Current Issues in Marketing. S ocioSphere = inter-relationships among social institutions,...

Current Issues in Marketing

SocioSphere= inter-relationships among social institutions, associations, reference & affinity groups

PsychoSphere= Identity, personal- perspective <<<Weltanshaung >>>

IDENTITY Derived/Defined by:

Generation

People, Places, Things, Organizations & ideas that we “identify” with…

Origins of our identity

Our individuality = result of Nature & Nurture

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

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 ConsumersAnn A. Fishman, Circulation Management, Jul 1, 1998 http://circman.com/ar/marketing_generational_marketing_reaching/

Generational Life ExperiencesCalled “Markers”

Values are shaped by:

EventsCulturePoliticsEconomyTechnologyPersonalities

Generations Variously Named & Dated:

1. Matures – < 1946 2. Baby Boomer – 1946-1953 3. Generation Jones – 1954-1964 4. Generation Rerun – 1965-1975 5. Generation Xceptional – 1976-1986 6. Generation M – 1987-1995 7. 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 #2 1955 to 1965) Generation X cohort (1965 to 1976) N Generation cohort (1977 to date)

THE GI GENERATION: 1901-1924 THE SILENT GENERATION: 1925-1942 BABY BOOMERS: 1943-1960 GENERATION X: 1961-1981 GENERATION Y: 1982-PRESENT

1927 1946 1965 1980

Millions

Senior/Silent

Baby Boom

Source: U.S. Bureau of the Census

U.S. Generations:

Interval between Generations Decreasing &

amplitude/magnitude of change between Generations

Increasing

PEOPLE, PLACES & THINGS… MORALS, PRINCIPLES, HEROS

Disposable… Mobile…Transitory… Ambiguous… Androgynous… Fragmenting…Society

UP-Rooted by increased Choice & Conflict &

Challenge

IDENTITY ANCHORS

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.”

A state of “shattering stress & disorientation

resulting from too muchchange in too short a

period of time”

FUTURE SHOCK

Law of Accelerating

Returns

progressing in

exponential fashion

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..

Here Yesterday-Gone TomorrowHere Yesterday-Gone Tomorrow

“In industrial era: Americans had layers of belonging- 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”

• 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)

The Loss of IdentityThe Loss of Identity

In 2nd wave society- Identity very much tied

to job-title. “Company marques &

hierarchy pegs tell us who we

are & where we belong”

In 2nd wave society- Identity very much tied

to job-title. “Company marques &

hierarchy pegs tell us who we

are & where we belong”

“With increased mobility & job turnover there is:

A loss of “Place” –losing ties to family & community…

A fear of losing the sense of self, the tie to job and work”

A loss of “Place” –losing ties to family & community…

A fear of losing the sense of self, the tie to job and work”

Where is identity in an American job that was torn up … by multinationals… seeking efficiency

instead of the town square… all life gravitates to a consumer temple-city we call the shopping mall?

For Senior Generations Fully developed 2nd wave Psyche

before 3rd Wave

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

Values & Lifestyle

The 2nd Wave Psycho BreakdownThe 2nd 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 culture4. Above all the break-up of

indust-reality

Have shattered the world image most of us carry around in our skulls”

Toffler, 3rd Wave, p.374

“w/ so many of our habits, values, routines &

responses called into question,

it’s hardly surprising - we feel like people of the past---relics of 2nd

wave Civilization

2nd wave world = 1 thing at a time

1925 1955 20001965 19751935 198519601945

Boomer

SilentGen X

Grew up & rode the Last Wave

Caught Between Waves

Millennial

Grows Up w/ New Wave

Riding the wave

Some Defining Events-Senior GenerationsSome 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

Values

Born: 1945 ~196478 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

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 & women’s 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

Values

“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: 1965~198048 millionGen X

Initial Impact Events: • Challenger explosion

• Iran-Contra• social malaise• Reaganomics• AIDs• fall of Berlin Wall• Predom. of single parent families

Cultural MemorabiliaCultural Memorabilia

ADAPTIVE- Nomad: A hypocritical generation- coasts along on accomplishments of civics, lay the groundwork for new idealist era.

Values

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. .

CIVIC– Hero: Outer-driven, morally complacent generation -institutionalizes ideals of previous generations. .

Values

Generation- ZFeral

Born: 1995+Predicted to be-REACTIVE –

Alienated, cynical generation-challenges the ideals of parents & develops into pragmatic, risk-taking adults..

Generational Marketing

Considerations

Common ExperiencesCommon

Experiences

Common AIO’s, values, tastes,

style...

Common AIO’s, values, tastes,

style...

Common responses to

marketing mix

variables

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

Gen. Marketing Strategy

Not a key behavior driver for all product categories- but is particularly appropriate for:

FoodMusicApparelAutomotiveFinancial & Insurance as well as entertainment

products.

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

Generational Value Differences:GI Silent Boomer X Y

Helpers Sacrifice “For the children”

Right vs. Wrong Resentful “I’ve earned it” Do the right thing

Me, me, me Forever young Choicesprivileges “It’s all about me”

Suspicious Dis- enfranchised Non-confrontational Waste not Facts - family -fundamentals

Optimistic StrongEmpowered Care for others Care for environment Realism

Seniors

Characteristics of Generations

Boomers

No news isgood news

Once a year withdocumentation

Interrupts & asks how they’re doing

Wants feedback at touch of a button

Buying Style

Quality first,buy American

Prestige firstforeign is better

Cheap: value added

Get it anyway/anywhere u want

View ofFeedback

On Homes

Buy a decent house

Buy the mosthouse you can

Reclaim the inner city

Livin’ withthe parents- as long as necessary

Comparative Work Ethic Across Generations:

Seniors: Boomers: Gen X’ers:Work Style: Team Player Self-absorbed EntrepreneurRewards: You’ve earned it You deserve it You need itWork is: An obligation An Adventure A challengeLeisure: Reward The point to life Relief/funLife: Sacrifice Prosperity Risks

What can I do for good of organization?

How will this make me feel?

What’s in it for me?

Major Question:

7 work lessons from Gen YAsiaOne 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“

New Generation Gaps .. Not only values… but

Defined by tech aptitude & media use

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

Can’t play on stereotypes: “1/3 of consumers over 55 deliberately did

not buy a product because of the outdated images of mature consumers.”

Don’t call ‘em GeezersDon’t call ‘em Geezers

Years Spent in Retirement

2000+ ----- 20 TO 251990 ------- 19.4 YEARS1940 ------- 13.6 YEARS1900 ------- 1.2 YEARS

Emerging Gray $ PowerEmerging 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)

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

Key Trends Relating to The "Graying" of the

Baby Boom

Key Trends Relating to The "Graying" of the

Baby Boom

Down-Aging

Being Alive

Down-AgingDown-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

Down-Aging - ExamplesDown-Aging - Examples

· TV shows starring cartoon characters: "The Simpsons," "King of the Hill," "South Park," "Daria," "Dr. Katz," "The PJ’s," "Futurama," and "The Family Guy."

· Disney & Warner Brothers stores; 80% of their sales are to adults-for adults.

· eBay, posts 1000’s of hits for Pez

· The median age Harley customer 42; ten years ago was 34.

Being AliveBeing Alive

The desire to lead longer and more enjoyable lives

Examples Vegetarianism holistic medicine (herbs,

naturals, etc.) Meditation

Focus on themselves- early ideals, present predicament & future well-being

Many won’t retireWill begin 2ndcareers Retirement as work style, not

lifestyleWon’t have enough money to

retire (saving rates are low)Looking for meaning - fulfillment

Boomers: Marketing Considerations

“The generation that dropped acid to escape reality… is generation that drops antacid to cope w/ it”“The generation that dropped acid to escape reality… is generation that drops antacid to cope w/ it”

Marketing to Boomers

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

months = new technologydays = new product / serviceminutes = new blog & web-site

Change experience in 1 year…

Grandparents experienced in 1 lifetime.

For X+ generations… it’s all about the rate of changeFor X+ generations… it’s all about the rate of change

Jobs in Lifetime

2nd Wavers: 1 job & 1 Gold WatchMillennials: How many jobs do you think

you will hold in your lifetime?

1-3 35.7% 4-6 41.5% 7-10 16.5% 10+ 6.2%

X+ Weaned w/in– increased

diversity, mobility & innovation…

Pre-Boomers

Boomers

Who are You

3rd Wave individuals much more likely to ID themselves according to their avocation

… as opposed to 2nd wavers – whose ID was derived primarily by their vocation

Generation XHow to market to them

Live flexible lives Don’t buy a house and live in it forever Don’t 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 –

Generation XGeneration 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.

Generation X How to market to them

Abandon hard sell Get to the point and stick to the point Don’t 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

Divorce - one-parent & step families

working parent- latch-key lives

violence in the streets

break down of traditional values & sources of comfort

Nicknamed -- "The Street-Savvy Generation" because endured:

Generation Y… the cohort variously called :

Gen- Y Echo Boom

Net GenerationMillennials

Millennials live & Learn:

With technology

With each other

Online

Doing things that matter

Source: Achievement and the 21st Century LearnerSource: Achievement and the 21st Century Learner

Y’s 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)

Y’s R AmbitiousY’s 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

Marketing to Gen-Y

POP QUIZ

GI Silent Boomer X MillennialHelpersSacrifice“For the children”

Right vs. WrongResentful“I’ve earned it”Do the right thing

Me, me, meForever youngChoicesprivileges “It’s all about me”

SuspiciousDis- enfranchised Non-confrontationalWaste not Facts - family -fundamentals

OptimisticStrongEmpowered Care for others Care for environmentRealism

Match the Message

• Save $$$• Provide for your children & grandchildren • Responsibility• Don’t 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

• “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

• 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

GISilent

Beyond Generational Segmentation

1960s computers kicked mass marketing into high gear with zip-code segmentation.

1970s multivariate analytical applications , psychographic segmentation techniques

1980s population analytics & relational databases, values & life-STYLE segmentation

1985 Technographics

1990s The Internet & 1-to-1 marketing

2000-to Date collaborative filtering, life-STAGE segmentation, Social-Technographics

Evolution of market segmentation strategy

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

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

Dependability

Market w/3 segments

Dependability

Market w/6 segments

Segmented on 2 attributes

Key Segmentation Decisions:

1.Size & # segments u select to target

2.What dimensions u use to segment consumers

Dependability

Market w/3 segments

Market w/6 segments

1) Size & # segments select to target

• Undifferentiated/ Mass Marketing

• Differentiated/ Segment Marketing

• Concentrated/ Niche marketing

• One-to-One/ Micro marketing

2nd Key decision: What dimensions you use:

Who / Where Geographic Segmentation Demographic Segmentation

– SocioGraphics

Consumes How Much Volume Segmentation

& Why Psychographic Segmentation

– Motives, Traits, AIO’s, Attitudes & Beliefs, Benefits

Behavioral

GeoDemographic

LifestyleGenerational

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)

Middle Class

Working Class

Working Poor

The Under Class

Capitalists Class

Capitalists1%

Top 1% w/ income from assets earned or inherited

Most Shopping done by personal assistants

Upper Class

Family Life Cycle

• 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- 11-12 year olds

TGA’s =target group acronyms (some mix of age/ location/ occupation/income/ or any other unique descriptor…)

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

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.

Census Demographics

NeighborhoodGeography

Consumer Behavior

Social rank HH composition Housing Ethnicity Urbanization Mobility

Census tracts Block groups Zip codes (9-digit) Carrier routes

Automobiles owned Magazine readership Direct marketing data Real estate Credit Expenditures

CLUSTER - ANALYSIS

Zip-Clusters

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 ...

…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 ... www.andreas.com/faq-geodemo3.html

Geo-Demographic Segmentation’s Continued

Popularity

Elvis Lives!

http://www.claritas.com/target-marketing/market-research-services/marketing-data/marketing-segmentation/segmentation-systems.jsp

1985 Technographics

2000-2010 collaborative filtering, life-STAGE segmentation, Social-Technograhics

PsychographicsMeasures used to determine

what’s going on in the consumer’s head:

1. Motivations2. Personality Traits & Self-

concept3. Activities, Interests &

Opinions4. Attitudes & Beliefs5. Benefits sought from

product…

Measures used to determine what’s going on in the consumer’s head:

1. Motivations2. Personality Traits & Self-

concept3. Activities, Interests &

Opinions4. Attitudes & Beliefs5. Benefits sought from

product…

Some Key Consumer Traits

Brand-LoyaltyStyle-consciousnessPrice-consciousnessRisk-Taking InnovativenessLiberal / conservative Introvert / extrovert Inner / outer directed

SensorySegment

SociableSegment

WorrierSegment

IndependentSegment

Flavor & product appearance

Principal benefitsought

Brightest of teeth PriceDecay prevention

ChildrenDemographicstrengths

Teens, young people

MenLarge Families

Users of spearmint-flavored toothpaste

Special behavioralcharacteristics

Smokers Heavy usersHeavy users

SOURCE: Adapted from Russell I. Haley, “Benefit Segmentation: A Decision-Oriented Research Tool, “Journal of Marketing, July 1968, pp. 30-35.

(continued)

Figure 5-3

ColgateBrandsfavored

Macleans, Ultra Brite

Cheapest brand

HedonistLifestylecharacteristic Active Value-

orientedConservative

The Master of Benefit Segmentation

Procter & Gamble:

Tide: for family marketCheer for clothes -conscious

w/ color guard Bold: for value-conscious –

w/ fabric softenerGain: for scent-conscious –

w/ aromaticsEra: for dirt-conscious –

w/ stain removers

Dash: for price-conscious

Dreft: for new mothers

Ariel: for eco-conscious

Tide: for family marketCheer for clothes -conscious

w/ color guard Bold: for value-conscious –

w/ fabric softenerGain: for scent-conscious –

w/ aromaticsEra: for dirt-conscious –

w/ stain removers

Dash: for price-conscious

Dreft: for new mothers

Ariel: for eco-conscious

Lifestyle-SegmentationLifestyle-Segmentation

Classifies the way one lives

… & constellation of products & services

used to support that

existence

Model based upon Riesman's Social Values & Maslow’s hierarchy of

Societally Conscious

External vs. Internal Locus of Values/Rewards

Esteem

Self Actualization

Safety

Belonging

Physiological

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

3. Different levels of resources enhance or constrain a person's expression of their primary motivation… Ideals vs. Achievement vs. Self-Expression

http://www.sric-bi.com/VALS/

STRUGGLERS

FULFILLEDS

BELIEVERS

ACHIEVERS EXPERIENCERS

STRIVERS MAKERS

Low Resources

High Resources

Action OrientedStatus OrientedPrinciple Oriented

ACTUALIZERS

Actualizer Fulfilled Believer Achiever Striver Experiencer Maker Struggler Total

VALS Segments -Demographic Profiles

Total Actualizer Fulfilled Believer Achiever Striver Experiencer Maker Struggler

Val’s & Dr. Pepper’s

advertising strategy

Val’s & Dr. Pepper’s

advertising strategy

Outer-Directed: Strivers & Believers

Inner-Directed:Experiencers & Makers

Go Find Your Self

http://www.strategicbusinessinsights.com/vals/presurvey.shtml

Take the VALs Survey- and find what segment you belong to…

1985 Technographics

2000-2010 collaborative filtering, life-STAGE segmentation, Social-Technographics

Technographic Segmentation Scheme

Define & Segment consumers according to:

OwnershipUse PatternsMotivations (purchase & use)Attitudes toward TechnologyAttitudes toward Media

Define & Segment consumers according to:

OwnershipUse PatternsMotivations (purchase & use)Attitudes toward TechnologyAttitudes toward Media

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."

Technographics® Segmentation Model

Primary motivationAttitude Income

Techno-strivers

DigitalHopefuls

GadgetGrabbers

HandshakersHandshakers TraditionalistsTraditionalists MediaJunkies

MediaJunkies

Sidelined CitizensSidelined Citizens

FastForwards

New AgeNurturers

MousePotatoes

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

DigitalHopefuls

GadgetGrabbers

Handshakers TraditionalistsMedia

Junkies

Sidelined Citizens

FastForwards

New AgeNurturers

MousePotatoes

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 seg’s adoption Educational software

• Prime target digital photography

Segmentation profiles:

Techno-strivers

DigitalHopefuls

GadgetGrabbers

Junkies

Sidelined Citizens

FastForwards

New AgeNurturers

MousePotatoes

Media Junkie

• TV lovin’ couch-potato

• Not pc savvy

• Little patience for complex technology

• Spend disposable income on cable TV & CD’s

Mouse- potato

• 2nd only to FF’s in PC & W3

• Top segment satellite TV, interactive gameboys, PC games

• Prime target premium cable, pay-per-view & webTV

• Initial target DVD

Segments in Europe

Primary motivationAttitude Income

Techno-strivers

DigitalHopefuls

GadgetGrabbers

Junkies

Sidelined Citizens

FastForwards

New AgeNurturers

MousePotatoes

11% 6%8%

10% 11%8%

5% 4%6%

Red % = Europe

12% 9%8%

7% 9%7%

7% 5%8%

Blue % = USA

… and the US

Advertising Strategy

--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.

Creators make the social content consumed by others. They write blogs or upload video, music, or text.

The Social Technographics Ladder

Conversationalists voice their opinions to other consumers and businesses using vehicles like SNS and Twitter.

Critics respond to content from others. They post reviews, comment on blogs, participate in forums, and edit wiki articles.

Collectors organize content for themselves or others using RSS feeds, tags, and voting sites like Digg.com

Joiners connect in social networks like MySpace & Facebook

Spectators consumer social content including blogs, user-generated video, podcasts, forums, or reviews

Inactives neither create nor consumer social content of any kind

Overall Population

Distribution

Social Technographics- Profiling Tool:

1985 Technographics

--- it’s now possible to…Know who your customers are & who

your best customers areKnow when & how they buyLearn customers’ preferences & shape

offers accordinglyFormulate 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

1985 Technographics

Collaborative Filtering:Twinsumption & Twinsumers

-making automatic predictions about the interests of a user by collecting taste information from many users….

http://www.trendwatching.com/trends/TWINSUMER.htm

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

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--

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

• 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.

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

PERSONICX GEO Cluster Key

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

Simmons Profile - Shopped at Sears Lst 4 Wks Competitive Landscape ChartComparison profile: SHOPPING - Shopped at Kohl's (4Wk)

* Bubble sizes indicate segment's market size

63372031

0 50 100 150 200 250 300

Simmons Shopped at Sears Lst 4 Wks

Analytical and Planning Applications Competitive SWOT Analysis

Sears vs. Kohl’s 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 Kohl’s Weakness for Sears – Snatch and Grab Strategy - More likely to shop at Kohl’s and less likely to shop at Sears Opportunity – New Market Evaluation Strategy - Less likely to shop at either Sears or Kohl’s

Link to Simmons Overview Slide Back to Top 10 List

Persuaders Excerpt

Overview of Acxiom Corporation

AI/ Semantic Analysis Targeting

GraphEffect –measures purchase intent via semantic analysis

Thru AI algorithms: can target: ie Men aged 35-44 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

Current Issues in Marketing. S ocioSphere = inter-relationships among social institutions,...

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