It is very much essential to understand how it works. In this article, it will be explained through an example and the types with the advantages of lifestyle segmentation.
What is Lifestyle Segmentation?
The procedure of segmenting the market will be based on lifestyle factors like purchasing habits. It is known as lifestyle segmentation. It is a common business practice. Using one or more lifestyle categories since the marketing mix’s target is the objective.
A marketing mix is the combination of elements that include the products, promotional campaign, price, and distribution network.
How does lifestyle segmentation work?
The goal of a focused market or business is not to reach every consumer in the market. Since it will be the case with mass marketing. So, they will divide the market into whole many groups that have similar requirements and aspirations. If it is the consumer, reseller, or industrial market. After segmenting the market, they evaluated the profitability by using each segment and the selected one or more to focus on the particular marketing mixture. The targeted market is the one which they would finally decide to serve.
The four basic market segmentation categories like the geographic demographics, psychographics, and behavioral. To divide the market into segments that are based on:
- How people spend their time
- The things in their immediate environment
- The things which are essential to them,
- Lifestyle segmentation
- The type of psychographic segmentation
It involves the gathering of information about the potential customers’ habits and preferences that are made through surveys, information from loyalty programs, or data from previous sales.
Take selling wine as an example; Let’s say you want to start offering monthly wine subscriptions. You choose to target a narrower market in your marketing mix rather than the full consumer market.
Lifestyle Segmentations Type:
To segment your market, consider the following major lifestyle profiles:
- Innovators: They are independent buyers which leads to varied lives, it looks for upmarket or niche goods that satiate their craving for the finest things in life and do have the money to purchase them.
- Thinkers: All these mature, fiscally responsible, self-aware, well-educated, and well-informed consumers have the cash to buy what they want, but they reserve their purchasing decisions for when they had all the facts and are focusing on the long-lasting, worthwhile things.
- Achievers: These are focused on the customers having hectic schedules which include time for their families, house of worship, and jobs. The persons do select the time-saving products with established reputations.
- Believers: These are traditionalists who have strong opinions about families, nations, and religions. They are predictable and like to know about the products, and generally, they are Americans.
- Strivers: These jovial or fun-loving customers do believe that rich and success go hand in hand, but they might not have the resources that maintain the luxurious lifestyles they desire. They still engage in active, impulsive shopping.
- Makers: They are the DIY types who are happiest while working on a project of some kind, it might be cooking, fixing a car, or building anything. People do choose functional, basic products over luxurious ones.
- Survivors: There are consumers who are resource-constrained and averse to change in order to prioritize safety and stability. They are arguably the most cautious consumers and favor tried-and-true products over cutting-edge ones.
Advantages of Lifestyle Segmentation
The benefits of lifestyle segmenting the market are as follows:
By gaining a competitive edge:
By understanding the lifestyle preferences and behaviors of your primary clients, you may offer benefits and cater to client needs and wants that your rivals may not be able to satisfy or even be aware of, allowing you to take hold of the market for your chosen lifestyle segments.
Finding new market opportunities:
By knowing your customers’ lifestyles and purchasing habits, you will be create new items or venture into untapped markets which will appeal to them, expanding both your client base and your revenues.
Maintaining current clients is just important as attracting new ones. Yet, shifting lifestyles are frequently to blame when customers stop using the product or service. (The move from cable to streaming entertainment services is a simple one of many examples). You are more likely to maintain them as satisfied clients and less likely to lose them to the competition or the next fad whether you are continuously tracking the changing lifestyles of your customers.
- The procedure of segmenting a market into groups of people based on shared lifestyle traits like purchasing habits is known as lifestyle segmentation.
- It is accomplished by acquiring customer intelligence, segmenting the market based on that insight, and choosing one or more markets that are targeting your marketing mix.
- Consumers who are addressed in this fashion may be divided into the categories of makers, achievers, innovators, thinkers, believers, and achievers.
- One competitive edge, concepts for novel goods or services, and client retention are all advantages of lifestyle segmentation.