Self Concept & Lifestyle MKT 750 Dr. West

Agenda “Boots the Chemists” Campaign Actual versus Ideal Self Lifestyle VALS versus Monitor Digging into the DDB data

Getting to Know Your Customers Try to get beyond the surface … Demographic information tells us characteristics about these consumers If we want to successfully serve our customers we need to understand … How they think and feel, and what matters most to them

Case Study: Boots The Chemists Largest pharmacy chain in Britain J. Walter Thompson launched a strategic relationship building campaign Background Research Consumer perceptions – “man in the white coat” Trusted authority, but cold and sterile New positioning “look good and feel good” Understanding, stimulating, personalized, fulfilling, enjoyable

Case Study: Boots The Chemists Campaign Objectives Increase profitability by increasing frequency of visits and amount spent per visit Enroll 8 million cardholders in 12 months Achieve an incremental sales increase of 3.2 percent

Case Study: Boots The Chemists Target Audience 83% of customers are women Focus on young women who could be motivated to “treat themselves” rather than “deal-seekers” Creative Strategy Boots Rescue Resolution

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

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

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

Measuring Self-Concept

Measuring Brand Image

The Relationship Between Self- Concept and Brand Image

Lifestyle VALS – values and lifestyle Attempts to tap relatively enduring attitudes/values (self-orientation) and resources MINDBASE – values and life stage Focuses on core values and life cycle stages to classify individuals

VALS segmentation sorts consumers into an eight-part typology: Self-orientation: Principle oriented Status oriented Action oriented Level of Resources High Low

MINDBASE SEGMENTS

How do these compare? Which seems more accurate, informative, or useful? Why? How can we utilize this information?

Lifestyle and Consumption

VALS Distribution Actualizer Fulfilled Believer Achiever Striver Experiencer Maker Struggler Total

VALS Distribution Total Actualizer Fulfilled Believer Achiever Striver Experiencer Maker Struggler

Monitor “Mindbase”

Case Study: Boots The Chemists Evaluation Launch produced a database of 8 million BTC customers More than 3 percent sales increase in year 1, 8 percent in year 2 Cardholders’ average purchase was 8 percent high than non-cardholders

DDB Needham Group Exercise Try to identify AIO statement in the DDB data that correspond to one of the VALS lifestyle groups. Examine how the demographics in the DDB data compare to the associated VALS segment. Identify a product that is well-suited for the VALS group you have identified and develop a marketing plan using both the information you know from VALS and the DDB data. Be sure to have someone in your group write a “brief” of your findings.

Summary Understanding the “psychographics” of your customers can provide useful insights for communicating with them and building strong brand relationships.

Assignment Reading: Chapters (pp , , , , ) Topic: Consumer Decision Making Assignment: Look over the “Shopping Insights Diary” assignment and begin to introspect on your own buying decision processes