Psychographic Segmentation

Psyeliographic segmentation divides buyers into groups based on social class, lifestyle or personality eharacteristics. People in the same demographic group can have very different psychographic make-ups.

SOCIAL CLASS. !n Chapter 6, we described social classes and showed how they affect preferences in cars, clothes, home furnishings, leisure activities, reading habits and retailers. Many companies design products or services for specific social classes, building in features that appeal to them. In the UK, Butlin's psychographic segmentation Dividing a market into different groups bused on social class, lifestyle or personality characteristics.

Table 9.2

CCN EuroMOSAlC Households Across Europe

Table 9.2

CATEGORY NAME

BELGIUM

GERMANY

IRELAND

ITALY NETHERLANDS

NORWAY

SPAIN

SWEDEN UK

£01

Elite suburbs

8

16

6

4

5

18

1

8

12

E02

Service

22

20

29

12

14

7

17

18

16

(sector)

communities

E03

Luxury flats

9

7

2

5

8

8

7

3

5

E04

Low-income

5

9

10

8

11

10

1

8

9

inner city

E05

High-rise

3

8

11

4

1

7

5

social housing

E06

Industrial

12

13

5

19

14

10

18

12

19

communities

E07

Dynamic

17

8

10

13

14

15

5

9

14

families

EOS

Lower-income

9

4

12

8

6

7

7

7

8

families

E09

Rural/

14

14

21

17

13

17

23

19

6

agricultural

E10

Vacation/

4

6

4

5

4

3

19

9

6

retirement

holiday camps eater for working-class families. They eater for the whole family, but prominent attractions are variety shows, bingo, slot machines, discos, dancing and organized entertainment. The camps are very busy and the emphasis is upon fun. Much of the accommodation is basic, regimented, crowded and self-catering. The almost industrial atmosphere contrasts with Center Fare's woodlands, where in these middle-class establishments, the layout and attractions are un regimented, and the emphasis is on sporting activities and relaxation.

LIFESTYLE. As discussed in Chapter 7, people's interest in goods is affected by their lifestyles. Reciprocally, the goods they buy express their lifestyles. Marketers are increasingly segmenting their markets by consumer lifestyles. For example, General Foods used lifestyle analysis in its successful repositioning of Sanka decaffeinated coffee. For years Sanka's -staid, older image limited the product's market. To turn this situation around, General Foods launched an advertising campaign that positioned Sanka as an ideal drink for today's healthy, active lifestyles. The campaign targeted achievers of all ages, using a classic achiever appeal that Sanka 'Lets you be your best'. Advertising" showed people in adventurous lifestyles, such as kayaking through rapids.1*

Lifestyle segments are either off-the-shelf methods from agencies or customized methods for individual companies. Many companies opt for off-the-shelf methods because of their familiarity and the high cost and complexity of developing their own. The ad ageney Young and Rubican's Cross-Cultural Consumer Characterization (4Cs) is a typical off-the-shelf method. It has three main segments:

1. The Constrained. People whose expenditure is limited by income. It includes the resigned poor who have accepted their poverty and the more ambitious struggling poor.

2. The Middle Majority. This segment contains mainstreams - the largest group of all - aspirers and succeeders.

3. The Innovators. A segment consisting of transitionals and reformers.

The succeeders are a successful group of people who like to feel in control. By showing travellers - having lost their traveller's cheques and had them quickly returned - in complete eontrol of the situation, American Express advertising would appeal to this segment. They would be equally attracted to the ability to customize their Mercedes-Benz ear. In contrast, mainstreams need security. They will buy well-known, safe major brands and avoid risk. In the UK, the Conservative Party under Margaret Thatcher is believed to have won elections by appealing to this segment's fear of change. Highly educated reformers would have none of that. They would trust their own judgement and try new ideas. These people are at the forefront of many new trends, such as ecologically friendly products and new tourist destinations.

Lifestyle segments can be superimposed on other segmentation methods. For instance, Third Age Research recognizes the different lifestyles of older people. It identifies explorer* who like to take up new activities, the organisers, the apathetic, the comfortable, the fearful, the poor me, the social lion and the status quo.

Based on a study of over 2,000 respondents and 30,000 'snacking occasions' Nestle developed its own lifestyle segments of the snacking market. Two major segments it identified were the very different depressive chocolate lovers and energetic males. The depressive chocolate lovers are predominantly young women who buy fast food and eat chocolate. They eat chocolate at anytime, but particularly when depressed, to unwind or when bored in the evening at home. For these people taste is important, so they buy expensive products, like boxed chocolates, for themselves. Terry's Chocolate Orange, All Gold, Cadbury's Milk Flake and Blaek Magic appeal to them. In contrast, energetic males are young and disproportionately C2 in social class. They live at a fast pace, work hard, eat fast food and are reckless shoppers. Work tires them, but they exercise regularly and like lively places. They also eat chocolate in a hurry in the evening, at lunch or at mid-morning or afternoon breaks. Boxed chocolates are not for them, but they get their energy fix from countlines like KitKat, Lion and Snickers.

Being multidimensional, lifestyle segments provide a rich picture of consumers. The depressive chocolate loverx and energetic males may be the same age and social class, but the lifestyle segments start to tell us about the people and what appeals to them. An ad for the energetic males needs to be lively, social and fast - the product grabbed firmly and eaten, Uofmeister used sueh a campaign showing George the Bear on a night out with the lads to revitalize the sales and image of its lager. In contrast, Cadbury's adverts show a quiet, solitary' woman anticipating and indulging herself with a Milk Flake.iq

Lifestyle segmentation; Duck Head targets a casual student lifestyle, claiming, 'You can't get them old until you get them new.'

Psychographic Segmentation

behavioural segmentation Dividing a market into groups based on consumer knowledge, altitude, use or response to a product, occasion segmentation Dividing the market into groups according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.

PERSONALITY. Marketers have also used personality variables to segment markets, giving their products personalities that correspond to consumer personalities. Successful market segmentation strategies based on personality work for products such as cosmetics, cigarettes, insurance and alcohol.2" Honda's marketing campaign for its motor scooters provides another good example of personality segmentation:

Honda appears to target its Spree, Elite and Aero motor scooters at the hip and trendy 16- to 22-year-old age group, but the company's ads aim at a much broader personality group. One ad, for example, shows a delighted child bouncing up and down on his bed while the announcer says, 'You've been trying to get there all your life.' The ad reminds viewers of the euphoric feelings they got when they broke away from authority and did things their parents told them not to do. And it suggests that they can feel that way again by riding a Honda scooter. So even though Honda seems to be targeting young consumers, the ads appeal to trendsetters and independent personalities in all age groups. In face, over half of Honda's scooter sales are to young professionals and older buyers - 15 per cent are purchased by the over-50 group. Thus, Honda is appealing to the rebellious, independent kid in all of us. ^1

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  • ROMOLO
    How nokia company can use psychographic segmentation as promotional tools?
    6 years ago

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