Marketing Concepts: Consumer Behavior and Branding

This report delves into critical marketing concepts, commencing with an exploration of how product labeling influences consumer purchase decisions. It examines the impact of external marketing factors, specifically within the Australian context, and analyzes the significance of labeling regulations, including the "Made in Australia" label and organic product labeling. The report also investigates consumer behavior, including the utilitarian and hedonic values that influence purchasing decisions, and the application of Maslow's hierarchy of needs. Furthermore, it explores stimulus generalization and discrimination, as well as the strategic positioning of products through advertising examples from Converse and Timberland. Finally, it discusses market segmentation strategies employed by these brands, utilizing demographic, behavioral, and psychographic bases. The report provides a comprehensive overview of these concepts, supported by examples and analysis.

Running head: MARKETING CONCEPTS
Marketing Concepts
Name of the Student
Name of the University
Author’s note

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Question 1
Affect of labeling on consumer purchase decision
Consumers are mostly seeking for high quality products at a reasonable price, this is the
general conception. But needs change from product to product, the above requirement is for
grocery or FMCG products. But if the product is a luxury item or service then the quality and
price is both on the higher end. A color scheme or a logo is very important for a brand image; it
helps in making an impression on the minds of a person. For example: red and white
immediately reminds a person of Coco Cola (Solomon 2014, Vol 10). Customers appreciate if a
thought and effort of the company is reflected in the packaging and branding of the product.
Labeling is essential for the customers as it not only attracts the customers it also provides
necessary information about the product or service. As the label on a product provides
information about the price, quantity, quality etc, consumers can understand and identify the
standard and grade of the item. The products are. Customers can easily compare the product with
the items of the same category and choose which will suite the requirement best and purchase
accordingly.
External marketing environment factors affect labeling in Australia
External factors of the business environments are the ones which are not under the
control of the business organization the six aspects are: government policies of the area of
operation, natural forces, competition, technology, demographic factor and societal factors.
Government Policies
In Australia, government has some set rules as to what has to be mandatorily mentioned
in the label. For example: According to the Competition and Consumer Act 2010 (CCA), a seller
cannot provide the consumer with give false, deceptive or misleading information. There are
various industry specific guidelines and regulations as well which business organizations have to
comply with. The sellers are expected to be aware of the obligations under Australian Consumer
Law (ACL) if they claim to be made in Australia.
Technology

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Technology used to create a product has to be mentioned as it increases the value of the
product. For example: if the product is vegan and cruelty free it should be highlighted on the
label as it increases the goodwill of the product and garners positive response (Andrews et al.
2014).

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Utilitarian value
The utilitarian value if the amount of utility that a customer derives from a particular
product or service that he or she has purchased keeping in mind the requirement of the products
and the price associated with the product. It is essential as it brings out the real worth of the
product or service. Examples: marketing of I Phone as it focuses on the prime feature of the
device and gives an alluring experience to the user and Amazon markets itself as a place where
an individual can find anything from A to Z.
Hedonic value
It can be defined as the element of a consumer apparent value which is associated with
the senses, feelings, and emotions particularly pertaining to pleasure. Hedonic means something
that is related to utility. Examples: Marketing of quality walls magnum ice cream where the
focus is on the indulgence of Belgium chocolate in the making of the ice cream that offers a rich
taste. Marketing of any premium luxury brand is a perfect example of hedonic value like Dior
perfumes and Gucci handbags etc ( Etemad-Sajadi and Lassaad 2015, 84).
Reasons for purchase
Maslow’s need hierarchy theory is based on the needs and requirements of the people.
Demand or need is the basic reason for a person to purchase items. These needs raise upward
form necessity to luxury depending on the purchase power and disposable income of an
individual. Form the consumers perspective there are some of the major reasons of purchase:
requirement of the product backed by the reasonable price of the product is the prime reason why
a consumers buys a product. Furthermore, a customer sometimes gets inspired by someone else
using a particular product and buys it even if he or she doesn’t want it. Sense of pride is also one
of the reasons for purchase. For example: if a person always wanted to buy a Fendi Handbag, the
ownership of such an item is a matter of pride and accomplishment in the life of that person.
Organic labeled products
In Australia, an organization cannot label a product ‘organic’ if it does not abide by the
regulations laid down by the Australian Standard (AS 6000). The company first of all has to get

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certificate for providing such information on the label by institutions that are accredited by the
Department of Agriculture, Fisheries and Forestry.
The products which are indicated to be organic should be result of farming that avoids the
usage of man-made fertilizers and pesticides, growth regulators and additives. Apart from this,
products which include genetically modified organisms (GMOs) are also prohibited from
claiming the organic tag.
Environmental sustainability is the prime idea of organic products along with
implementation of innovation in the production of the item. To participate in sustainably and the
idea of using pure and non-chemical goods initiates the consumers to buy organic products over
any chemical infused goods.
“Made in Australia” label
For the products that want to label “Made in Australia”, has to follow certain policies and
regulations as laid down by the government. An item if has been developed and underwent
changes in its last substantial transformation in that country can be deemed as “made” in that
particular nation. It does not necessarily have to mean that all the ingredients in developing the
product has been originated in Australia, it means that the product has been proceed to be the end
good so that it is ready for the consumer to use ( Hersey et al. 2013, 1-14).
Stimulus generalization and Stimulus discrimination
The addition to a known response to stimuli that is similar to the trained stimulus. To
stand out in the crowd of the market companies use packaging and presentation this is called
stimulus discrimination.
Examples of Stimulus generalization is the presentation of Nutella chocolate spread and
Hintz chocolate spread. It is difficult to spot the difference in packaging in the two items. Only
the labels used are different. Converse is a company that has a patent design of shoes is another
example of stimulus generalization where the look and presentation is replicated by many shoe
companies ( Jeitschko et al. 2017).

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In the marketplace, stimulus discrimination can be used in a number of ways. For
example: Pepsi and Coco Cola are competitors who sell similar products to the same target
market, the point of discrimination is the color of the brand, logo of the brand etc (Wells 2014,
1119-1158).

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Question 2
Positioning of the Products
Positioning is influencing the perception of the consumer about a particular brand in
comparison to the competitors in the industry. Its aim of position a brand or a product is to
capture a clear, unique, and beneficial place in the minds of the consumers.
In the 1st advertisement, positioning of these pair of sneakers in this advertisement
published by Converse brand is youthful and sporty. Converse is a brand that is associated with
young people, people who are young at heart and loves colors in their life and is not scared of
taking fashion risks in terms of colors. Converse is a brand that is old and has established itself
as a generic name for the design of sneakers that they make. In this advertisement the
youthfulness is being displayed by the way the shoes are kept ( Ebitu et al. 2012). The prime
focus of the ad is the color as before reading the tag line or even noticing the shoe the orange
color has been given importance. Orange is a color that constitutes of red which means energy
and vigor along with yellow that signifies happiness and cheerfulness. The culmination of these
two colors give sets the stage for a frolic mood in the advertisement which instantly gives the
viewer an idea of being youthful. Usually sneakers are associated with sportswear and the

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company wants to break that monotone of the image in placing it in the minds of the customers
as a casual wear instead of being sporty or used for sports purpose.
In the second print ad of timberland, the company has positioned the brand as a rough
and tough item that can meet the harsh and extreme terrain. Hence, the positioning of the
sneakers form timber land has an adventurous as well as a rigid positioning strategy. Timberland
is a brand that is associated and perceived by the consumers as adventure friendly durable pair of
shoes which is also reliable by the consumers to use. In the advertisement what immediately
strikes the reader first is the pair of shoes and then the image behind it which complete sets the
mood of an adventure trip along with friends. The positioning is again different form the
competitors as itself as youthful yet adventurous and reliable. The Advertisement has a red
undertone to the ad which expresses energy and excitement as is the image of the people behind
the shoes.
The positioning base of the products are on the same line but are completely different one
another the converse advertisement has a casual frolic approach to it along with it being youthful
and fashionable while, the timberland Advertisement is also targeted to the youth but has an
adventurous, rough and tough reliable approach in its positioning. It does not position it as a
fashionable item but a pair that can survive even on the rough terrain. In both the advertisement
the base of positioning is the attribute and the application of the item despite of the same
positioning base the difference lies in the product itself and the way it is positioned is different in
its own term ( Sirianni et al. 2013, 108-123).
Market segmentation
The three bases of segmentation that has been utilized by the brands in the above advertisements
are as follows: firstly is demographic- the target market of converse is the young people who are
college goers and the young adults who take out time to go clubbing or goes out with friends
very often ( Anderson and Xiaoqing 2014, 263-272). The age group targeted by the company is
in between 16-35. For the timberland and the demographic is the same as converse there are also
young people featured in the advertisement. The occupations of the people targeted by both the
brands are either young professionals or students (Hampel et al. 2012, 118-127). Secondly
behavioral- the color scheme of the converse advertisement show that the shoes are targeted

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towards people who are fashion conscious and takes risks in terms color and style. Whereas the
timberland ad targets people who are adventurous and tourists at heart and loves a fun get out
with friends. Both the shoes are unisex and hence the target market has a wide perception ( Dey
et al. 2014). Thirdly psychographic: the tag line used in the converse advertisement suggest an
edgy side of an individual, the term orange is used as a subject gives an idea of creativity and
risk taking attitude. While, in the timberland advertisement the color scheme and the tag line
shows the rough and tough side of the shoe and depicts the same psychographic characteristic in
the target market. An individual who will opt to buy an orange color pair of shoe is a person who
gives a lot of thought while dressing up and putting a look together. Whereas the timberland
shoes are perfect to wear if a person is on an adventure trip revealing the adventurous side of the
target market (Dolnicar 2014, 296-306)
.

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Comparison
Among the two advertisements the converse ad has more impact on the reader owing all
the credit to the color that has been chosen by the company. The company could have used a
black background to create dimension in between the background and the foreground but they
chose to stick to the color of the pair of shoe as that is what they have tried to draw the attention
of the reader. The design of the shoe is the classic converse by the unique color of the product is
the USP in this case (Anatasia et al. 2016).
On the other hand the timberland advertisement has a lot of elements cramped in the one
canvas. The background has three people along with a landscape and the foreground has the pair
of shoes which along with the brand name and the tagline. It lacks in capturing the attention of a
person and delivering the message. A reader has to carefully go through the ad in order to
understand the significance of it and what the company is trying to communicate.
The converse advertisement is spot on in its idea and execution whereas the timberland
ad lacks creativity and is like any other shoe’s company advertisement (McAlister et al. 2016).

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