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Marketing Strategy

Marketing Strategy

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Published by: Ose Ehichioya Ojeabulu on Oct 23, 2011
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05/16/2013

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The techniques that have been discussed so far have used either
consumer characteristics or behavioural variables as the basis for

Figure 4.12The Pareto Effect, also known as the 80/20 rule

Activities

Interests

Opinions

Demographics

Work

Hobbies

Social events

Vacation

Entertainment

Club membership

Community

Shopping

Sports

Family

Home

Job

Community

Recreation

Fashion

Food

Media

Achievements

Themselves

Social issues

Politics

Business

Economics

Education

Products

Future

Culture

Age

Education

Income

Occupation

Familysize

Dwelling

Geography

Citysize

Stagein lifecycle

66Strategic Marketing

identifying consumer groupings. Psychographics is a more recent
approach that attempts to identify segments based on lifestyle charac-
teristics, attitudes and personality. Rather than concentrating on single
factors such as age, sex and marital status, it attempts to build a broader
picture of consumers’ lifestyles based on their activities, interests and
opinions. Asking a series of questions about consumers’ activities,
interests and opinions as well as questions about product and service
usage identifies these lifestyles (see Figure 4.13).

Several models have been developed using this approach, all having
broad similarities, and two will be discussed in more detail.

The VALs framework

This model was developed in the USA by asking 2713 individuals 800
questions. The VALs framework identified nine lifestyle groups in the
American population. The model also identified three developmental
stages that individuals may pass through. Normally individuals would
move from one of the need-driven stages to either an outer-directed or
an inner-directed stage. This is a hierarchical model and relatively few
would reach the integrated stage (see Figure 4.14).
The framework is divided into a series of segments:

The needs-driven segment identified by this model has relatively
little purchasing power and is therefore of marginal interest to profit-
making organizations. This is a declining group in Western societies.

Figure 4.13Questions posed in lifestyle studies (Source: Plummer, 1974)

Developmental stage Grouping (% of US population)

Need-driven

Survivors.

Sustainers

This is a disadvantaged group whoarelikelytobewithdrawn,

despairingand depressed (4%).

areanother disadvantaged group, buttheyareworkinghard

toescapepoverty(7%).

Outer-directed

Belongers

Emulators

Achievers.

arecharacterized as beingconventional, nostalgic, reluctantto
trynewideas and generallyconservative(33%).

areupwardlymobile, ambitious and status conscious (10%).

This group enjoys lifeand makethings happen (23%).

Inner-directed

‘I-am-me’

Experientials

Societally conscious

tend tobeyoung, self-engrossed and acton whims (5%).

wish toenjoyas widea rangeof lifeexperiences as possible

(7%).

havea clear senseof social responsibilityand wish

toimprovesociety(9%).

Nirvana

Integratedsarecompletelymaturepsychologicallyand combinethe
positiveelements of outer and inner directedness (2%).

Segmentation67

The outer-directed groups are more affluent and are interested in
status products that other individuals will notice. They are therefore
interested in brand names such as Rolex and Cartier.

Inner-directed individuals in contrast are more concerned with their
individual needs rather than external values. This is an important
sector as they tend to be trendsetters. This group is also the fastest
growing group in Western societies.

Very few individuals reach the integrated group.

The Monitor framework

This framework was developed by the Taylor Nelson research agency.
The model similarly divides consumers into three main groups each
with its own sub-groups (see Figure 4.15).
The advantages of this lifestyle approach are:

It takes into account factors other than status and class.

Purchasing patterns are encompassed in the lifestyle profile.

Well-defined communication channels may emerge as part of the

lifestyle.

Brand personalities can be built to appeal to specific lifestyles.

Figure 4.14The VALs framework developed by Arnold Mitchell at the Stanford
Research Institute

Groups

Sub-groups (% of UK population)

Sustenance-driven

areconcerned about
material security

Aimless.

Survivors

Belongers

Includes theyoungunemployed and

elderlydrifters (5%).

areworkingclass peoplewhoretain

traditional attitudes (16%).

straddlethesustenance-driven and
outer-directed groups. Theyarea conservative
family-orientated group. (Thesub-group is 18%
of theUKpopulation in total, with 9% in the
sustenance-driven group.)

Outer-directed

Belongers.

Conspicuousconsumers

This half of thesub-group arestill
conservativeand family-orientated butarealso
status-driven (9%).

aredriven bya desire

for status (19%).

Inner-directed

Social resisters

Experimentalists

Selfexplorers

arecaringand tend tohold

doctrinaireattitudes (11%).

areindividualisticand are

interested in thegood life(14%).

hold less doctrinaireattitudes than
thesocial resisters and areless materialisticthan
theexperimentalistsub-group (17%).

68Strategic Marketing

These models allow a more rounded view of consumer groups to
emerge. Identifying the lifestyle of potential consumer segments allows
the marketer to develop sophisticated marketing mixes that tie in with
a particular lifestyle group. The lifestyle profile may highlight the type
of retail outlets that the consumer group is attracted to, or the
publications they are more likely to read. This allows managerial
decisions to be made about the distribution and promotional aspects of
the mix.

Weaknesses with psychographical models are that they currently
tend to reflect a Western social hierarchy and culture. As a result these
frameworks are not always easily transferred to different social settings.
Cultural values may mean that aspirations are different from those
represented by Western values of individualism, self-development and
status. These models also do not easily represent the flatter social class
structures that occur in certain cultures such as Scandinavia.

Figure 4.15The Monitor Framework developed by the Taylor Nelson research agency

Yuppies Youngupwardlymobileprofessionals

Dinks Dual incomenokids

Bumps Borrowed-to-the-hilt, upwardlymobileprofessional show-offs

Silks

Singleincomelots of kids

Glams Greyingleisured affluentmiddle-aged

Jollies Jet-settingoldies with lots of loot

Segmentation69

Some critics of the approach would also argue that these broad lifestyle
profiles are not accurate predictors of consumers’ purchasing behaviour
in any particular market sector. An outer-directed individual who may in
general buy status products may not buy branded goods in a market area
where there is very little risk of damage to their self-image. The soap
powder they buy is unlikely to be of major significance to the way they
feel about themselves or about the way other people see them. However,
the car they drive or the clothes they wear are likely to be much more
significant indicators of their status to both themselves and others.
Lifestyle segmentation has led to the proliferation of acronyms to
describe consumer groupings (see Figure 4.16).

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