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DEPARTMENT OF BUSINESS, ADVANCED MANUFACTURING AND LOGISTICS

BSB40820 Certificate IV in Marketing and Communication

Learner Resource

BSBMKG435 Analyse consumer behaviour


Department: Business, Advanced Manufacturing and Logistics

Course: BSB40820 Certificate IV in Marketing and Communication

Unit of Competency: BSBMKG435 Analyse consumer behaviour

Prepared by: Curriculum Unit, Melbourne Polytechnic


Document creation date: February 2022
Version: 1.0

© Melbourne Polytechnic 2022


National Provider no. 3075

Authors: Hinna Khan, Instructional Designer, FlexUp

Disclaimer Statement:
PLEASE NOTE that by clicking on a link you may be directed to a third party’s site.
You should respect the intellectual property on that site. You may be leaving the Melbourne Polytechnic website.
Melbourne Polytechnic does not endorse a linked site or guarantee the accuracy or currency of any information
contained on the third party linked site.

Acknowledgments
National training packages attributed as ‘© Commonwealth of Australia 2013’
Training packages are copied and communicated under Creative Commons
Attribution-Non Derivative 3.0 Australia (CC BY-ND 3.0 AUS) license.

Images/illustrations
All images/illustrations are individually attributed.

Third party material


© 2020 Precision Group (Australia).
Materials adapted, copied and communicated under licence.

For information regarding material in this document, contact:


Rama Ramanathan
Program Lead
Business, Advanced Manufacturing and Logistics
ramaramanathan@melbournepolytechnic.edu.au

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BSBMKG435 Analyse consumer behaviour
Learner Resource
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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Melbourne Polytechnic
BSBMKG435 Analyse consumer behaviour
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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.

© Commonwealth of Australia 2013, BSBMKG435 Analyse consumer behaviour,


https://training.gov.au/Training/Details/BSBMKG435 Creative Commons Attribution-Non Derivative 3.0 Australia
(CC BY-ND 3.0 AUS) licence.

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BSBMKG435 Analyse consumer behaviour
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Elements and performance criteria

1 Evaluate drivers of consumer behaviour


1.1 Source information on market for a product or service according to marketing plan
1.2 Identify consumer attributes for market from market profile and existing customer data
1.3 Identify and compare features of product or service according to marketing plan
1.4 Investigate consumer need for the product or service through analysis of trends and past
performance, where possible

2 Evaluate reasons for existing levels of consumer interest


2.1 Analyse consumer responses to previous marketing communications
2.2 Review relevant data and determine consumer digital footprints, engagement journeys and
expectations
2.3 Assess organisational capability and respond to consumer demand for products or services

3 Recommend marketing focus


3.1 Outline how influences on consumer behaviour will be used to target effective marketing
strategies and present a rationale for marketing focus
3.2 Clarify the role of the consumer in the digital marketing environment and model
engagement conversations and interventions
3.3 Confirm focus of appeal meets legal and ethical obligations and budgetary requirements of
marketing plan

© Commonwealth of Australia 2013, BSBMKG435 Analyse consumer behaviour,


https://training.gov.au/Training/Details/BSBMKG435 Creative Commons Attribution-Non Derivative 3.0 Australia
(CC BY-ND 3.0 AUS) licence.
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Melbourne Polytechnic
BSBMKG435 Analyse consumer behaviour
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Required Skills and Knowledge
Performance Evidence
The candidate must demonstrate the ability to complete the tasks outlined in the elements,
performance criteria and foundation skills of this unit, including evidence of the ability to:

 analyse the behaviour of two different consumer types

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:

 industry, product and service knowledge for analysis of consumer behaviour


 marketing communication concepts and processes
 current digital channels relevant to the business and consumer
 objectives of marketing strategy including:
- addressing innate and acquired needs of consumers
- appealing to motives that influence decision-making
 organisational structures, procedures and marketing objectives.

© Commonwealth of Australia 2013, BSBMKG435 Analyse consumer behaviour,


https://training.gov.au/Training/Details/BSBMKG435 Creative Commons Attribution-Non Derivative 3.0 Australia
(CC BY-ND 3.0 AUS) licence.

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BSBMKG435 Analyse consumer behaviour
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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.

About this Learner Resource


This Learner Resource includes information and activities to assist you to successfully complete this
unit of competency. Use the Table of Contents to look for the topics relevant to your classes and
assessments.

Simulated workplace
This Learner Resource includes all necessary information required to complete relevant tasks and
activities, based on the simulated business, Bounce Fitness.

For an important fact, an example or extra knowledge to understand a concept.

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.

The response of consumers to the product or service marketing efforts


consumer behaviour
of organisations.

consumer engagement The sequence of experiences that consumers go through when


journey interacting with your product or service, brand, and organisation.

The ideas of the consumer on what to receive when purchasing your


consumer expectations
product or service.

consumer interest The level of desire of the product or service to the consumer.

The desires of consumers to purchase a product or service to provide


consumer needs
solutions to problems they commonly encounter.

Feedback from consumers related to products and services, which were


consumer responses
collected through marketing communications.

The virtual or cyber-generated environment accessed by the


digital environment
organisation to conduct marketing initiatives.

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.

A collection of information on the consumers, focusing on the


market profile
population that is most likely to be interested in 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

marketing focus Identifies product or service opportunities and capitalises on them.

Outlines the choices made by organisations in serving a product or


marketing mix service to the market. This involves the 4Ps, being: Product, Place, Price,
and Promotion.

organisational The ability of the organisation to adjust its marketing plans and product
capability or service to better fit the consumer demand.

Specific pieces of functionality that provide a benefit or a set of benefits


product features
for the consumer.

products Tangible items that consumers can use based on their preferences.

The list of work included in the services to be purchased. The service


service features features are designed to give the consumer benefits in purchasing a
certain service.

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

Image by Scott Graham from Unsplash License added on 05/02/2022


Consumer behaviour is the response of consumers to the product or service marketing efforts of
organisations. In analysing consumer behaviour, the consumer trends are observed and compared
with regards to all activities involving purchase and buying behaviour.

Analysing consumer behaviour requires you to:

 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.

1.1.1 The marketing mix

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:

1. Identify 5 types of consumer attributes for the market.

2. Identify 4 components of the marketing mix.

1.1.2 Marketing information

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 Competitive Intelligence Marketing Research

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.

1.1.3 The Marketing plan

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.

Pricing and Positioning


This section should describe the pricing and positioning of your product or service.

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:

 marketing research procedures


 forms of marketing research performed by Bounce Fitness Bowling Centre
 outlines the information to be collected from the market research
 identifies purpose of marketing research conducted

Weblink: Bounce Fitness Bowling Alley Marketing Plan

You can access the Bounce Fitness Bowling Alley Marketing Plan through the link below.

Bounce Fitness Bowling Alley Marketing Plan

Marketing plans are strategic documents and should be prepared to formal business standards
including:

 use of correct template


 appropriate vocabulary
 appropriate grammatical structure
 appropriate conventions for your intended audience

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:

 present ideas clearly and succinctly


 use appropriate vocabulary
 use appropriate nonverbal features – for example maintain eye contact, do not slouch,
do not cross your arms
 use active listening and questioning to gather information and feedback and to engage
your audience

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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:

Weblink: Harry Dent's Outlook on Demographics, Debt and Deflation

https://seekingalpha.com/amp/article/223886-harry-dents-outlook-on-demographics-debt-and-
deflation

Weblink: Hofstede cultural framework, international business from a business professor

Learning about other cultures helps us understand different


perspectives within the world we live – as a marketer it is essential
that you understand this.
Hofstede’s cultural framework can assist you with this.
Hofstede cultural framework, international business from a business
professor

Learning Activity: Answer the following question:

1. Explain the 6 dimensions of culture according to Hofstede.

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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.

1.2.1 Consumer attributes

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

Demographic Demographic information refers to the information inherent to the


consumer individuals. This can be age, gender, or other personal
information that can be used to describe the consumer. Organisations
take hold of this information to cluster consumers bearing the same
attributes and observe how this population reacts to their products or
services.

Geographic Geographic information refers to where the consumer resides. This


information is important for organisations as it pinpoints regions where
the product or service is doing well or not doing well in terms of sales.
The organisation can then adjust its marketing plan to fit the locale’s
preferences.

Psychographic Psychographic information refers to the general behaviour of


consumers towards products and services. This can include consumer
preferences, feedbacks, and impressions, belief, trends, personality,
habit, lifestyle, culture. You can use these pieces of information to
understand how the consumers typically react to marketing initiatives,
thus, allowing you to make better ones in the future.

genk: báo về công nghệ

For more information look at this link below on suburb Lifecycles:

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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.

1.2.2 Existing customer data

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.

1.3 Features of product or service


Knowing that consumers compare product or service features before making purchases, you must
be able to identify exactly what features consumers look into. Understanding how the consumers
think before or while making a purchase sets you up into making marketing initiatives that highlight
the product or service features that consumers value the most. By knowing the features important
to consumers, you can maximise your marketing efforts in leveraging marketing efforts and attract
more consumers from your target market.

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.

1.3.1 General features of products

In purchasing products, consumers generally tend to compare features of similar products


available in the market. To make sure that your product gets noticed, you have to identify what
are features consumers value the most. Analysing your different product features will help you
understand how consumer look at products.

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.

Weblink: The unique experience of opening an Apple

The link below provides a practical example of ‘experience’:

The unique experience of opening an Apple

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.

Refers to the intangible


elements of products and
services that define end- Style
to-end consumer
experience.

Refers to the artistic Quality


elements of form, shape,
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line, colour, tone, space,
and texture.

Refers to the distinctive


attribute that differs one
Function
product or service from
another of a similar kind.

1.3.2 General features of services

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.

1.4 Investigate consumer needs


When analysing consumer behaviour, you will need to understand the previous trends of consumer
purchase for a given product or service. Looking at the past performance of sales will help you
identify the consumer needs and give you an idea of improving marketing initiatives and strategies.

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.

Organisations may consider looking at trends by conducting analyses, such as:

Trend Analysis

Analysis of Past Performances

1.4.1 Trend analysis – numerical skills and techniques

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.

Weblink: Sources for trend data

Click the links below to access credible sources of trend data:

Australian Bureau of Statistics

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)

The video below provides information on mathematical skills and


techniques to analyse trends and revenue increases:
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.

1.4.2 Analysis of past performances

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.

Reviewing historical performance considers the following metrics:

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.

Key Performance Index (KPI) is a standard analysis used to evaluate how


Key
closely a goal is met using a variety of criteria that constitutes the
performance effectiveness in meeting the goal. KPIs are also used in evaluating
index organisational performance in marketing and sale turnouts.

Return on marketing investment (ROMI) is a measure of the benefit an


Return on
organisation receives based on marketing activity. The formula is:
marketing
investment income from marketing – (cost of goods + marketing expenditures)
/ marketing expenditures)
* 100.

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

The marketing mix allows organisations to identify


marketing elements to successfully position their ☐ ☐
product or service in the market.

Competitive intelligence is the systematic process of


identifying marketing opportunities and solving
☐ ☐
problems relevant to promoting products and services
to produce sales.

The analysis of past performances identifies consumer


needs based on the general movements of the sales of ☐ ☐
products and/or services over time.

Function refers to the artistic elements of form, shape,


☐ ☐
line, colour, tone, space, and texture.

Identifying the consumer attributes from the collected


consumer data allows you to organise and process
☐ ☐
consumer trends when it comes to purchasing products
and services.

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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

Image by Isaac Smith from Unsplash License added on 05/02/2022


Consumer responses are feedback that is given from consumers that relate to products and services,
which were collected through marketing communications. To maximise consumer satisfaction,
marketing strategies are aligned to consumer responses as much as possible. Understanding
consumer feedback on your product and/or service will allow you to adjust and better fit consumer
needs and preferences.

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.

Weblink: 9 ways to collect customer feedback

This video below provides more information on collecting consumer


feedback.
9 ways to collect customer feedback

Learning Activity: Answer the following question:

1. List 9 ways you can collect customer feedback.

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:

MARKETING CONCEPT EXPLANATION


Branding is the strong, positive perception of the company’s products
Branding
or services to the consumer’s mind. This gives the consumers of a
perceived value of the product or services without considering actual
inspection of the quality of the product or service. By making a good
impression, you can take advantage of branding to make a sale.

Online presence is the collective existence of a company, individual, or


Online presence
the product itself that can be found online through online search. This
may also refer to the product or service marketing schemes done
through online platforms. Online promotions are vital in reaching out
to consumers.

Public relations refer to the communication process between the


Public relations
organisation and the consumer. Public relations allow consumers to
relate to the marketing initiatives of organisations. By enhancing an
organisation’s public relations, consumers tend to support the
products and services offered by the organisation more.

Target audience is a specific part of the general population that you


Target audience
aim to market your product or service to. This group is the expected
recipients of your marketing initiatives for your product or service.
Organisations identify the target audience by analysing the portion of
the general population that expressed interest in the product or
service.

By using these marketing communication concepts, organisations can develop a marketing


communication process that can help them interact with consumers more effectively. You can
develop a marketing communication process that captures the attention of your target market.

The stages of developing a marketing communication process are as follows:

Create marketing Analyse and


Capture market Record and
communication evaluate database
response maintain data
program information

1. Create marketing communication program

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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.

2. Capture market response


Capturing the market responses gives the business an overview of the target market’s demand for
specific products and services. In this stage, you are to collect feedback and suggestions from the
market regarding your product or service that you can later use to develop or improve marketing
plans.

3. Record and maintain data


Recording and maintaining your data as you collect it will make it easier to process the information.
It will also make it easier to find specific data when you need it in the future. Storing the data
electronically will allow you to quickly and easily recall and use the information.

4. Analyse and evaluate database information


Analysing and evaluating database information refers to the processing of gathered data from the
previous stages. In this stage, the collected data is assessed based on its:

 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.

Below are the examples of consumer types:

CONSUMER TYPE DESCRIPTION


Loyal consumers are the part of the population that patronise your
Loyal consumers
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product or service. These consumers have grown fond of the product
or service, and they will promote the product or service to their
families, friends, and social network. Loyal consumers tend to repeat
purchases given that consistent product or service standards are met
or improved.

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.

Impulse consumers are the type of individuals who make purchases


Impulse consumers
without planning them ahead of time. Consumers of this type purchase
products and services in an unplanned way. Knowing this,
organisations capitalise on tapping into the consumer’s emotions to
capture the attention of impulse consumers.

Need-based consumers purchase products and services based on their


Need-based consumers
day-to-day needs. Before purchasing, need-based consumers first
identify the struggles they encounter in their daily lives and then look
for products or services that could potentially provide solutions.
Organisations must emphasise the function of the product or service
and how it makes life easier to market to need-based consumers.

Learning Activity: Fill in the blanks to complete the descriptions of the modes of marketing
communications.

FILL IN THE BLANKS


1. is the method of conducting that your target market finds most attractive.
2. is the method of using and applications to extend the reach of your product
and services.
3. is the method of engaging with potential consumers through conversations.
4. is the means of communication with the users through paid messages and
infographics.

SELECTION

Advertising Face-to-face

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Personal Selling Promotional offers

Digital Marketing Online platforms

Sales Promotion

2.1.1 Analyse consumer responses from marketing communications

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.

2.1.2 Analyse consumer responses using the behaviour of consumer types

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.

Weblink: Factors influencing consumer decisions

The article in the link below provides more information on the factors that influence a consumer’s
buying decisions.

Factors influencing consumer 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.

How does Maslow’s hierarchy of needs influence consumer purchasing decisions?

2.1.3 Analyse consumer responses using digital footprints

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.

The types of digital footprints are given below:

DIGITAL FOOTPRINT DESCRIPTION


TYPE
Passive digital footprints are pieces of information that the system
Passive
collected related to your product or service. This is the trail of data
created while posting product and service information on the internet.
Passive digital footprints include the preferences, product or service
searches, and related advertisements that the consumer engages with
on the internet. Consumers can indirectly engage with product or
service information through suggestions provided by the internet.

Active digital footprints are the pieces of information related to the


Active
product or service that the users deliberately share on the Internet.
Social media posts and videos that consumers put up online are the
most common examples of active digital footprints. Active digital
footprints are publicly traceable information that can be accessed by
anyone on the internet. This is the most direct type of digital channel
that produces product or service engagement with the consumers.

Personally identifiable digital footprints are a set of information


Personally
collected by digital channels linked to your own name. These pieces of
identifiable information are personal in nature, such as age, date of birth, place of
birth, name of parents, and other personal information. Databases are
typical storage areas of such information, which can be created by
organisations to collect consumer attributes of their target market.

Anonymous digital footprints are pieces of information that contain


Anonymous
no data on the person who produced the information. Examples of
anonymous digital footprints are comments on social media pages by
users who use pseudonyms and fake accounts. Anonymous digital
footprints are difficult to trace as the information encrypted on these
digital footprints is usually altered. Anonymous digital footprints are
generally random and unreliable. It is not recommended to use
information from anonymous digital footprints to analyse consumer
behaviour.
User input digital footprints are pieces of information personally
User input
drafted by people using digital channels. These pieces of information
can be private and are not intended to be available for everyone using
the same digital channel. For example, text messages from mobile
phones can be identified as a user input digital footprint.
Organisations may find difficulty in using user input digital footprints
to assess consumer behaviour as these pieces of information is
difficult to access.
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Sensor data are digital footprints of audio and visual content that have
Sensor data
no textual counterparts. For example, these can be in the form of
photos, audio recordings, and video clips. The most common platform
that uses these kinds of digital footprints is Instagram, Spotify, and
YouTube. In platforms like these, organisations promote products and
services through visual and auditory resources.

2.2 Review relevant data


With technology evolving rapidly over the past few decades, channels that allow interactions
between consumers and organisations have also evolved. Many new marketing strategies involve
the use of digital channels. Digital channels are virtually generated spaces that organisations can use
to run campaigns and advertisements. These digital channels allow faster communication between
consumers and organisations, whether it is regarding product or service promotion, consumer
engagement, or feedback collection.

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.

Weblink: Data sources

The reports below provide information on internet use in Australia:

Genrode – Social media statistics for Australia

Digital 2022: Australia

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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?

2.2.1 Determining consumer engagement journeys

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:

Interactive Two-way Relationship


Progress journey
engagement conversation journey

CONSUMER DESCRIPTION
ENGAGEMENT
STAGE

Invitational Marketing through interactive engagements has taken


Interactive
over traditional email campaigns as it gives the consumers the option
engagement and choice to engage in products and services based on their own
terms. By engagements being invitational and interactive in nature,
consumers feel more rewarded by interacting with marketing
communications when it is convenient to them or when they are
actively looking for the specific product or service. For example,
emailing and asking for a testimonial. It is up to the consumer if they
wish to engage.

Developing conversations with consumers keeps the product or service


Two-way
relevant to the market. Your conversations must be motivating and
conversation rewarding for the consumer for it to be a successful engagement.

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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.

Consumers generally like to be able to determine their own journeys


Progress journey
and engagements toward products and services. By providing
consumers with the power to choose their engagements, positive
responses toward conversation initiatives are expected. This drives a
more consistent engagement to the consumers when promoting your
product or service. For example, they may spend time researching
products or services, following different companies on social media
and moving themselves through the purchasing journey rather than
being directly marketed to.

Relationship The goal of relationship journeys is to have the consumer establish a


journey strong emotional connection and affiliation to your product or service.
By enabling consumers to determine how their relationship with the
product or service unfolds, consumers build a bond with the brand
based on clear value exchange through engagements
.

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

Motivating and rewarding


Increased consumer
conversations for
power
consumers.

Engagements that are


interactive and invitational Active digital footprints
in nature.

Consumers expect to
make choices for the
Two-Way Conversation
products and services they
purchase.

Information related to the


product or service that the
Good value for price
users deliberately share
on the internet.

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Consumers expect
cheaper options but better
Interactive engagement
quality of products or
services.

2.2.2 Determining consumer expectations

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.

Common examples of consumer expectations are:

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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.

Consumers are be able to contact product manufacturers or service


Good Consumer
providers quickly and easily. Consumers expect to be able to voice
Service their concerns, queries, and frustrations regarding their purchases
straight to the organisation. Additionally, consumers expect the
organisations to provide resolutions to these engagements quickly.

The internet has allowed organisations to promote their products and


Good Value for
services without having to market them personally. This allows
Price consumers to expand their choices of purchasing products and
services that they need, resulting in them expecting cheaper options
but better quality of products or services.

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.

2.3 Assess organisational capability


To be able to keep up with the consumer demand for products and services, it is crucial for the
organisation to have the capability of responding to these demands. Organisational capability is the
ability of the organisation to adjust its marketing plans and product or service to better fit the
consumer demand.

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

In response to these consumer demands, the organisational capability of a business must be


considered. This allows organisations to assess if the current organisation is capable of adjusting
to better serve consumer demands. To assess the organisational capability of the business, key
elements must be assessed and evaluated.

Below are key elements of 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.

Workforce capability refers to the organisation’s ability to apply


Workforce capability
work processes using the competencies of its staff. The skillset and
knowledge of the staff must meet the workplace standards to
accomplish the tasks to complete the work. When adjusting to fit
the consumer demands, it is vital that the workforce have the
relevant skill set for the appropriate adjustments.

Information capability is the ability to organise information and


Information capability
data to be processed for the production of goods and services. The
organisation’s information capability provides input on how the
organisation can apply certain adjustments to its product or service
to fit the consumer demands.

Physical capability refers to the material resources or physical


Physical capability
assets of the organisation. This includes warehouses, vehicles, and
machines that the organisation needs to conduct business. When
adjusting fit the consumer demands, it is necessary for the
organisation to have the required physical assets needed.

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.

In assessing the key elements of organisational capability:

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.

Learning Activity: Answer the following question:

1. Identify the 4 elements of organisational capability.

2.3.2 Responding to consumer demand

Assessing organisational capability helps organisations to respond appropriately to consumer


demands for products and services. The organisational capability must be sufficient to cater to
erratic changes in consumer demand from time to time. In order to remain competitive, the
marketing strategy of the organisation should be able to cope with the changes in consumer
demand.

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.

Weblink: Organisational capability

The links below provide more information on assessing organisational capability:

Victorian Public Sector Commission – Organisational Capability

Australian Government – The Treasury – Organisational Capability

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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

Consumer responses are feedback from consumers


related to products and services, which were collected ☐ ☐
through marketing communications.

Public Relations is the process of maintaining a positive


☐ ☐
image of the organisation’s product or service.

Discount consumers are the part of the population that


☐ ☐
patronise your product or service.

Impulse consumers purchase products and services


☐ ☐
based on their day-to-day needs.

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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

Image by Jason Goodman from Unsplash License added on 05/02/2022


To be able to recommend a marketing focus, it is vital to understand first what marketing focus is.
Marketing focus identifies product or service opportunities and capitalises on them. Applying
marketing focus allows products and services to adjust and improve to gain competitive advantages.

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.

3.1 Rationale for marketing focus


Effective marketing strategies can be targeted by outlining how consumer behaviour influences drive
the market demands. The erratic influx of demands in the market can be attributed to the pattern of
consumer behaviour toward product or service purchases. Outlining the influences on consumer
behaviour will help you understand how these patterns occur and how they driven by consumer
behaviour, providing information that can improve your marketing strategy.

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.

3.1.1 Influences on consumer behaviour

In identifying effective marketing strategies, targeting the influences on consumer behaviour


increases the chances of having a successful marketing scheme. Understanding consumer
behaviour, and the factors that influence it, can be used to develop marketing strategies that
provide organisations with leverage in optimising their marketing initiatives.

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.

 features essential to the consumer


Although organisations can highlight a lot of features included in their product or services, certain
key features weigh more than others for consumers. Knowing what features consumers value
more over products or services will help you develop marketing strategies that highlight the right
features.

 consumer shopping behaviour


Understanding how consumers search for information on products or services and their shopping
behaviours allow organisations to target the right channels to reach potential consumers.
Additionally, providing the right information that the consumers look for will benefit the sales of
your product or service.

 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.

Learning Activity: Match each description to the corresponding factors to be considered in


effectively targeting consumer behaviour.

DESCRIPTION SELECTION

The factor that determines


the consumer’s behaviour
in looking for similar Consumer support
products and services in
the market.

The factor that determines


how consumers feel Features essential to the
towards your product or consumer
service.

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The factor that determines
how consumers share
information with family, Consumer impression
friends, and extended
social network.

The factor that determines


what consumers think
Consumer environment
about your product or
service.

The factor that determines


the product or service Consumer research and
features that are most shopping behaviour
valuable to the consumer.

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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.

The objectives of marketing strategies are as follows:

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.

Organisations can convince consumers to purchase products and services by


Appealing
appealing to their buying motives. Buying motives are the causes and factors
to motives that stimulate consumers to purchase products and services. Providing a push
that to these buying motives can help consumers decide to purchase your product
influence or service.
decision- Appealing to the factors that motivate consumers into making purchases can
making help you manipulate and motivate consumers into considering your product or
service. Knowing the tendencies of consumer types and their respective
behaviours while considering the buying motives of consumers will supplement
your marketing strategy to secure a sale.

By pinpointing what drives consumer behaviour, you can develop a marketing strategy that
controls these influences in your favour.

3.1.3 Modes and forms of communication

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.

The forms are the individual activities. For example:

 your target market is Gen Z.


Your data analysis shows that they don’t listen to radio, but they do spend a lot of time
on TikTok and Snapchat.
Based on the data you will decide to use the mode of digital marketing and the form of
Snapchat.

 your target market is Gen X.


Your data analysis shows that they spend time with both traditional media and social
media.
Based on this data you will decide to use the modes of digital marketing and advertising
with the forms of Facebook targeting, a website and a television ad.

To determine what forms and modes are most appropriate for your target markets, look at the
following information on consumer attributes in your data:

 what demographic do your target markets fit into?


 what life cycle are they in?
 how does this information relate to what you already know about your customers?

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?

3.1.4 Presenting rationale for marketing focus

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:

 the reasons why the data is important


 how you can use the data to supplement your marketing plan.

Below is the general flow of developing a rationale for marketing focus:

Collecting information relevant to marketing

Analysing the collected data

Developing marketing focus

1. Collecting information relevant to marketing


The first step in identifying the rationale for marketing focus is collecting information relevant to
marketing. As discussed in the previous sections, there are several pieces of information on
marketing to digital environments that you can use as a basis for improving your marketing
strategy. Research these pieces of information by accessing digital environments and reviewing
consumer responses.

2. Analysing the collected data


After collecting the data, you can analyse how it can be applied to your marketing strategy.
Identify how each piece of information affects your marketing strategy and how you can use it to
make adjustments to your marketing plan. Organise the findings of your analysis and keep it as a
guide when you are developing an effective focus.

3. Developing marketing focus


To do this:

 review the data available


 identify the most appropriate methodologies based on this data

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 can use digital environments to promote the product or service to


Endorser
other consumers within their social circle. Endorsers are consumers that
recommend a product or service to their family and friends based on their
research or personal experience on the product or service. Endorsers use digital
environments such as messaging applications and social media platforms to
promote the product to other consumers.

Conversation starters are consumers that drive consumer interest in a product or


Conversation
service by creating content online. These consumers create content that uses the
Starter product or service as a topic or focus. Conversation starters use digital platforms
such as messaging applications and social media platforms to drive interest in the
product or service.

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:

Model engagement conversations Model engagement interventions

3.2.1 Modelling consumer engagement conversations

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.

Below are the general steps in modelling consumer engagement conversations:

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Review of past
Outline the product develop consumer
consumer
or service information engagement
engagement
to be highlighted conversation
conversations

1. Review of past consumer engagement conversations


Review of past consumer engagement conversations requires you to look at the existing
engagement conversation strategies that worked when reaching out to consumers. This can be
engagement conversation strategies that your organisation has previously conducted or a
conversation strategy that another organisation has done to effectively market a product or
service. The review of past consumer engagement conversations must identify the ways of
marketing products and services that capture the attention of consumers.

2. Outline the product or service information to be highlighted


You can then identify the product or service information that you would like to highlight through
consumer engagement conversations. The highlighted product or service information taps the
attention of consumers into considering looking at your product or service in more depth.

3. Develop consumer engagement conversation


Once you have tapped the attention of consumers, the final step is to maintain their interest
through developing consumer engagement conversations. The consumer engagement
conversations must be modelled in a way that consumers can relate to. It must also contain
product or service information that you want to further share with consumers. The consumer
engagement conversations must be developed in a way that the consumers find merit in
continuing the conversation relevant to the product or service.

3.2.2 Modelling consumer engagement interventions

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.

Below are the general steps in modelling consumer engagement interactions:

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Research on consumer interests

Review past consumer engagement interactions

Outline the product or service information to be highlighted

Develop consumer engagement interactions

1. Research on consumer interests


Based on consumer responses, collect and analyse information on consumer interests. This is vital
in developing consumer engagement interactions as it binds the product or service marketing to
the consumer’s preferences. This allows you to identify the points of interest that you can use to
develop consumer engagement interactions.

2. Review past consumer engagement interactions


A review of past consumer engagement interactions requires you to look at the engagement
interaction strategy that your organisation has previously conducted or an interaction strategy
that another organisation has done to effectively market a product or service. The research on
past consumer engagement interactions should identify the ways marketing products and services
capture the attention of consumers.

3. Outline the product or service information to be highlighted


You can also identify the product or service information you would like to highlight when
developing consumer engagement interventions. The highlighted product or service information
taps the attention of consumers into considering your product or service in more depth by
focusing on information relevant to them.

4. Develop consumer engagement interventions


Tapping the attention of consumers will allow you to develop a consumer engagement
intervention that keeps the consumer motivated to engage. The consumer engagement
interactions must be modelled to share product or service information while maintaining the
interest of consumers. Similar to consumer engagement conversations, the consumer
engagement interventions should be developed in a way that the consumers find merit in
continuing interaction with the engagement intervention conducted by the organisation.

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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.

The requirements that must be met include the following:

Legal obligations

Ethical obligations

Budgetary requirements of marketing plan

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.

The legislation relevant to marketing are as follows:


 Competition and Consumer Act 2010
The Competition and Consumer Act 2010 provides protection to consumers by
promoting fair trading and competition among businesses providing similar products
and services. This legislation regulates the relationship between suppliers,
wholesalers, retailers, and consumers.

 State/Territory-Specific Legislations Relevant to Marketing


This refers to the legislation that is applicable to specific state and territories within
Australia that include provisions on upholding fair and just marketing schemes.
Identifying the state or territory legislation on marketing applicable to your area
allows you to identify the provisions that control the balance of implementing fair
marketing strategies.

 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

Weblink: Laws, regulations, standards

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.

Weblink: 23 Types of advertising appeals most commonly used by brands

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

Learning Activity: Answer the following question:

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.

Weblink: Competition and Consumer Act 2010

Refer to the following link for more discussions on consumer legislation in Australia.

Competition and Consumer Act 2010

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.

Case Study 3: E-learning Business Opportunity

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.

Budgetary requirements of the marketing plan


Budgetary requirements of the marketing plan are the monetary constraints that the organisation
identifies in the marketing plan. These provide guidelines on the limit of costs that the marketing
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strategies can incur. These budgetary requirements are based on the profit projections of the
organisation. As businesses aim for profit, the marketing costs must not exceed the projected
revenue. Additionally, the focus of appeal in the marketing plan must work within the available
budget specified in the marketing plan for marketing initiatives to ensure that there is sufficient
resource to run the campaigns to the end.

To help you better understand the budgetary requirements of the marketing plan and its impact,
have a look at the following case study.

Case Study 4: Printing Press Business

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.

Weblink: Purchasing policy and purchasing plan procedures

An example of a procedure can be accessed below:

Purchasing policy and purchasing plan procedures

Learning Activity: Answer the following question:

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

Effective marketing strategies can be targeted by


outlining how consumer behaviour influences drive the ☐ ☐
market demands.

Consumer support refers to what consumers think


☐ ☐
about your product or service.

Engagement interventions refer to model conversations


that the organisation can use to maintain the interest of ☐ ☐
the consumers with the product or service.

The virality of product and services can stem from


consumer interactions without the use of online ☐ ☐
platforms and applications.

Ethical obligations are standards set based on what is


☐ ☐
right and wrong.

Budgetary requirements are the monetary constraints


that the organisation identifies in the marketing plan
☐ ☐
that provide guidelines on the limit of costs that the
marketing strategies can incur.

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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:

 4 different types of consumers and marketing to them. (n.d.). Beyond the Hedge. Retrieved
April 22, 2021, from https://www.beyondthehedgecreative.com/4-different-types-
consumers-market/
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