Create a holistic understanding of long-term choice drivers by segment
In addition to understanding the traditional ways we segment and target – such as defining consumers based on their category-specific leanings and behaviors (e.g., more price-conscious, more quality-oriented, want advanced features, want basic functionality) – we also need to identify consumers’ general pre-dispositions to brand choices. To begin with, we must zero-in on peoples’ personal values and life principles. From being adventuresome, to valuing personal relationships, to placing emphasis on things like social responsibility – values implicitly drive brand choices. (See Chart 1.)
According to GfK Consumer Life – which interviews over 30,000 people in 27 different countries annually – over three-fifths of global consumers indicate that they “only buy products and services that appeal to their beliefs or ideals.” Moreover, other GfK research shows that consumers are more likely to pay a premium for “a brand that has strong and clear values they identify with.”
What can brands learn from these compelling findings? The brands consumers like and buy are not just driven by how well they deliver on category-specific needs. Increasingly, brands must also consider consumers’ broader sensibilities. A successful segmentation will take these “implicit” choice drivers into account.
Chart 1. Getting to the root of today’s choice drivers
Toyota is an example of brand that has been able to successfully leverage values-based marketing through its “Adventure Awaits” campaign, which shows how their SUVs can help bring more adventuresome experiences – either actual or vicarious – to their customers’ lives, thus tapping into an essential value that defines many people.
