Add Thesis

Future of online marketing

Consumer Recommendations

Written by A. Mallo, M. Vincze

Paper category

Bachelor Thesis

Subject

Business Administration>Marketing & Sales

Year

2018

Abstract

Thesis: Fast-moving consumer goods Fast-moving consumer goods, referred to as FMCG, refer to products with fast sales speed and lower production and sales costs. When talking about fast-moving consumer goods, different market segments need to be considered, including food, beverages, cosmetics, and household products. The FMCG industry is a business-to-business segment, abbreviated as B2B. The most common of these is that retailers connect brands with customer groups, and then they can purchase products through these retailers (Bondeson and Liss, 2016 cited from Aljunaidi and Ankrah, 2014. Since such products have low profit margins for the company, what matters to the company is not individual sales, but the final sales volume. On the other hand, although the growth level of fast-moving consumer goods is lower than that of electronic products , But the return is stable and the revenue is more because it needs to be repurchased frequently. These products are often more like a product that needs rather than what you want, so you can better predict how the market will react (Dallegro, 2018). Because of this The concept of a fast-moving consumer product is relatively cheap and therefore much more affordable. The competition in this industry is quite fierce (Zhou et al., 2015). Because of this, companies in this industry tend to pay more attention to their packaging is the latest and outstanding, and the brand It is also becoming more and more important to the industry, but this can be challenging because brand loyalty is often quite low compared to FMCG brands. Another challenge for Zhou et al. (2015) Mention of foreign products on the market The presence of FMCG continues to increase, which further expands competition and reduces the presence of loyalty. With the emergence and growth of e-commerce and products that can be shipped faster than ever before, the work of fast-moving consumer goods companies has become more difficult and more difficult. Challenging. 2.1.2 Micro-influencer expressions in these contexts: "influencer" and "micro-influencer" are relatively new terms in the marketing industry, so there is no clear and commonly used definition. Zietek (2016) provides Two examples of definitions, one defines an influencer as a person who has superpowers to influence the purchase behavior of others through social media networks. This is usually due to the frequent content creation and persuasive ability of these people to cause a lot of attention. Zietek (2016) Year) Another way to describe this phenomenon is that regardless of the number of followers, they have good connections and therefore can influence more people. Mediakix (Influencer Marketing Agency, 2017) describes micro-influencers For people with a certain number of followers, there are usually 1,000 to 100,000 followers on social media platforms. 2.1.3 Crowdsourcing The definition of crowdsourcing provided by Brabham (2013, p.19) is “an online, distributed problem solving and production model that uses the collective wisdom of online communities to serve specific organizational goals”. Online communities, in other words, called crowds, are in a way motivated to share their experience with the product and in this way spread the word through online communities. Crowdsourcing is about giving up the idea that everything should come from the organization, accepting and allowing the public to contribute to the organization in a shared process, thereby influencing each other. The term "crowdsourcing" was first used by Jeff Howe in his book Crowdsourcing in 2016. He defined the term as: "Crowdsourcing represents the act of a company or organization taking a function that was once performed by employees and outsourcing it to an undefined (usually large) network of people in the form of an open call. This can be It takes the form of peer production (when the work is done collaboratively), but it is also often undertaken by individuals. The key prerequisites are the use of open telephone formats and a large potential workforce network.” (Hultberg, 2016 cited in Howe 2006) in Hultberg (2016) In the research on the food and beverage industry (considered as fast moving consumer goods, see 2.1.1) and crowdsourcing, the survey results show that in the fast moving consumer goods industry, crowdsourcing is mainly used for marketing purposes. The idea behind crowdsourcing may be different, which may be due to reasons such as the outsourcing process of creating marketing materials. Another reason mentioned is to get inspiration, which can help the company's ideation process. For example, crowdsourcing is the final result of the campaign and requires crowdsourcing. This means that whenever you see a score on a product, it is the result of such a process. For example, 74% of 800 test pilots recommend this product (see Figure 1 for illustration). Crowd scores are marked on the product for people to check and motivate them to try the product by providing them with valid proof. 2.1.4 Storytelling Storytelling is a marketing method based on creating stories around services or products to make them more relevant to the public. Through storytelling, an emotional connection can be established between the product and the target audience (Duarte, 2013). In recent years, storytelling has played an important role in marketing and communication. Ahsan (2017) wrote a recent study that showed that using target videos to visualize stories can increase the persuasiveness and comprehension of the audience. People have always been interested in stories, and those who master storytelling will receive more attention, because these make people become Read Less