Influencer Marketing and its Impact on Consumer Buying Behavior


Term Paper, 2018

22 Pages, Grade: 1,7


Excerpt


Table of contents

List of Figures

1. Introduction

2. Marketing
2.1 Definition of marketing
2.1.1 Origin of marketing
2.1.2 Objectives of marketing
2.2 Definition and development of Social Media Marketing
2.2.1 Influencer Marketing
2.2.2 Types of Influencers

3. Consumer behaviour
3.1 Types of purchasing decisions
3.2 Influence of influencers on purchasing behavior
3.3 Opportunities for companies
3.4 Practical example "NA-KD"

4. Conclusion

5. Bibliography

List of Figures

Figure 1 Pricing on the market

Figure 2 What are influencers?

Figure 3 Purchase decision by influencers

Figure 4 NA-KD Fashion

Figure 5 Iva Nikolina x NA-KD

1. Introduction

Screaming teenagers when they meet their social media idols in real life – 1 This is the norm today. Influencers have many thousands of fans and are becoming increasingly important in society. The Internet has become a kind of exchange platform and is nowadays strongly socially influenced. 2 Our purchasing decisions are based on reviews or recommendations from friends and acquaintances. 3 Social media and above all the resulting influencer marketing, offers companies a completely new way to present and market their products or services.

This work deals specifically with influencer marketing and how it affects consumer buying behavior. Theoretical basics are explained, how social media marketing came into being and what influencers are at all. Opportunities for companies are identified and possible solutions are developed.

2. Marketing

2.1 Definition of marketing

Marketing is used as a "process in the economic and social fabric" 4 respected. This is intended to satisfy not only the needs of individuals, but also of groups, "by creating, offering and exchanging products and other things of value". 5 This definition according to Kotler/Bliemel can be applied both to marketing in the original sense and to modern marketing.

While marketing in the first years of the post-war period was seen as a purely quantitative measure 6, nowadays it is to be understood as a kind of philosophy that places the customer at the center of all entrepreneurial activities without restrictions. Only those who see the customer as the most important success factor of the company will be successful in the long term. 7

2.1.1 Origin of marketing

Demand today consists of much more than the actual purchasing power. Today's market has evolved from the so-called seller's markets, where the main focus is on bringing the products to the consumer, to the buyer's markets, where companies align their structure with the needs of the market and the customer. 8

In the seller's market, demand is greater than supply. Companies often have problems with production, procurement and logistics. 9 While in the buyer's market there is a far greater supply than a demand and as a result the buyer can choose from a variety of offers. 10 Therefore, it is extremely important for a company to show the customer why exactly his product meets the needs of the consumer.

Abbildung in dieser Leseprobe nicht enthalten

Source: Based on Rudolf, F., Schlichting L., Pricing, 2003, p.30

The trend towards ever greater individualization in the modern market can be divided into six different phases. 11 The first phase began in the 40s and 50s and was considered a phase of production orientation on the seller's market. Here, the focus was on mass production. If a company succeeded in satisfying the basic needs of consumers, the company was successful. During this period, the concept of the American researcher Rosser Reeves became the USP (Unique Selling Proposition) 12 developed. Accordingly, the product benefit for consumers must be so unique that it only needs to be confirmed by advertising. 13

In the 60s there was a sales or distribution orientation. This is also where the change began, from seller markets to buyers' markets. Due to the increasing national competition and product diversity, the focus was now on bringing the products directly to the consumer via the trade. The companies that managed to generate their sales through such a distribution system proved to be more successful. 14

Marketing reached another turning point in the 70s. Companies had to satisfy specific customer requirements through market segmentation and unmistakably identify a product, brand or company in the minds of consumers through positioning. 15 Once a company succeeded in establishing its product, it was extremely difficult for other competitors to position a comparable product. 16

The phase of competitive orientation in the 80s was primarily concerned with the creation of an emotional positioning of the product or brand. The USP was replaced by the creation of a UAP (Unique Advertising Proposition), i.e. a kind of unique advertising promise, and was intended to create and consolidate an image with the consumer. 17

Thus, it became more and more important not only to consider the rational benefits, such as a high product quality or a low price, but also the personal benefit such as enjoyment, or social status. 18

Another challenge developed in the 90s, when companies realized that the needs of consumers are changing due to the latest trends and the ever faster changing technological, social and environmental requirements. These had to be detected in good time so that they could be reacted to as quickly as possible. 19

The last phase, which continues to this day, is the hyper-competition phase and began at the beginning of the millennium. Modern markets are characterized by high levels of competition, product interchangeability, weak market growth or saturated markets, and hybrid consumer behavior. 20 The German media and communication theorist Norbert Bolz defined the challenge for marketing in his book "The Economy of the Invisible" as follows: "Marketing is the battle for people's attention – their scarcest resource ...." 21

2.1.2 Objectives of marketing

In the literature, the goals of marketing are mainly divided into two main groups: the quantitative (economic) goals and the qualitative (psychological) goals. 22

At your discretion, some examples of quantitative targets might look like this:

- Profit maximization
- maximum profitability of equity
- Improving liquidity

In return, the qualitative objectives could, at their own discretion, be broken down as follows:

- Securing jobs
- Increase customer satisfaction
- environmental protection

A coordination of the goals, as well as to reconcile them, is absolutely necessary to achieve the corporate goals at all. It must be noted that interdependencies with other sub-areas in the company may exist. Therefore, the individual goals of the sub-areas such as purchasing, development or finance should be coordinated with each other in order to ensure an overall achievement of the corporate goals. 23

...


1 cf. Hofer, J., Marketing, 2018, p.15.

2 cf. Vineyard, T., Strategien, 2010, p. XV

3 cf. Vineyard, T., Strategien, 2010, p. XV

4 Kotler, P., Bliemel, F., Marketing-Management, 1999, p. 8

5 Kotler, P., Bliemel, F., Marketing-Management, 1999, p. 8

6 cf. Kotler, P., Bliemel, F., Marketing-Management, 1999, p. 4

7 cf. Pepels, W., Praxis, 2009, p.1

8 cf. Schnettler, J., Wernd, G., Marketing und Marktforschung, 2009, p.10

9 cf. Schnettler, J., Wernd, G., Marketing und Marktforschung, 2009, p.10

10 cf. Schnettler, J., Wernd, G., Marketing und Marktforschung, 2009, p.10

11 cf. Schnettler, J., Wernd, G., Marketing und Marktforschung, 2009, p.11

12 Zu Deutsch: „einzigartiges Verkaufsversprechen

13 cf. Schnettler, J., Wernd, G., Marketing und Marktforschung, 2009, p.11

14 cf. Bruhn, M., Marketing, 2004, p. 16

15 cf. Schnettler, J., Wernd, G., Marketing und Marktforschung, 2009, p.12

16 cf. Schnettler, J., Wernd, G., Marketing und Marktforschung, 2009, p.12

17 cf. Schnettler, J., Wernd, G., Marketing und Marktforschung, 2009, p.12

18 cf. Schnettler, J., Wernd, G., Marketing und Marktforschung, 2009, p.13

19 cf. Bruhn, M., Marketing, 2004, p. 16

20 cf. Schnettler, J., Wernd, G., Marketing und Marktforschung, 2009, p.14

21 Bolz, N., Wirtschaft, 1999, p. 126

22 cf. Weis, H., Ziele, 2001, p. 26

23 cf. Weis, H., Ziele, 2001, p. 26

Excerpt out of 22 pages

Details

Title
Influencer Marketing and its Impact on Consumer Buying Behavior
Grade
1,7
Author
Year
2018
Pages
22
Catalog Number
V1185293
ISBN (eBook)
9783346598899
Language
English
Keywords
influencer, marketing, impact, consumer, buying, behavior
Quote paper
Cindy Russmann (Author), 2018, Influencer Marketing and its Impact on Consumer Buying Behavior, Munich, GRIN Verlag, https://www.grin.com/document/1185293

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