Self Concept & Lifestyle

MKT 750

Dr. West

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.

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

Building Relationships WithBoots The Chemists

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…

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”

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

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

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

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

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

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

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 Self Ideal Self

Private

Self

How I see myself How I would like to see myself

Public (Social)

Self

How others see me

How I would like others to see me

IdealSelf

ActualSelf

Need Recognition

• What happens when there is a “gap” between our actual and idea self?

ExtendedSelf

IdealSelf

ActualSelf

Need Recognition

• We are motivated to close the gap through our extended self which includes our possessions

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

Measuring Self-Concept A I

A I

A I

I AReporting of Actual

SelfReporting of Ideal

Self

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

The Relationship Between Self-Concept and Brand Image

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

VALS segmentationsorts 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

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

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?

Lifestyle and Consumption

¡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.

¡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.

¡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.

¡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

¡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.

¡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

¡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.

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