Lifestyle Mrketin

8/8/2019 Lifestyle Mrketin

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The Oxford English dictionary defines a lifestyle 'as a way of life'and lifestyle segmentation aims to examine the way people live.

Lifestyle, as a word was first coined by Alfred Adler in 1929, a

Freudian psychiatrist, giving it the meaning ofa persons basic ...reactions and behavior.

The behaviors and practices within lifestyles are a mixture ofhabits, conventional ways of doing things, and reasoned actions.

A lifestyle typically also reflects an individuals attitudes, valuesor worldview. Therefore, a lifestyle is a means of forging a senseof self and to create cultural symbols that resonate with personalidentity.

INTRODUCTION


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LIFESTYLEMARKETING

LifeStyle Marketing is an innovative customer loyalty solution.

The objective ofLifestyle Marketing is to create and support

long-lasting, faithful relations between Merchant and

Customer to introduce the notion of customer loyalty into the

sphere of business.

Lifestyle Segmentation is the division of a total heterogeneous

market into relatively homogeneous groups on the basis of theirway of life as shaped by their interests, attitudes and opinions.


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Traditional brands differentiate based on objective,

quantifiable things like price, performance, and features.

Lifestyle brands, on the other hand, differentiate based on

subjective, hard to quantify things like design.

Lifestyle brands are fundamentally vehicles for self-

expression.

They dont play by the rules of old-school marketing.

There are areas in which the boundaries are blurry. For eg.

Cars.


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CUSTOMERLIFESTYLE??

Its his way of living, an outward expression of his values,

habits, tastes, emotions, perceptions and interests reflected

through patterns of demographics, purchasing behaviors,

attitudes, activities.

Customer lifestyle is prone to regular evolving, influenced by

social, economic and other specific factors.


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LIFESTYLEMARKETING TECHNOLOGY

It is a comprehensive and integrated technological solution

enabling the Company to build from scratch personalized

relations with Customer those fruitful for both.

It embraces all stages of this process starting from

communication with Customer at the point of sale and finishing

with customized reports that are indispensable when taking

decisions on the customer relationship policy.

The solution has a modular structure (contains four modules:

LifeStyle Point, LifeStyle Club, LifeStyle Segmentation,

LifeStyle Network).


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Gather and analyze valuable customer data

Identify, acquire, engage and develop profitable customers

Establish face-to-face relations with customers

Focus marketing expenses on Target Customer Increase a customers share of wallet spent at your outlet(s)

Increase sales volume

Improve profit margin

and achieve many other specific goals (e.g. assure a successfullaunch of a new product, maximize efficiency of advertising

campaigns, etc.)

Life Style Marketing customer loyalty program

will help:


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The most influential of all studies is that of Arnold Mitchell (1983)

who developed VALS (value and lifestyle profiles).

According to Mitchell, the lifestyle profiles include:

1. Survivor(old, intensely poor; fearful; depressed; despairing; far

removed from the cultural mainstream; misfits);

2. Sustainer(living on the edge of poverty; angry and resentful;

streetwise; involved in the underground economy);

3. Belonger(aging; traditional and conventional; contended;intensely patriotic; sentimental; deeply stable);

4. Emulator(youthful and ambitious; macho; show-off; trying to

break into the system and make it big);

LIFESTYLEMARKETSEGMENTS


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5. Achiever (middle-aged and prosperous; capable leaders; self-

centred; materialistic; masters of the American dream);

6. I-Am-Me (transition state; exhibitionistic and narcissistic; young;

impulsive; dramatic; experimental; active; inventive);

7. Experiential (youthful; seek direct experience; person-centred;artistic; intensely oriented toward inner growth);

8. Societally Conscious (mission-oriented; leaders of single-issue

groups; mature; successful; some live lives of voluntary

simplicity);

9. Integrated (psychologically mature; large field of vision; tolerant

and understanding; sense of fittingness)

Contd.


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SURVIVOR

SUSTAINER NEED DRIVEN

I-AM-ME

BELONGER

OUTER DIRECTED INNER DIRECTED

EXPERENTIAL

EMULATOR

ACHIEVER SOCIETALLY CONSCIOUS

INTEGRATED


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Lifestyle segmentation has set the standards for advertising in

context of lifestyle, and today we find many companies promoting

a particular lifestyle, not only by means of self promotion but also

through co-promotion of products, where two companies with the

same objective in lifestyle advertising come together to promote

their products and services together.

The emergence of lifestyle products such as Subway sandwiches

which promote a healthy living today employs lifestyle

advertising in their promotional strategy.

Life StyleAdvertising


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LIFE STYLEMARKETING PROCESS

The Lifestyle Marketing process involves a series of nine steps:

1. Defining the lifestyle of the target consumer

2. Project the desired results

3. Positioning4. Product and service differentiators

5. Developing an integrated multi-channel strategy

6. Word of mouth

7. Relationship building8. Personalization

9. Alignment


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PROCESS

Defining the lifestyle of the target consumer

Lifestyle is a better tool statistically for segmenting affluent

consumers than everything except gender. It is more likely

than age, income, education, zip code, etc., to predict what

affluent people will do and why. Targeting a Lifestyle, rather

than a demographic, provides a more detailed definition of the

best prospect, how many, why they buy and specifics about

how to reach them.


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PROCESS

Project the desired results

Lifestyle segments are statistically projectable to the affluent

U.S. population, especially the hard-to-measure top 5%. If a

brand has a goal of achieving a certain share of market at a

certain price point, it can break that into shares of specific

Lifestyle segments. This step allows the development of

budgets, projecting marketing ROI, etc., to form the basis for

making decisions about advertising, communications,

distribution, channel support, and the other tactics in the

marketing mix.


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PROCESS

Positioning

Lifestyle segments have clear priorities regarding which

values (personal drivers) they are interested in satisfying.

Some luxury brands refer to priorities as passions. A brand

can compare alternative positioning within a Lifestyle

segment to determine which of the high priority drivers

(passions) it can be most competitive and successful in

satisfying. For example, Lexus focused on satisfying the

personal drivers associated with practical and avoiding

social discomfort whereas BMW competes on makes me

feel good and performs as intended.


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PROCESS

Product and service differentiators

After deciding on the personal drivers, the marketer must

decide which tangible product and service attributes provide

proof that the needs will be satisfied. Again, the importance of

these attributes varies by Lifestyle. This step would be very

important in marketing any activity, such as travel, which has

a cultural aspect. For example, each Lifestyle places a

different priority regarding the relative importance of

culturally related activities when traveling.


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PROCESS

Developing an integrated multi-channel strategy

Today most consumers, even the most affluent, shop multiple

channels. But luxury brands are often tentative about developing

multi-channel strategies. There is a concern that marketing in the

more direct channels (catalog, internet, direct sales, etc.) will create

confusion or lower the perceived prestige of the brand.

Word of mouth

Recommendations from peers and family are the greatest influenceon all Lifestyles. The principle communication question, then, is

how to create positive word of mouth. The answer varies by

Lifestyle with some more influenced by publicity and editorial than

by advertising.


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Relationship building

Many premium brands are already shifting more money into non-

traditional modes that emphasize creating links with many aspects

of an affluent consumers life. For example with non-profit

organizations the affluent cares about. Involvement with theseorganizations (we call it social networking) creates access and

intimacy.

Personalization

Lifestyle Marketing provides real personalization in direct

marketing. Marketers need a database, which identifies the Lifestyle

of each individual household in the most affluent areas to target

messages to the personal drivers and preferred attributes of each

recipient.


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PROCESS

Alignment

Finally, after a Lifestyle Marketing strategy is developed, the

marketer can check to ensure that there is alignment of all

elements in the marketing process. Only a research-based

framework can guide decisions at each step of the marketing

process.


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EXAMPLE


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COMPANIES PRACTICING LIFE STYLEMARKETING

Squier moved into the lifestyle marketing arena in 2006,

partnering with the Sanrio company on a successful and

certainly distinctive line of Hello Kitty instruments, and with

noted graphic artist Shepard Fairey on an equally distinctive line

of OBEY

guitars.

In 2007, Squier introduced its Vintage Modified series; vintage-

styled Stratocaster and Telecaster models with hot rod

modifications such as custom pickguards and finishes, gloss-

finished maple necks and Duncan-Designed pickups.


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ITC

ITCs Lifestyle Retailing Business Division has established a

nationwide retailing presence through its Wills Lifestyle chain

of exclusive specialty stores. Wills Lifestyle, the fashion

destination, offers a tempting choice of Wills Classic work wear,

Wills Sport relaxed wear, Wills Clublife evening wear, fashionaccessories and Essenza Di Wills an exclusive range of fine

fragrances and bath & body care products and Fiama Di Wills -

a range of premium shampoos and shower gels. Wills Lifestyle

has also introduced Wills Signature designer wear, designed by

the leading designers of the country


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STARBUCKS

Starbucks in U.S. brings in customers with

lifestyle marketing, pushing music, books, and

lunch food to get them to get them to stick

around.


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HARLEY- DAVIDSON

An iconic brand, which really speaks lifestyle: Harley-

Davidson. `If you ride a Harley, you are a member of a

brotherhood, and if you don't, you are not.' Harley-Davidson's

biggest asset has been its brand. A brand that stands for

attitude and lifestyle.


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Documents

Lifestyle Mrketin