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Post Graduate Diploma in PR & Exhibitions Management




 Marketing Public Relations and Audience
                Lecture 3

            Understanding Audience Behavior



Developed and Presented by
Roy Ying, Msc., BSG, B.Comm., MHKIoD
Note: Pictures used in this power point file
is for academic Purpose only                                     1
Table of Contents
• Understanding consumer behavior
• Consumer research
• Changing consumer behavior




                                    2
Definition
Consumer Behavior
• The study of individuals, groups, or
  organizations, and the processes they use
  to select, secure, use, and dispose of
  products, services, experiences, or ideas
  to satisfy needs, and the impacts that
  these processes have on the consumer
  and society.

                                              3
Let’s look at an example
• How marketers use consumer psychology
  to increase sales…..




                                          4
• Decision Making
  5-step Process
 Source: Adopted from Kotler (1997),
 Schiffman and Kanuk (1997), and Solomon (1996)




• Consumer Sieve




                                                  5
Need = Problem
• Kotler (1997) equates consumers as problem solvers

• Problem Recognition occurs when there's a difference
  between one's desired state and actual state that is
  sufficient to activate the decision process.

• The Desired State is the way a person would like for a
  need to be met.

• The Actual State is the way a need is being met/unmet
  at a particular point in time.

                                                           6
What are the needs?




                      7
What are the needs?




                      8
What are the needs?




                      9
Information Search
• Traditional wisdom would suggest…


  Memory
                 Media

                                 Referral




                                            10
Information Search
• For the younger generation, it’s more likely
  that they will…
                             Social Media




   Search Engine                             11
Evaluation of Alternatives
 • What criteria do consumers use?
     Consumer May Use Careful
    Calculations & Logical Thinking

      Consumers May Buy on Impulse and
              Rely on Intuition
           Consumers May Make Buying Decisions
                     on Their Own.

                Consumers May Make Buying Decisions
                    Only After Consulting Others.

Marketers Must Study Buyers to Find Out
How They Evaluate Alternatives                        12
Evaluation of Alternatives
• Means End Chain - a way to describe how
  a product interacts with the consumer. It
  can be categorized in three different areas:




                                            13
Means End Chain




                  14
Means End Chain




                  15
Means End Chain




                  16
Purchase Decision
• What’s important for the buyer?




                                    17
Purchase Decision
• Culture




                                18
Purchase Decision
• Social Class




                             19
Purchase Decision
• Primary Reference • Membership
                      Reference




• Formal Reference


                                   20
Purchase Decision
• Self image




                            21
Purchase Decision
• Situational factors




                             22
Purchase Decision (or not)




                             23
Post Purchase Evaluation
Purpose is to help you get word of mouth:
• Confirm they have made the right choice
• Give them something to share or “brag”
• Re-use value
• Interactive information




                                            24
Application
• Marketing strategy




                            25
Table of Content
• Understanding consumer behavior
• Consumer research
• Changing consumer behavior




                                    26
Online Surveys - Benefits
• The use of “conditional branching” which
  allows the computer to skip directly to the
  appropriate question.
• With the right database, it can be
  inexpensive with potential scale across
  different countries.
• It captures the respondent’s submission
  page visit log including timing and location.

                                             27
Online Surveys - Drawbacks
• Data quality is always under scrutiny.
• It’s impossible to get respondents to read
  the questions carefully.
• The emergence of affiliate marketing
  generated additional unqualified data.
• It cannot be too long so there is a limit to
  the amount of data can be captured.

                                                 28
Problem with Affiliate Marketing




                               29
Focus group
• Let’s see another example




                              30
Research Tool – Focus Group
• Focus groups are useful when the marketer
  wants to launch a new product or modify an
  existing one.
• A focus group usually involves having some 8-
  12 people come together in a room to discuss
  their consumption preferences and
  experiences.
• The group is usually led by a moderator, who
  will start out talking broadly about topics related
  broadly to the product without mentioning the
  product itself.
                                                        31
Research Tool – Focus Group
• By not mentioning the product up front, we
  avoid biasing the participants into thinking
  only in terms of the specific product
  brought out.
• Thus, instead of having consumers think
  primarily in terms of what might be good or
  bad about the product, we can ask them to
  discuss more broadly the ultimate benefits
  they really seek.

                                             32
Research Tool – Focus Group
• Represent small sample sizes. Because of the
  cost of running focus groups, only a few groups
  can be run. Focus groups cannot give us a
  good idea of:
  – What proportion of the population is likely to buy the
    product.
  – What price consumers are willing to pay.
  – The groups are inherently social. This means that:
     • Consumers will often say things that may make them look
       good even if that is not true.
     • Consumers may be reluctant to speak about embarrassing
       issues.

                                                                 33
Research Tool – Interviews
• Personal interviews involve in-depth questioning
  of an individual about his or her interest in or
  experiences with a product.
• The benefit here is that we can get really into
  some depth (when the respondent says
  something interesting, we can ask him or her to
  elaborate), but this method of research is costly
  and can be extremely vulnerable to interviewer
  bias.

                                                  34
Research Tool – Observation
• Or just watching how consumers do their
  shopping…




                                            35
Research Tool – Scanner Data
• Most retail outlets use scanner or even
  RFID sales / inventory system. Some
  shopping malls even require tenants to
  report sales figure on a daily basis.
• It is a very powerful tool as it measures the
  consumer’s actual purchasing pattern.
• The trouble is that these data are often
  proprietary 3rd party private information
  that marketers have no access to.
                                             36
Application
• Public Policy Decisions




                            37
Application
• Predicting trend




                            38
Individual Assignment
Assignment Policies
1. Only English assignment is accepted.
2. All works must be original and plagiarism is regarded as fail;
3. Provide all sources of information cited;
4. Assignments must meet course tutor’s requirements;
5. Students should bear the responsibility if real company data
   are cited; otherwise company name can be concealed;
6. Assignments will be marked by course tutor and may be
   reviewed by
7. overseas examiners and members of the Board of
   Examination. The school guarantees information of individual
   assignment will not be disclosed to the general public.
                                                                39
Individual Assignment
Part A: Description of the organization
and background information

• This should be as short as possible. It merely describes
  the organization, and possibly its context, so that the
  examiners understand the organization and the nature of
  its business.
• It is not included in the word-count and receives no
  marks.

                                                        40
Individual Assignment
Part B: Analysis of Organization Public
Relation Issues and Challenges
This should contain:
• Organization’s mission, vision and values
• Business objectives and marketing communications
  strategies
• Situation analysis (at least a SWOT analysis) on the
  issues and communication challenges/opportunities
  faced by the organization and the target public
• World count for Part B + C should be 1,000 – 3,000

                                                         41
Individual Assignment
Part C: Proposing a Marketing Public
Relations Campaign (12 months period)
The section should include:
1. Define your target group of customers (i.e., end users
   and intermediaries)
2. Produce an analysis of their purchasing and media
   consumption behavior
3. Identify of MPR objectives, including intended brand
   personality and brand experience, which are derived
   from the overall business objectives and marketing
   strategies
                                                            42
Individual Assignment
4. Develop core messages to be disseminated through
   various programs of the communications campaign which
   should build credibility, trust or long term relationship with
   customers
5. Propose a series of activities in achieving the MPR
   objectives. Among the list of activities, one of them
   should be derived from the content of the Entertainment,
   Sports and Sponsorship module, one of them should be
   related to customer engagement activities, and one
   should focus on media-related activities


                                                              43
Individual Assignment
6. A timeline indicating the schedule of activities for all
   types of programs of the communications campaign
7. An estimated budget and related resources for each
   program/activity with detailed breakdown as much as
   possible
8. The mechanism to measure/evaluate the effectiveness
   of each program of the campaign with a view to achieve
   the pre-determined MPR objectives based on the
   organization’s marketing communications strategies,
   which in turn should make up the overall business
   objectives.

                                                          44

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Lecture 3 consumer behavior

  • 1. Post Graduate Diploma in PR & Exhibitions Management Marketing Public Relations and Audience Lecture 3 Understanding Audience Behavior Developed and Presented by Roy Ying, Msc., BSG, B.Comm., MHKIoD Note: Pictures used in this power point file is for academic Purpose only 1
  • 2. Table of Contents • Understanding consumer behavior • Consumer research • Changing consumer behavior 2
  • 3. Definition Consumer Behavior • The study of individuals, groups, or organizations, and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs, and the impacts that these processes have on the consumer and society. 3
  • 4. Let’s look at an example • How marketers use consumer psychology to increase sales….. 4
  • 5. • Decision Making 5-step Process Source: Adopted from Kotler (1997), Schiffman and Kanuk (1997), and Solomon (1996) • Consumer Sieve 5
  • 6. Need = Problem • Kotler (1997) equates consumers as problem solvers • Problem Recognition occurs when there's a difference between one's desired state and actual state that is sufficient to activate the decision process. • The Desired State is the way a person would like for a need to be met. • The Actual State is the way a need is being met/unmet at a particular point in time. 6
  • 7. What are the needs? 7
  • 8. What are the needs? 8
  • 9. What are the needs? 9
  • 10. Information Search • Traditional wisdom would suggest… Memory Media Referral 10
  • 11. Information Search • For the younger generation, it’s more likely that they will… Social Media Search Engine 11
  • 12. Evaluation of Alternatives • What criteria do consumers use? Consumer May Use Careful Calculations & Logical Thinking Consumers May Buy on Impulse and Rely on Intuition Consumers May Make Buying Decisions on Their Own. Consumers May Make Buying Decisions Only After Consulting Others. Marketers Must Study Buyers to Find Out How They Evaluate Alternatives 12
  • 13. Evaluation of Alternatives • Means End Chain - a way to describe how a product interacts with the consumer. It can be categorized in three different areas: 13
  • 17. Purchase Decision • What’s important for the buyer? 17
  • 20. Purchase Decision • Primary Reference • Membership Reference • Formal Reference 20
  • 24. Post Purchase Evaluation Purpose is to help you get word of mouth: • Confirm they have made the right choice • Give them something to share or “brag” • Re-use value • Interactive information 24
  • 26. Table of Content • Understanding consumer behavior • Consumer research • Changing consumer behavior 26
  • 27. Online Surveys - Benefits • The use of “conditional branching” which allows the computer to skip directly to the appropriate question. • With the right database, it can be inexpensive with potential scale across different countries. • It captures the respondent’s submission page visit log including timing and location. 27
  • 28. Online Surveys - Drawbacks • Data quality is always under scrutiny. • It’s impossible to get respondents to read the questions carefully. • The emergence of affiliate marketing generated additional unqualified data. • It cannot be too long so there is a limit to the amount of data can be captured. 28
  • 29. Problem with Affiliate Marketing 29
  • 30. Focus group • Let’s see another example 30
  • 31. Research Tool – Focus Group • Focus groups are useful when the marketer wants to launch a new product or modify an existing one. • A focus group usually involves having some 8- 12 people come together in a room to discuss their consumption preferences and experiences. • The group is usually led by a moderator, who will start out talking broadly about topics related broadly to the product without mentioning the product itself. 31
  • 32. Research Tool – Focus Group • By not mentioning the product up front, we avoid biasing the participants into thinking only in terms of the specific product brought out. • Thus, instead of having consumers think primarily in terms of what might be good or bad about the product, we can ask them to discuss more broadly the ultimate benefits they really seek. 32
  • 33. Research Tool – Focus Group • Represent small sample sizes. Because of the cost of running focus groups, only a few groups can be run. Focus groups cannot give us a good idea of: – What proportion of the population is likely to buy the product. – What price consumers are willing to pay. – The groups are inherently social. This means that: • Consumers will often say things that may make them look good even if that is not true. • Consumers may be reluctant to speak about embarrassing issues. 33
  • 34. Research Tool – Interviews • Personal interviews involve in-depth questioning of an individual about his or her interest in or experiences with a product. • The benefit here is that we can get really into some depth (when the respondent says something interesting, we can ask him or her to elaborate), but this method of research is costly and can be extremely vulnerable to interviewer bias. 34
  • 35. Research Tool – Observation • Or just watching how consumers do their shopping… 35
  • 36. Research Tool – Scanner Data • Most retail outlets use scanner or even RFID sales / inventory system. Some shopping malls even require tenants to report sales figure on a daily basis. • It is a very powerful tool as it measures the consumer’s actual purchasing pattern. • The trouble is that these data are often proprietary 3rd party private information that marketers have no access to. 36
  • 39. Individual Assignment Assignment Policies 1. Only English assignment is accepted. 2. All works must be original and plagiarism is regarded as fail; 3. Provide all sources of information cited; 4. Assignments must meet course tutor’s requirements; 5. Students should bear the responsibility if real company data are cited; otherwise company name can be concealed; 6. Assignments will be marked by course tutor and may be reviewed by 7. overseas examiners and members of the Board of Examination. The school guarantees information of individual assignment will not be disclosed to the general public. 39
  • 40. Individual Assignment Part A: Description of the organization and background information • This should be as short as possible. It merely describes the organization, and possibly its context, so that the examiners understand the organization and the nature of its business. • It is not included in the word-count and receives no marks. 40
  • 41. Individual Assignment Part B: Analysis of Organization Public Relation Issues and Challenges This should contain: • Organization’s mission, vision and values • Business objectives and marketing communications strategies • Situation analysis (at least a SWOT analysis) on the issues and communication challenges/opportunities faced by the organization and the target public • World count for Part B + C should be 1,000 – 3,000 41
  • 42. Individual Assignment Part C: Proposing a Marketing Public Relations Campaign (12 months period) The section should include: 1. Define your target group of customers (i.e., end users and intermediaries) 2. Produce an analysis of their purchasing and media consumption behavior 3. Identify of MPR objectives, including intended brand personality and brand experience, which are derived from the overall business objectives and marketing strategies 42
  • 43. Individual Assignment 4. Develop core messages to be disseminated through various programs of the communications campaign which should build credibility, trust or long term relationship with customers 5. Propose a series of activities in achieving the MPR objectives. Among the list of activities, one of them should be derived from the content of the Entertainment, Sports and Sponsorship module, one of them should be related to customer engagement activities, and one should focus on media-related activities 43
  • 44. Individual Assignment 6. A timeline indicating the schedule of activities for all types of programs of the communications campaign 7. An estimated budget and related resources for each program/activity with detailed breakdown as much as possible 8. The mechanism to measure/evaluate the effectiveness of each program of the campaign with a view to achieve the pre-determined MPR objectives based on the organization’s marketing communications strategies, which in turn should make up the overall business objectives. 44