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Resolving the conflict between what consumers say and do - findings from the Future Foundation
Katherine Kam, Event Reports, nVision UK Spring Conference, May 2013
This article reports on the Future Foundation's research on "The Big Lie" - the difference between what British consumers say and what they do.
This article reports on the Future Foundation's research on "The Big Lie" - the difference between what British consumers say and what they do. It examines the social norms that people feel compelled to conform to, while also desiring to meet their personal needs and interests. The topics covered include mass customisation, attitudes to modern constant connectivity, the internet of things, celebrity influence, maximising and consumer radicalism. Brands are encouraged to meet customer's secret desires while simultaneously allowing them to save face in public.
The Generation Waiting Game: Responding to Gen Y's delayed lifestages
Jason Mander, Future Foundation, May 2013
This article looks at how British people in their 20s and 30s are delaying significant life stages compared to previous generations.
This article looks at how British people in their 20s and 30s are delaying significant life stages compared to previous generations. The average age for taking out mortgages, getting married and having children is getting steadily older, while increased numbers of people aged 20-34 continue to live with their parents. There is widespread pessimism and the strains facing Generation Y are widely recognised by consumers across all age groups. Financial tools and services have come to the fore, as brands recognise the longer-term dependence of children on their parents, with the Family Springboard mortgage from Barclays and PNC's Virtual Wallet both cited. It predicts the appearance of more brand offerings that have the explicit aim of helping financially pressured Gen Y's to reach important landmarks.
Downsizing globally: The impact of changing household structure on global consumer markets
Euromonitor Strategy Briefings, April 2013
This paper analyses trends in households across the world - from number of occupants to marital status and income levels - and how this has changed consumer habits.
This paper analyses trends in households across the world - from number of occupants to marital status and income levels - and how this has changed consumer habits. Among the major findings highlighted are that there are 1.92bn households in 2012, an increase of 9% since 2007. 14.9% of these households are now single, which 16.5% are couples without children. New household formation exceeds population growth in most countries and are comprised of much smaller household units. Factors leading to smaller households are longer life expectancies and lower birth rates, increased urbanisation, rising divorce rates, increase in working women, more liberal attitudes and the rising wealth of emerging market middle classes. Smaller households lead to increased average spend per person, although price as a purchasing criterion is most important for those living with children or alone. Other trends covered are household shopping and eating habits, attitudes towards health. This report also suggests opportunities for marketers.
How Tesco built a real-time insights programme
Jo Bowman, Event Reports, Shopper Insights, October 2011
British supermarket giant Tesco generates reams of data about its customers and spends millions of pounds every year on market research.
British supermarket giant Tesco generates reams of data about its customers and spends millions of pounds every year on market research. Yet according to Maria Sealey, head of insights at Tesco, the company didn't really know the market in a more human way and so in 2011, it has been getting to know them, and adapting to what it's found. Speaking at the Shopper Insights in Action Conference in Prague, Sealey explained how Tesco has been conducting its research and has launched Tesco Families: an in-depth ongoing study of 12 families to represent different family groups. This has been expanded to an online community of 150 families.
Psychographic profiles matter more than consumers’ status
Nick Murray, Admap, June 2009, Issue 506, pp. 45-47
This paper argues that demographics based on socio-economic status no longer work for marketing, at least in the UK.
This paper argues that demographics based on socio-economic status no longer work for marketing, at least in the UK. There has been a major shift from collective to individual values, along with the rise of digital media and the much freer access to information it provides. Institutionalised distinctions between ages, genders etc. are collapsing. Also, growing prosperity and wider education have swung much of the population away from `sustenance driven’ to `inner directed’ (in Maslow’s terminology). Other reasons for this change are discussed, including the internet, consumerism, more small businesses, media segmentation. The consequences for brands are discussed: the need to be transparent and inclusive, interact honestly with consumers, including (increasingly) at the point of purchase. Psychographics must be the main basis for consumer segmentation in the future, and marketers need to understand this, since the changes are irreversible.
How important is ownership?
Chris Middleton, Market Leader, Issue 29, Summer 2005, pp. 54-55
Argues that consumers are becoming less driven by desire for ownership of possessions and more interested in other kinds of value (experiences, emotions, ethics and engagements).
Argues that consumers are becoming less driven by desire for ownership of possessions and more interested in other kinds of value (experiences, emotions, ethics and engagements). Segmentation analysis shows seven such archetypes of which two (Light Lifers and Respectable Rebels) are described fully; these seven account for 55% of the population. This shift in values is instanced in the downloading of material from the internet and new methods of acquisition such as rental or leasing. It is suggested that it may be a better explanation of falling sales than the traditional economic complaints, and that retailers and manufacturers need to become alert to it.
Is lifestage losing its meaning?
Davina O'Donoghue and Louise Steele, Admap, September 2004, Issue 453, pp. 24-27
Davina O’Donoghue and Louise Steele, of EVO Research and Consulting, argue that lifestage is no longer an adequate segmentation method.
Davina O’Donoghue and Louise Steele, of EVO Research and Consulting, argue that lifestage is no longer an adequate segmentation method. They report on research comprising multi-lifestage workshops in UK and Germany, to examine the lives and attitudes of four key lifestages (Young, free and single/Young Parents/Older Parents/ Retired). They found the traditional views about each segment to have changed dramatically, and postulate four new typologies that transcend lifestages – Self Seekers/Adapters/Worth Seekers/Wanderers.
Using Online Databases for Developing CRM Strategy and Tactics
R. Dale Wilson, Advertising Research Foundation Workshops, Customer Relationship Management, November 2001, pp. 41-50
The current availability of on-line direct marketing databases provides numerous opportunities for marketing professionals to improve their marketing strategies and tactics.
The current availability of on-line direct marketing databases provides numerous opportunities for marketing professionals to improve their marketing strategies and tactics. This paper illustrates these opportunities from the perspective of a company competing in a high-tech business-to-business market. In particular, the paper provides the results of an empirical study that uses a direct marketing database as the foundation for developing a market segmentation approach to identify new prospects and thus providing a mechanism for organizing the company's marketing activities. Lifetime value analysis, a concept that plays a major role in CRM, is used to group prospects into 'good', 'better,' and 'best' categories and thus provide an understanding of the likely responsiveness of these segments. Emphasis is a new marketing program to appeal to these prospective customers.
Consumer Centric Marketing
Tim Kregor, Advertising Research Foundation Workshops, Customer Relationship Management, November 2001, pp. 33-41
Today's consumer products marketers enjoy richer sources of information than ever before, including product purchase panels, category attitudinal surveys, media usage tracking panels and surveys, retail point-of-sale scanning reports, direct-to-consumer transactions via mail, phone and the Internet, shopper loyalty card information and more.
Today's consumer products marketers enjoy richer sources of information than ever before, including product purchase panels, category attitudinal surveys, media usage tracking panels and surveys, retail point-of-sale scanning reports, direct-to-consumer transactions via mail, phone and the Internet, shopper loyalty card information and more. Furthermore, we have an abundance of new media and marketing programs to reach and to motivate opportunity consumers, ranging from the proliferation of broadcast and cable alternatives to retail and point-of-sale and the Internet. Unfortunately, it can be difficult to synthesize all this information to chart the best path for brand growth. For one thing, different resources define consumer opportunity in different ways. For example, purchase panels describe consumers based on purchase patterns, whereas A&U surveys describe consumers based on category attitudes. Therefore, both can let us down when it comes to evaluating media and markets that are not measured in these terms. Also, current business conditions limit the marketer's ability to take advantage of new information and program assets. First of all, both corporate shareholders and retailer customers are more demanding of short-term results. Retailers have consolidated and have grown stronger and more sophisticated. As a consequence, they give manufacturers less time to prove the value of new products, to establish their contributions as category captains, and to make decisions about supporting co-op marketing programs. At the same time, shareholders demand solid profit growth despite maturing CPG categories. This leads to cost controls, corporate mergers, and leaner-than-ever marketing staffs. Finally, despite competition from new alternatives, media costs are rising faster than most budgets. All totaled, there is a severe shortage of time, help and funds.
The Next Generation of Database Marketing
Scott D. Schroeder and Chris Wilson, Advertising Research Foundation Workshops, Customer Relationship Management, November 2001, pp. 25-33
Simmons Market Research and Looking Glass have taken a truly innovative step which has produced the next generation of powerful database marketing.
Simmons Market Research and Looking Glass have taken a truly innovative step which has produced the next generation of powerful database marketing. Together, they have married two worlds - consumer market research and state-of-the art targeted database marketing - resulting in the first synergistic approach to marketing for both direct and traditional marketers. Direct marketing concepts can now be applied to targeting traditional media channels and traditional marketers are able to take advantage of direct marketing applications. The bridging of consumer research and database marketing provides the richest source of information about a customer's behavior, inside and outside of your place of business and expands the opportunity to reach out to customers through all media, from traditional channels to direct marketing. This integrated Customer Relation Management (CRM) solution gives marketers a better understanding of their current client base, enabling them to employ cross selling, customer acquisition/retentions, and customer service strategies that provide tremendous sales/revenue lift. The marketer is able to determine, through direct, one-to-one marketing the best multimedia channels to use as well as see a true picture of the current and potential customer. Businesses can efficiently market the right product to the right customer, with the right message and using the proper multimedia channels.
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