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Consumer Behaviour:

Segmenting, Targeting & Positioning


MICHAELA MOHAMED | 22101945
11 November 2022|CBB01 | Ruth Mukori
FIS | Randburg Campus | Group 1
Table of Contents

Section A………………………………………………………………………………………..2
1.a ………………………………………………………………………….………….…2
1.b……………...………………………………………………………………………...4
2.a …….………………………………………………………….................................5
2.b ..…………………………………………………………………….........................7
2.c…...……………………………………………………………………………….......7
Section B……..…………………………………………………………………………………9
Section C..…………………...………………………………………………………………...13
1.a...…………………………………………………………………..…………………13
1.b..……………………………………………………………………………………...14
Section D..…………………...………………………………………………………………...16
1.a..…………………………………………………………………..………………….16
1.b..……………………………………………………………………..……………….18
1.c..…………………………………………………………………….………………..19
1.d..…………………………………………………………………….………………..20
References…………………………………………………..……...…………………...……22
Image References..………………………………………..……...…………….……...……25

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Section A: Case Study A.
Question 1: Market Targeting & Segmentation.

a) Petite Fox is a second-hand online store for eco-friendly individuals with


children who seek for apparel that is still of a high quality (Torres-Hastie, 2022).
Petite Fox has to deal with two separate target markets as they have a clear-cut
difference between a customer and consumer. Being a brand that offers primarily
childrenswear apparel, these individuals are seen as the consumer and their
parents/guardians would then be the customers; however, with the subset
section of maternity-wear the consumers are also the customers.

The age range of the “children” consumers was stipulated as 0-months up to 10-
years-old (Mari-Louise, 2019), but the age range for pregnant individuals and
“customer” parents of the “consumer” children can be expected to be young adults,
roughly 16-35. I say this range as teen pregnancy is a real occurrence and in 2021
2.7% of all 14–19-year-olds females in the country were pregnant, which has
decreased since 2019 which was 5.7%, despite this it is still a prevalent issue
(StatsSa, 2022). According to the data, the main contributing factor to the rate of
teen pregnancies is poverty (NACOSA News, 2018), and considering that those with
a tighter budget are more likely to participate in the second-hand market, these
individuals fit right into this segment (Chu, 2020). Another contributing factor to this
range is because 70% of millennial and Gen Z customers say that sustainability is a
crucial consideration when making purchases (Chu, 2020), thus meaning they are
more likely to thrift than any other generation given its nature.

This leads into the second characteristic for Petite Fox’s marketers, their consumers
and customers must have an attitude of being environmentally conscience and
preserving, and to quote the brand there are about how “parents should be able to
afford quality clothes for their kids without spending a fortune or damaging the
environment” meaning they clientele will mirror these beliefs back to them (Mari-
Louise, 2019).

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Another point to add is how younger generations are technological, meaning they
are more inclined to use this online store (Pilette, 2021). Petite Fox also claims that
they are aiming to be accessible to any parent regardless of their background,
income, or location (Karim, 2022), however it is simply not possible. Given how their
brand is still digital, not just anyone can access it, someone who lives in an urban
area within South Africa can access their website as they have internet and data
connection, which is needed for Petite Fox to be available to these
consumers/customers.

Figure 1: Graphic Showing Segmentation

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b) When looking at Petite Fox at first one might think that their segmenting
approach is concentrated considering they are operating within a niche, however
upon further inspection it is evident that the brand uses the differentiated
approach. A business developing a campaign that speaks to two or more distinct
target markets, demographics, or marketing segment is known differentiated
marketing and can be used to increase its customer base, dominate its niche,
and increase brand awareness by focusing on a variety of clearly defined
customer profiles (Hofacker, 2022). I say Petite Fox is using this approach as
they cater for children through their childrenswear well as parents-to-be through
their maternity wear products (Mari-Louise, 2019), this shows two distinct
segments; children and pregnant individuals. As illustrated in Figure 1 it can be
seen the separation of the one consumer, i.e., the children and the other
consumer i.e., those in need of maternity apparel.

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Question 2: Family Decision-Making.

a) The family life cycle can be theorized as a development with varying phases. By
knowing where a person is in the family life cycle, marketers can predict their needs
and adapt their marketing strategies to satisfy those needs (Walia & Chetty, 2020).
The family life cycle model aids in creating a consumer profile, which businesses
can use to choose which group of customers to target (Walia & Chetty, 2020). Many
adapt the theory model to fit their views, however a the most common opinion of the
stages goes as follows:

Figure 2: Family Life Cycle

Stage 1 – Bachelorhood: Individuals are young, and their incomes are usually low
as they are just starting out in their careers and they are also described as being
more concerned with appearance (Walia & Chetty, 2020). As a result, they tend to
spend more money on trendy items and premium and impulsive purchases occur,
thus it can be conclude that individuality exists at this stage (Walia & Chetty, 2020).

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Stage 2 – Honeymooners: Marriage brings responsibilities, and thus the need for
resources changes; people in this stage tend to have the highest purchase rate,
particularly for consumer durables, because they are in a better financial position
due to the lack of children (Walia & Chetty, 2020).

Stage 3.1 – Full Nest 1.0: The full nest 1.0 stage begins with the birth of the first
child as the birth of a child causes significant changes in a family's purchasing
behaviour and at this point, most of the money is going towards purchasing baby
items and products (Walia & Chetty, 2020). Furthermore, in many cases, the mother
may be forced to quit her job, resulting in a significant reduction in family income; as
a result, the couple is dissatisfied with their financial situation and has less
disposable income (Walia & Chetty, 2020).

Stage 3.2 – Full Nest 2.0: At this stage of the cycle, the family's financial situation
improves, due to career advancement and with this improved financial position,
families continue to be product-oriented, but they are less influenced by advertising
as they have more purchasing experience; furthermore, because the children are
older at this point, the expenses are school-related (Walia & Chetty, 2020).

Stage 3.3 – Full Nest 3.0: At this point, the family's income is increasing, and their
financial situation is becoming more secure, and this type of family spends a lot of
money on consumer durables, primarily because they need to replace older items
(Walia & Chetty, 2020). This demographic is more likely to purchase products such
as tasteful furniture, necessary devices, and luxuries (Walia & Chetty, 2020).

Stage 4 – Empty Nest: Children no longer live at their parent's house, so with no
child-related expenses to bear, the family's financial situation stabilizes, and savings
begin to build up (Walia & Chetty, 2020). Since the couple is now free to pursue their
desires, hobbies have become an important source of fulfilment for them and more
money is now spent on luxury, self-improvement, medical care, and health-related
products (Walia & Chetty, 2020).

Stage 5 – Solidarity: It involves retired individuals who are living alone following the
death of their partner and as a result, their lives tend to become lonely, and their

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income decreases significantly as a result of retirement (Walia & Chetty, 2020). This
causes significant changes in their consumption patterns and way of life and
healthcare services become an important part of their daily lives (Walia & Chetty,
2020).

This model illustrates where consumers are in terms of fiscally, emotionally, and
mentally. This tool can be used by Petite Fox to analysis how and who they want to
target, by specialises their campaigns and products to fit the criteria demands by
their chosen group.

b) As explained in 2a Stage 3.1 begins with the birth of the first child and their birth,
thus this is the stage Petite Fox should be ideally targeting. Stage 3, but more
specifically 3.1; the beginnings of starting a family, is when consumers purchase
baby products such as babywear apparel (Walia & Chetty, 2020). I suggest this
stage as it targets both types of their consumers, women going through maternity as
they are starting a family which occurs during this stage and due to the fact that the
process of starting a family results in the children, which will also be apparent during
this stage, and they are the second type of their consumer Petite Fox has.

c) The stage fast-fashion brands would most likely target is also the 3rd stage, however
they would target Stage 3.2, rather than Stage 3.1 like Petite Fox. It can speculated
that the children during this stage are prepubescent and also going through
adolescence, so between the ages of 4-15, in other words small children to young
teens. Fast-fashion brands would target this stage due to a few reasons; children
grow fast, and their clothing needs to be replaced more frequently than adults, on
average every 6 months is ideal, and another reason is because parents are more
likely to spend on their children’s closet than their own (Publisher, 2017). Another
reason this stage is ideal for fast-fashion brand is because children of this age start
to dress themselves, children statically starting themselves from the ages 5 or 6
(McCarthy, 2021) and children thus form autonomy and are deceive of what they
want to wear. Childrenswear just like another market sector has microtrends, for
children it might the current show of their generation or a print or pattern, and these

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change frequently so a fast-fashion brand would keep up with these changes in child
demands for fashion, such as in 2019 the style and prints in fashion were animal and
space prints (Udayar, 2019)

Figure 3: Illustration of Microtrends

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Section B: Essay.
Petite Fox is a South African company that has a new following of consumers (Mari-
Louise, 2019), the brand uses their target markets attitude/s to their advantage. Many
wonder what’s an attitude, how it’s quantified and how a consumer can be categorised
in terms of it. This essay will discuss what attitudes are, the ABC model and its
hierarchies, as well as attitude functions and how Petite Fox’s consumer target market
is viewed in terms of these theories.

Attitudes are viewed as a significant factor that influences buying behaviour and reflects
either positive or negative evaluations of an "attitude object," which can range from
product to brand to advertisement, or any other aspect of consumption in consumer
behaviour (Duggal, 2019). Subsequently, attitudes influence consumers' decisions to
buy/avoid specific products or brands (Duggal, 2019). Consumers acquire attitudes
through a variety of channels, including direct experience, word-of-mouth, and
marketing, but one of the most important drivers of attitudes is a consumer's personality
(Duggal, 2019). Due to the deeply individualistic essence of character, attitudes differ
greatly from one consumer to the next, and even though attitudes and behaviours are
frequently consistent, they can be situational such as disliking a brand, but their product
is the only one available at the given time (Duggal, 2019).

The ABC model of attitude is frequently used in therapeutic settings to reframe negative
feelings, it theorizes (consumer) attitude has three components: affective, behavioural,
and cognitive (Nadeau, 2022). Affective: It’s defined as how an individual feels about a
specific situation or object and is frequently an impulsive reaction based on
memories/prior experience with the object of the attitude or something similar (Nadeau,
2022). Behavioural: This component is defined as how the attitude's object causes a
person to behave, and this behaviour is usually viewed as predictable (Nadeau, 2022).
Cognitive: How one thinks about the subject of the attitude is this aspect, this can be
shaped by the opinions of primary-reference groups or secondary-reference groups
(Drew, 2022).

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The interaction between the ABC elements leads to the hierarchy of effects (Dean,
2010) and is used to categorize different levels of motivation/involvement with an
attitude object that a person may have (Kenton, 2021). Standard-learning hierarchy is
where consumers will do a lot of research and form opinions about the attitude object,
after that, the consumer will decide how they feel about the attitude object (Dean, 2010).
The person's behaviour is a direct result of their feelings or affect, so when a high level
of involvement is required for purchase decisions, the cognition-affect-behaviour
approach is frequently used (Dean, 2010). The order of events in the low-involvement
hierarchy is cognition-behaviour-affect, thus when making a purchase, a consumer with
an attitude shaped by the low-involvement hierarchy of effects relies more on what they
know than on how they feel, so after making a purchase, the consumer develops
feelings about a good/service (Dean, 2010). The order of affect-behaviour-cognition
defines the experiential hierarchy of effects; in this situation, the consumer's decision to
buy is solely influenced by how they feel about a particular good/service (Dean, 2010).
After the purchase, cognition reinforces the initial effect and attitudes created by the
experiential hierarchy of effects, emotional contagion is typical (Dean, 2010).

Comprehending the reason of a consumer's attitude is the first step toward reshaping or
fitting into it; the functional theory of attitudes explains the functional motives of attitudes
toward consumers (Dean, 2010). There are four possible functions of attitudes, each of
which attempts to explain the source and purpose of a specific attitude to the consumer.
The utilitarian function is centred on the utilitarianism ethical theory, and an individual
will make decisions with the goal of maximizing happiness; when a consumer's choice is
determined by how much pain/pleasure it will cause, their attitude is distinctively based
on utility function (Dean, 2010). The value-expressive function is used when a
consumer bases their opinion of a good/service on their core beliefs, the main factor of
a person embracing the value expressive function is the reflection that a good/service
has on the customer and when they accepts a good/service with the intent of having it
affect their social identity, this specific function is used (Dean, 2010). When a customer
believes that using a product/service might damage their self-image, the ego-defensive
function is evident; furthermore, it's challenging to shift the ego-defensive attitude and
the ego-defensive attitude is a strategy used by people to hide their unsettling traits

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(Joubert, 2013). People who are careful to organize structure regarding their attitude of
a product/service typically possess the knowledge function, by incorporating fact-based
comparisons and real-world statistics into the message strategy, a marketer can alter a
consumer's knowledge function-based attitude, thus marketing campaigns that are
ambiguous/irrelevant will not work on customers with a knowledge attitude (Joubert,
2013).

For sustainable purchases, the categorized attitude conclusion is debatable,


considering the ranging ways a good/service can be sustainable, and what is it fulfilling.
In terms of Petite Fox their form of sustainability the second-hand market (Mari-Louise,
2019), but how is thrifting “sustainable”? The second-most polluting industry is the
fashion industry, and this is due to the carbon emission released because of over-
producing apparel, i.e., the fashion pandemic: fast-fashion (Razvi, 2022). Thrifting
culture was always prevalent in low-income communities, but due to being more
sustainable it’s now trendier to thrift, in essence thrifting counteracts fast-fashion culture
(Razvi, 2022). Thrifting keeps already existing clothes in cycle and eliminates the
entrance of new contenders, decreasing the carbon footprint as much as thrift-doers
can in their capacity (Razvi, 2022). The influx of newcomers hurts the old community of
intended users, and sometimes results in inflated online re-reselling, however Petite Fox
does not contribute like this, they offer discounted retail prices (Mari-Louise, 2019),
which is in the name of sustainability and not capitalism.

Petite Fox’s genuine, culturally correct, approach to their online market makes them
reliable as they operate sustainably, by offering discounts and essentially encouraging
returns if the product is not ideal (Mari-Louise, 2019). Considering the ABC model and
its hierarchy of effects, Petite Fox’s typical consumer operates using the standard-
learning hierarchy which, as elaborated on further above, is a research-based hierarchy
and starts off with the beliefs of the consumer first, followed by their feelings towards the
product/service, then finally the behaviour taken (Dean, 2010). This hierarchy is typically
considered to be used for high-level purchases like a house, however despite this
paradigm it can be applied in different contexts. Using a Petite Fox consumer as an
example, considering the store is online the thrift-doer would be the newcomer that is

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anti-fast-fashion and not from financial circumstances. If they are struggling monetarily
and benefiting off the pricing, they aren’t as impoverished as someone living at the
poverty-line, as in 2020 a fixed-internet connection was averagely R899 (Daniel, 2020),
and the lower-bound for that same year was R840 (Stats SA, 2021), looking at it from
this perspective real low-income members aren’t participating. Given this argument, this
consumer has the means and motive to research about thrifting as a “service” that
Petite Fox would be offering, more than a product, they would thus be pro-thrifting and
feel positively about the sustainable alternative and take action to purchase thrifts for
themselves during pregnancy or their children. Concluding that this is how Petite Fox’s
consumer would operate in terms of hierarchy, the same arguments can be applied to
their function being value-expressed, as it’s belief orientated (Dean, 2010).

In consumer buying terms, the attitude of Petite Fox’s consumer, and generalised target
market can be summarised as a standard-learning hierarchy based and value-
expressed attitude. Their attitude is this way because of the personal beliefs of the
consumers primarily, and also to Petite Fox’s credit how the brand chooses to operate
sustainably in terms of their reasonably and respectfully priced, online thrifting market.

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Figure 4: Standard-learning hierarchy model illustrated
Section C: Case Study B.

Question 1a – Customer Profile.

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Question 1b –Nature of Perspective.

Consumer perception is the process by which consumers organize, interpret, and give
meaning to a marketing stimulus after they have sensed it; any element of the
marketing mix as well as anything relating to the product, brand, or both may be
considered marketing stimuli (Joubert, 2013). Any of the sensory receptors, including
those for vision, hearing, smell, taste, and touch, receives input from the stimuli (Bailey,
2019). The process by which a person gives meaning to their sensory impressions is
known as perception (Bailey, 2019).

Since perception is personal to each individual, it is a subjective process; when two


consumers are exposed to the same stimulus, they might have different reactions to it
and even though they are exposed to the same marketing stimuli, how they choose,
arrange, and interpret it differs because of their values and interests (Joubert, 2013). A
Hemp Love consumer would be subjective about a purchase from their store as this
consumer would be eco-friendly, wants to participate in slow-fashion. Consumers are
more inclined to be selective about stimuli that are personally relevant and relate to
their current needs as people often see, hear, and believe what they actually want to
see, hear, and believe, regardless of reality (Joubert, 2013). To put it another way,
consumers view things in a way that is familiar to them or that makes them feel
comfortable, and in a way that is consistent with their needs and motives, learning,
attitudes, personality, values, and other background characteristics (Ogunjimi, 2022). In
the context of a Love Hemp consumer, they would be selective because are protecting
their ideologies by associating themselves with the brand. Selective comprehension and
selective distortion are other names for this (Ogunjimi, 2022). Lastly, the basis of
perception is a person's point of reference, meaning their opinion is rooted in their
personal range of knowledge and experience, simply meaning they know what they
know, don’t know what they don’t know (Joubert, 2013). A Hemp Love consumer could
only be eco-friendly if they know and engage with environmental enlightenment and
education, the same way they would seek and search for a brand that suits their beliefs
and finding the brand. Let’s use three different consumers for example.

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Example A

Ayanda is a vegan, yoga instructor, who is anti-fast-fashion and is seeking a slow-


fashion brand to wear for Mother’s Day and decided to buy from Hemp Love as she was
gifted a blouse from them from her sister at Christmas.

Subjective – She wants an outfit that is slow-fashion created

Selective – She wants to be environmentally conscious and is protecting her beliefs by


purchasing from them

Frame of Reference – She knows about Hemp Love because of her sister

Example B

Bhavi is going on holiday and needs ecological resort apparel for her trip, she decided
to buy again from Hemp Love as she is a regular customer of theirs, she enjoys the
quality of their clothing.

Subjective – She wants ecological holiday clothes and Hemp Love has just that

Selective – She wants to buy from Hemp Love because their quality is suitable for her

Frame of Reference – She knows about Hemp Love because she has previously
purchased from them.

Example C

Charlotte is a feminist who supports woman-owned businesses, her friend recently


suggested she supports Hemp Love as they are female owned and thinks the clothes
suit Charlotte’s style.

Subjective – She is protecting her ideologies by supporting Hemp Love, as she wants
to support a woman owned business

Selective – She is emphasising her feminist morals and listening to a primary reference
group

Frame of Reference – She knows about Hemp Love through a friend

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Section D: Case Study C.

Question 1.

a) The new marketing paradigm refers to the meshing of the marketing world and
technological world, and how it implicates marketing and consumer behaviour
(Weller, 2017). The term "marketing" is being redefined at a rate that is faster
than most businesses can adapt as people enter this new era; it is a fusion or
hybrid between marketing, business, technology, and those who research human
behaviour (Weller, 2017). While the 4Ps—Product, Price, Place, and
Promotion—remain crucial elements of the marketing mix, traditional marketing
ignores other crucial elements like customer involvement, the significance of an
integrated offering where consumers can participate, and the necessity of
creating differentiation to engage the increasingly empowered and wary
consumers (Moutinho, et al., 2013). The Egg launch shows the brands adapting
themselves for to the new marketing paradigm (Cape Business News, 2020).

• Product: When it comes to the products of Egg, the first element of the
new marketing paradigm that is evident is the amount of choice these
customers have as the Egg had multiple brands present, 250 to be more
exact (Cape Business News, 2020), this is the element of differentiated
consumers, one of the brands even had a t-shirt customisation stand
(Cape Business News, 2020). The second element one can see is that
Egg was interactive and as it gave SMME’s (Small, Medium and Micro
Enterprises) a chance to showcase their products to consumers (Cape
Business News, 2020).

• Place: The Egg was experimental; this allowed the individuals who joined
in to be a part of and participate in something ground-breaking by
physically being there (Cape Business News, 2020). The Egg also made

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moves and elevated their “place” by developing an app that launched in
January of 2021, making their place “everywhere” (Cape Business News,
2020), this corelates to the element of how different consumers have
different purchasing preferences when it comes to online vs physical.

• Price: The Egg offered consumers in store with an e-commerce platform


(Cape Business News, 2020), which goes to the preference consumers
have of how they are purchasing goods and services, and this allowed for
different preferences to be catered for. To the point of interaction, having
multiple brands and SMMEs means different price ranges (Cape Business
News, 2020), and these brands can interact with the consumers who fit
their target market on the basis of many things but to this point, income
level and spending amounts.

• Promotion: The Egg was technologically interactive, such as having a


system where consumers could scan a QR about a brand and all their
information was made available (Cape Business News, 2020), this can be
seen as a sense of participation in finding out about a brand a consumer
particularly likes. The Egg, as discussed, had smaller businesses enter,
businesses that usually wouldn’t be inside the mall (Cape Business News,
2020), this allowed these brands to showcase themselves to consumers
for the first time and if they leave a good first impression they can rely on
marketing evangelism, this let’s consumers interact with a new brand
trying to promote themselves.

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b) The goal of the marketing strategy known as "transactional marketing" or
“traditional marketing” is to complete a sale or transaction and once at the point
of sale, the goal is to seal the deal, so transactional marketing is a strategy used
by businesses to increase profits by highlighting the size and effectiveness of
individual sales and this strategy is influenced by the marketing mix (Agrawal,
2022). Relationship marketing, as opposed to transactional marketing, is centred
on the relationship with the customer; the objective is to establish a connection
that promotes customer loyalty and repeat business thus the development of this
tactic requires more time, as do all relationships (Smith, 2020).

Egg could utilize a fusion of these two strategies, and they can do it through
recognizing what these strategies have in common, the consumer is the first area
of overlap (Smith, 2020). Whichever strategy used one must comprehend the
target audience, in the same way that consumers who are attracted by
transactional marketing can be developed through relationship marketing,
consumers who are developed through relationship marketing can also be
persuaded to make another purchase through transactional marketing, such as
through a discount (Smith, 2020). Relationship marketing can be said to coincide
with the new marketing paradigm through the similarity of development through
technology. Egg’s combination strategy could go off the marketing mix,
continuing furthering as they have done and bringing in more relationship
marketing through a more developed CRM scheme. This scheme could consist
of them gathering consumer information and giving these consumers store
recommendations within the Egg based off the information gathered. From there
if the consumer decided to take the recommendation they will get a discount at
the next recommendation they get from Egg.

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Part 1 Part 2

Figure 5: Part 1 in Eggs new strategy Figure 6: Part 2 in Eggs new strategy

As seen in figures 5 and 6, the strategy would go as follows. This strategy


combines the 4Ps traditionally and futuristically, as incorporates a CRM based
technology that brings in the relationship marketing to complete.

c) CRM, or customer relationship management, has developed into a tell term that
is used to refer to everything from software to strategy; CRM, at its core, is a
tried-and-true strategy that aids businesses in acquiring, keeping, and
maximizing the value of customers through the gathering, incorporation, and use
of customer knowledge (Gudat, 2020). The plans and programs put in place to
alter the technology, personnel, and business procedures of a company are what
will make this transformation possible (Gudat, 2020). In essence, it is a strategic
approach that aids in managing the customer relationship, or the more
fashionable "consumer experience", for retailers and other businesses (Gudat,
2020). CRM is built of 4 major elements; strategy, technology, process, and
staffing (Gudat, 2020). Strategy refers to goals and objectives of the business,
technology refers to infrastructure and applications, process is the procedures
and rules of the business, and staffing refers to skill set and incentives of the

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workforce and the organizational structure that operate under (Gudat, 2020).
Technology is arguably a very big key player, and it has its own functions that
affect CRM. Technology enhances customer service (Joubert, 2013), it can be
seen that technology enhanced Eggs customer service through their plans of
having an app that allows consumers to call on an assistant from the Egg team
for help (Cape Business News, 2020). Technology also allows for customisation
(Joubert, 2013), as seen in one of the stores at the Egg it allowed for customers
to create a t-shirt at a customization station and an artist panel staffed by
regional artists who can bring customers' creative concepts to life on goods and
clothing (Cape Business News, 2020). Technology also enhances the
capabilities of the organisation, as seen with the Egg the e-commerce offered
increased the channel of payments, which couldn’t have been accomplished
without technology (Cape Business News, 2020).

d) Due to the nature of Egg, being versatile and technological, they’re typical
consumers would be Generation Z, with this considered, the Eggs ideal CRM
strategy would be Butterflies. Butterflies are defined as highly profitable but lack
loyalty, they move across markets meaning they can buy something luxurious
one day and something cheap and discounted the next (O'Dell , et al., 1997).
These types of consumers are also considered educated and intelligent, as well
as being economic about their purchasing decisions, these consumers would
rather switch brands than complain about the service and tend to rely on word of
mouth from reference groups (O'Dell , et al., 1997). Gen Z would be considered
Butterflies as they are considered more informed than other generations and
tend to not be attached to a specific brand, they also do not like having physical
shop assistants aid them with queries (Bewicke, 2022). Gen Z are increasing in
strength in terms of purchasing power and cash available due to their disposable
income, meaning they are profitable (Bewicke, 2022). An ideal Butterfly strategy
i.e. A Gen Z strategy, for Egg would be trying to gain their loyalty as these
consumers can be turned loyal in the future (Joubert, 2013). Gaining loyalty
ensures the profitability is stable, the way to go about it for these specific
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consumers is by appealing to their morale as Gen Z give brand ethics and
corporate responsibility a high priority (Bewicke, 2022). Another factor to
consider is the physical and digitals stores, as Gen Z is the generation most likely
to shop online, but it does not mean this is their preference (Bewicke, 2022). In
terms of both customer service and product quality, Gen Z consumers have high
expectations, they also value personalized shopping experiences that can be
catered to their unique preferences (Bewicke, 2022). Egg can utilize this
information by developing more Gen Z orientated social media and improving the
quality of the service and goods they offer as well as personalizing them to the
consumers, this can be conducted through the use of CRM as well.

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References
Agrawal, K., 2022. What Is Transactional Marketing? – Examples & Strategies. [Online]
Available at: https://www.feedough.com/what-is-transactional-marketing-examples-strategies/
[Accessed 10 November 2022].

Bailey, R., 2019. Overview of the Five Senses. [Online]


Available at: https://www.thoughtco.com/five-senses-and-how-they-work-3888470
[Accessed 9 November 2022].

Bewicke, H., 2022. Gen Z consumer behavior: What you need to know. [Online]
Available at: https://www.talon.one/blog/gen-z-consumer-behavior-what-you-need-to-know
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[Accessed: 10.11.2022]

Figure 1: Graphic Showing Segmentation..................................................................................................... 3


Figure 2: Family Life Cycle ............................................................................................................................. 5
Figure 3: Illustration of Microtrends ............................................................................................................. 8
Figure 4: Standard-learning hierarchy model illustrated ............................................................................ 12
Figure 5: Part 1 in Eggs new strategy .......................................................................................................... 19
Figure 6: Part 2 in Eggs new strategy .......................................................................................................... 19

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