BSBMKG435 Learner Resource v1.0
BSBMKG435 Learner Resource v1.0
BSBMKG435 Learner Resource v1.0
Learner Resource
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BSBMKG435 Analyse consumer behaviour
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Contents
Unit Descriptor......................................................................................................................................4
Application........................................................................................................................................4
Elements and performance criteria...................................................................................................5
Required Skills and Knowledge..............................................................................................................6
Introduction...........................................................................................................................................7
About this Learner Resource.............................................................................................................7
Glossary.................................................................................................................................................8
Topic 1: Evaluate Drivers of Consumer Behaviour...............................................................................10
1.1 Source information....................................................................................................................11
1.2 Consumer attributes..................................................................................................................17
1.3 Features of product or service..................................................................................................20
1.4 Investigate consumer needs......................................................................................................23
Key Points: Topic 1...............................................................................................................................29
Topic 2: Evaluate reasons for existing levels of consumer interest.....................................................30
2.1 Consumer responses.................................................................................................................31
2.2 Review relevant data.................................................................................................................38
2.3 Assess organisational capability................................................................................................43
Key Points: Topic 2...............................................................................................................................47
Topic 3: Recommend marketing focus................................................................................................48
3.1 Rationale for marketing focus...................................................................................................48
3.2 Conversations and interventions...............................................................................................55
3.3 Legal and ethical obligations and budgetary requirements.......................................................59
Key Points: Topic 3...............................................................................................................................64
Summary.............................................................................................................................................65
References...........................................................................................................................................66
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Unit Descriptor
Application
This unit describes the skills and knowledge required to analyse consumer behaviour for markets
and specific needs.
The unit applies to individuals who need to analyse consumer behaviour to examine factors that
impact on decisions to purchase products or services. They conduct a thorough analysis of consumer
attitudes and behaviour and make recommendations on marketing strategies to increase
consumption of the product or service being marketed.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
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Elements and performance criteria
Knowledge Evidence
The candidate must be able to demonstrate knowledge to complete the tasks outlined in the
elements, performance criteria and foundation skills of this unit, including knowledge of:
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Introduction
Welcome to the unit of competency BSBMKG435 Analyse consumer behaviour
.
This unit describes the skills and knowledge required to evaluate the drivers of consumer behaviour
and interest and use this to recommend marketing focus.
Simulated workplace
This Learner Resource includes all necessary information required to complete relevant tasks and
activities, based on the simulated business, Bounce Fitness.
For further information, links are provided to relevant websites and videos. These are highlighted as
follows:
Weblink:
There are also some Learning Activities provided as an opportunity to apply the concepts and
practise skills.
Learning Activity:
Weblink: Business and Management Glossary
https://www.businessballs.com/glossaries-and-terminology/business-and-management-glossary/
You may add key words and terms below for your personal reference if you want to.
Glossary
Word Description
The elements that consumers look for when choosing products or
consumer attribute
services.
consumer interest The level of desire of the product or service to the consumer.
Model actions that the organisation can use to stay relevant with the
engagement
consumers. It is about creating content and strategies to keep
interventions
consumers interested in the organisation in more meaningful way.
engagement Model conversations that the organisation can use to maintain the
conversations interest of the consumers with the product or service.
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Collecting information on consumers who might be interested in
market research
purchasing your service or product
marketing
Techniques that organisations use to convey messages to consumers.
communications
organisational The ability of the organisation to adjust its marketing plans and product
capability or service to better fit the consumer demand.
products Tangible items that consumers can use based on their preferences.
The action of doing something for the consumer. They are the systems
services that correspond to specific function a customer need/s. For example,
hairdressing, travel agents, gym membership, hotels etc.
Study of the movements of the sales of products and/or services over
trend analysis
time. This can be a historical analysis or used to predict future trends.
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Topic 1: Evaluate Drivers of Consumer Behaviour
source information on the market for a product or service according to the marketing
plan
identify consumer attributes for the market from the market profile and existing
consumer data
identify and compare features of a product or service according to your organisation’s
marketing plan
investigate consumer need for the product or service through analysis of trends and past
performance
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1.1 Source information
Products are tangible items that consumers can use based on their preferences. Services are the
action of doing something for the consumer. They are the systems that correspond to specific
function a customer need/s. Being able to analyse the trends in consumer behaviour towards
products and services will help your business make reasonable adjustments to its marketing plans.
It is crucial that you understand the different information available on the market that you can use
to evaluate consumer behaviour. Industry standards had derived a set of information to effectively
reach an organisation’s target market. Such information includes the marketing mix, marketing
information, and marketing plans. Establishing an understanding of the industry standards and
practices allows you to use the information you require to make accurate evaluations of the
consumer behaviour towards your products and/or services.
The marketing mix outlines the choices made by organisations in serving a product or service to
the market. This involves the 4Ps, being: Product, Place, Price, and Promotion.
The marketing mix allows organisations to identify marketing elements to successfully position
their product or service in the market. It defines the organisation’s options in marketing the
product or service. By establishing the marketing mix, organisations can identify and outline the
information that must be collected in the market according to the organisation’s marketing plan.
Each element of the marketing mix provides information that you can use to analyse consumer
behaviour. As consumers respond to different elements of marketing, you can use this knowledge
to produce marketing strategies that would benefit your product or service.
To further understand this concept, here are brief explanations of how each element is used in
completing the marketing mix and how to use them in analysing consumer behaviour.
Product
Place
Price
Promotion
Product
A product is an item that is manufactured or sourced out for sale. The marketing mix allows the
organisation to identify the need of the consumers for the chosen product or service and how it
differs from similar products available on the market. This also involves the overall presentation of
the product to the market, including branding and packaging.
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Organisations identify common industry information related to their product, such as its
specifications, consumer feedback, and sales performances. Knowing these metrics on the
product allows the organisation to understand consumer responses to its product and help make
effective marketing decisions in the future.
Place
The place pertains to the channel in which consumers may access and purchase your product. This
includes stores, online platforms, and trade fairs that can be venues for making sales.
Organisations can identify the channel from which most of their sales comes and capitalise on that
opportunity. Researching for channels in which consumers are more inclined on using will help the
organisation prioritise these channels that are effective and utilised by the industry.
Price
The price refers to the value of the product or service when offered to the consumers on the
market. The organisation needs to identify the consumer’s price sensitivity and price discounts
that could attract more consumers in making purchases.
Knowing consumers’ feedback on the price of products and services in the market can help the
organisation position its product or service. By understanding the ability and willingness of
consumers to purchase a certain product or service, organisations can gain leverage by having a
competitive market price for their product or service.
Promotion
Promotion refers to the initiatives in increasing the reach of the product or service to the target
market. This includes options on promoting the product or service on online platforms, television
channels, radio, and billboards. The organisation must also consider reviewing how competitors
run their promotions to identify the most effective means to promote the product or service.
Understanding the consumer feedback on product or service promotions available on the market
will help you develop a promotion that would effectively boost the sales of your product or
service. Research on industry practices in promoting products and services similar to yours will
hasten the process of identifying appropriate promotions to run. Identifying what promotions
work well with your target market will help you determine what you need for you to reach your
marketing goals.
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Learning Activity: Answer the following questions:
It is essential to collect information available on the market that is relevant to your organisation’s
product or service. The product or service information available in the market allows you to take
leverage over the consumer’s tendencies and general behaviours toward products or services
similar to yours. Whether your organisation offers products or services, collecting market
information provides insights that will contribute to making wise marketing choices.
Below are the types of market information used in assessing consumer behaviour:
Internal Data
Internal data refers to the private information collected by the organisation relevant to market
sales. This data cannot be shared with the public as this includes information that the organisation
can use in creating leverage over their competitors, which includes buyer locations, patterns, and
behaviours.
Competitive Intelligence
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Competitive intelligence assists the organisation in understanding its competitors and competitive
market dynamics. This includes product information, market share and penetration, pricing
strategies, competitive positioning and messaging, and win/loss analysis.
Marketing Research
Marketing research is the systematic process of identifying marketing opportunities and solving
problems relevant to promoting products and services to produce sales. Marketing research
identifies the problem encountered in promoting the organisation’s product or service, explore
possible solutions, and then provide a conclusion on which options would yield the best results.
By identifying the marketing information above, you will be able to single out information that you
can use as a reference in conducting marketing initiatives that reach your target market more
closely. These pieces of information provide you with hints on adjustments that you may need to
apply to your current marketing plan to cater to consumer behaviour changes.
A marketing plan is a guide to help an organisation promote its product and services that meet
the needs of its target market. Having a marketing plan is important for an organisation’s
marketing efforts. A marketing plan usually consists of the following components:
Market research
Market research is information on the market related to the product or service to be offered. The
information collected from the market research allows organisations to develop marketing plans
that are flexible to cater for the demands of the current market on products and services.
Target market
Target market refers to the group of potential clients or consumers to whom an organisation
wants to sell its products and services. By understanding the collected information from the
market, organisations can identify the areas of the market which produced peak sales. In turn,
marketing initiatives can be developed in a way that capitalises on these consumers.
Product/service
Product or service is what the organisation offers to the public for sale. The information available
on the market related to these serves as a guide in assessing the general behaviour of consumers.
Competition
Competition refers to other organisations offering products or services similar to your
organisation’s own product or service. Knowing the marketing efforts of your competitors, as well
as product or service information, helps you develop marketing initiatives that would gain
leverage over them.
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Marketing strategies
Marketing strategies are the plans and techniques developed by the organisation to sell the
product or service effectively. Through the collection of information on industry standards on
marketing products and services, organisations are able to develop marketing strategies that are
up-to-date and captures the trends of consumer behaviour.
Branding
Branding is the marketing practice in which an organisation gives products and services a name,
symbol, or design so that the consumer may easily identify it over other similar products or
services. By establishing a branding that consumers can relate to, organisations can control the
consumer responses to their products and services.
Budget
Budget is the organisation’s monetary capability in producing and marketing the product or
service to its target market. Gaining industry knowledge on budgetary allocations for marketing
initiatives allows you to make reasonable adjustments to the marketing plan without exhausting
finances too much.
Marketing goals
Marketing goals are the organisation’s own objectives in selling the product or service to the
market. By knowing the general consumer behaviour, organisations can make reasonable and
realistic marketing goals.
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Case Study 1: Sourcing out market information according to the Bounce Fitness Bowling
Alley marketing plan
In the Bowling Alley marketing plan developed by simulated business Bounce Fitness, a
brief description of the market research conducted to collect market information was
provided.
The report outlines notable information that highlights the organisation’s overall plan to
conduct research on the target customers, their needs, and their purchasing decision-
making process. This includes:
You can access the Bounce Fitness Bowling Alley Marketing Plan through the link below.
Marketing plans are strategic documents and should be prepared to formal business standards
including:
Ensure you understand your marketing plans and that you are able to answer any questions you may
receive. You may need to present and discuss your marketing plan. If this is the case ensure to:
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1.2 Consumer attributes
Businesses can get to know more about their consumers by collecting information from the market
profile and/or through feedbacks and surveys. Through these sources, you can gather information
on your target market’s consumer attributes and get an overview of who you can sell your product
or service to. An organisation should have a clear picture of who their customers are and what
they’re like.
Consumer attributes refer to the elements that consumers look for when choosing products or
services. Examples include:
age
gender
location of residence
religion
education
income
culture
Lifecycles:
Lifecycles are specific life and family stages. The analysis of these life and family stages has assisted
marketers to identify the needs and wants of consumers within the various stages. These stages
include:
young singles
young marrieds with no children – or double income no kids (DINKS)
full nest – young marrieds with children
empty nesters – older marrieds whose children have left home
older singles
The stage in which a consumer currently is in will have a direct impact on their needs and wants for
specific products and services and will often influence the amount of income available to allocate for
specific purchases.
For example, DINKS will usually be setting up their home, so will typically allocate more money to
purchase ‘high ticket’ items such as electrical products (fridges, ovens, dishwashers and televisions
etc.), furniture and soft furnishings, other than food and other lower priced basic consumables.
Full Nesters will spend more money on clothing and feeding the family, education expenses than
furnishings as they have already purchased these when they set up the family home.
Empty nester consumers often have a higher disposable income than Full Nesters because they have
paid off their mortgage, they no longer have education and other expenses related to bringing up
children and are often working at a senior level. They are able to indulge themselves and price is not
their first consideration when making a buying decision. This segment is looking to purchase
products/service that they went without when they were in the Full nest life stage.
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Look at the link below for more on lifecycles and to view the image within the link on change in
spending at each age and stage of life:
https://seekingalpha.com/amp/article/223886-harry-dents-outlook-on-demographics-debt-and-
deflation
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Businesses use these consumer attributes to identify which consumers are bearing the same
consumer attributes and are perceived to likely purchase their product or service more than the
others.
When collecting information on consumer attributes, it is recommended that you take a look at the
market profile. The market profile is a collection of information on the consumers, focusing on the
population that is most likely to be interested in the product or service. Not only does the market
profile collect information on consumer attributes, but it also takes into account the general
behaviour of consumers in purchasing products and services.
Using the market profile, organisations gain access to consumer information that they can use to
make engaging marketing plans. The types of information that you can get from the market profile
are categorised into three main types.
The three main types of information available in the market profile are:
INFORMATION DESCRIPTION
TYPE
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Weblink: Suburb lifecycles
https://blog.id.com.au/2011/population/local-area-analysis/suburb-lifecycles/
The market profile provides consumer information based on the purchase records. Organisations
that utilise market profiles are likely to make more engaging marketing initiatives that consumers
can relate to.
Other than the market profile, organisations may use the existing customer data collected from
previous transactions to understand their consumers better.
Different data collection methods gather different information. Clarify what consumer attributes
will be beneficial for you to collect. For example, in selling products that are well received by
teens, you must be able to collect information on the location of residence of the teens that
purchase such products to give you an idea of which area is likely to produce the most sales.
Identifying the consumer attributes from the collected customer data allows you to organise and
process consumer trends when it comes to purchasing products and services. For example, if you
are selling skin care products, you can analyse the age groups which purchase the largest volume
of skin products over a given period. Clustering the consumer attributes together will help you
define the tendencies of consumers with the same attributes.
By collecting information from previous transactions, you can then identify the consumer
attributes that made up the majority of the sales. Another advantage of this is gaining direct
access to your consumers. Having a prior connection to them allows them to have a familiarity
with your product or service, as well as your organisation. They are more likely to participate in
providing information themselves, including feedbacks and impressions. Gaining these pieces of
information allows you to adjust your marketing plan to fit the consumer preferences better and,
in turn, increase product or service sales in the long run.
To do this, organisations should understand how to identify product or service features that
consumers find attractive.
Product features are specific pieces of functionality that provide a benefit or a set of benefits for the
consumer.
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Service features are the list of work included in the services to be purchased. The service features
are designed to give the consumer benefits in purchasing a certain service.
Driving your marketing initiatives in focusing on product or service features that tap into the
interests of your consumers could potentially boost your product or service sales. This would also
allow consumers to quickly identify your product or service as a better option than other similar
products or services available in the market.
In looking for product features that consumers typically consider, below are four general features
that are applicable to all kinds of products:
FEATURE DESCRIPTION
Style Style refers to the artistic elements of form, shape, line, colour, tone, space, and
texture. Consumers tend to initially consider a product based on how visually
appealing it is. A product with an attractive style would often get noticed more
than regular items of the same type.
Người tiêu dùng dễ bị thu hút bởi ngoại hình nổi bật của sp
Function Function gives the consumers the need to purchase the product. Function
provides solutions to common problems encountered by consumers.
Chức năng mang lại giải pháp trực tiếp cho vấn đề, nhu cầu của khách hàng
Vd: khi đi làm ngta thường mua mì ly cho tiện, nhưng khi ở nhà có đầy đủ tô,
muỗng, đũa thì ngta thường mua mì gói về.
Experienc Experience refers to the intangible elements of products and services that
e define end-to-end consumer experience. Experience provides consumers with
an emotional interaction with products. For example, the experience of
searching for and purchasing a product.
Vd: DMX có các sp bảo hành 2 năm và cho đổi trả miễn phí trong vòng 6 tháng
đầu, tạo cảm giác yên tâm cho khách hàng -> khách hàng chọn mua ở DXM hơn
ở các cửa hàng điện máy khác
Quality Quality refers to the distinctive attribute that differentiates one product or
service from another of a similar kind. This is commonly used to evaluate and
compare the differences between products or services.
Vd: hãng xe toyota của nhật bền hơn, nên nhiều người việt thích mua sử dụng.
By identifying the product features according to the marketing plan, you can determine how your
product compares to similar products available on the market.
Knowing the style, function, consumer experience, and quality of your product can help
consumers make impartial comparisons of your products and services to those offered by your
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competitors. For example, by identifying the style of the smartphone you sell and the style of
another smartphone available in the market allows them to assess the strengths and weaknesses
of your product’s style.
Learning Activity: Match each description to the corresponding general features of products
that consumers look for.
DESCRIPTION SELECTION
Provides solutions to
common problems
Experience
encountered by
consumers.
Unlike products, services are not tangible and cannot be owned by consumers after purchase.
Services are actions of doing something for the consumer or consumer. Typically, a service
provider offers services that consumers or consumers are unable to do on their own. Despite the
varying nature of services, service features may be categorised into three main types.
Below are the three main types of service features applicable to all kinds of services:
FEATURE DESCRIPTION
Service Service inclusions refer to the list of actual procedures that the service
Inclusions provider promises to the consumer. For example, consumers are
Both needs and promised to receive a set of different messages when purchasing
wants massage services.
Vd: mua gói tập gym sẽ được đi kèm dịch vụ free nước, tủ đồ. Vé máy bay
hangj thương gia có đi kèm lối đi riêng, phòng chờ với đồ ăn miến phí …
Perks Perks refer to the additional benefits, other than the service inclusions
Đặc quyền that consumers get when purchasing the service. Some service providers
give consumers exclusive offers that they cannot get from other service
providers.
Vd: đặc quyền là khách hàng VIP của Gucci sẽ được đưa vào phongf thay
đồ riêng, được phục vụ nước và đồ ăn nhẹ
Continuity Continuity refers to the progressive access of consumers to the service
Tính bền vững offers of businesses or service providers. By patronising the same service
provider, consumers may enjoy additional privileges that they would not
get elsewhere. Examples of these are loyalty and VIP benefits.
Xây dựng niềm tin chung -> khách hàng sẽ quay lại
As services types differ from one service to another, the criteria in evaluating services also differ
from one type to another. For example, it is incomparable to look at identifying car repair services
and massage services. When comparing services of a similar type, it is best to compare the
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inclusions of the services offered. Categorising the types of service features allows for a fair
comparison, ultimately helping you identify how to improve your service features.
Consumer needs are the desires of consumers to purchase a product or service to provide solutions
to problems they commonly encounter. Identifying the consumer needs helps you drive demands to
your product or service as you are able to tailor your offerings and marketing to suit their needs.
Consumer needs can be observed when looking at trends and past performances of products and
sales. Higher performance rates of products and services would indicate that there is a high
consumer need for that product or service.
The organisation may choose to capitalise on this information by increasing its capacity to provide
for the high consumer need.
Trend Analysis
The analysis of trends identifies consumer needs based on the general movements of the sales of
products and/or services over time. This can be done by collecting information from time periods
and using numerical techniques such as plotting the data into a graph to observe the rise and fall
of product and service sales. It is important to understand the trends as they can provide a
reference for patterns of consumer behaviour that organisations can use to make reasonable
decisions moving forward.
Identifying the results of the trend analyses allows you to predict the performance of product or
services in the future. Knowing these projections allow you to collect information on the
consumer needs by locating the high and low points of the trend.
The trends relating to product or service sales give organisations educated guesses on how the
consumers might respond to marketing initiatives in the future. For example, by analysing the
trend of sales of face masks, you determined that the general trend of safety products had
increased due to the rise of a pandemic. Knowing that the situation of the pandemic is not getting
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any better soon, you can use the trend analysis to predict the continued rise of face mask prices in
the days to come.
McCrindle
WGSN
Learning Activity:
Select a topic of personal interest to you and find some trend data from one of the above
websites. Then present your findings back to the class.
Weblink: Maths tutorial: patterns and trends in time series plots (statistics)
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Learning Activity:
Look at the data you collected from the previous Learning Activity. Identify 1 trend using the 1 of
the methods discussed in the video.
The analysis of past performances can be used to identify consumer needs based on the records
of previous sales of the product or service. This analysis is used by organisations to identify how
close they are to meeting their organisational goals. Reviewing the analysis of past performances
allows organisations to collect numeric data and metrics and use the data to evaluate the
performance of the organisation.
METRIC DESCRIPTION
Analysing the revenue and cost of past sales allows you to make conclusions
Revenue and
on the general performance of your marketing efforts. By knowing the ratio
cost analysis between revenue and expenses, you can determine which marketing efforts
yielded the best results and can be replicated in the future.
If ROMI is less than 100%, then marketing investments were wasteful, if its
more than 100%, they were profitable.
Reviewing the past performances of the product or service sales will help you determine the general
reception of consumers to your product or service. This will give you an idea of which activities
achieved the best results. For example, based on previous records, you identify that promoting the
health benefits of a fruit drink you sell improved sales significantly. From this information you can
identify that consumers who purchase fruit drinks value the nutritional benefits it provides.
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The video below provides more details on evaluating past
performance of marketing activity.
Marketing ROI: Calculating your return on investment
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Learning Activity: Topic 1 – True or false
Tick ‘True’ if the statement is correct, and ‘False’ if not.
Statement True False
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Key Points: Topic 1
The marketing mix allows organisations to identify marketing elements to successfully
position their product or service in the market.
A marketing plan is a guide to help an organisation promote its product and services that
meet the needs of its target market.
Consumer attributes refer to the elements that consumers look for when choosing
products or services.
Identifying the consumer attributes from consumer data allows you to identify consumer
trends.
Knowing what features are important to consumers, you can leverage marketing efforts.
Knowing the style, function, consumer experience, and quality of your product can help
you make impartial comparisons to its competitors.
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Topic 2: Evaluate reasons for existing levels of consumer
interest
However, before analysing consumer responses, you must first understand consumer interest and
what drives it.
Consumer interest is the level of desire/interest of the product or service to the consumer.
Organisations use consumer interest to drive consumers in purchasing their products and services.
Learning to use this information can help you make better marketing decisions in the future.
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2.1 Consumer responses
Knowing your consumer’s feedback on your products and services allows you to make necessary
adjustments to satisfy the consumer needs. Conducting marketing communication is the best way to
collect information on how consumers think about your product or service.
Marketing communications are techniques that organisations use to convey messages to consumers.
Using marketing communication concepts, organisations share information with consumers to
increase awareness regarding their product or service. You can also use these concepts to analyse
the general behaviour of consumer types relevant to your product or service.
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The four marketing communication concepts are as follows:
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Creating a marketing communication program is done to outline the flow of the marketing
communication. In this stage, you are to identify the target market’s pain point, align the messaging
to each channel, and build an easy-to-reference marketing communications document.
reliability
validity
accuracy
authority
timeliness
point of view.
You would then analyse the data and evaluate it against your marketing plans to see if you need to
make any changes. When you developed your marketing plan there should be set criteria that you
analyse this against, common criteria include:
what is the most appropriate marketing tool and why
does this fit our budgetary requirements?
does it align to our wider strategic goals?
It is crucial to understand the different consumer types that you can encounter in the market.
Understanding the types of consumers will help you analyse their behaviour as they pose similarities
in the consumer needs they reflect.
Discount consumers Discount consumers hunt for promotional discounts when purchasing
products and services. Consumers of this type tend to frequent the
same product and service when they identify it to yield more savings
when compared to other similar products or services in the market.
Learning Activity: Fill in the blanks to complete the descriptions of the modes of marketing
communications.
SELECTION
Advertising Face-to-face
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Personal Selling Promotional offers
Sales Promotion
Evaluating marketing communications is an integral part of capturing how consumers think about
your product or service. Marketing communications are initiatives that help promote your product
or service to the target market. Determining the effectiveness of your marketing communication
efforts will improve your understanding of consumer needs.
By identifying the modes of marketing communications, you can assess how consumers react to
certain product promotions. You must be able to identify the marketing communication mode in
which your target market is most involved. For example, if you are selling gaming products,
running digital marketing may help you collect and analyse consumer responses, as gamers are
likely to use smartphones, laptops, and computer desktops. Through digital marketing, you may
be able to analyse your target market’s impression of your product through posts and surveys you
can collect from social media.
Understanding the behaviour of the consumers and using this to inform your behaviour is an
effective way to meet consumer needs and preferences, which, consequently, can increase your
sales. Analysing consumer behaviour allows you to develop effective strategies for sales
promotions and improve your consumer engagements. To do this, you need to identify the
behaviour exhibited by different consumer types.
Knowing the consumer types of your target market will help you understand the consumer
behaviour towards your product or service. As each consumer type poses similarities in their
behaviour and consumer needs, analysing the consumer responses can help you make better
marketing initiatives that meet their needs. For example, by understanding the general behaviour
of discount consumers, you may develop marketing strategies that highlight savings and free stuff
gained by purchasing your product or service.
The article in the link below provides more information on the factors that influence a consumer’s
buying decisions.
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Learning Activity: Answer the following questions:
Provide an overview of the factors that influence consumer decisions based on the above article.
A digital footprint is the information we leave behind on the internet after an online activity, such
as searching for something. For example, if you are searching for air tickets then you are leaving
digital footprints that show you are interested in travelling. Consumers leave digital footprints
that can be useful to organisations through social media posts, website articles and blogs, and
videos and images related to your product or service. Observing the digital footprints of your
product or service provides you with information on consumer needs.
Unlike the previous sources of information on consumer needs, actual interaction with the
consumers is not required when analysing consumer responses using digital footprints. There are
several ways of capturing information involving consumer needs from digital footprints. The
simplest and most common way of collecting consumer responses from digital footprints is the
collection of information through the consumer feedback sent to their hotlines and feedback
surveys. As consumers themselves try to voice their opinions and experiences using the product or
service, the organisation is given direct information on consumer needs and preferences.
Additionally, organisations may look for consumer feedback on their product or service through
social media platforms.
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2.1.4 Determining consumer digital footprints
Having an online presence is crucial in an effective marketing plan for your product or service. The
internet has several platforms that can capture digital footprints you can use when analysing
consumer behaviour. Using digital footprints allow you to know what the consumers think about
your product or service and enables you to develop marketing strategies to improve sales.
Organisations use digital channels to promote their products and services. These organisations
develop marketing methods that use digital channels to expand the reach of marketing to the target
market and understand their purchasing behaviours. Additionally, consumers can voice their
concerns on products and services, notifying the organisations faster. This also allows the
organisation to get a better understanding of consumer needs and preferences.
Another reason for organisations to utilise the use of digital channels is their ability to provide the
organisation data relevant to its business. Using digital channels, you can review relevant data on
industry standards, market trends on products, and services and consumer behaviour. You can use
the information you gather from these digital channels to help you make business decisions.
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Learning Activity: Answer the following question:
How can a marketing team use the information in the above links to inform their marketing
practices?
The consumer engagement journey is the sequence of experiences that consumers go through
when interacting with your product or service, brand, and organisation. It identifies the complete
consumer experience and assesses how the product or service is valued by consumers.
The consumer engagement journey has four key stages and these are listed below:
CONSUMER DESCRIPTION
ENGAGEMENT
STAGE
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Having conversations that are fun and contextually relevant to the
product or service is the key to establishing a two-way conversation.
The consumer engagement journey can be determined by tracing the activities available online
related to your product or service. This includes any sort of online activity that directly or
indirectly produces consumer engagements to your product or service. To accurately trace the
consumer engagement journey, identify and plot out instances in which consumers interact with
your product or service based on the key stages discussed.
Determining the relationship journey of consumers with regards to your product or service helps
you review data relevant to the experience of the consumer in getting to know your product or
service. By collecting information on how current consumers are introduced to your product, you
can identify the strong points of your previous marketing efforts and replicate them to reach new
consumers. You can then use this information to make models on how to interact with consumers
online.
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Learning Activity: Match each description to the corresponding component of the consumer
digital footprints, engagement journeys, and expectations.
DESCRIPTION SELECTION
Consumers expect to
make choices for the
Two-Way Conversation
products and services they
purchase.
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Consumers expect
cheaper options but better
Interactive engagement
quality of products or
services.
Consumer expectations are what the consumer expects to happen or what they expect to
experience when they purchase your product or service. Before purchasing a product or service,
consumers already establish a set of expectations that the product or service should meet for the
consumers to feel satisfied. Whether the consumer expectations are met by the product or service
will determine the overall impression that it leaves to the consumers.
Most consumers expect organisations to understand their needs and expectations. It is crucial for
products or services to deliver these expectations to retain their consumers. The more that a
business is able to meet consumer expectations, the more likely it is that they will retain these
consumers.
Just as there are changes in market behaviour over time, consumer expectations also change. For
example, wanting a better consumer experience is a consumer demand that has increased rapidly
over the past few years. More and more consumers are expecting an improved consumer
experience.
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EXPECTATION DESCRIPTION
Consumers like to have the power to make choices for the products
Increased
and services they purchase. The more that consumers are given
Consumer Power custom choices, the more they feel empowered. Consumers expect to
be given options to adjust the product or service features to suit their
needs or wants.
By analysing consumer responses from marketing communications, consumer types, and digital
footprints, you can determine the consumer expectations for your product or service. These
sources reflect the consumer’s general idea of what to receive from purchasing your product or
service. Knowing this, it is your obligation to manage these expectations.
The more consumer expectations you satisfy, the more effective your marketing strategy becomes
in reaching out to your target market.
Consumer demands are the willingness/desire of the consumers to purchase the products and
services offered by the organisation. This also includes the ability of consumers to pay for the
products and services. It is important that organisations take this is into consideration as this directly
translates to product and service sales. This also provides organisations with additional insight into
consumer behaviour analysis.
Assessing organisational capability allows you to identify the current ability of the organisation to
make certain adjustments to meet consumer demands. Additionally, by knowing the current status
of the organisation, you can develop marketing strategies that fit your current organisational
capabilities.
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2.3.1 Assessing organisational capability
ELEMENT DESCRIPTION
Financial capability is the organisation’s liquidity, solvency, and
Financial capability
ability to raise, deploy, and service capital flows. This means that
the organisations must be able to have sufficient financial
resources to be able to make necessary adjustments to the
products and services to better fit the consumer demands.
By identifying the status of the key elements of your own organisational capability, you will be
able to determine if the current organisational capability is enough to adjust and meet the
consumer demands. You need to cross-check each element to ensure that required adjustments
can be sustained by the organisation.
1. review how each element plays a role in conducting the organisation’s marketing strategy.
2. identify the consumer demands and their requirements in terms of the elements of
organisational capability
3. check if each element is sufficient to comply with the requirements to meet the consumer
needs. To do this, you must evaluate if the organisational structures, organisational
procedures, and marketing objectives require changes or improvement. If one of the
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current capabilities is evaluated as insufficient, you need to find ways on improving the
capability.
For example, if you are managing a business that runs print ads and flyers, knowing that
consumers are attracted to products with funny promotional videos online, you may consider
realigning your marketing objectives in and instead create funny videos. In doing this you must
consider your workforce capability as this would require you to apply techniques that you may not
have done before. Doing this will allow you to meet the preferences of the consumers and, in
turn, improve your product’s market impression and sales.
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Learning Activity: Topic 1 – True or false
Tick ‘True’ if the statement is correct, and ‘False’ if not.
Statement True False
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Key Points: Topic 2
Consumer responses are feedback from consumers related to products and services,
which have been collected through marketing communications.
Analysing consumer behaviour allows you to develop effective strategies for sales
promotions and improve consumer engagements.
The consumer engagement journey can be determined by tracing the activities available
online related to your product or service.
Consumer expectations are the ideas of the consumer on what to receive when
purchasing your product or service.
Organisational capability is the ability of the organisation to adjust its marketing plans
and product or service to better fit the consumer demand.
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Topic 3: Recommend marketing focus
In applying the focus of appeal in your marketing plans, you must make sure that it complies with
legal and ethical obligations. Specific legislative and regulatory requirements must be followed and
reflected so that fair trading is observed within the market. Your organisations can set a specific
budgetary requirement for each business aspect, including marketing, to ensure that expenditures
do not exceed the expected gains.
To develop an effective marketing strategy, you need to incorporate all the information discussed in
the previous chapters and collate them into a general plan that the organisation will execute to
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reach its consumers. For your marketing strategy to work, you must capitalise on the consumer
behaviour of the target market.
Outlining the influences on consumer behaviour not only helps you target effective marketing
strategies but also gives you an idea of how to present a rationale for marketing focus. This rationale
will identify what the marketing plan focuses on and why such focus was chosen. Choosing the
appropriate rationale will be easier when you identify the influences on consumer behaviour.
You need to determine the focus of appeal. The focus of appeal refers to the core concept of your
marketing strategy that consumers are expected to find interesting or appealing.
Below are the influences on consumer behaviour that could be considered to target effective
marketing strategies:
consumer impression
Consumer impression is a marketing concept that refers to what consumers think about your
product or service. Gaining a good impression from consumers helps your brand establish a
reputation that supports your product or service sales. By identifying consumer impression,
organisations can identify appropriate marketing strategies that fit with this impression.
consumer environment
Consumers share information with family, friends, and extended social network. Knowing the
interactions between consumers and their networks can help organisations to develop a
marketing strategy that works well with the identified scenario. Providing the right information
can enhance the way consumers promote products to their peers.
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dimensions of culture
You should consider how a consumer’s culture can influence their buying decisions and consider
this in your marketing communications. See topic 1 for details of Hofstede’s cultural dimensions.
demographics
Consumer demographics will impact consumer behaviour. See topic 1 for details on
demographics.
You can utilise the influences on consumer behaviour in your marketing activities. For example, in
reviewing the consumer impression of your product or service, you must be able to identify how
your target market values your product or service.
Taking advantage of the influences on consumer behaviour can make a difference in being able to
target effective marketing strategies that suit your target market. By taking some sort of control or
influence on consumer behaviour, you can devise strategies that convince consumers to purchase
your product or service.
DESCRIPTION SELECTION
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The factor that determines
how consumers share
information with family, Consumer impression
friends, and extended
social network.
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3.1.2 Targeting effective marketing strategies
Once you have identified consumer influences you need to translate this information into ideas
that can improve your marketing strategies.
When assessing how to integrate the information on consumer behaviour to target effective
marketing strategies, first identify the set of information you can use. Do this by determining
which objectives you want to address from your marketing strategy.
OBJECTIVE DESCRIPTION
Innate needs are the needs that an individual is born with and are physiological
Addressin
in nature. These are the needs that consumers require to sustain human life.
g innate Addressing these needs would help you boost your marketing efforts as
needs consumers continuously look for products that address these needs. Products
and services that sustain these needs are priorities of consumers.
Acquired needs are psychological in nature and are developed after birth.
Addressin
These needs are not necessary to sustain human life, but they contribute to the
g acquired mental well-being of an individual. Addressing these needs is an effective way
needs to improve your marketing efforts as these needs drive consumer interest.
Products and services that are evident to improve the well-being of consumers
can develop loyalty from consumers.
By pinpointing what drives consumer behaviour, you can develop a marketing strategy that
controls these influences in your favour.
Once we understand the needs and motives of the target markets, we can look at how to reach
them in the most effective way, that is, you need to analyse the data to determine what modes and
forms of communication are appropriate for your target markets.
The mode of communication is the vehicle(s) that you can use to deliver your message to your
customer base.
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The six major modes of communication in marketing include:
advertising
digital marketing
direct marketing
personal selling
public relations
sales promotion.
To determine what forms and modes are most appropriate for your target markets, look at the
following information on consumer attributes in your data:
The organisation’s overall vision and mission statement, strategic plan and goals will be a factor to
consider as well. Keep the following in mind:
are their target market B2B (business to business) or B2C (business to consumer)?
what share do they want?
what are they trying to achieve?
and then the message – is it straight up communication, FMCG (fast moving consumer
goods) or a service?
To supplement the marketing strategy and refine the marketing plan, you will need to develop a
rationale for marketing focus. .
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Rationale refers to the reasoning on why the specific marketing focus was chosen for the
organisation’s marketing plan.
Marketing focus is the approach used for marketing opportunities and includes developing
marketing strategies and operations. When developing a rationale for marketing focus you will need
to elaborate on your collected data and analyse:
For example, large and expensive purchases are heavily researched by consumers. Your marketing
focus should be informative and to ensure that there are many reviews on websites such as CNET.
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3.2 Conversations and interventions
Digital environment refers to the virtual or cyber-generated environment accessed by the
organisation to conduct marketing initiatives. Digital environments allow organisations to study the
consumer behaviour or flow of online visitors on search engines, social media, and other sites
related to its product or service and its competitors.
Digital environments provide easy and fast access to information, and consumers regularly search
for and buy products and services through online platforms. Additionally, product or service
information dissemination can be organically produced through consumer-to-consumer interactions
online, which can lead to viral product or service posts.
Identifying the roles of consumers in digital environments is required to effectively marketing your
product or service online. Knowing the part that consumers play in the online presence of the
product or services is key to utilising digital environments as an avenue for marketing.
The following are examples of consumer roles in digital environments and how they relate to the
marketing products and services online:
ROLE DESCRIPTION
The most common role of consumers in the digital environment is being a
Customer
customer. Consumers that act as customers purchase the product or service
online for their personal use. Customers use digital environments such as online
shopping platforms and applications to buy products and services.
Resellers are consumers that purchase products and services but use digital
Reseller
environments to resell the products and services to other consumers. The
consumers that act as resellers purchase products and services to gain profit by
selling them again at a higher price. Resellers use digital environments such as
online shopping platforms and applications to sell the purchased products and
services to other consumers.
Consumers tend to appreciate being able to voice their opinion and experiences
Feedback
on products and services. Feedback providers are consumers that share their
Provider thoughts on products and services to other consumers through digital channels.
Feedback providers use digital environments such as forums, social media
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platforms, and the organisation’s online support channels to provide insights on
the products or services.
Researcher Consumers may use digital platforms to learn more about products and services.
Researchers are consumers that collect information on products and services
through digital platforms. Researchers use digital platforms such as search
engines, forums, and blogs to understand more about products and services.
Consumers who research products and services produce engagement to the
online presence of the organisation’s product or service.
Below are the ways organisations prepare for interacting with consumers through digital marketing
environments:
When doing online marketing, organisations develop model conversation starters that hit the
interest of consumers. Engagement conversations refer to model conversations that the
organisation can use to maintain the interest of the consumers with the product or service. The
more engaging the conversation starters are, the higher the chance for the promotion to make
organic reaches, where the consumers themselves promote the product or service among their
peers.
By identifying the consumer role in digital environments, organisations can develop model
engagement conversations with language appropriate to their target market. Organisations can
devise model engagement conversations in a way that consumers will be encouraged to share the
information with their friends and family. The model consumer engagement conversations should
be written in a way that the consumer can relate to and provide benefits for consumers to share
with their circle.
For example, producing social media content on product information that encourages consumers
to share to a certain number of online connections to get a discount will increase the likelihood of
the post gaining organic reach. The discount incentive convinces the consumer that taking action,
in this case, sharing the post with friends, will be beneficial for them.
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Review of past
Outline the product develop consumer
consumer
or service information engagement
engagement
to be highlighted conversation
conversations
Aside from engaging consumers through conversations, the key to a sale is providing the
consumers with a push to make a purchase of the product or service you are promoting.
Engagement interventions refers to model actions that the organisation can use to stay relevant
with the consumers. This can be done by developing promotions, advertising, and other actions
you can take to further engage the consumers to the product or service.
Similar to how organisations capitalise on engagement conversations, organisations also use the
information on the role of consumers to help drive product or service engagements. By knowing
how consumers respond to product or service promotions, organisations can decide on
appropriate actions to take in engaging consumers online.
For example, by knowing that consumers tend to share promotional product videos with a family
context to their loved ones, an organisation can develop a full-length promotional video of the
product using the family as the core topic. This will increase the chances of the consumers sharing
the product video with their friends and families.
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Research on consumer interests
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3.3 Legal and ethical obligations and budgetary requirements
Consumers are generally attracted to marketing strategies that they find appealing. Despite the wide
range of marketing strategies, you can use to attract consumers, certain regulations exist to manage
the ethical and legal requirements. It is important that your focus of appeal in your marketing plan
meets the necessary obligations and requirements to avoid violations. The focus of appeal refers to
the core concept of your marketing strategy that consumers are expected to find interesting or
appealing.
Legal obligations
Ethical obligations
Legal obligations
Legal obligations are the requirements stated through legislation. These requirements are
punishable by law and enforced by authorities. Legislative requirements relevant to marketing are
provisions to legislation that pose requirements in conducting a fair and just marketing scheme.
Advertising Standards
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Ad standards manage complaints in relation to advertising. There are several codes
that need to be abided by in all marketing activity.
Anti-discrimination law
You must ensure that all marketing activity is not discriminatory. Laws include:
- Age Discrimination Act 2004- external site
- Disability Discrimination Act 1992- external site
- Racial Discrimination Act 1975- external site
- Sex Discrimination Act 1984- external site
The below links provide more information on the listed laws, regulations and standards:
Competition and Consumer Act 2010
Advertising standards
Anti-discrimination law
The focus of appeal found in the marketing plan must meet the provisions of existing legislation
related to it and must not violate any of them in any way. For example, promotional product or
service advertisements must not contain content prohibited by existing legislation.
The link below provides information on 23 different types of focus of appeals found in marketing.
23 Types of advertising appeals most commonly used by brands
1. Select 2 of the adverts in the above link, and explain the type of advertising appeal being used.
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Case Study 2: Food Products
Suppose that you are establishing a business in the food industry that offers a variety of
food as its main product. In doing so, you must ensure to consider the legal requirements of
your market.
In terms of legal requirements, your business must follow the legislation on running a food
business. For example, you must properly label food as ‘Halal’ if it adheres to Islamic law. This
indicates that the food can be consumed by Muslims.
Refer to the following link for more discussions on consumer legislation in Australia.
Ethical obligations
Ethical obligations are standards set based on what is right and wrong. These are moral
requirements set by the organisation. While violating these is usually not punishable in the same
way as legal obligations, it can cause detrimental effects to the organisation's image and
reputation. For example, the organisation can suffer a loss of reputation if it commits shady deals
and gets exposed to the public. The focus of appeal in the marketing plan must satisfy ethical
obligations to maintain a positive image to consumers.
To help you better understand the ethical requirements and their impact on the marketing plan,
the following case study is put forth.
Suppose you are establishing an e-learning business. In doing so, you must ensure to
observe the ethical requirement when running marketing initiatives to promote your
business. This means you can only market your products and services in a manner that does
not violate the social norms on what is wrong and right.
For example, when promoting your e-learning business, you must not find the competitor’s
list of consumers and deliberately offer them personally to choose your services instead.
To help you better understand the budgetary requirements of the marketing plan and its impact,
have a look at the following case study.
Suppose that you are establishing a business in the printing press industry that prints
newspapers and magazines. In doing so, you must ensure that the equipment you
purchase to run the business is within the budgetary requirements specified in the
marketing plan.
For example, if your organisation’s budget only allows you to purchase a printing machine for
$50,000, you must not exceed this amount in purchasing a printing machine as it may affect
your budget for other resources you need to run your business.
There will be organisational procedures and processes in place for how you do this.
Processes tend to be a bigger picture overview of what you are doing, for example a flow chart of
a task. Procedures usually tell you how to do it, often in step by step detail in set of instructions.
Procedures will typically be more detailed and process a ‘higher level’ look.
1. Identify the 3 requirements that the marketing focus of appeal must comply with.
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Learning Activity: Topic 1 – True or false
Tick ‘True’ if the statement is correct, and ‘False’ if not.
Statement True False
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Key Points: Topic 3
Marketing focus identifies product or service opportunities and capitalises on them.
Effective marketing strategies can be targeted by outlining how consumer behaviour
influences drive the market demands.
Organisations use rationale for marketing focus to obtain a better understanding of the
market needs and satisfy consumer demand.
Taking advantage of the influences on consumer behaviour can make a difference in
being able to target effective marketing strategies that suit your target market.
By pinpointing what drives consumer behaviour, you can develop a marketing strategy
that controls the influences on consumer behaviour in your favour.
Using the influences on consumer behaviour, you can make sound decisions on
marketing focus that reflects the potential changes in consumer behaviour.
By identifying the consumer role in digital environments, organisations can develop
model engagement conversations with language appropriate to their target market.
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Summary
Being able to analyse consumer behaviour will provide substantial advantages in developing
effective marketing strategies to promote your product or service to your target market.
Understanding the wide range of consumer behaviour will help you adjust and incorporate the
necessary changes to your approach in reaching out to consumers.
Organisations should consider looking at appropriate digital channels to communicate with their
consumers. The marketing strategies to be implemented should suit the tendencies of different
consumer behaviours when interacting with the digital channels. Additionally, the organisation’s
marketing strategies to promoting products and services must comply with legal and ethical
requirements, as well as the budgetary requirements set in the marketing plan.
Ultimately, the key factor to consider is the overall knowledge of all the information within the
market, be it consumers, competitors, and other internal or external factors. To develop a truly
effective marketing plan, you must understand, assess, and manage consumer behaviour.
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References
These are some references that we feel may be of assistance to you in completing the Assessment
for this unit of competency:
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Bhargava, V. (n.d.). What is service: Definitions, concept, characteristics, classification, role.
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Competition and consumer act 2010. (2010). Federal Register of Legislation; Australian
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Customers in A digital marketing environment | DSM. (2020, April 2). DSM | Digital School of
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Current projects. (n.d.). Bounce Fitness. Retrieved April 22, 2021, from
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Eldridge, D. (2018, August 2). Future of customer experience: Engagement journey. 3radical.
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Fleischner, M. (2020, March 31). Marketing plan: 10 components you should include in your
marketing plan. Business Know-How;
https://www.businessknowhow.com/marketing/marketing-plan.htm
How to write your marketing plan. (2021, March 10). Business.gov.au; Australian
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Radu, V. (2019, November 26). Consumer behavior in marketing - patterns, types,
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Root III, G. (n.d.). Objectives for strategic facilities planning. Small Business - Chron.com.
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Spacey, J. (2017, June 2). 4 types of product feature. Simplicable.
https://simplicable.com/new/product-features
The marketing mix and the 4psunderstanding how to position your market offering. (n.d.).
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What is a digital footprint? (2019, July 22). Netsafe – Providing Free Online Safety Advice in
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Melbourne Polytechnic
BSBMKG435 Analyse consumer behaviour
Learner Resource