Psychographics Segmentation in Millennium Era

Psychographics divide the market into groups or segments based on psychological characteristics. This psychological characteristic includes personality, lifestyle and values. People in one geographical and demographic segment, can have various types of psychographic segments. So psychographic segmentation details more geographical and demographic segmentation. Groups of men aged 24-30 in the same area can have a variety of personalities, lifestyles and values. Popular psychographic classification is the VALS Strategic Business Insight’s (SBI) framework. VALS divides Americans into 8 main groups based on questionnaires about 4 elements of demographics and 35 elements of attitude. You can get the questionnaire here www.strategicbusinessinsights.com/vals/presurvey.shtml .

 

  
 

In VALS, the division of segments is based on psychological characteristics, namely innovators, thinkers, believers, accomplishers, fighters, experiencers, Makers, people who survive. Based on information on Wikipedia https://en.wikipedia.org/wiki/VALS, an explanation of the characteristics is as follows.

Innovator

Innovators are people who lead change. They have big income, confidence and rich resources so they are free to set goals and reach them. Maintaining the image is something that is important to them, as a reflection of taste, independence, and character. They are looking for better things.

Thinker

They have high resources and are motivated by ideal things. They are mature, responsible, professional and educated. His leisure activities are centered at home, but they know what is happening in the world. They are open with new ideas and social change. They are high income and rational and practical decision makers.

Believer

Those consumers with low resources are also motivated with ideal things. They are consumers who are conservative and predictable. They like local products and established brands, do not dare to try new things.

Achiever

They have great resources that are motivated to achieve achievement. They are satisfied with work and family and excel. His political attitude is conservative and respects the authority and status quo. They like established products and services and show their success to their peers.

Fighters

They are low-power consumers who are motivated to achieve achievement. They have interests such as achievement, but they have weaknesses in economic, social and psychological resources. Style is very important to him because they imitate the people they admire.

Hunter experience

These consumers are high in resources. They are motivated by self-expression. Their age is the youngest, an average of 25 years. They have a lot of energy for physical and social activities. They love shopping for clothes, food, music and other young tastes.

Maker

These consumers are low-resource groups who are motivated by self-expression. They think practically and like to make things themselves. They focus on family, work and physical recreation and are less interested in the wider world. They like practical and functional products.

 Survivors

They are consumers with the lowest income. They have very few resources. They are the oldest segment, with a middle value of around 61. With limited facilities, they tend to be loyal to the brand.

To find out psychography based on the VALS framework, it is necessary to conduct a questionnaire research. It could also use existing research.

Besides VALS, Facebook and Google have tools that indicate someone’s interest. Google detects someone’s interest based on keywords typed by search engine users. The number of search engine users has increased from year to year. According to http://www.internetlivestats.com, in 2017, 46.8% of the global population has accessed the internet. In one day, August 22, 2018, there were 4 billion internet users in the world, and there were 2.6 billion Google users, and 2.3 billion Facebook users. With many Google and Facebook users, many user profiles are recorded in their database. Not only geographic and demographic, but also signals of interest, or psychographics. The signal of interest can be known from the keywords used in the google search engine. For Facebook, signals of interest can be known from which status makes users stop (a sign of concern and interest), and their involvement in status in the form of thumbs up, comments, and sharing. From there, Facebook identifies user interest profiles. Facebook and Google use computing algorithms to identify it. The algorithmic formula is not published, but marketers can use the identification results.

The method of introducing market interest through Google and Facebook is easier, cheaper and more update compared to VALS survey research above. The percentage comparison between the sample and the population is clearly bigger than Google and Facebook. Facebook has a list of the interests they identified from their algorithms. We can access it via the desktop or laptop computer screen (not via the smartphone screen) in the link below https://web.facebook.com/ads/audience-insights

Millennial Marketing Concept: Permission

According to Godin, Permission or approval from viewers is a condition of receiving promotional messages in the midst of a lot of message traffic. Viewers do not reject all messages. Viewers even search for information that is relevant to their needs and obsessions. There, marketers have the opportunity to help viewers to meet their needs. The sign that viewers need information from marketers is the sign of approval.

According to Godin “marketing permission” has the following signs.

• Anticipation: viewers want to know more about product and service information from the company

• Personal: messages directly related to individuals

• Relevant: marketing deals with something that market prospects are interested in

After marketing permission was introduced in 1999, a number of companies emerged to build agents, campaigns and marketing platforms. This idea even affects social media platforms that use the permission marketing method. Social media has features such as “making friends”, “likes”, “following”, “sharing”. In email marketing, this idea inspired the emergence of facilities such as double optin. With these features, marketers know who likes the messages they convey. Furthermore, marketers only deliver messages to those who are interested. Without those features, marketers don’t know who is interested, marketers spread messages in all directions. Viewers are also overwhelmed by the many messages, then they are likely to ignore messages from the email and social media platforms.

With this approach, marketing permissions differ from mass media promotion in choosing a target market. Permission marketing targets groups who are enthusiastic, obsessed with something. Godin shares the market segment again in terms of innovation adoption. First, innovators or originators of new ideas. The number of triggers of the idea is very small in a segment. Both are early idea users (early adopters. They are larger in number in the population. Permission marketing chooses innovators and early adopters as the target market. They are enthusiastic, dare to try and like to share. If the product reaches their hearts, they will tell more people.

   This is different from promotion through mass media. Promotions through mass media are more targeting their messages to followers of the initial users. Not an initial user.

Social media works by highlighting information that has passed the approval of social media citizens so that communication remains important and relevant. The timeline raises message messages based on the favorite algorithms of each social media citizen.

Marketing Concept in 1980-2010

In 1981, Boom and Bitler added 3 P, namely people (People), process (Process) and physical evidence (Physical Evidence) (Kotler et al., 2010, Marketing 3.0, Jakarta: Erlangga). This addition is to accommodate businesses in the service sector. Products from services are not visible. The business strives for the services to be seen, so that the market segment is realized by structuring the people who serve, standardizing plus the customization of the process and showing physical evidence.

In 1984, Philip Kotler added two more P in the 4 P, namely Politics (politics) and Public Opinion (public opinion) (Kotler et al., 2010, Marketing 3.0, Jakarta: Erlangga). Kotler added these two things because politics and public opinion helped determine the smoothness of sales, more so when entering foreign markets. When politics does not allow a product to circulate, however good the product, price, location and promotion, the product will not be able to reach the market. Public opinion from the association and the public in the mass media also determines the acceptance of a product.

In the 1990s, when the internet began to expand, mass media advertising was still quite strong. The internet was allegedly able to replace the role of mass media, but in 2000 many were disappointed with internet achievements. Many stock-based company website prices fall. This event was dubbed the dotcom bubble. Dotcom balloon. The impression is large, but the contents are empty, and one day it will erupt.

After 2000, the role of the internet strengthened since search engines and social media used algorithms that were able to adjust advertisements and campaigns with viewers’ interests. Algorithms are also able to detect their interest trends so that this gives input in the preparation of new products. Advertising spending on the internet is increasing. In 2004, Madison Avenue mass media advertising center experienced a decline in its advertising industry.

In 2010, the use of smart phones connected to the internet expanded throughout the world. With the popularity of smart phones, marketing through the internet is able to reach many viewers. The use of mass media is getting smaller in the community than the internet.

It is not just the transfer of marketing communication channels without changing the character of marketing. The move changes the character of marketing. The development of marketing is driven by competition between marketers themselves. They compete marketing skills. On interactive internet media, marketers compete to optimize the features that the internet has for marketing purposes. On the other side of the viewer or target market, viewers for greater authority to pay attention to or ignore marketing messages. Dynamic interaction between fellow marketers and viewers also changes the character of marketing.

Emergence of Marketing Concept

In the early 1940s Rosser Reeves revealed the secret of success in composing influential advertisements. Reeves named it unique selling proposition or unique selling point (USP). USP is delivering unique benefits from companies, services, products, brands that make it stand out from competitors. USP must have features that highlight the benefits of products that are valuable to consumers.

Then in late 1940, further developments emerged from the definition of Butler marketing. Neil Borden, Harvard Business School professor introduced the term marketing mix. He details the marketing activities so that marketing becomes a rich and systematic activity. According to Neil Borden, the marketing mix consists of:

• product planning,

• price determination

• branding,

• distribution channels,

• personal selling (personal selling),

•advertisement,

• promotions,

• packing,

• display,

• service,

• Warehouse and shipping control,

• fact finding and analysis.

After the second world war, McGarry (McGarry, Edmund D. (1950), ‘Some revised functions of marketing’, in Cox, Reavis and Alderson, Wroe (eds), Theory in Marketing: Selected Essays.p. 269) submit a list of functions new marketing namely,

• Contract

• trade

• price determination

• propaganda

• physical distribution

• cancellation.

In 1957, Howard introduced differences between things that can be controlled and things that cannot be controlled in the marketing decision-making process.

Which can be controlled, among others

• Product variation

•Marketing channel

• Price

• Promotion

• Location

Whereas what cannot be controlled in the view of the marketing manager is

• Competition

• Request

• Non-marketing costs

• Distribution structure

• Law

Finally, Jerome McCarthy (1960, pp. 45-52) offers a definition that is easy to remember, that is 4 P. namely product, place, promotion and price.

• Products include characteristics, functions and benefits.

• Location regarding how products are distributed.

• Promotion is the use of advertising, publicity, personal sales and so on.

• Price is what price is set for the product.

As a further development of differentiation, unique selling points, in 1969, Al Ries and Jack Trout formulated and popularized the idea of ​​positioning. Positioning is building a brand on the mind of a target market compared to a competing brand. Positioning itself is a common practice in businesses in America since the 1930s. It’s just that Al Ries has formulated and popularized it. Positioning is carried out on selected target markets, so that before positioning, it is necessary to market segmentation and determine market targets.

At that time mass media such as newspapers, magazines and television were still the dominant communication media. The advertising industry that accompanied the mass media flourished. Madison Avenue New York became the world’s advertising center.