GE2248 Understanding Persuasion in Everyday Life Lecture 9

1 GE2248 Understanding Persuasion in Everyday Life Lecture 9 Persuasion in Practice: Business Context Persuasion in Business Contexts Persuasion is a very important element of any business communication ▫ Starting a business is challenging! ▫ Obtaining a business is very challenging!! ▫...

1 GE2248 Understanding Persuasion in Everyday Life Lecture 9 Persuasion in Practice: Business Context Persuasion in Business Contexts Persuasion is a very important element of any business communication ▫ Starting a business is challenging! ▫ Obtaining a business is very challenging!! ▫ Maintaining a business is extremely challenging!!! ▫ All companies need customers and customers usually have choices  Even the companies have good products with good prices at the right places, companies still need to communicate well so that the customers will pick their products among different brands 2 Persuasion in Business Contexts Any time a person spends money, he takes a risk. ▫ He risks the product not being what he expects. ▫ He risks it being low quality. ▫ He risks it not being able to solve his problem. In such a competitive market, persuasion becomes more challenging, and more in-depth and comprehensive analysis are required ▫ Customers analysis (audience analysis) ▫ Company analysis ▫ Competitors analysis 3  4 3C Analysis Customers Analysis Customers Analysis Before a person makes a purchase, he/she will go through a decision making process CAUTIONS: You need to recognize that persuasion isn't a one-shot deal, it's a multi-step process. The more attention you pay to each step, the more likely you are to reach your desired outcome. 5 Customers Analysis Companies should study how the consumer behaves in each stage and communicate with them strategically ▫ 1/ Need recognition  Some needs occur naturally  Hungry  need food  Thirsty  need drinks  Existing products are used up  need to fill the stock  Existing products are damaged  need a replacement 6  Customers Analysis  Some needs can be stimulated by companies From a cell phone to a smartphone From a smartphone to the latest smartphone https://www.apple.com/hk/iphone-12/?afid=p238%7CMSyPMiTE- dc_mtid_18707vxu38484_pcrid_74904362990349_pgrid_1198468279429192_&cid=aos-hk-kwbi-iphone--slid---product- 7  Customers Analysis  Some needs can be stimulated by companies From a handbag to a branded handbag From a branded handbag to a premium branded handbag https://www.furla.com/int/en/eshop/furla-sleek-BAHMABRW640001007P7900.html https://www.chanel.com/us/fashion/p/AS2201B04433N9310/small-diamond-bag-lambskin-gold-tone-metal/ 8 Customers Analysis  Some needs can be stimulated by companies The smell of fresh-made egg tart 9 Customers Analysis ▫ 2/ Information search  When people search information, do they search your brand/product details?  **Awareness Awareness Test  **Knowledge Suppose your smartphone is out-of-work and you are going to buy a new one. Which brand(s) do you consider? 10 Customers Analysis ▫ What information do they search? Make sure your messages match with their concerns 11 Customers Analysis ▫ The extent of information search varies with situations vs. ▫ How do they conduct the search?  Make sure your persuasive messages are there! 12 Customers Analysis ▫ 3/ Evaluation of Alternatives  How the consumer processes information to arrive at brand choices  A very important stage  companies must pay high attention to their persuasion strategy  What is the uniqueness of the product?  What benefits does the product provide?  How is the product better than the competing brand? To answer the above questions, an comprehensive company(product) and competitor analysis are needed  **Liking Buckleys /  **Preference Insurance 13 Customers Analysis ▫ 4/ Purchase  Which product to buy  Where to buy it  How to pay for it  Not to buy a product at all  **Conviction  **Purchase 14 Customers Analysis ▫ 5/ Post-Purchase  Evaluation process of the product after the purchase  How people evaluate your product?  How to define good and bad? 15  16 3C Analysis Company(product) Analysis Company(product) Analysis Identify the strengths and weaknesses of yourself ▫ Strengths  Capabilities?  USP's (unique selling points)?  Resources, Assets, People?  Experience, knowledge, data?  Financial reserves, likely returns?  Marketing - reach, distribution, awareness?  Location and geographical?  Price, value, quality?  Accreditations, qualifications, certifications?  Processes, systems, IT, communications? 17 Company(product) Analysis ▫ Weaknesses  Gaps in capabilities?  Lack of competitive strength?  Low product quality? High price? Week distribution channels?  Reputation, presence and reach?  Financials? Cashflow, start-up cash-drain?  Timescales, deadlines and pressures?  Continuity, supply chain robustness?  Effects on core activities, distraction?  Reliability of data, plan predictability?  Morale, commitment, leadership?  Lack of accreditations, etc? 18  19 3C Analysis Competitor Analysis Competitor Analysis An assessment of the strengths and weaknesses of the competitors ▫ Understand what alternatives the customers have ▫ Understand what benefits the alternatives provide ▫ Understand what weaknesses the alternative has ▫ ** An important hint of how to create your product uniqueness The following is a useful question list to bear in mind: ▫ Who are our competitors? (see the section on identifying competitors further below) ▫ What threats do they pose? ▫ What is the profile of our competitors? ▫ What are the objectives of our competitors? ▫ What strategies are our competitors pursuing and how successful are these strategies? ▫ What are the strengths and weaknesses of our competitors? ▫ How are our competitors likely to respond to any changes to the way we do business? 20 Competitor Analysis Recorded Data Observable Data Opportunistic Data Annual report & accounts Pricing / price lists Meetings with suppliers Press releases Advertising campaigns Trade shows Newspaper articles Promotions Sales force meetings Analysts reports Tenders Seminars / conferences Regulatory reports Patent applications Recruiting ex-employees Discussion with shared Government reports distributors Social contacts with Presentations / speeches competitors 21 Persuasion in Business Contexts Company Competitiv e Advantages Competitor Customer 22