Guerrilla marketing

Guerrilla marketing is an advertising strategy in which low-cost unconventional means (graffiti, sticker bombing, flash mobs) are utilized, often in a localized fashion or large network of individual cells, to convey or promote a product or an idea. The term guerrilla marketing is easily traced to guerrilla warfare which utilizes atypical tactics to achieve a goal in a competitive and unforgiving environment.

The concept of guerrilla marketing was invented as an unconventional system of promotions that relies on time, energy and imagination rather than a big marketing budget. Typically, guerrilla marketing campaigns are unexpected and unconventional, potentially interactive, and consumers are targeted in unexpected places.

The objective of guerrilla marketing is to create a unique, engaging and thought-provoking concept to generate buzz, and consequently turn viral. The term was coined and defined by Jay Conrad Levinson in his book Guerrilla Marketing. The term has since entered the popular vocabulary and marketing textbooks.

Guerrilla marketing involves unusual approaches such as intercept encounters in public places, street giveaways of products, PR stunts, or any unconventional marketing intended to get maximum results from minimal resources. More innovative approaches to Guerrilla marketing now utilize mobile digital technologies to engage the consumer and create a memorable brand experience.

Guerrilla marketing focuses on low cost creative strategies of marketing. Basic requirements are time, energy, and imagination and not money. Sales do not compose of the primary static to measure business but is replaced by profit. Emphasis is on retaining existing customers then acquiring new ones.

Introduction

Levinson's books include hundreds of "guerrilla marketing weapons," but also encourages guerrilla marketers to be creative in devising unconventional methods of promotion. Guerrilla marketers use all of their contacts, both professional and personal, and examine their company and its products, looking for sources of publicity. Many forms of publicity can be very inexpensive, or even free.

Levinson says that when implementing guerrilla marketing tactics, small size is actually an advantage. Small organizations and entrepreneurs are able to obtain publicity more easily than large companies, as they are closer to their customers and considerably more agile.

Yet ultimately, according to Levinson, the guerrilla marketer must "deliver the goods". In The Guerrilla Marketing Handbook, he states: "In order to sell a product or a service, a company must establish a relationship with the customer. It must build trust and support. It must understand the customer's needs, and it must provide a product that delivers the promised benefits."

Levinson identifies the following principles as the foundation of guerrilla marketing:

• Guerrilla Marketing is specifically geared for the small business and entrepreneur.
• It should be based on human psychology rather than experience, judgement, and guesswork.
• Instead of money, the primary investments of marketing should be time, energy, and imagination.
• The primary statistic to measure your business is the amount of profits, not sales.
• The marketer should also concentrate on how many new relationships are made each month.
• Create a standard of excellence with an acute focus instead of trying to diversify by offering too many diverse products and services.
• Instead of concentrating on getting new customers, aim for more referrals, more transactions with existing customers, and larger transactions.
• Forget about the competition and concentrate more on cooperating with other businesses.
• Guerrilla marketers should use a combination of marketing methods for a campaign.
• Use current technology as a tool to build your business.
• Messages are aimed at individuals or small groups, the smaller the better.
• Focuses on gaining the consent of the individual to send them more information rather than trying to make the sale.
• Commit to your campaign. Use Effective frequency instead of creating a new message theme for each campaign.

[edit]Associated marketing trends

The term Guerrilla Marketing is now often used more loosely as a descriptor for non-traditional media, such as:

• Reverse Graffiti — clean pavement adverts
• Viral marketing — through social networks
• Presence marketing — marketing for being there
• Grassroots marketing — tapping into the collective efforts of brand enthusiasts
• Wild Posting Campaigns
• Alternative marketing
• Buzz marketing — word of mouth marketing
• Undercover marketing — subtle product placement
• Astroturfing — disguising company messaging as an authentic grassroots movement
• Experiential marketing — interaction with product
• Tissue-pack marketing — hand-to-hand marketing
• Live-in marketing — real life product placement - see related article or Hostival Connect
• Wait marketing — when and where consumers are waiting (such as medical offices and gas pumps) and receptive to communications

Guerrilla marketing was initially used by small and medium size (SMEs) businesses, but it is now increasingly adopted by large businesses.

[edit]Principles of Guerrilla Marketing

1. Find a segment small enough to defend
Try to pick a segment small enough so that you can become the leader. Rolls Royce is the true guerrilla. They concentrate on a small market segment and are its leader.
2. Guerrillas should be all line and no staff
A guerrilla can take advantage of its small size to make quick decisions. This can be a precious asset when competing with the big national companies.
3. Be prepared to bug out at a moment's notice
Don't hesitate to abandon a position or a product if the battle turns against you. A guerrilla doesn't have the resources to waste on a lost cause. He should be quick to give up and move on. in a small company, one person's hunch can be enough to launch a new product. e.g.. Robert Gamm a footwear importer introduced 'KangaRoos' -zippered pocket on side of shoes.

[edit]Strategies of Guerrilla Marketing

1. Price discount strategy
The challenger can sell a comparable product at lower price. it is apparent in price wars in airlines, tariff wars in telecom industry.
2. Cheaper goods strategy
The idea is to offer an average or low quality product at much lower price. This works when the buyer is interested only in price.
3. Prestige goods strategy
The challenger can launch a higher quality product and charge a higher price than the leader.
4. Product proliferation strategy
Challenger can attack the leader by launching a larger product variety, thus offering more choice to the buyer.
5. Product innovation
6. Improved service strategy
7. Distribution Innovation strategy
Developing new channels of distribution. Like direct selling to customers.
8. Manufacturing cost reduction strategy
Employing lower manufacturing cost through more efficient purchasing.
9. Intensive advertising promotion
The challenger engages in a rigorous advising program.