1. Self Concept & Lifestyle MKT 750 Dr. West

2. Agenda These slides are to help as you go over Chapters 12 in the book. Before printing the slides view the slideshow on the website so that you can watch the commercials on your own and visit the websites indicated.

3. Getting to Know Your Customers As we discussed last week, it is important to try to get below the surface to understand your customers … –Demographic information tells us something about what our customers look like (age, gender, income, education…) –However, if we want to successfully serve them we need to understand how they think and feel, and what matters most to them

4. Building Relationships With Boots The Chemists

5. Case Study: Boots The Chemists Here is a nice example of a firm that made an effort to get to know their customers and designed a marketing program to build stronger relationships with them –“Boots The Chemist” is the largest pharmacy chain in Britain – The firm hired J. Walter Thompson to develop a strategic relationship building campaign –Their first step was to conduct research…

6. Case Study: Boots The Chemists Background Research – Boots research uncovered that 83% of their customers were women –Consumers strongest perceptions of Boots were: “A man in the white coat” “A trusted authority, but cold and sterile”

7. Case Study: Boots The Chemists Background Research –Boots decided to create a new “look good and feel good” positioning. They wanted their pharmacists and the store to be viewed as… Understanding, stimulating, personalized, fulfilling, enjoyable

8. Case Study: Boots The Chemists The campaign objectives included: – Increase profitability by increasing frequency of visits and amount spent per visit – Enroll 8 million cardholders into a reward program in 12 months – Achieve an incremental sales increase of 3.2 percent

9. Case Study: Boots The Chemists They identified their target audience for the campaign as – Young women who could be motivated to “treat themselves” rather than “deal-seekers” The marketing plan included: – A reward program where customers signed up for a Boots card and earned points for purchases – Rewards included spa treatments and other “treats” that customers would appreciate but view as luxuries rather than necessities

10. Case Study: Boots The Chemists The marketing plan included: –Employee training to deliver on the new “understanding, stimulating, personalized, fulfilling, enjoyable” persona –Commercials: Boots Rescue Resolution

11. Case Study: Boots The Chemists Evaluation of the campaign –The campaign produced a database of 8 million customers with their buying habits and contact information for relationship building –Boots experienced more than 3 percent sales increase in year 1, 8 percent in year 2 –Cardholders’ average purchase was 8 percent high than non-cardholders

12. Lessons learned The Boots story was a success because the made the effort to understand their customers –Both how they viewed the company, and what they were really looking for from a pharmacist They then redesigned their offering to better serve the self concept, lifestyle, and emotional needs of their customers

13. Self-Concept Our self-concept is defined as the totality of the thoughts and feelings one has about him- or herself

14. Dimensions of Self-Concept Actual SelfIdeal Self Private Self How I see myselfHow I would like to see myself Public (Social) Self How others see me How I would like others to see me

15. Ideal Self Actual Self Need Recognition What happens when there is a “gap” between our actual and idea self?

16. Extended Self Ideal Self Actual Self Need Recognition We are motivated to close the gap through our extended self which includes our possessions

17. Measuring Self-Concept To tap into a consumer’s actual and ideal self you can ask them to self-disclose how they view themselves (actual) and how they would like to be (ideal). –Two caveats: 1.It can be difficult to get full disclosure 2.To get at the ideal self it helps to ask a respondent to think about the person they most admire and then answer the questions with that individual in mind

18. Measuring Self-Concept A I I A Reporting of Actual Self Reporting of Ideal Self

19. Measuring Brand Image Gaps in reporting of actual and ideal self represent opportunities for need fulfillment Consumer will respond favorably to products or services that help to improve or maintain their self-concept Products that enhance one’s self-concept are particularly satisfying

20. The Relationship Between Self- Concept and Brand Image

21. Lifestyle Last week we discussed the importance of segmenting consumers on the basis of lifestyle rather than strictly demographics –VALS: Attempts to tap relatively enduring attitudes/values (self-orientation) and resources –Yankelovich MINDBASE: Focuses on core values and life cycle stages to classify individuals

22. VALS segmentation sorts consumers into an eight-part typology: - Self-orientation: > Principle oriented > Status oriented > Action oriented - Level of Resources > High > Low Click on image to visit the website and take the VALS survey

23. Click on image to visit the website and take the MindBase survey

24. How do these compare? After you have visited the two sites and completed the surveys for yourself consider the following: –Which seems more accurate, informative, or useful? Why? –How can we utilize this information?

25. Lifestyle and Consumption

26. ¡Viva Los Dodgers! ¡Viva Los Dodgers! was created in cooperation with AIM (Alternative & Innovative Marketing) in 1998 to help the Dodgers build a strong relationship with the Latino community as a way to get Latinos in Los Angeles to sample Los Angeles Dodgers baseball.

27. ¡Viva Los Dodgers! ¡ Viva Los Dodgers! is an annual festival in which local fans are invited to a pre-game event in the Dodger Stadium parking lot. –The event begins at 12:00PM and lasted until 6:30PM prior to the 7:10pm game against the San Diego Padres. –Attendees have the opportunity to enjoy a live concert by Latino recording artists and meet Dodger players and take pictures with them bringing them closer to the team as a whole.

28. ¡Viva Los Dodgers! Dodger sponsors are offered the opportunity to have booths, signage and mentions from the concert stage, thereby permitting them to reach out to the Latino community. The impetus for the event was a geo- demographic study which showed that the majority of people that live within a 20-mile radius of Dodger Stadium are Hispanic families and a majority of these 3.5 million people had never been to a Dodger baseball game.

29. ¡Viva Los Dodgers! Promotional Objectives: –¡Viva Los Dodgers! is a revenue-generating program by selling event sponsorships. Dodger sponsors would use their participation to leverage exposure leading to increased Dodgers game ticket sales and tighter/longer-term relationships with their sponsors. –Increase event and game attendance by Latino community members. –Increase the overall level of press coverage

30. ¡Viva Los Dodgers! Promotional Strategy: –A strategy was developed to reach out to those families by associating the Dodgers with Latino recording artists. The thinking was to attract Latino families from the surrounding area to the stadium to meet and hear the artists, and then get them to stay and sample a game. –Dodgers were hopeful that initiating and annualizing this event would build long-term goodwill with the Hispanic community This would lead both to increased game attendance and increased coverage by the Hispanic press.

31. ¡Viva Los Dodgers! Results: –In 2004 Coke conducted a retail sweepstakes at 200 high Hispanic population stores, in which 5 Latino families could win a day at Dodger Stadium (including a stadium tour, seats, hospitality, passes to meet the recording artists) –Wherehouse Music stores supported the program with signage in all locations and end cap displays featuring music of the artists that were performing at the event. –Over 26 sponsors participated in the event in 2004, up from 4 in its first year

32. ¡Viva Los Dodgers! Results: –Major media partners such as UNIVISION, TELEFUTURA, TELEMUNDO & SPANISH BROADCASTING SYSTEMS in Los Angeles supported the event. A special 8-page section was also created in the LA OPINION Newspaper. –The Viva Los Dodgers! event was covered by all of the Spanish language press as well as the major English language network affiliates in Los Angeles.

33. Summary Understanding the “psychographics” of your customers can provide useful insights for communicating with them and building strong brand relationships. –Knowledge of your current customers can help in identifying and building new customer relationships –Always remember to dig deep and understand the expressed as well as the unarticulated needs of your customers