Marketing Evolution, Consumer Behavior, and Market Segmentation

Posted on Jan 7, 2025 in Business Management and Marketing

Marketing’s Evolution and Business Success

A1) Question 1 (20 Points) The practice of marketing and its importance for business success have changed significantly over the years. Initially, production exceeded demand, leading to a supplier-driven market. The focus then shifted to sales, innovation, and competition in a more demanding market. Bottlenecks in market segments led to the identification and creation of new segments, emphasizing customer needs. Since 2010, the focus has been on individuality and unique customer experiences.

  • Production greater than demand (supplier market)
  • Focus on Sales, Innovation, and Competition (Demanding Market)
  • Identify and create new market segments, focusing on customer needs
  • Since 2010: Focus on individuality and the unique customer experience

Key Tasks of Modern Marketing

Modern marketing tasks include:

  • Market segmentation: identifying and developing specific markets.
  • Value creation process: focusing on product and price strategies.
  • Branding: building a strong brand identity.
  • Customer Relationship Management (CRM): managing customer interactions.

Implementation in Practice: Apple

Apple implements these tasks through:

  • Blue Ocean Strategy: creating new market spaces.
  • Development of innovative products like the iPhone.
  • Advertising through keynotes, posters, and commercials.
  • Customer support via Apple Care and Apple Stores.

Consumer Purchase Decision Process

A2) (20 pts) The purchase decision process involves a stimulus (marketing, etc.) leading to an organism (the buyer’s black box), resulting in a response (the buyer’s reaction). This process is influenced by cultural, social, personal, and psychological factors.

Levels of the Purchase Decision Process

  • Need recognition: Identifying a discrepancy between the current and desired situation, triggered by internal or external stimuli.
  • Information search: The intensity and scope of the search process, depending on involvement.
  • Evaluate alternatives: Assessing the evoked set of options.
  • Purchase decision: Deciding which brand to purchase.
  • Post-purchase behavior: Actions taken after the purchase.

Practical Example: Cryptocurrency Debit Cards

Consumers with digital currencies like Bitcoin seek ways to use them in daily life. They research debit card providers (Coinbase, Bitpanda, TenX), evaluate options based on price, benefits, effort, and safety, and choose a card (e.g., TenX). Post-purchase, they assess the card and wallet experience.

Differences Between Individual and Company Purchases

  • Complexity of analysis: Companies involve more people in the decision process.
  • Long-term relationships: Business relationships are often long-term.
  • High degree of individualization: Companies seek unique solutions to stand out.

Market Segmentation and Its Importance

A3) (20 pts) Market segmentation involves dividing a heterogeneous market into homogeneous submarkets based on target group characteristics. This is crucial for effective marketing strategies.

Segmentation Criteria

Segmentation criteria include:

  1. Demographic criteria
  2. Socio-economic criteria
  3. General personality traits
  4. Usage criteria
  5. Criteria related to purchasing behavior

Levels of Modern Segmentation

Modern segmentation involves three levels:

  • Segmentation: Using geographical, demographic, etc., criteria.
  • Targeting: Employing strategies like Blue Ocean/Red Ocean.
  • Positioning: Choosing a low-price, high-price, or yield strategy.

Examples

  • Amazon: Market penetration strategy.
  • Blue Ocean Strategy: Creating new market spaces.
  • Geographical criteria: Virtual markets.