Commerce Stage 2
Lecturer: Ambreen Bashir
Topic: After buzz marketing, stealth marketing is the latest marketing communications craze. You are the General Manager of a new entrant in the mobile phone network market, competing with the likes of O2, Vodafone, Meteor and 3. Like these competitors, you see your main target market among young, highly marketing literate consumers. Your marketing manager has mentioned stealth marketing as a possible way of increasing market share but you are not convinced that this is an ethically sound approach to marketing communications. Please write a report to your board of management presenting the possibility of a stealth marketing campaign, but also your concerns with this technique. Please take into account the characteristics of your target market as well as public debate on marketing methods. You are required to give a recommendation to the board of management whether or not to adopt this technique.
Table Of Contents
Advantages of Stealth Marketing……4
Disadvantages of Stealth Marketing……5
“Over 2 billion people in the world are mobile phone subscribers.” Considering the population of the world, as of the 1st of January 2006, was approximately 6.5 billion , the number of people who have access to a mobile phone is absolutely astonishing. This is a technology that was almost non-existent 20 years ago, and no telling where it can end up in the next 20 years. Because of the nature and high cost of its market, there are not many competitors in the mobile service provider sector. With that being said, the players in this market usually divide the market share pretty evenly with one or two dominant companies slightly higher than the rest. Breaking into this very selective market is no easy task and it is probably the reason why competitors are so few. Not only does it require a very large cheque book, but also a near perfect marketing plan that can grab people’s attention away from the informal cartel that usually owns the people’s minds.
I am the general manager of a new entrant in the mobile phone network market, Direct Line. We are a new and upcoming provider and hope to increase our market share in an already developed market. Competing with the likes of O2, Vodafone, Meteor and 3 will be no easy task and that is why we are looking into which marketing strategy we can use to promote our brand. Our marketing manager brought up several ideas in our last meeting and has asked me to look deeper into one of the strategies. My assignment is to discuss stealth marketing as a possible method we can adopt to increase our market share. I hope to explain in this report what stealth marketing is, how it can be used in relation with our target market, discuss the advantages and disadvantages of implementing this strategy, talk about the ethical issues surrounding this issue and come up with a conclusion that will help me in giving an honest recommendation to the board of management on whether or not to adopt this technique.
When thinking about marketing, it is very much like feeding a child, you want to give him as much food as you can before he gets turned off by it and rejects it. Because people have become so skilled at reading through advertising campaigns and so sick of being hassled by companies, marketing directors have had to find a new way get through to customers. Stealth marketing is a technique that is becoming more and more popular in the marketing industry. It is a highly controversial technique in which the consumer does not know he is being targeted or marketed to. It usually involves a company paying and sending out “agents” that do not publicly address themselves as sales representatives. They then market...