Stealth Marketing
Stealth marketing is a marketing strategy where businesses attempt to make their advertisements covert or unnoticed by the public. Stealth marketing, also known as guerrilla or buzz marketing, relies on a high level of secrecy to take the target market by surprise. It entails advertising a product or service in ways that will not call attention to their advertising (Sharma & Sharma, 2017). However, it’s important to note that stealth marketing is often legal and ethical when it doesn’t involve deceptive practices. The strategy is commonly used in marketing to children since they may not fully understand the nature of advertising, and therefore it can be more effective. The elements of stealth marketing can be broken down into four different categories. Firstly, “product placement,” which is seen in movies and TV shows, like when a character talks about their favourite soft drink. Secondly, “covert advertising,” such as using logos on items without reference to the product name. Thirdly, creating fake grassroots groups or events to promote products and, lastly, providing free samples of products in unexpected places.
Pros & Cons
Stealth marketing can be an effective way to reach customers. If a company can engage in this type of strategy successfully, it can positively affect sales and revenue for the business. It also allows companies to test new products or services without being detected by competitors. In this way, they are not influenced by what others are doing, which can benefit them when they are still in the early stages of development. It is also essential for companies to protect their name and brand because they are the most valuable assets. Suppose a company’s reputation is damaged due to giving off an unethical image or engaging in false advertising. In that case, it will be hard for them to recover from that type of situation. One challenge with this strategy is that if it backfires on the business, there could be legal consequences. However, stealth marketing is controversial, and not all companies find it ethical or appropriate to use this type of tactic on their customers. In addition, several challenges must be considered before deciding if stealth marketing is right for the restaurant company. Is the cost of implementation and execution justifiable? Is this approach in line with your company’s mission, vision, and values? These are aspects to consider before deciding if stealth marketing is the best option for the company. The major challenge is that this type of marketing is done in secret, so there are no guarantees it will be successful.
Other Considerations
Other important elements surrounding stealth marketing include that consumers might not be happy with this type of advertising. Stealth or secret marketing can make a company seem like they are hiding something, which is often associated with negative feelings towards companies and brands (Bhattacharya, 2016). Consumers may also feel tricked by these types of ads since it’s one thing to provide an ad for customers’ consideration but another to hide it completely. If consumers feel tricked, they might have negative feelings towards the company or brand that is engaging in stealth marketing which could affect consumer attitudes toward them one way or another. This practice can also impact a companies’ relationship with media outlets because of their deception to secure positive coverage for an ad campaign. Media sources are less likely to provide positive coverage for a company or brand that deceives them and can damage control after the fact.
Research shows that in the USA, the companies that used this marketing technique had a positive reaction from consumers. They were seen as being innovative, creative, and modern in their advertising methods, which helped increase brand awareness for these companies. Statistics show that 70% of people asked about these types of ads said they thought it was a great idea and would like to see more companies engage in this technique (Bhattacharya, 2016). There is no real data available for how consumers react outside the USA. Still, research shows an increase in the number of businesses engaging in secret advertising inside the USA over the past few years. The study again shows the brand awareness and increase in sales for the companies engaging in this technique is lower than companies who used traditional advertising methods. However, the sales increase is still greater than that of the control group.
Conclusion
Stealth marketing is ethical when it is done in the interest of the public. It can be used as a tool for marketing strategies if it does not violate any ethical code and consumer rights are respected. This marketing technique is best suited for businesses that are able to generate a significant amount of public interest and attention by surprise. It has become increasingly difficult over time as consumers have become “immune” to these types of campaigns because media saturation makes it impossible not to notice them or their effects. The pros outweigh the cons in secret advertising, but its impact on consumers should be considered before engaging in this method.
References
Bhattacharya, A. (2016). eWOM marketing techniques for competitive advantage. In Capturing, analyzing, and managing word-of-mouth in the digital marketplace (pp. 28-44). IGI Global.
Sharma, R., & Sharma, S. K. (2015). Influence of guerrilla marketing on cell phone buying decisions in Urban market of Chhattisgarh-A study. International Journal in Management & Social Science, 3(11), 417-427.
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