Companies such as Starbucks, Cadbury, Agent Provocateur and Burger King, have taken full advantage of the benefits of viral marketing; it’s even possible that, without it, there would be no President Barack Obama… But what is viral marketing and how does it work?

The Internet has heralded a movement beyond traditional advertising and into Internet viral marketing. The difference between the two is that simple advertising is about pushing information onto consumers, while viral marketing encourages consumers to go in search of that information themselves. Viral marketing, otherwise known as consumer-led marketing, is all about getting the customers to do the work.

While the online marketplace is, in some senses, removed from the traditional marketplace, it can actually be used to re-engaged customers. In an interview for the BBC, Matt Golding, director of viral advertiser, Rubber Republic, said that the viral phenomenon pre-exists modern technology, such as the Internet, that “people have been sharing information and recommending things to each other forever. The internet just allows that to expand.”

Viral marketing happens when you give your customer what they want.

Matt Harding prepared the ground for the famed Cadbury adverts when he sent holiday footage of his silly dancing in various countries around the world to his friends. The video quickly spread all over the net and became hugely popular. As a result, Matt received sponsorship from a chewing-gum company and set up his own business.

But why are people so attracted to Matt’s videos? Perhaps it’s because everyone likes to see people enjoying themselves, or, perhaps, because his videos celebrate the joy of travel. But with customer-led marketing, the adage, ‘the proof is in the pudding’, really does apply. Having received 13,755,162 plays and 35,928 comments, it is evident that – for whatever reason – a lot of people find the video extremely appealing.

Viral advertising works because it gives customers what they want; the result is always entertaining and, quite often, subversive. Take the Cadbury adverts: a Gorilla playing the drums to Phil Collins is weird enough, but two school children with improbably energetic eyebrows is really odd. But it works. The official video of the latter on YouTube has received 3,883,041 views and 10,474 comments.

Viral marketing is about catering for the customer’s needs, and taking full advantage of their impulse to participate. It can hide the fact you’re selling something, but effective viral advertising doesn’t need to: it is the incongruity of a gorilla drumming to Phil Collins matched with a confectionary that makes the Cadbury’s ad so effective.

Social Networking and viral marketing.

The series, Mad Men, is an example of how a product can ‘go viral’ very quickly in the cyber world. By last Autumn, there were 75 Twitter accounts purportedly owned and ran by characters on the show. Although the company behind Mad Men, ACM, was initially adverse to the unendorsed accounts – and even took Twitter to court – they soon woke up to the benefits of all this free advertising.

Unleashing the virus.

AMC didn’t need to initiate an Internet viral campaign: their Internet profile grew because of the people that watch Mad Men. Most enterprises, however, don’t get the same kind of automatic exposure; and people have to know about a product or service before they talk about it.

‘It’s the engaged customers who do the marketing for you. They’ll send people to your website, sing your praises and take the conversation that you started far beyond people you thought you could ever reach. For that to happen, you have to start the conversation.’ – Dan Wilson, community manager, BT Tradespace

Starting your own blog is one of the most obvious and easiest ways of getting people to talk about your product or service. Here are some tips on using a blog to generate conversation:

• Leave interesting comments on other blogs: this will encourage other people to investigate yours.
• Look for new ways to encourage people to leave comments on your blog- be inventive!
• Consider introducing a rating or ‘star system’ to your blog.

In an interview for Smarta Video, owner of tabletop.co.uk, Karen Hanton, astutely says that ‘people like to participate’. She is undoubtedly right– you only have to look at YouTube, Twitter, Facebook, etc.

When it goes wrong.

American Express was recently shamed when it emerged that their employees were writing blogs as ordinary citizens in support of their own company. With Google searches revealing a torrent of web-wide condemnation, American Express just couldn’t escape the repercussions of their suspect marketing methods.

‘Another related danger of customer-led marketing is allowing customers to make your ads.’ – Dr Paul Marsden of marketing consultancy, Brand Genetics

For the 2006 World Cup, Carling released an image of 11 women lining up for kick-off, all in wet football shirts. Carling encouraged that the image be edited and passed around– but the campaign went seriously wrong when someone added defamatory remarks about the taste of the beer. As you can imagine, this took a lot of time and effort by Carling’s marketing department to put right.

Conclusion.

Despite the very real danger of Internet viral marketing going wrong, the Internet is still the driving force behind customer-led marketing. And the fact remains that if you can get consumers to do the work for you, your profile will augment of its own accord.

Since we’ve so recently published an article on one of the UK’s most successful franchisors, Stagecoach, we thought we’d go with the theme. If you’d like to know more about franchising, have a look at HSBC’S website here. These websites are also worth investigating: Franchise.co.uk and Whichfranchise.com.

Events:

The National Franchise Exhibition, NEC, Birmingham, 2nd – 3rd October 2009
For FREE tickets, email HSBC with your name, address and the number of tickets required: franchiseunit@hsbc.com
More information about the event can be found here (rather than ordering the tickets directly from franchiseinfo.co.uk, email HSBC for free tickets: tickets from franchiseinfo.co.uk are £8!)

Today, not only is Internet technology an invaluable marketing tool, but it is also fundamental to many businesses. In this video, Karen Hanton discusses how she set-up and made a success of her company, toptable.co.uk, in the cyber-marketplace:

Like Karen, Jamie Wells also made a success of himself by setting up cyber stall, Glasses Direct. He champions the web as the perfect platform for starting up a business:

‘The web was a great way to get an idea out to a national audience quickly without risking too much.” - Jamie Wells

Learn how to make the most of communication technology at BT’s FREE annual business event in London between 29th June and 3rd July.

The event promises to guide you through technologies and business innovations for more effective cost and marketing, so that you can be a stronger competitor in these turbulent economic times.

The event will be divided into these zones:

• The big picture – Time to reflect and act
• The big issues – Staying competitive
• The big issues – Keeping customers
• The big issues – Marketing your business
• The big issues – Management of Costs
• The big questions – Advice clinic

The organizers say:

“A visit to the Business Experience will give you valuable access to practical information and the newest solutions to help keep your business ahead in the current environment.”

By registering your place at The Business Experience, you are automatically entered into the competition to be part of a question and answer session with Dragons’ Den Panelist, Peter Jones, on the 30th June 2009. Register by phoning 0800 032 0469 or visit the website here:  http://www.btbusinessexperience.com/registration/

BT Business Experience: The Farmiloe Building, 28-36 St John Street, Clerkenwell, London EC1M 4B

Last week, we had the pleasure of interviewing Stephanie Manuel about the evolution of her fantastically successful franchise, Stagecoach Theatre and Arts, at the school’s headquarters in Walton-on-Thames. Stagecoach is one of the most successful franchises in the UK, and offers part-time education in the performing arts to more than 40,000 children aged between 4 and 16 worldwide, in countries including the US, Australia, Canada, Spain.

How the idea behind Stagecoach evolved.

Stephanie Manuel has always been involved with the performing arts. She is herself a play-write and actress, and has appeared in: Lytton’s Dairy, Three up two down and Hold the front page; but it wasn’t until she was looking for theatre training for her son that the idea took shape.

Stephanie soon discovered that there was a marked lack of theatre-training opportunities for children. It was finding this gap in the market that prompted her to consider setting up an after-school and weekend theatre school, offering singing, dancing, and acting lessons.

Set backs.

On seeing that her old school was for sale, she made an appointment at a bank to inquire about loans. She says ‘they laughed and showed me the door.’ Some years later, an executive from the same bank invited her to open an account with them- she politely declined…

It wasn’t until she was in her early forties and her children were in their teens that she met David Sprigg. The skills and experiences she gained in her personal and working life leading up to that critical meeting, good or bad, prepared her for her new life as a business-woman.

‘Being given this opportunity to realize my ambition was like being given the keys to paradise.

A perfect partnership.

Stephanie’s idea went into ‘cold storage’ for ten years until, by chance, she met then banker, David Sprigg, who proposed that they go into business. Together, they seemed to cover all the bases required to build a successful business.

Stephanie founded Stagecoach with David in1988. More than two decades later, Stephanie’s experience, knowledge and love of the subject, alongside David’s financial and franchise-networking expertise, has proved to be a winning combination.

‘He and I are two halves of a whole: what he’s really brilliant at, I’m not; and what I know about, he doesn’t.

Franchising

In 1988, Stagecoach ran just 3 schools in the UK. Today, Stagecoach runs 640 schools through their franchising-network. The network was formalized in 1993, after the company had already opened 24 schools. Up until this time, joint-venture partners consisted of friends and family-members who had witnessed the project’s success and who wanted to be involved.

Stephanie says that the transition and development of the franchising scheme has been relatively smooth. She attributes this to its pilot-like beginnings, whereby problems and issues had already been largely addressed while the franchise-network was not fully established.

‘We came up with some of the answers before we began… I think we were well-prepared before we got to the franchising stage.’

The franchise network.

After deciding to formalize and develop the network, Stephanie and David consulted a number of accountants, lawyers and franchise experts. Their challenge was to streamline the service they already offered, and to assure the same quality of service across the entire franchise network. This involved devising and implementing comprehensive cross-network training programs.

Stagecoach now has an entire department devoted to their network. The importance of this core, says Stephanie, is fundamental to the network’s success. Franchisees begin by receiving the same training, as well as two hefty tomes: ‘How to set up a Stagecoach’ and ‘How to run a Stagecoach’.

The Franchise Department keeps in close contact with their franchisees, supporting and helping them in the event of difficulties, as well as keeping them informed of any innovations and developments. In general, they are expected to come to the department for advice, rather than go to one another. Franchisees can also expect internal inspectors to visit announced.  This all helps to keep the network coherent.

The franchisee.

Initially, a lot of promotion was involved, not only to lure-in customers, but also to attract prospective franchisees. Stephanie wanted to find franchisees that were already performing-arts practitioners with relevant skills and experience in the field.

The Stagecoach network is still growing. This is undoubtedly partly due to the concept itself, which has its own returns- but there is clearly even more to be gained from being a franchisee: running one school can bring in approximately £12,500 per annum, and four, £50,000- but earnings can reach up to £60,000 or even £70,000!

Keeping things interesting.

Like any good business, Stagecoach is always looking to improve its service, but its success comes from its constant drive for innovation and diversification.

In recent years, Stagecoach has extended its training programs to babies and to older children, as well as incorporating sports into its curriculum. Stagecoach also runs a shop from its website, which stocks dance clothing, puppets, scripts, make-up and face-painting kits. Innovation and diversification can keep franchisees interested as well as giving you a huge advantage over your competition.

Advice for the prospective franchisor.

Stephanie’s advice to any budding franchise-owner is, first of all, to make sure that there is a market for your product or service on a wider scale. She suggests piloting your franchise scheme before diving in; a major part of knowing whether your business is franchisabe is if you’re able to train somebody else to do the job you do as well you do.

‘If you can’t train somebody else to run your business and make a success of it as well you have, then you don’t have a franchisable business.’

Stephanie urges prospective franchisee-owners to be prepared to give their business time to pay off, and to be ready for some seriously hard work. She considers the following to have been critical to the success of Stagecoach:

• A niche business concept
• A good partnership
• Passion for the concept and business
• Consistency throughout network
• Positive approach

Stephanie believes that, as women, we may well be at an advantage. We have ‘warmth’ and ‘passion’, as well as ‘broad vision’ and the ability to ‘multi-task’; all of these are essential attributes for the success of a franchisor.

‘Women should stand up, be brave and be counted, because I think that women make fantastic business people.’

If your business employs up to 50 people, demonstrates innovation and has a strong brand identity, is financially stable and has potential to grow, you should seriously consider entering the O2 X Awards.

Winners and short-listed entrants can expect to receive: £5,000 cash prize, VIP O2 tariff and handset, profile in Grazia or ShortList, a one-hour mentoring session with the Awards ambassador, and tickets to gigs at an O2 venue.

The deadline for this lucrative competition is the 1st of August 2009.

O2 X Awards are also holding local networking events. The London event is on the 23rd of June at O2 Shepherds Bush Empire.

Good luck!

After nine months of somber economic news, and billions of dollars having been pumped into the global economy, G8 ministers have reported growing consumer confidence and stock market rises. And, now, even the value of the pound is rising!

In a BBC interview, Nobel prize-winner for economics (2008), Paul Krugman, said that the earlier devaluation of the pound may have actually helped the UK economy. He says that governmental policies have been instrumental in stablising the British banking system.

“I think the UK economy looks the best in Europe at the moment.” – Paul Krugman, leading economist

Krugman went on to say that the government’s economic policies have been ‘pretty good’ and ‘intelligent’; and that, as long as Labour can resist an election this year, they may be credited for the recovering economy.

You’ve probably noticed that running a business involves a lot of time spent stuck behind a desk or at a work station. Unless you’re really lucky,  at some point you’re likely to have suffered a painful or aching neck that no amount of clicking will cure, alongside tense shoulders that lock up by your ears.

By doing a few simple stretches, you can avoid the build-up of stress and muscular discomfort.

Nine times out of ten, all it takes is some moderate stretching.

Remember, the mind and body are connected; if your body is relaxed and in good working order, your mind will also function at a higher level, and time spent working is likely to be all the more effective.

We’ve uploaded a couple of videos to guide you through some basic stretches. Now, get stretching and feel the tension melt away!

With the first video, when you stretch, remember to:

• Hold your stretches for 15 – 30 seconds
• Do not bounce in the stretch.
• Keep the end of a motion strong and comfortable

If you think you could benefit from even more of a stretch, watch one of Esther’s wonderful Yogatic video-tutorials for neck pain here:

Twenty-five year old Algole Narsamma  is one of three female producers working on the local community radio station in Pastapur, India. Without the station, set up by the Deccan Development Society (DDS), she would be working in the fields with the rest of her family.

Community.

DDS is a grassroots organization that aims to autonomize local communities by establishing networks, catalyzing their progress and development as local governments. Their focus is to open up opportunities to women, the poor and dalits- the lowest group in the Indian social hierarchy.  The organization currently operates in over 75 villages in India and boasts 5,000 members.

“The idea was to get local voices to talk to the local people on issues that were close to their hearts.” – P V Satheesh, Co-founder of DDS

Toppling the class hierarchy.

The radio station in Pastapur is inclusive; it is open to women of lower classes as well as older women. In addition to fortifying community-bonds, the station serves to empower and enrich everyone in the community, whether or not they are directly involved in the project.

“These women have struggled all their lives and it is a big deal for them to hear their own voices on the radio.” – Supriya Menon, BBC reporter

Empowerment.

Algole Narsamma is just one beneficiary of many. H Lakshmamma is a farmer but also makes nearly ten hours of radio programming a month for the station. Those who do not directly contribute also benefit from the information broadcasted about farming, medicine, health and music.

“It is a means of asserting themselves in this rural setting, of finding a voice and putting themselves in greater control of their own destiny.” – P V Satheesh

Expansion.

The idea has proved so popular in Pastapur that many local women are regular contributors. Although, at the present time, the station is funded by development organizations, it is hoped that the station will eventually become self-sufficient through the profits made from advertising.

In the future, DDS hopes to develop the project and expand it to other regions and villages in India.

Read Supriya Menon’s article for BBC News here: http://news.bbc.co.uk/1/hi/business/8061327.stm
Visit the Deccan Development Society (DDS) here: http://www.ddsindia.com/www/default.asp

Last night, news of the ‘stock market boom’ spread fast and hard. As the markets closed, strong rises were evident all over the world, in China, the UK and the US. Oil prices soared, reaching their highest level this year, and the Pound regained some lost ground on the Euro and the Dollar.

Manufacturing Boom.

US car giant, General Motors, may have entered bankruptcy protection yesterday, but all is not lost for UK manufacturing. The Purchasing Managers’ Index (PMI) shows that, although manufacturing is still shrinking a shrinking sector, the market contracted much less this May than any other month this year.

Although a manufacturing PMI below 50 still indicates contraction, the index in May was 45.4, up from 43.1 in April. And the improvement in May is not completely anomalous, but goes with a trend of augmentation seen in the two consecutive months preceding it.

“Although the index remains below levels consistent with outright recovery, this is a further sign that the downturn in UK manufacturing is easing” – Rob Dobson, senior economist at Markit, which produces the PMI

Another study, by the Engineering Employers Federation, suggests that UK manufacturing growth could even return by the end of 2009

Sterling rises as Dollar continues to fall.

The pound rose to $1.644, a stark improvement on $1.37 in March and its highest in seven months. The Euro also rose against the Dollar, which reached its fifth month of decline. For those of you planning a holiday to the continent this summer, your pound is now worth €1.16.

In a BBC article, Kim Caughey, equity research analyst at Fort Pitt capital Group, was more cynical about the supposed boom and said “I can’t really buy into today’s super-happy stock market’. However, with yesterday’s FTSE up by 2% and the Dow Jones, by 2.6%, no one can argue that the figures don’t look positive.