BSBMKG419 Analyse Consumer Behaviour

Assessment Task2

Knowledge Test – Research the following questions and complete the following answers in your

own words.

Q1. What is a “Market Profile?”

- A Market Profile is a graphical representation that combines price and time information in
the form of a distribution. A Market Profile is used to determine elapsed time, number of
ticks and volumes traded at specific prices, or over a price interval, over a given period. A
Market Profile also makes it possible to identify prices accepted or rejected by the market,
and to identify resistance or support price levels to anticipate future price movements.
- A Market Profile is not a technical indicator but an image that shows where the most traded
price is and what the volumes are at each price level. It determines when the market will
move from equilibrium to imbalance.

Q2. Briefly describe the following segmentation factors;

- Geography is the study of place, space and the environment. Geographers investigate the
character of places, the distribution of phenomena across space, biophysical processes and
features, and dynamic relationships between humans and environments. Geographers ask
questions about why these phenomena and relationships are like they are and how they
could be; how societies and environments are connected to one another; how and why they
change; and how and why their characteristics vary across time and space at different scales.
Geography answers questions spanning the local to the global, in the past, present and
future.
- Demographics is the study of a population based on factors such as age, race, and sex.
Demographic data refers to socio-economic information expressed statistically, also
including employment, education, income, marriage rates, birth and death rates and more
factors. Governments, corporations, and nongovernment organizations use demographics to
learn more about a population's characteristics for many purposes, including policy
development and economic
- Psychographics is the study of consumers based on their activities, interests, and opinions
(AIOs). It goes beyond classifying people based on general demographic data, such as age,
gender, or race. Psychographics seeks to understand the cognitive factors that drive
consumer behaviours. This includes emotional responses and motivations; moral, ethical,
and political values; and inherent attitudes, biases, and prejudices.

Q3. What is “Consumer Behaviour”? How can marketers predict consumer behaviour?

- Consumer behaviour is the study of consumers and the processes they use to choose, use
(consume), and dispose of products and services, including consumers’ emotional, mental,
and behavioural responses. Consumer behaviour incorporates ideas from several sciences
including psychology, biology, chemistry, and economics
- Studying consumer behaviour is important because this way marketers can understand what
influences consumers’ buying decisions. By understanding how consumers decide on a
product they can fill in the gap in the market and identify the products that are needed and
the products that are obsolete. Studying consumer behaviour also helps marketers decide
how to present their products in a way that generates maximum impact on consumers.
Understanding consumer buying behaviour is the key secret to reaching and engaging your
clients and convert them to purchase from you.

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Pidchayapon Sawangvong 820792
 BSBMKG419 Analyse Consumer Behaviour
Assessment Task2

A consumer behaviour analysis should reveal:

 What consumers think and how they feel about various alternatives (brands, products,
etc.).
 What influences consumers to choose between various options.
 Consumers’ behaviour while researching and shopping.
 How consumers’ environment (friends, family, media, etc.) influences their behaviour.

Q4. List and briefly describe three key marketing communication concepts. How does marketing

communication impact on the marketing activities?

- Three keys marketing communication concepts:

Research

Prior to the development and execution of marketing messages, companies usually do research
on the target market to learn more about their primary needs, interests and motivations. Focus
groups, surveys, test studies and recognition studies are among common research tools used to
get more familiar with targeted market segments. By understanding more about the current
situation and motives of potential customers, marketers can more effectively prepare messages
that persuade people to like a brand and buy it.

Promotions

Promotions is the common term used to describe the communication component of marketing.
Marketing is an entire process of research and design of a product or service, development of
promotional messages and sales and service to customers. Communicating the value of your
product or service to customers and developing a long-term brand image is vital to success.
Without promotions, your ability to create awareness and favourable attitudes within target
segments is limited.

Advertising

Advertising is the paid part of a marketing communication strategy that includes paid broadcast,
print or other media messages. Television, radio, newspapers, magazines and online media
constitute the common, traditional media used by advertisers to present messages. Billboards,
directories, aerial and transit media are support media used in advertising. By paying for ad
messages, you typically have greater influence over the placement time and place, as well as the
message itself, since you buy this service from the medium.

- Marketing communication helps move products, services, and ideas from manufacturers to
end users and builds and maintains relationships with customers, prospects, and other
important stakeholders in the company. Advertising and sales promotion will continue to
play important roles in marketing communication mix.

Q5. List some of the legal and ethical obligations relevant to marketing activities. Briefly describe
the concept/relevance of the following in your own words;

- Some of the legal and ethical obligations relevant to marketing activities

Advertising

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 BSBMKG419 Analyse Consumer Behaviour
Assessment Task2

You need to make sure you do not mislead your customers when you advertise your
products or services. There may be local requirements such as permits, depending on the
type of advertising you use.

Competitions
Competitions, lotteries or promotions over a certain amount are regulated by your state or
territory through a permit. You can download a permit form from the Australian Business
Licence Information Service (ABLIS) website.

Direct marketing
Most direct marketing activities are regulated by federal or state laws. Before you conduct
direct marketing, check that you comply with the privacy legislation and spam regulations.

Do Not Call Register

If you want to use telemarketing, you need to comply with Do Not Call Register legislation.
The Do Not Call Register is a list of protected phone and fax numbers. If you contact a
number on the register, you may be in breach of the law and could face penalties.

Privacy
As a business owner, you are responsible for protecting your customers’ personal
information. Take care when you collect, use, secure and disclose a customer's information
that you comply with the Privacy Act 1988.

• Anti-discrimination legislation and the principles of equal opportunity, equity, and diversity

- The Australian Federal Government has passed numerous laws which aim to protect people
from discrimination within the workplace. These include the:
 Sex Discrimination Act 1984;
 Disability Discrimination Act 1992;
 Age Discrimination Act 2004; and
 Racial Discrimination Act 1975.

These laws, alongside other state laws, are the primary source of EEO obligations. Employers who
hire, manage or dismiss employees are not allowed to discriminate based on:

 race;
 ethnicity;
 colour;
 sex;
 sexual orientation;
 gender identity;
 relationship status;
 family or carer responsibilities;
 pregnancy;
 mental or physical disability;
 religion;
 political opinion; or
 age.

• Ethical principles

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 BSBMKG419 Analyse Consumer Behaviour
Assessment Task2

 All marketing communications share the common standard of truth.

 Marketing professionals abide by the highest standard of personal ethics.
 Advertising is clearly distinguished from news and entertainment content.
 Marketers should be transparent about who they pay to endorse their products.
 Consumers should be treated fairly based on the nature of the product and the nature of the
consumer (e.g. marketing to children).
 The privacy of the consumer should never be compromised.
 Marketers must comply with regulations and standards established by governmental and
professional organizations.
 Ethics should be discussed openly and honestly during all marketing decisions.

• Privacy laws refers to the laws that deal with the regulation, storing, and using of personally
identifiable information, personal healthcare information, and financial information of individuals,
which can be collected by governments, public or private organisations, or other individuals.

• Australian direct Marketing Association (ADMA) Direct Marketing Code of Practice

- Marketing codes of practice, as defined by the ADMA (Association for data-driven marketing
& advertising), are a set of standards of conduct for marketers to minimise the risk of
breaking legislation laws and to promote a culture of best practice. The codes of practice are
based on common sense, and deal with fairness and honesty.
- Complying with Marketing Codes of Practice promotes good ethics culture between
businesses and consumers, in turn creating confidence between both parties. It ensures
that both businesses and consumers are able to access adequate information on offered
products or services, allowing informed choices to be made. It also minimises the risk of
businesses breaching the Australian Consumer Laws (ACL), Privacy Act 1988, Spam Act 2003
and the state’s fair trading legislation.

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