., 2011). The company provide their agents with samples of their products, information and coupons in order to share with their friends. As a result, with launching of these sorts of innovative campaigns with the agents, the development of the company ultimately gets raised and on the basis of this innovative approach the product life cycle of the company also continues to flow smoothly (BzzAgent Inc., 2011). Question 4 In the context of creating sustainable competitive benefit, the concept of customer equity management for BzzAgent lies in the nature of their businesses which were pretty standard and convenient for the customers and affinity based consumer marketing shops. The BzzAgent’s objective for its clients was to implement campaigns through its agents that would create and influence real world conversations among the real consumers. Moreover, the company also plays a significant role towards the progress of its products that are simply consumer friendly and easy to access with higher efficiency (Godes, 2008). Moreover, the company has to make their customers happy which is their most crucial part of advertising in order to create a sustainable competitive advantage that ultimately will drive the sales of the company. In lieu of this, the company need to maintain ethical behaviours, moral issues and proper services for their customers in order to exist for a long time in the future. It can help to enhance the customer equity management in the long run (Godes, 2008). Question 5 Marketing Mix of BzzAgent The marketing mix of BzzAgent comprises of ‘7Ps’ which include product, price, place, promotion, process, people and physical evidence. The Bzz campaigns and the blogger networks are the products of BzzAgent which activates highly engaged customers by providing high brand experiences along with influencing the buying decisions of the customers (BzzAgent Inc., 2011). BzzAgent deals with cheap products for the consumers which ultimately can be regarded as one of the strengths of word-of-mouth companies such as BzzAgent. The significant products of BzzAgent comprise ‘Bzz Campaigns’ and ‘Blogger Networks’ for its highly engaged customers and ultimately build excitements and sales for the brands of the company. The products of BzzAgent also include consumer’s perceived level of importance and relevance which are based on their own desires and values (BzzAgent Inc., 2011). Particularly, when the degree of involvement is higher, consumers tend to search for more product information and also analyses their obtainable information with top priority. But when the level of involvement is low, customers purchasing choices become relatively simple. The consumers in order to buy products with a higher degree of concern will usually pay more time and energy while searching the information regarding word-of-mouth marketing activities (BzzAgent Inc., 2011). The company recognises to carry out their business operations by providing a better opportunity for engaging in the marketplaces in a real exchange of ideas. The company believes in being radically focused on the voice of the consumers along with making its products’ suitable options for the marketers and the consumers (Godes, 2008). The BzzAgent used several promotional activities like moving to promotional agencies, transferring e-mails and commencing client projects among others in order to advertise its products or services. Moreover, it has been recognised that in the year 1999, the company merged with another firm which is basically a full service technology based promotional agency in order to promote widely its products and services (Godes, 2008). The company delivers its products through organising several campaigns along with blogger networks which are performed by the agents who are appointed by the officials of the company. Apart from the agents, the top officials of BzzAgent also add their deliberate efforts through their management decisions and activities in order to attain its desired business goals and objectives (BzzAgent Inc., 2011). The BzzAgent is an engaging and rewarding place to work especially for those who did not really plan to go into business and are not interested to work with big companies and for whom it’s most important to work with an active group of friendly people (Godes, 2008). The physical evidence of BzzAgent lies in the launching or introduction of several campaigns and blogger networks which create an additional value to the customers that they can easily hold while satisfying their needs and wants (BzzAgent Inc., 2011). The process aspect of marketing mix in case of word-of-mouth companies such as BzzAgent is constructed as the process of vigorously seeking and ultimately attaining a message. The consumer’s action of seeking word- of-mouth information is regarded as one of the important elements of the process. Recommendations It should be kept in mind that the word-of-mouth companies such as BzzAgent have to earn the respects and the responses of their customers. When a particular brand treats its customers well, they will assist in the marketing for the company in the long run without a price. Moreover, engaging with electronic word – of – mouth processes, discussions and stimulating conversations are the only ways to influence the different views, otherwise the customers will respond unfavourably, spread rumours and get the conception of the intended information of the company wrong (Godes, 2008). The other significant recommendation for BzzAgent is to increase the general awareness of the company webpage through embedding a link button on the company’s website, may be in the career or product pages, and inviting the candidates in order to visit the company webpage for more information and promoting the company through e-mail or online advertising among others (Godes, 2008). In order to sustain well in the competitive electronic online market, BzzAgent will have to implement or follow the above mentioned strategies towards the development of its business in the future. Conclusion In this competitive market, a company such as BzzAgent has to focus upon the implementation and proper follow up of their marketing strategies in order to sustain or to remain in the market. In this case study, the different marketing strategies, competitive environment, concept of marketing mix along with suitable recommendations for BzzAgent have been elaborately discussed which in turn can produce best results for the company and also help the company to attain its desired results. By having broad and elaborate ideas of word-of-mouth, one can definitely find this activity more hopeful and also more influencing upon the customers’ purchase choices. The companies should pay more concentration regarding the improvement and the enhancement of the consumers with the help of word-of-mouth marketing initiatives. References Buttle, F. A., 1998. Word-of-Mouth: Understanding and Managing Referral Marketing. Journal of Strategic Marketing, Vol. 6, pp. 241-254. BzzAgent Inc., 2011. About BzzAgent. BzzAgent Corporate Site. [Online] Available at: http://about.bzzagent.com/word-of-mouth/index/about-bzzagent [Accessed January 01, 2012]. Godes, D., 2008. The Business Model. Blogging at BzzAgent. Hutchison, T. W. & et. al., 2009. Record Label Marketing. Focal Press. Schiffman, L. G. & Kanuk, L. L., 2007. Consumer Behaviour. Pearson Education India. Read More