James Watt College

MUSIC BUSINESS MUSIC INDUSTRY MARKETING 2

Information on this subject

This subject is intended to introduce you to two distinct issues: consumer behaviour and its impact on the music business and the

practicalities of assembling the elements required for a cohesive communications plan.

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Outcome 1

looks at the various psychological factors

affecting consumer behaviour and how they relate to the music industry such as:

Music Industry Marketing 2 (D14 35)

 Perception deals with our senses and the way marketing can target particular consumers. Learning theories and their application to the consumer decision-making process and product loyalty. Personality theories and lifestyles - examining models of personality and how they can be used to identify lifestyles for segmentation purposes. Motivational theories examined in the context of marketing, illustrating the difference between needs, wants and drives of individuals.

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Outcome 2
looks at the impact of social influences on

consumer behaviour. Group membership is examined in the context of its effect on buying fashions and the various sub cultures, which have developed. Attitudes will be investigated, e.g. how consumers feel about products and services and how this may alter over time.
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Outcomes 1&2 assessment:

These outcomes will be assessed in one open book in-class assessment. This will last 120 minutes ad take place on:

25th October 2012

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Outcome 3
requires you to design and produce a

communications plan and identify how it should be implemented.

You will consider elements such as above the line and below the line communication methods and public relations.

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Outcome 3 assessment:
This assessment will take the form of a presentation

(use of presentation software is expected) and will should include documentation of your plan
Your presentation should last at least 20 minutes and

this will take place on: 8th November 2012

Music Industry Marketing 2 (D14 35)

Consumer Behavour
To give you a flavour, if you pardon the pun,

of what you are going to be studying, let us look first of all at a very famous study in consumer behaviour. Consider the following experiment and, afterwards, you will have the chance to start a small investigation of your own.

Music Industry Marketing 2 (D14 35)

 Coke and Pepsi have dominated the

carbonated soft drinks market worldwide now for over a hundred years and they both spend millions of pounds and dollars to protect their share of the market.
Someone once said that if you see a Coke bottle in a country then it is a sign of civilisation! The Coke challenge is a very

famous experiment and here it is.

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Coke or Pepsi?
What do you prefer?

What would you buy?

Lets take the challenge!

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Which drink did you prefer?

A? Or

B?

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Is this different from what you said?

Why should this happen? Can you think of any reasons? Jot them down now:

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 You may have mentioned things such as the image of the brand, the advertising, the shape of the bottle or perhaps a celebrity that

the advertising campaign uses. They would all be correct because what the Coke challenge proves is that consumers do not always select a product based on the obvious reason for selection, in this case taste. Other factors can be just as, if not more, important and this was demonstrated in this challenge.
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 Consumer behaviour tries to pin down these

factors so that manufacturers can identify what shapes decision making and how it can be influenced.

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 The Coke challenge became headline news in 1985 when there was a huge outcry when Coca Cola announced a change in the formula

of its flagship brand.

Taste tests showed that a majority of

consumers preferred the new Coke to the regular brand.

But loyal consumers were committed to more than the physical ingredients of the brand.
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 They had an emotional association with the

brand based on past experiences that transcended the physical product.

It is this association which consumer

behaviour tries to understand and the idea of association is where we are going to start.

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 Over the next few weeks, you are going to first of all consider three major areas of investigation that have been drawn from psychology to help you understand consumer behaviour. They are:
learning perception Motivation Let us begin by looking at how consumers

learn.
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Learning theory
We referred to associations earlier when looking at the Coke challenge and the idea of associations is integral to an understanding of

consumer behaviour. What do we mean by learning though? Here is a good definition for you: A change in behaviour occurring as a result of past experience.
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So, why is this important to advertising and marketing?

Let us look at some examples.

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 Imagine some situations where a major manufacturer of a chocolate bar might need to make sure its consumers, or perhaps

potential consumers, need to learn something.

Try and jot down some examples. The first one is done for you: Example: When the manufacturer is

launching a new flavour of an existing brand.

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 You may have given examples such as

renaming the brand, launching a new advertising campaign or perhaps a special sales promotion being introduced.
All of these examples will mean that the manufacturer will need to make sure the consumer learns something.

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So how does it happen?

There are two schools of thought in

understanding the process of consumer learning the behaviourist and the cognitive.

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 A school of thought simply means that a group of psychologists believe that certain factors are more important than others when

looking at how we learn.

Cognitive psychologists believe in quite

complicated decision-making processes whereas behaviourists believe that it is simply a matter of associations that the consumer experiences.

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 Let us consider some examples of associations in marketing before we consider how this process happens.
One of the major associations that happens

with the consumer is that when products and services are launched they need to have a name attached to them to make identification easier.
This is done through the process of association.
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 Look at the associations in the table below and consider the link between the product and the name.
Product Soft drink Brand name Pepsi

Soup
Car repair service Vacuum cleaner

Heinz
Kwik Fit Hoover

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Here is how it happens:

the first association links a series of letters

(which may not be a real word) with the product the second links a family name with a product the third is a phonetic association. This means that the name suggests what the product might do the fourth one is originally also a family name but can you see why it is a special association? Suggest some reasons.
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 You may have said that the fourth is a good association because the name of the brand has become the name of the product even

when consumers may be buying another brand! For example, a customer might go into a shop to buy a Hoover and come out with a Dyson. The association is so strong that it has become generic which means that it replaces all other brands in the market place. In fact, it is so strong that in our culture it has also become a verb.
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 This strength of association is the ultimate goal of advertising and marketing so that the learning has been extremely effective.

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Now, try your own associations.

try to get four similar associations. You do not

need to use the same products (music products may be a useful choice). Just use the same methods

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Product

Brand name

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 Did you find the last one difficult? There are

not many examples but when they do exist, they are very effective. You may want to list some examples here from discussions with others. The list is started for you:
Walkman

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Next week:

Well look at how it happens!

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End of presentation
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