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Current Issues in Marketing. S ocioSphere = inter-relationships among social institutions, associations, reference & affinity groups P sychoSphere = Identity,

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Presentation on theme: "Current Issues in Marketing. S ocioSphere = inter-relationships among social institutions, associations, reference & affinity groups P sychoSphere = Identity,"— Presentation transcript:

1 Current Issues in Marketing

2 S ocioSphere = inter-relationships among social institutions, associations, reference & affinity groups P sychoSphere = Identity, personal- perspective >>

3 IDENTITY Derived/Defined by: ERA Generation People, Places, Things, Organizations & ideas that we identify with…

4 Origins of our identity individuality Our individuality = result of Nature & Nurture commonality Our commonality = results from our shared culture & experience War; civil unrest; social movements Political persons & events; economic swings Scientific/Technological discoveries & advances Tragedies: Natural & Man- made Entertainment: Movies, TV, Music; artists, celebrities Clothing styles; Lifestyle trends, Fads

5 Come of age- Imprint on Your-World Each generation molded by world events that occur during its formative years. … distinct historical experiences create characteristics that stay w/ people thruout rest of their lives Each generation molded by world events that occur during its formative years. … distinct historical experiences create characteristics that stay w/ people thruout rest of their lives Generational Marketing: Reaching the Hearts and Minds of Consumers Ann A. Fishman, Circulation Management, Jul 1, / / Generational Marketing: Reaching the Hearts and Minds of Consumers Ann A. Fishman, Circulation Management, Jul 1, / /

6 Generational Life Experiences Called Markers Values are shaped by: Events Culture Politics Economy Technology Personalities Events Culture Politics Economy Technology Personalities

7 Generations Variously Named & Dated: 1.Matures – < Baby Boomer – Generation Jones – Generation Rerun – Generation Xceptional – Generation M – Millennials – 1996 and beyond 1.Matures – < Baby Boomer – Generation Jones – Generation Rerun – Generation Xceptional – Generation M – Millennials – 1996 and beyond Depression cohort (1912 to 1921) WWII cohort (1922 to 1927) Post-war cohort (1928 to 1945) Baby Boomer cohort #1 (1946 to 1954) Baby Boomer cohort # to 1965) Generation X cohort (1965 to 1976) N Generation cohort (1977 to date) Depression cohort (1912 to 1921) WWII cohort (1922 to 1927) Post-war cohort (1928 to 1945) Baby Boomer cohort #1 (1946 to 1954) Baby Boomer cohort # to 1965) Generation X cohort (1965 to 1976) N Generation cohort (1977 to date) THE GI GENERATION: THE SILENT GENERATION: BABY BOOMERS: GENERATION X: GENERATION Y: 1982-PRESENT THE GI GENERATION: THE SILENT GENERATION: BABY BOOMERS: GENERATION X: GENERATION Y: 1982-PRESENT

8 Millions Senior/Silent Baby Boom Gen.X Gen.Y Source: U.S. Bureau of the Census U.S. Generations : Gen.Z 1995

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10 Interval between Generations Decreasing & amplitude/magnitude of change between Generations Increasing amplitude/magnitude of change between Generations Increasing

11 PEOPLE, PLACES & THINGS… MORALS, PRINCIPLES, HEROS Disposable… Mobile…Transitory… Ambiguous… Androgynous… Fragmenting…Society UP-Rooted by increased Choice & Conflict & Challenge IDENTITY ANCHORS

12 The New Psycho-Sphere It is though a bomb went off in our communal Psycho-Sphere. We are, in fact, experiencing not merely the breakup of the Techno, Info & Socio-Sphere but the crackup of the Psycho-Sphere as well. page 365

13 A state of shattering stress & disorientation resulting from too much change in too short a period of time FUTURE SHOCK

14 The Law of Accelerating Returns progressing in exponential fashion

15 Presidents Commission on Mental Health Reports - fully ¼ of US citizens suffer from some form of severe stress National Institute of Mental Health researcher.. declares psychological turbulence is rampant in American society- -is divided & anxious about the future..

16 Here Yesterday-Gone Tomorrow In industrial era: Americans had layers of belonging- the job Nuclear & extended family; union, associations; church, charity & community service; the job … -- much of this is in decline… So much of what we cherish, what Americans like to call "the good life" has been stripped away at the end of the industrial age

17 46 % of Millennials see religion as the "key to the nation's success as opposed to 64 % of Generation X 69% of Boomers 78 % of the Srs (ages 66-83)

18 The Loss of Identity In 2 nd wave society- Identity very much tied to job-title. Company marques & hierarchy pegs tell us who we are & where we belong In 2 nd wave society- Identity very much tied to job-title. Company marques & hierarchy pegs tell us who we are & where we belong 2 nd Wave

19 With increased mobility & job turnover there is: A loss of Place – A loss of Place – losing ties to family & community… losing the sense of self A fear of losing the sense of self, the tie to job and work A loss of Place – A loss of Place – losing ties to family & community… losing the sense of self A fear of losing the sense of self, the tie to job and work

20 job Where is identity in an American job that was torn up … by multinationals… seeking efficiency town square shopping mall instead of the town square… all life gravitates to a consumer temple-city we call the shopping mall?

21 For Senior Generations Fully developed 2 nd wave Psyche before 3 rd Wave

22 The 2nd Wave Psyche A Nuclear Family Work- 9-5 Well Defined Roles Clear lines of Status Clear lines of Authority Sense of Community Structure Meaning to/of Life Values & Lifestyle

23 The 2 nd Wave Psycho Breakdown 1. The sudden shift of social ground rules 2. The smudging of roles, status distinctions & lines of authority 3. The immersion in blip culture 4. Above all the break-up of indust-reality Have shattered the world image most of us carry around in our skulls Toffler, 3 rd Wave, p.374

24 w/ so many of our habits, values, routines & responses called into question, its hardly surprising - we feel like people of the past---relics of 2 nd wave Civilization

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26 2 nd wave world = 1 thing at a time

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28 GI Boomer Silent Gen X Grew up & rode the Last Wave Caught Between Waves Millennial Grows Up w/ New Wave Riding the wave

29 Some Defining Events- Senior Generations Depression cohort (born from 1912 to 1921) Lived thru- The Great Depression, high levels unemployment, poverty, lack of creature comforts, financial uncertainty WWII cohort/ GI Gen. (born from 1922 to 1927) Lived thru- : men leaving to war - many not returning, -- women working in factories, focus on defeating a common enemy Post-war cohort/ Silent Gen. (born from 1928 to 1945) Lived thru- : sustained economic growth, social tranquility, The Cold War, McCarthyism Born: <1945

30 Values

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32 Born: 1945 ~ million The Ed Sullivan Show, Fallout Shelters, Poodle Skirts and Pop Beads, Slinkies, TV Dinners, Hula Hoops,The Peace Sign, Laugh In, Clinton, Midler, Leno, Streisand, Gates The Ed Sullivan Show, Fallout Shelters, Poodle Skirts and Pop Beads, Slinkies, TV Dinners, Hula Hoops,The Peace Sign, Laugh In, Clinton, Midler, Leno, Streisand, Gates Cultural Icons & Memorabilia Baby Boomer cohort #1 (born 1946 to 1954) Lived thru- : assassination of JFK, RFK, and MLK, political unrest, walk on moon, Vietnam War, anti-war protests, sexual freedom, civil rights – environmental- hippie & womens movement, protests and riots, experimentation w/ drugs Baby Boomer cohort #2 (born 1955 to 1964) Lived thru- : Watergate, defeat in Vietnam, the oil embargo, raging inflation, gasoline shortages IDEALIST – Prophet: Inner- driven, moralistic generation - comes of age during a period of spiritual awakening

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35 The Brady Bunch, Pet Rocks, Platform Shoes, The Simpsons, Dynasty, ET, Cabbage Patch Dolls, Brad Pitt, Cameron Diaz, Carrot Top, TV-Friends, Brady Bunch, Ninja turtles Born: 1965~ million Gen X Initial Impact Events: Challenger explosion Iran-Contra social malaise Reaganomics AIDs fall of Berlin Wall Predom. of single parent families Cultural Memorabilia ADAPTIVE- Nomad: A hypocritical generation- coasts along on accomplishments of civics, lay the groundwork for new idealist era.

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38 Cultural Icons? Xena Warrior Princess Buffy The Vampire Slayer cell phones laptops/ ipods Cultural Icons? Xena Warrior Princess Buffy The Vampire Slayer cell phones laptops/ ipods Born: 1980 ~1995 first wired gen… Initial Impact Events : : Rise of the Internet 9-11 Cultural diversity 2 wars in Iraq CIVIC– Hero: Outer-driven, morally complacent generation -institutionalizes ideals of previous generations..

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41 Generation- Z Feral Born: Predicted to be- REACTIVE – Alienated, cynical generation-challenges the ideals of parents & develops into pragmatic, risk-taking adults..

42 Generational Marketing Considerations

43 Common Experiences Common Experiences Common AIOs, values, tastes, style... Common responses to marketing mix variables Generational mindsets … are major factors in determining what & how consumers buy… The notion a group of people bound together by sharing experience of common historical events 1st introduced by Karl Mannheim - early 1920s

44 Gen. Marketing Strategy Not a key behavior driver for all product categories- but is particularly appropriate for: Food Music Apparel Automotive Financial & Insurance as well as entertainment products.

45 Key Problem for Gen. marketing practitioners -- Communicating between generations

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47 Generational Value Differences: GISilentBoomerXY Helpers Sacrifice For the children Right vs. Wrong Resentful Ive earned it Do the right thing Me, me, me Forever young Choices privileges Its all about me Suspicious Dis- enfranchised Non- confrontational Waste not Facts - family -fundamentals Optimistic Strong Empowered Care for others Care for environment Realism

48 Seniors Characteristics of Generations Boomers X Y No news is good news Once a year with documentation Interrupts & asks how theyre doing Wants feedback at touch of a button Buying Style Quality first, buy American Prestige first foreign is better Cheap: value added Get it anyway/ anywhere u want View of Feedback On Homes Buy a decent house Buy the most house you can Reclaim the inner city Livin with the parents- as long as necessary

49 Comparative Work Ethic Across Generations: Seniors: Boomers: Gen Xers: Work Style: Team Player Self-absorbed Entrepreneur Rewards: Youve earned it You deserve it You need it Work is: An obligation An Adventure A challenge Leisure: Reward The point to life Relief/fun Life: Sacrifice Prosperity Risks Seniors: Boomers: Gen Xers: Work Style: Team Player Self-absorbed Entrepreneur Rewards: Youve earned it You deserve it You need it Work is: An obligation An Adventure A challenge Leisure: Reward The point to life Relief/fun Life: Sacrifice Prosperity Risks What can I do for good of organization? How will this make me feel? Whats in it for me? Major Question:

50 7 work lessons from Gen Y 7 work lessons from Gen Y AsiaOne Business Tue, Mar 01, 2011 How often have you discussed your younger colleagues with friends and work peers? For many of us with Gen Y staff, the talk isn't always positive: They insist on getting their way all the time If they're the slightest bit bored or unhappy, they quit They job-hop like nobody's business After just a few months of working, they expect to be promoted - like they're entitled to it I can't stand their 'what's-in-it-for-me' attitude

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52 New Generation Gaps.. Not only values… but Defined by tech aptitude & media use

53 Generational Differences if ask somebody 50 +, they think it's probably a bad thing… 15-year-olds think it's awesome to always be connected… getting text & instant messages & cell calls….. ask somebody 35-50, they're ambivalent. Howard Rheingold The Next Revolution: Smart Mobs

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61 Cant play on stereotypes: 1/3 of consumers over 55 deliberately did not buy a product because of the outdated images of mature consumers. Dont call em Geezers

62 Years Spent in Retirement TO YEARS YEARS YEARS

63 Emerging Gray $ Power Represent 50% of purchasing power (discretionary income) They are wealthier and healthier (mentally & physically) Major market for- Exercise facilities Cruises and tourism Cosmetic surgery, and skin treatments, Education gifts for family members (especially grandchildren) Represent 50% of purchasing power (discretionary income) They are wealthier and healthier (mentally & physically) Major market for- Exercise facilities Cruises and tourism Cosmetic surgery, and skin treatments, Education gifts for family members (especially grandchildren)

64 G.I.s & Silents – How to market to them Emphasize experience and wisdom Base decision making on established institutions and authority figures Key messages should focus on values such as frugality, responsibility and caution Like to spend money on grandchildren

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67 Key Trends Relating to The "Graying" of the Baby Boom Down-Aging Being Alive

68 Down-Aging The tendency for older people to act and feel younger than their age. Examples More youthful looking clothes Hair coloring / hair implants Adult camps and adventure vacations

69 Down-Aging - Examples TV shows starring cartoon characters: "The Simpsons," "King of the Hill," "South Park," "Daria," "Dr. Katz," "The PJs," "Futurama," and "The Family Guy." Disney & Warner Brothers stores; 80% of their sales are to adults- for adults. eBay, posts 1000s of hits for Pez The median age Harley customer 42; ten years ago was 34.

70 Being Alive The desire to lead longer and more enjoyable lives Examples Vegetarianism holistic medicine (herbs, naturals, etc.) Meditation

71 Focus on themselves- early ideals, present predicament & future well- being Many wont retire Will begin 2ndcareers Retirement as work style, not lifestyle Wont have enough money to retire (saving rates are low) Looking for meaning - fulfillment Boomers: Marketing Considerations

72 The generation that dropped acid to escape reality… is generation that drops antacid to cope w/ it Marketing to Boomers

73 For the X &Y generations: Increasingly weaned in & imprinted on post-industrial society

74 months = new technology days = new product / service minutes = new blog & web-site Change experience in 1 year… Grandparents experienced in 1 lifetime. For X + generations… its all about the rate of change

75 Jobs in Lifetime 2 nd Wavers : 1 job & 1 Gold Watch Millennials: How many jobs do you think you will hold in your lifetime? % % % %

76 X + Weaned w/in– increased diversity, mobility & innovation… Pre-Boomers Boomers

77 Who are You 3 rd Wave individuals much more likely to ID themselves according to their a vocation … as opposed to 2 nd wavers – whose ID was derived primarily by their vocation

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80 Generation X How to market to them Live flexible lives Dont buy a house and live in it forever Dont graduate and get a job and work there until retirement Resourceful…Confident…Ambitious Depend on themselves and their own capabilities to get things done Low to no - confidence in public institutions –

81 Generation X Address tough & unsettled economic & personal circumstances…. They've grown up in a world in which sex can kill you & government entitlement programs for older generations will make their taxes go sky-high.

82 Generation X How to market to them Abandon hard sell Get to the point and stick to the point Dont drown message in warm and fuzzy or unrealistic promises Get some attitude Attitude, not brand, makes the sale Have some fun Xers are young people, full of energy and ready for fun Keep life in perspective Crusading is for Boomers, Sacrificing is for G.I.s and Silents

83 Divorce - one-parent & step families working parent- latch- key lives violence in the streets break down of traditional values & sources of comfort "The Street-Savvy Generation" Nicknamed -- "The Street-Savvy Generation" because endured:

84 Generation Y… the cohort variously called : Gen- Y Echo Boom Net Generation Millennials

85 Millennials live & Learn : With technology With each other Online Doing things that matter Source: Achievement and the 21 st Century Learner

86 Ys R Multicultural Diversity prevails : - wide range of global viewpoints Tolerant of cohabitation, single parenting & extended families; different sexual orientations Attitudes reflect interest in & acceptance of diversity in all areas of life in private & public arena 50% believed would be a black president & 58 % thought there would be a female president- in next 20 years ( 2001 Lifestyle and Media Monitor) Attitudes reflect interest in & acceptance of diversity in all areas of life in private & public arena 50% believed would be a black president & 58 % thought there would be a female president- in next 20 years ( 2001 Lifestyle and Media Monitor)

87 Ys R Ambitious Most popular college majors: Medicine Education/teaching Business & marketing Most sought after qualities in careers: Responsibility Independence Creativity Idealistic & committed co- workers Most common job trends : Change Careers Seek security & benefits Stay with company that offers a challenge Engineering Law & politics Computer science

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90 Marketing to Gen-Y

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92 POP QUIZ GISilentBoomerXMillennial Helpers Sacrifice For the children Right vs. Wrong Resentful Ive earned it Do the right thing Me, me, me Forever young Choices privileges Its all about me Suspicious Dis- enfranchised Non- confrontational Waste not Facts - family - fundamentals Optimistic Strong Empowered Care for others Care for environment Realism Match the Message

93 Save $$$ Provide for your children & grandchildren Responsibility Dont be a burden to anyone Wise use of money Plan for your financial survival Save $$$ Provide for your children & grandchildren Responsibility Dont be a burden to anyone Wise use of money Plan for your financial survival Your family would be proud! The right choice A good investment A good value A responsible decision Plan now for your future comfort Ensure your future independence Your family would be proud! The right choice A good investment A good value A responsible decision Plan now for your future comfort Ensure your future independence just go on-line", interactive Build your own plan/policy Tailored to your need Take care of others Responsible decision Plan for the future just go on-line", interactive Build your own plan/policy Tailored to your need Take care of others Responsible decision Plan for the future You protected your family A great value make claims without problems You were not wasteful – you used your resources wisely You left things better than u found them You protected your family A great value make claims without problems You were not wasteful – you used your resources wisely You left things better than u found them Tailored for you No waiting/convenience Expensive, but you are worth it Better investment than the stock market Forever young – maintain your youth Lifestyle enhancement (freedom) Protecting what you have Your legacy / immortality Tailored for you No waiting/convenience Expensive, but you are worth it Better investment than the stock market Forever young – maintain your youth Lifestyle enhancement (freedom) Protecting what you have Your legacy / immortality Boomers Millennials Xers GI Silent

94 Beyond G enerational Segmentation

95 1960s 1960s computers kicked mass marketing into high gear with zip-code segmentation. 1970s 1970s multivariate analytical applications, psychographic segmentation techniques 1980s 1980s population analytics & relational databases, values & life-STYLE segmentation Technographics 1990s 1-to-1 marketing 1990s The Internet & 1-to-1 marketing 2000-to Date 2000-to Date collaborative filtering, life-STAGE segmentation, Social-Technographics Evolution of market segmentation strategy

96 Key to Marketing always been & always will be identifying & knowing your customer

97 market segmentation= Statistical Procedure clusters cases/consumers so as to maximize homogeneity-within & heterogeneity-between groups on key variables/segmentation dimensions such as : demographic, geographic, socio-graphic, psychographic, technographic characteristics, lifestyle, generational &/or behavioral patterns

98 Segmented on 2 attributes

99 Key Segmentation Decisions: 1. Size & # segments u select to target 2. What dimensions u use to segment consumers

100 1) Size & # segments select to target Undifferentiated/ Mass Marketing Differentiated/ Segment Marketing Concentrated/ Niche marketing One-to-One/ Micro marketing

101 2 nd Key decision: What dimensions you use: Who / Where Geographic Segmentation Demographic Segmentation – SocioGraphics Consumes How Much Volume Segmentation & Why Psychographic Segmentation – Motives, Traits, AIOs, Attitudes & Beliefs, Benefits Behavioral GeoDemographic Lifestyle Generational

102 Demographics Age, sex, income, occupation, education, marital status, location, household characteristics, etc…. Socio-Graphic Indexes : SES- Socio-economic Status (income+ occupation+ education) FLC- Family Life Cycle (age+ martial status + age/# kids)

103 Middle Class Working Class Working Poor The Under Class Capitalists Class Capitalists 1% Top 1% w/ income from assets earned or inherited Most Shopping done by personal assistants Upper Class SES

104 Family Life Cycle

105 Yuppies- young urban professionals Chuppies- chinese urban professionals Dinks- dual income no kids Poops- persons on one pension Clumps – computer literate urban metro-sexual professionals Twits- teens with info technologies Tweens year olds TGAs = target group acronyms (some mix of age/ location/ occupation/income/ or any other unique descriptor…)

106 GLAM - Greying, leisured, affluent, middle-aged GUPPY- Green YUPPY NILKY- No income, lots of kids OINK- One income, no kids PANSE- Politically active, not seeking employment RAPPY- Retired, affluent professionals SITCOM- Single income, two children, outrageous mortgage SUPPY- Senior urban professionals WOOPY- Well-off older people YAPPY- Young affluent parents ZUPPY- Zestful upscale person in their prime

107 Geo-Demographic Segmentation A composite segmentation strategy: uses geographic variables (zip codes, neighborhoods) & demographic variables (e.g., income, occupation, value of residence) to identify target markets.

108 Census Demographics Neighborhood Geography Neighborhood Geography Consumer Behavior Data Consumer Behavior Data u Social rank u HH composition u Housing u Ethnicity u Urbanization u Mobility u Census tracts u Block groups u Zip codes (9-digit) u Carrier routes u Automobiles owned u Magazine readership u Direct marketing data u Real estate u Credit u Expenditures CLUSTER - ANALYSIS Zip-Clusters

109 The Logic: Birds of a Feather….Flock Together People w/ similar cultures/values & $$$$ gravitate to one another - form relatively homogeneous communities Once settled in, people emulate their neighbors, adopt similar tastes & expectations… And most important of all, share similar patterns of consumer behavior re: product/brand preference & media...

110 …15,000+ companies in the United States & Canada alone used zip-clusters as part of their marketing information mix last year… Geodemographics: PRIZM, Claritas, and Clusters Geodemographic... Geo-Demographic Segmentations Continued Popularity

111 Elvis Lives!

112 data/marketing-segmentation/segmentation-systems.jsp

113 1960s 1960s computers kicked mass marketing into high gear with zip-code segmentation. 1970s 1970s multivariate analytical applications, psychographic segmentation techniques 1980s 1980s population analytics & relational databases, values & life-STYLE segmentation Technographics 1990s 1-to-1 marketing 1990s The Internet & 1-to-1 marketing collaborative filtering, life-STAGE segmentation, Social-Technograhics Evolution of market segmentation strategy

114 Psychographics Measures used to determine whats going on in the consumers head: 1. Motivations 2. Personality Traits & Self- concept 3. Activities, Interests & Opinions 4. Attitudes & Beliefs 5. Benefits sought from product… Measures used to determine whats going on in the consumers head: 1. Motivations 2. Personality Traits & Self- concept 3. Activities, Interests & Opinions 4. Attitudes & Beliefs 5. Benefits sought from product…

115 Some Key Consumer Traits Brand-Loyalty Style-consciousness Price-consciousness Risk-Taking Innovativeness Liberal / conservative Introvert / extrovert Inner / outer directed

116 Sensory Segment Sociable Segment Worrier Segment Independent Segment Flavor & product appearance Principal benefit sought Brightest of teeth Price Decay prevention Children Demographic strengths Teens, young people Men Large Families Users of spearmint- flavored toothpaste Special behavioral characteristics Smokers Heavy users SOURCE: Adapted from Russell I. Haley, Benefit Segmentation: A Decision-Oriented Research Tool, Journal of Marketing, July 1968, pp (continued) Figure 5-3 Colgate Brands favored Macleans, Ultra Brite Cheapest brand Crest Hedonis t Lifestyle characteristic Active Value- oriented Conservative

117 The Master of Benefit Segmentation Procter & Gamble: TideTide: for family marketfor family market CheerCheer for clothes -conscious w/ color guard BoldBold: for value-conscious – w/ fabric softener GainGain: for scent-conscious – w/ aromatics EraEra: for dirt-conscious – w/ stain removers DashDash: for price-conscious DreftDreft: for new mothers ArielAriel: for eco-conscious TideTide: for family marketfor family market CheerCheer for clothes -conscious w/ color guard BoldBold: for value-conscious – w/ fabric softener GainGain: for scent-conscious – w/ aromatics EraEra: for dirt-conscious – w/ stain removers DashDash: for price-conscious DreftDreft: for new mothers ArielAriel: for eco-conscious

118 Lifestyle-SegmentationLifestyle-Segmentation Classifies the way one lives … & constellation of products & services used to support that existence

119 Model based upon Riesman's Social Values & Maslows hierarchy of needs Societally Conscious External vs. Internal Locus of Values/Rewards Esteem Self Actualization Safety Belonging Physiological

120 VALS Logic: VALS Logic: Personality traits + key demographics determine an individual's lifestyle 1. A person's tendency to consume goods & services extends beyond age, income, education & geolocation 2. Energy, self-confidence, intellectualism, novelty seeking, innovativeness, impulsiveness, leadership, & vanity ….play critical role Ideals vs. Achievement vs. Self-Expression 3. Different levels of resources enhance or constrain a person's expression of their primary motivation… Ideals vs. Achievement vs. Self-Expression

121 STRUGGLERS FULFILLEDS BELIEVERS ACHIEVERS EXPERIENCERS STRIVERSMAKERS Low Resources High Resources Action OrientedStatus Oriented Principle Oriented ACTUALIZERS

122 Actualizer Fulfilled Believer Achiever Striver Experiencer Maker Struggler Total VALS Segments -Demographic Profiles

123 Total Actualizer Fulfilled Believer Achiever Striver Experiencer Maker Struggler

124 Vals & Dr. Peppers advertising strategy Outer- DirectedOuter- Directed: Strivers & Believers Inner- DirectedInner- Directed: Experiencers & Makers

125 Go Find Your Self /vals/presurvey.shtml /vals/presurvey.shtml Take the VALs Survey- and find what segment you belong to…

126 1960s 1960s computers kicked mass marketing into high gear with zip-code segmentation. 1970s 1970s multivariate analytical applications, psychographic segmentation techniques 1980s 1980s population analytics & relational databases, values & life-STYLE segmentation Technographics 1990s 1-to-1 marketing 1990s The Internet & 1-to-1 marketing collaborative filtering, life-STAGE segmentation, Social-Technographics Evolution of market segmentation strategy

127 Technographic Technographic Segmentation Scheme Define & Segment consumers according to: Ownership Use Patterns Motivations (purchase & use) Attitudes toward Technology Attitudes toward Media Define & Segment consumers according to: Ownership Use Patterns Motivations (purchase & use) Attitudes toward Technology Attitudes toward Media

128 The concept and technique was first introduced in 1985 by Dr. Edward Forrest [1] in a study of VCR users and later elaborated upon in the article, "Segmenting VCR Owners" published in the Journal of Advertising Research. In the article it was suggested that the profiling of technology consumers "should be based on an amalgam of variables which might best be referred to as "technographic"... which "focuses on the motivations, usage patterns, attitudes about technology... as well as measures of a person's fundamental values and lifestyle perspective." Edward Forrest [1]VCR

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130 Technographics ® Segmentation Model Primary motivationAttitudeIncome Techno- strivers Techno- strivers Digital Hopefuls Digital Hopefuls Gadget Grabbers Gadget Grabbers Handshakers Traditionalists Media Junkies Media Junkies Sidelined Citizens Fast Forwards Fast Forwards New Age Nurturers New Age Nurturers Mouse Potatoes Mouse Potatoes

131 Fast Forwards Males, married, children at home Higher education, income Career motivated Highest adoption PC & W3,Leading user bus. Software 1st market cell phones Prime target W3 Travel sites; Hi speed connection Segmentation profiles: Techno- strivers Digital Hopefuls Gadget Grabbers HandshakersTraditionalists Media Junkies Sidelined Citizens Fast Forwards New Age Nurturers Mouse Potatoes Sidelined Citizens Females, no children at home Low income No typical motivation Low use of tech products Little online activities Nurturers Males & females Family motivated Lead all segs adoption Educational software Prime target digital photography

132 Segmentation profiles: Techno- strivers Digital Hopefuls Gadget Grabbers HandshakersTraditionalists Media Junkies Sidelined Citizens Fast Forwards New Age Nurturers Mouse Potatoes Media Junkie TV lovin couch-potato Not pc savvy Little patience for complex technology Spend disposable income on cable TV & CDs Mouse- potato 2nd only to FFs in PC & W3 Top segment satellite TV, interactive gameboys, PC games Prime target premium cable, pay-per-view & webTV Initial target DVD

133 Segments in Europe Primary motivationAttitudeIncome Techno- strivers Digital Hopefuls Gadget Grabbers HandshakersTraditionalists Media Junkies Sidelined Citizens Fast Forwards New Age Nurturers Mouse Potatoes 11%6%8% 10%11%8% 5%4%6% 31% Red % = Europe 12%9%8% 7%9%7% 5%8% 28% Blue % = USA … and the US

134 Advertising Strategy

135 © 2010 Forrester Research, Inc. Reproduction Prohibited classifies people according to how they use social technologies. Social Technographics Groups include people participating in at least one of the activities monthly except Conversationalists who participate in at least one of the included activities at least weekly.

136 © 2010 Forrester Research, Inc. Reproduction Prohibited 136 Creators make the social content consumed by others. They write blogs or upload video, music, or text. The Social Technographics Ladder

137 © 2010 Forrester Research, Inc. Reproduction Prohibited 137 Conversation alists voice their opinions to other consumers and businesses using vehicles like SNS and Twitter. The Social Technographics Ladder

138 © 2010 Forrester Research, Inc. Reproduction Prohibited 138 Critics respond to content from others. They post reviews, comment on blogs, participate in forums, and edit wiki articles. The Social Technographics Ladder

139 © 2010 Forrester Research, Inc. Reproduction Prohibited 139 Collectors organize content for themselves or others using RSS feeds, tags, and voting sites like Digg.com The Social Technographics Ladder

140 © 2010 Forrester Research, Inc. Reproduction Prohibited 140 Joiners connect in social networks like MySpace & Facebook The Social Technographics Ladder

141 © 2010 Forrester Research, Inc. Reproduction Prohibited 141 Spectators consumer social content including blogs, user-generated video, podcasts, forums, or reviews The Social Technographics Ladder

142 © 2010 Forrester Research, Inc. Reproduction Prohibited 142 The Social Technographics Ladder Inactives neither create nor consumer social content of any kind

143 © 2010 Forrester Research, Inc. Reproduction Prohibited 143 Forrester Social Technographic Tool - Overall Population Distribution Social Technographics- Profiling Tool :Profiling Tool :

144 1960s 1960s computers kicked mass marketing into high gear with zip-code segmentation. 1970s 1970s multivariate analytical applications, psychographic segmentation techniques 1980s 1980s population analytics & relational databases, values & life-STYLE segmentation Technographics 1990s 1-to-1 marketing 1990s The Internet & 1-to-1 marketing collaborative filtering, life-STAGE segmentation, Social-Technographics Evolution of market segmentation strategy

145 --- its now possible to… Know who your customers are & who your best customers are Know when & how they buy Learn customers preferences & shape offers accordingly Formulate strategies to make your customers loyal & to keep them for many years Define characteristics that make up a great/profitable customer Select channels that best address a customers needs Predict what they may/will buy in the future

146 1960s 1960s computers kicked mass marketing into high gear with zip-code segmentation. 1970s 1970s multivariate analytical applications, psychographic segmentation techniques 1980s 1980s population analytics & relational databases, values & life-STYLE segmentation Technographics 1990s 1-to-1 marketing 1990s The Internet & 1-to-1 marketing collaborative filtering, life-STAGE segmentation, Social-Technographics Evolution of market segmentation strategy

147 Collaborative Filtering: Twinsumption & Twinsumers -making automatic predictions about the interests of a user by collecting taste information from many users….

148 Life Stage Segmentation We have shared life stage experiences as we grow-up. Leaving Home Getting Divorced Having Jobs Technology Getting Married Approaching Retirement Political Events Buying a Home Gaining Wealth Fully Retired Launching Kids Having Careers Cultural Events Leaving School Having Kids

149 Personicx places each of 112MM + U.S. households in its InfoBase into one of 70 segments based on its specific life stage consumer behaviors & demographic characteristics. This enables marketers to see the dramatic difference between consumer behaviors of HHs in same geo-cluster--

150 Three Next-Door Neighbors – Three Different Life Stages Same ZIP + 4 ®, Block Group, Tract and ZIP ® Different households with different Personicx Life Stage Clusters A household-level segmentation system Taking Hold: Cluster 18 Beginnings: Cluster 39 Aging Upscale: Cluster 23

151 Provides picture of consumers through Multi- Sourcing – integrating data from 35 contributing sources. Providers include: Product registration / Questionnaires/ Warranty & Credit Cards Catalogers and Publishers Special Retailers / Packaged Goods Manufactures Public Information: US Phone Directories, Birth Records, Real Estate Property Records, etc.

152 Track Changes over Time Every year in the U.S… – 1.5 million new addresses are created – 1 in 6 people move (40 million) – 1 in 5 movers (8 million) leave no new address – 1 in 100 people get married (4.7 million) – 1 in 200 people are divorced (1.9 million) – 1 in 115 people die

153 PERSONICX GEO Cluster Key PERSONICX GEO ClusterKey

154 Applications - 1.Pre-emptive Marketing with Personicx LifeChanges List targeting 2.Timed Repeat Shopper Analysis Using Lifestage Trend Data 3.Lifestage targeted Creative / Offer Versioning 4.Projecting Store-site Performance 5.New Product Research – Focus Groups 6.Campaign Response Analysis 7.Projected Competitive SWOT Analysis 8.Timed Sales Channel Targeting 9.Lifestage Trajectory Merchandise Mix Matching 10.Projected Customer Profitability Analysis

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156 O S W T Analytical and Planning Applications Competitive SWOT Analysis Sears vs. Kohls Clusters Under Greatest Competitive Pressure Threat – Head-to-Head Strategy - More likely to shop at both Strength for Sears - Loyalty Strategy - More likely to shop at Sears and less likely to shop at Kohls Weakness for Sears – Snatch and Grab Strategy - More likely to shop at Kohls and less likely to shop at Sears Opportunity – New Market Evaluation Strategy - Less likely to shop at either Sears or Kohls Link to Simmons Overview Slide Back to Top 10 List

157 Persuaders Excerpt Overview of Acxiom CorporationOverview of Acxiom Corporation

158 AI/ Semantic Analysis Targeting GraphEffect –measures purchase intent via semantic analysis GraphEffect Thru AI algorithms: can target: ie Men aged with two kids who live in the Buffalo, New York, area, …read car-enthusiast web sites ….are in-market to buy a car, and love the Audi brand –- but could be tempted to buy a Lexus in the next 2 months


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