Segmentation is an important activity for a brand or product. There are different segments that marketers use to target and position right products for right segment of customers. Lifestyle segmentation is a type of segmentation strategy that categorizes the customer information into small sub-groups. Customer lifestyle segmentation requires relevant data of every customer to further divided into sub-group. These groups are created on the basis of what is customer lifestyle,
likes and dislike and how they live. There are different types of segmentation but lifestyle segmentation is unique as it studies the lifestyle of customers like how they live, what they do for living, what they like and on the basis of these information customers are grouped to form lifestyle segment. Lifestyle segmentation help marketers to better understand customer needs and requirements and then take decisions of product placement in appropriate market segment. But marketers
should know that the lifestyle analysis is a continuous process because consumer activities, opinions, interests and demographics changes with the time, taste and situation. Lifestyle segmentation is one of the types of marketing segmentation and comes under the psychographic segmentation. Activities and Examples of Lifestyle SegmentationThe consumer lifestyle consist different types of tools to form this segmentation, marketers are needed to better understand these tools. Such tools enable marketers to provide better products and services to target customers. The lifestyle segmentation tools known as AIO (Activities, Interests and Opinions and demographics). Here we will discuss these tools with examples. ActivitiesActivities consists work, hobbies, social events, vacation, entertainment, community, club membership and social event of consumers. Such activities inform marketers about what they do, where they are engaged and how they entertained themselves. These activities inform marketers about the consumers’ routine suppose the person is a finance guy and doesn’t like outdoor activities and void meeting with people. InterestsInterests consists family, home, job, community, fashion, food, and recreation of consumer. Such lifestyle activities inform marketers about the overall interests of consumer. For example which food, sports or technology they like or not. These factors are very important for markets to take appropriate decisions for right type of segmentation based on consumer interests. OpinionsOpinions consists social issues, political, business or economic, education, product and themselves. Opinion is important because it informs marketers about different issues and people. For example, a particular consumer is attracted to social issue which is not fall under your promotional campaign umbrella then you cannot fulfill the interest of that consumer. DemographicsDemographics tell marketers about customers’ age and gender of potential consumers, their occupation, what is the family size of consumers, which geography consumers belong to, lifecycle and income level. All this information help marketers when they are crafting a marketing strategy. Consumer behavior is dynamic and depends upon social changes and trends. It is very important for marketing managers to keep a closer look on these dynamics. Lifestyle segmentation is a never ending process that needs continuous changes in marketing strategies. Personality, Lifestyle, and The Self One of the newer and increasingly important set of factors that is being used to understand consumer behaviour is lifestyle. Lifestyle has been generally defined as the of the potential customer. It is widely regarded as means to connecting products offered in the market with targeted lifestyle groups (Sathish & Rajamohan, 2012) such that a product appeals to the AIOs of the target market. Consumers are not only asked about products they like, where they live, and what their gender is but also about what they do—that is, how they spend their time and what their priorities, values, opinions, and general outlooks on the world are. Where do they go other than work? Who do they like to talk to? What do they talk about? Researchers hired by Procter & Gamble have gone so far as to follow women around for weeks as they shop, run errands, and socialize with one another (Berner, 2006). Other companies have paid people to keep a daily journal of their activities and routines. Lifestyle MarketingIn consumer marketing, is considered a psychological variable known to influence the buyer decision process for consumers. Lifestyle can be broadly defined as the way a person lives. In sociology, a lifestyle typically reflects an individual’s attitudes, values, or world view. A lifestyle is a means of forging a sense of self and to create cultural symbols that resonate with personal identity. Marketing campaigns to reach and persuade consumers are created with the intention to align the product’s position with the target market’s lifestyle characteristics. Variables such as consumers’ interest in hunting; their attitude toward climate change; and, their deeply held opinion on fair-trade products, can therefore be used to both better understand the market and its behaviour, and position products effectively. It is the multifaceted aspect of lifestyle research that makes it so useful in consumer analysis. A prominent lifestyle researcher, Joseph T. Plummer, summarizes the concept as follows:
A useful application of the lifestyle concept relates to consumer’s shopping orientation. Different customers approach shopping in very different ways. They have different attitudes and opinions about shopping and different levels of interest in shopping. Once people know their alternatives, how do they evaluate and choose among them? In particular, how do people choose among brands of a product? Psychographic SegmentationThe following is a review of how marketers segment a market based on demographics, geography, behaviour, and psychographic information.
While demographics are useful, advertisers often need to slice and dice even further. Traditional demographic segments (such as gender, age, and income) provide only a rough estimate of the attitudes and desires of different groups, so marketers often give consumer groups labels that capture something about their lifestyles and motivations as well. involves profiling a market segment based on a descriptive set of characteristics—such as personality, traits, lifestyle, and values. We also use AIO’s—to define a psychographic profile. Most students are familiar with market segmentation as it relates to geographic (specific place-based marketing) and demographic (specific data gathered through secondary research sources relating to age, income, education level, family status, etc.). Psychographic segmentation however, examines consumers in the context of their motivations, their values, their interests, their passions, their lifestyle choices, and even the kind of media they consume. One of the most widely used systems to classify people based on psychographics is the VALS (Values, Attitudes, and Lifestyles) framework. Using VALS to combine psychographics with demographic information such as marital status, education level, and income provide a better understanding of consumers. “Professional Aunt, No Kids” is considered a new and attractive market segment.
Demographic and psychographic characteristics of PANKs from the report include:
What are PANKs spending money on? Travel is by far the biggest expense, followed by food and beverage, entertainment, toys and games, and apparel. “Adventure” days and big-ticket gifts also amount to large expenditures by loving Aunts. Notkin segments PANKs further by identifying, “Aunts by Relations” (93 per cent) and “Aunts by Choice” (57 per cent), all of whom rank participation in a child’s life of high importance. In 2013, Euromonitor reported that as of 2010, 42.6 per cent of women in the U.S. between 15-44 were childless (up from 40.1 per cent in 2002): while some women are childless by circumstance, many women are holding off having children (or choosing not to at all) until later in life. Marketers yet to heed Notkin’s advice and actively target PANKs are potentially ignoring this large and growing market segment. Her recommendations on how to engage this market includes:
A wise marketer will recognize both the value and
potential in a growing and substantial market segment, even one that may be dismissed, ignored, or not taken seriously by others. Media Attributions
Text Attributions
ReferencesBerner, R., (2006, May 1). Detergent Can Be So Much More. BusinessWeek, 66–68. Generation PANK: A report on the social and econoic influence of PANKs—Professional Aunts No Kids. (2018). Savvy Auntie. http://savvyauntie.com/Customimages/GENERATION%20PANK_MELANIE%20NOTKIN%20MEDIA%20INC_Nov%202018.pdf. Kuo, L. (2013, November 4). The latest travel marketing craze: Unmarried aunts who want to spoil other peoples’ kids. Quartz. https://qz.com/143242/the-latest-travel-marketing-craze-unmarried-aunts-who-want-to-spoil-other-peoples-kids/. Plummer, J.T. (1974, January). The concept and application of lifestyle segmentation. Journal of Marketing, 38(1), 33-37. Sathish, S., and Rajamohan, A. (2012, October). Consumer Behaviour and Lifestyle Marketing. International Journal of Marketing, financial Services & Management Research, 1(10). World Travel Market Global Trends Report 2013 (2013, November). Euromonitor International. http://go.euromonitor.com/rs/euromonitorinternational/images/WTM_2013_Trends_finalReport.pdf?mkt_tok=3RkMMJWWfF9wsRoiuKrNZKXonjHpfsX66O4rXaKylMI%2F0ER3fOvrPUfGjI4CTcRrI%2BSLDwEYGJlv6SgFQrDAMatv0bgKWhg%3D What are activities interests and opinions?Activities, Interests, and Opinions (AIO) are a person's characteristics used by market researchers to construct the individual's psychographic profile in their research. An individual's AIO is typically unearthed by researchers through their responses to statements or questions in a survey.
What is interest in psychographic segmentation?Activities, interests, and opinions: This psychographic segmentation is based on what activities are the customers inclined towards, which topics are they enthusiastically interested in or what are their opinions about specific matters. These parameters are called AIO (Activities, Interests, and Opinions).
Which kind of segmentation reflects people's lifestyle attitudes and aspirations?Psychographic segmentation classifies consumers on the basis of individual lifestyles as they're reflected in people's interests, activities, attitudes, and values.
Which of the following is a psychographic characteristic?Psychographic factors may include personality characteristics, lifestyle, social class, habits, behaviors, and interests. Each of these unique psychological factors greatly influences a consumer's behavior. You then use these factors to segment your audience based on their psychographic makeup.
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