...SAMPLE ANSWER 01 CAM CAM Diploma Marketing and Consumer Behaviour December 2010 Contents Task 1: Marketing Principles Task 2: Communication Task 3: Communication, Advertising and Media Task 4: Consumer Behaviour Task 5: Channel Behaviour Appendices: Background information to THE AGE Appendices to task 2 4 - 14 15 - 20 21 - 31 32 - 43 44 - 47 48 - 54 References 55 - 57 Task 1 Word count 1618 Marketing Planning Planning is an essential task to ensure THE AGE continues to be a market leader. Drummond et al (2005) suggest planning should be systematic and structured, and is required in order to adapt to the changing business environment. The corporate objectives are at the heart of the marketing planning process (Brassington et al, 2000). The marketing plan will contribute to the corporate plan by developing specific functional strategies and tactics to achieve the corporate objectives. Figure 1.1 demonstrates the process. THE AGEs corporate plan is ‘to build on profits from the previous year and continue to be Britain’s number one quality selling newspaper’. From this, the marketing plan could be ‘to increase the number of subscribers’. Marketing planning process diagram A common framework to use in the planning process is the SOSTAC model, see figure 1.2 Marketing planning process • • Situational Analysis – The first stage of the planning process is to look at where the THE AGE is now - Britain’s number one selling quality newspaper with...
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...Marketing and Consumer Behavior Why can companies mark up their prices and stay in business? Research Question: In our world today a stigma exists between brand name products and the upper class and a common association between high prices and brand name items exists. Everyday marketers price products based off of researched consumer behavior, they price products at an excessive price compared to the cost to produce it, yet still sell their products and stay in business. Typically, the consumer is aware that brand names cost more money and consumer behavior has shown that the consumers are willing to pay high prices for these specific products and certain brands. Why is it that marketer’s mark up their products and that consumers are willing to purchase products and brands regardless of the price? Do marketers know the consumers will purchase their products regardless of price and take advantage by pricing them high? Is an underlying ethical issue present in the way companies are marketing their products? An interesting relationship occurs between consumers and brand name products and studies have shown consumers will spend any amount for a product they have justified they need or want. Furthermore, studies have shown that consumers purchase regular and brand name products based off of psychological driven needs. As a result of consumer’s physiological buying habits, marketers have based their pricing tactics off of it, resulting in excessively high mark ups. Although companies...
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...ONLINE MARKETING MARKETING TO THE DIGITAL CONSUMER Let’s admit it: most Web sites are duds The task is to attract and engage, not to price and promote Relating to “chiliheads” Should your online marketing be a separate unit? Alexa Kierzkowski • Shayne McQuade Robert Waitman • Michael Zeisser T of interactive media such as online services and the World Wide Web has taken many consumer marketers by surprise. While some marketers are still wondering what to do and how to do it, others are moving forward – but oƒten with mixed success. HE RAPID DEVELOPMENT Our recent analysis of 95 Fortune 500 consumer marketing companies with product or service-related Web sites reveals that consumer marketers fall far short of leveraging the full capabilities of interactive media. While over 90 percent of all the digital marketing applications examined provided product or service information and featured basic e-mail capabilities, only about half oƒfered links to other sites and non-product-related content, and fewer than half provided any sort of interactive content, such as a game or a diagnostic requiring some user input. Most revealingly, only a handful of the examined sites made an eƒfort to seriously collect information about their users, and fewer than 5 percent provided an opportunity to allow user-to-user communications, a unique – and one of the most popular – characteristics of interactive media. Alexa Kierzkowski, Shayne McQuade, Robert Waitman, and Michael Zeisser...
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...TASK 1 MARKETING PRINCIPLES JANUARY 2016 TASK 1 MARKETING PRINCIPLES JANUARY 2016 IMPORTANCE OF BRANDING IN RELATION TO DIFFERENTIATION * Differentiation helps customer recognize the brand within a category * Significance * Creates value * Brand loyalty IMPORTANCE OF BRANDING IN RELATION TO DIFFERENTIATION * Differentiation helps customer recognize the brand within a category * Significance * Creates value * Brand loyalty Differentiation creates a perceived value amongst consumers and also potential consumers. For example, Apple’s focuses on the cost value of getting an iPhone versus other phones within the market. If differentiation is done well by an organization, it helps to deliver quality and value to consumers which leads to brand loyalty on the part of the consumer. Apple has consistently delivered on providing iPhones which are high in value and of value to the consumer. This has helped build a high loyal customer base that will always pick an IPhone over any other product any time. Differentiation creates a perceived value amongst consumers and also potential consumers. For example, Apple’s focuses on the cost value of getting an iPhone versus other phones within the market. If differentiation is done well by an organization, it helps to deliver quality and value to consumers which leads to brand loyalty on the part of the consumer. Apple has consistently delivered on providing iPhones which are high...
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...1. Introduction 1.1 Purpose This report is going to make a feasible marketing plan of Aesop’s expansion into Beijing, the capital of China. The internal and external factors which impacts market expansion will be analyzed and then come to the objectives setting. Based on those objectives, marketing strategies will be supplied after marketing segmentation, targeting consumer market and positioning the company. Finally, we will demonstrate the implementation and the monitoring strategies. 1.2 Methodology Data comes from professional articles, ABS website, business news and financial magazines. 1.3 Limitation This report based on secondary date from articles, reports and websites. Without doing any consumer research in the real market, some conditions could be restricted to the marketing plan. In the mean time, cosmetics sold or made in China need to meet the animal testing requirements, especially the foreign imported ordinary cosmetics(Vicky, 2015). However, China is making changes for the animal testing laws, there are still chances and solutions for Aesop to enter. What’s more, Aesop has already established its official online store in China, which will pose treat to the physical stores’ sales. But Aesop is famous for its purchasing experience, hence there still have market share for it. At last, some of the data we used were produced before 2014, thus it may not clearly reflect the current consumption trend of the market. 1.4 Company background Aesop was established...
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...Business-to-business (B2B) markets and consumer markets present different challenges and opportunities for businesses. Some products can be sold to only one market while others can be sold to both. For example, equipment manufacturers generally sell to industrial businesses and restaurants cater mainly to consumers, while technology companies tend to sell to both consumers and businesses. The needs and characteristics of these markets are different. Therefore, the marketing strategies for each are also different. Purchases/Needs Overall, purchases made by businesses and consumers are quite a bit different. Businesses usually purchase capital equipment and raw materials to make products which they resell to consumers or other businesses. Consumers purchase products such as grocery items, microwaves and computers for personal or household use. Service needs of the consumer and of businesses are also different. For example, businesses may use management consultants and business outsourcing services, while consumers use investment advice and fitness training services. Characteristics of Purchases Businesses typically make purchasing decisions after a formal process involving two or more people. Consumer buying decisions can be made by one person, usually at a place of business or online, and the process is more informal. Businesses are often the integrators of products and services while consumers are the end users. Consumer demand usually influences business demand...
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...Consumer Psychology and Marketing Communications Article Analysis Colleen B. Hughes PSY/322 February 9, 2015 Donald Crabtree Consumer Psychology and Marketing Communications Article Analysis Consumers are the key to marketing communications for your products and services. Using psychology to understand the consumer behaviors, attitudes, and purchasing patterns. Getting your message to the consumer is done by communication. However, what is consumer psychology and how do they affect the market communication. Consumer psychology has a direct relationship with marketing communication message and will compare two articles to discover the relationship. Before you understand the relationship you need to define consumer psychology. The consumer is a person or thing that consumes and economically the definition is a person or organizations that use a commodity or service. (Dictionary, 2015). Psychology defined as the behavioral and cognitive characteristics of a specific individual, group, activity, or circumstance. (Dictionary, 2015). Another definition is the scientific study of mental processes and behavior. (Dictionary, 2015). Consumer Psychology is both of the definitions put together. The definition is the study of how consumers relate to the products they buy and services they use. Marketers use psychology to understand the consumer needs, motivation, attitude, and actions. (Mihart, 2012). Professional Marketer increase with better measurements and deeper understanding...
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...Consumer Psychology and Marketing Communications PSY 322 Consumer Psychology and Marketing Communications Consumer psychology has the purpose of “acquiring knowledge for the sake of understanding and predicting important aspects of real life behavior” (Katona, 1967). The business community has been trying for years to find what makes people buy what they do. They also want to understand future predicted behavior as well. This is a study of the dynamics that affect the behavior of consumers. According to Walsh in her review of Foxall and Goldsmith, consumer research is very important when compared to the decision making role of managers. The authors also write about consumer concepts like market segmentation and product positioning strategies. With the first example, market segmentation, deals with the needs and wants of consumers. As learned in class, this is a strategy that can help companies know more about consumer preferences but also more about their individual behaviors and choices. Walsh does not really get in to detail of what product positioning strategies are but she did mention they are “part of the product life cycle” (Walsh, 1997). Walsh does go on to mention that the book does have a significant psychology social science section that deals with attitudes, behaviors, and motivations. Walsh reveals that this book is a good source of information for aspiring and on the job marketing managers. Not everyone is completely on board the consumer psychology...
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...Question: Marketing communication in consumer marketing context. Discuss. Organizations engage with a variety of audiences in order to pursue their marketing and business objectives. In addition, there are consumers – you and me – people who are free to choose among the many hundreds and thousands of product offerings. Marketing communications provides a core activity so that all interested parties can understand the intentions of others and appreciate the value of the goods and services offered. Marketing communications is a management process through which an organization engages with its various audiences. Through understanding an audience’s communications environment, organizations seek to develop and present messages for their identified stakeholder groups, before evaluating and acting upon the responses. By conveying messages that are of significant value, they encourage audiences encouraged to offer attitudinal and behavioural responses. Marketing communications provides the means by which brands and organizations are presented to their audiences. The goal is to stimulate a dialogue that will, ideally, lead to a succession of purchases and complete engagement. The communication process involves nine elements: two major parties (sender, receiver), two communication tools (message, media), four communication functions (encoding, decoding, response, and feedback), and noise. To communicate effectively, marketers must understand how these elements combine to communicate value...
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...CONSUMER PSYCHOLOGY & MARKETING COMMUNICATIONS PSY322 May 13, 2013 Charles Dudek This purpose of this paper is to analyze two articles in the context of consumer psychology and marketing communications. The fist part will define consumer psychology looking at why consumer behave the way they. The paper will also examine how research has made it easier to predict human behavior exploring its benefits. The aspect of using what has been learned about consumer psychology will be looked at, more specifically with young consumers. Most people learned early in school that “ology” mean the study of when speaking of a science such as biology or physiology these are for the most part exact and most variables are controlled. However, when we look at human psychology it is a different animal altogether, literally. Human behavior can be extremely unpredictable. Defining consumer psychology can be difficult to do in just a phrase or sentence. There are many factors that go into why consumers behave the way they do. Motivation is one of the most important factors. Consumer psychology is most commonly defined, as the study of how and why consumers buy products and services. One could argue that a better definition would be Consumer psychology is the study of human motivation. What drives us, what are the known and unknown needs at the core of our psyche? Whether it be what we buy, what relationships we seek or what self-actualizing dreams we seek to fulfill...
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...How is building a brand in a business-to-business context different from doing so in the consumer market? Building a strong brand that is able to set a company apart from other business is always an important job. However depending on who the intended client is determines how the company will build their brand. A brand is defined as a name, term, sign, symbol, or design, or a combination of them , intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. (Kotler, Keller, 2012) While many things in branding are the same, building a brand that supports brand to brand, B2B, or brand to customer, B2C, sales has slight differences. In an online article entitled, Focus Area, Business Market, B2C and B2B are compared. Here are a few of those comparisons: In the consumer market, every customer has equal value and represents a small percentage of revenue, products are the same for all customers-the service elements are low, and costs are restricted to purchase costs. In the business-to-business context, there are a small number of big customers that account for a large percentage of revenue, products are customized for different customers-service is highly valued, and purchase costs may be a small part of the total costs of use. These are just a few among many comparisons between business-to-business and consumer market. In B2B branding, a focus will be made on making a strong connection with the client business...
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...Reflection essay on Consumer Behavior «We used to think that the enterprise was the hardest customer to satisfy, but we were wrong. It turns out, consumers are harder than the enterprise because the consumer will not give you a second chance.» (Eric Schmidt) Using the provided material and basic knowledge of this subject I got acquainted with the definition of consumer behavior. The main object of the system of marketing is good`s customer (or consumer) which can be an individual person or a whole organization. All final consumers combine to make up the consumer market. It is important to know the degree of involvement of certain groups of consumers in making decisions about the purchase of certain goods. In the system of marketing the key role is the understanding the mechanism of formation of purchasing decisions, which can have its own characteristics, depending on the socio-psychological characteristics of the buyer or the nature of the purchased goods. Thus, in accordance with one of the patterns of behavior for the buyer, this mechanism includes: awareness, interest, desire and effect. It is important to know how and when the customer begins to show interest in the product, under the influence of what factors consumer makes a decision. Enterprise (company) cannot succeed if it doesn`t take into consideration the needs of customers. Consumer behavior is defined as the activities directly related to yield, consumption and disposal of goods and services, including decision-making...
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...Industrial Marketing V/S Consumer Marketing Promotion: In the case of mass distributed consumer goods, advertising performs a large apart of the sales job. But in the case of industrial goods it is the personal selling that carries the main burden of persuading customers to buy. The reasons for this may be mainly due to the following factors : a) Need for providing technical information about the product. b) Customers to be contracted are fewer in number. c) The channels of distribution involved are shorter. d) Necessity for a direct contract between producer and user especially for rendering 'pre-sales' and 'after-sales' services. Personal Salesmanship is,therefore, highly needed in the industrial goods market. Whether it is the selling of raw materials or supplies or selling the capital equipments, the services of an efficient an trained salesman are inevitable. He must have technical knowledge of his customer's production processes. He should also have the ability to convince the customers of the savings resulting form the purchase of the equipment he wants to sell. It is also his duty to install the machinery and prove its worth through 'trial running'. The nature of the salesman's job is dependent on the buying situation. 1. Whether the customer is buying the product for the first time, 2. Whether the customer is changing to a new source of supply (Here, the customer is in a position to weigh the merits and demerits of the new machines against the previous...
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...Consumer Psychology And Marketing Analysis Emily Anne Levin PSY/322 December 9, 2013 Don Crabtree Consumer Psychology and Marketing Analysis Consumer psychology plays a very important role in defining what types of marketing are needed in order to create brand loyalty from the consumer. Throughout the years, from data that are collected using consumer psychology what has been found is that there is a much broader scope needed in consumer-behavior research in order to create a fine tuned marketing concept to not only have the consumer purchase an item, but to ultimately create brand loyalty, so the marketing does not need to be constantly changed. Where innovation is important in all areas of business need for constant innovation in marketing can be lessened through fine tuning the research of consumer psychology. In the article, “The Seven Sins of Psychology” by Michael Tuan Pham (2013), Pham expresses the need to create a larger scope in the research of consumer psychology. The article “The Consumer Psychology of Brands” (2012), author, Bernd Schmitt follows what Pham states by explaining how to create brand loyalty through marketing based upon the research of the behavior of the consumer. According to "Brittanica.com" (n.d.), consumer psychology is the “branch of social psychology concerned with the market behavior of consumers. Consumer psychologists examine the preferences, customs, and habits of various consumer groups; their research on consumer attitudes is...
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...Aspects of consumer behavior to emphasize in marketing. Marketing concentrates on several aspects of consumer behavior in order to promote a product or service. A consumer’s motivation is one aspect that Coca-Cola should emphasize to increase product sales. Their motivation, such as a hunger or thirst, will be the deciding factor to drive the consumer to make a purchase. In past advertising campaigns Coca-Cola has aligned the product with thirst quenching or refreshment. This type of marketing will focus on the consumer’s immediate need to remedy their thirst. Not only does Coca-Cola need to emphasize the consumer’s motivation but they must take into consideration the customer’s perception. Perception would be the process by which the customer will select, organize, and interpret the information to act on the motivation (Kotler & Keller, 2012). People are stimulated from the advertisements that will address a current need or that they anticipate. The product advertisement must focus on a remedy of the current yearning that the consumer is experiencing. An advertisement that is focusing on quenching the thirst will address and motive the consumer to purchase the product to remedy their need. Coca-Cola has to not only address a customer’s current need but will need to consider the customer’s selective distortion and selective retention. Selective distortion is a person’s way of associating past experiences or information with a brand or product. Selective retention...
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