The Controversial Rise of 'Mistake Marketing': Are Brands Playing with Fire?

Understanding 'Mistake Marketing'

Mistake marketing is becoming a trend where brands inadvertently send out promotions that appear to be mistakes. For instance, luxury bagmaker Saben mistakenly sent a discount code meant for internal use to its entire customer base, offering 30% off. Similarly, Breeze Balm prematurely announced free shipping, claiming it was an error made by their marketing team. These incidents raise questions about the legitimacy of such marketing strategies.

The Psychological Appeal

According to Bodo Lang, a marketing expert from Massey University, mistake marketing taps into the consumer's desire for value and novelty. Emails claiming errors often have higher open rates and create a sense of scarcity, prompting quick consumer action. Offers that seem too good to be true exploit this psychology, suggesting they are limited-time deals that consumers shouldn’t miss out on.

Viral Potential

Mistake marketing has the potential to go viral. The excitement surrounding these offers encourages consumers to not only take advantage of them but also share them on social media, amplifying their reach. This phenomenon is referred to as the 're-transmission rate', which is essential for viral marketing.

Risks Involved

However, there are risks associated with this strategy. While some consumers may be drawn in by the allure of a mistake, others may see through the tactic, considering it a manipulation. Lang warns that reputable brands may shy away from this approach as it could damage their brand value and lead to backlash.

Legal Implications

Consumer NZ spokesperson, Abby Damen, emphasizes that misleading advertisements may breach the Fair Trading Act (FTA), which prohibits false representations in advertising. Brands found guilty could face penalties of up to $600,000 for each offense. Consumers misled by such marketing are encouraged to lodge complaints with the relevant authorities.

Bodo Lang, Massey University Marketing Expert.

Luxury bagmaker Saben is part of a rising trend that's seen companies advertise their products using 'mistake marketing'.