Thursday 16 July 2015

VALS Framework


US Framework and VALS™ Types

VALS  is a proprietary research methodology used for psychographic market segmentation. Market segmentation is designed to guide companies in tailoring their products and services in order to appeal to the people most likely to purchase them.
VALS segments US adults into eight distinct types—or mindsets—using a specific set of psychological traits and key demographics that drive consumer behavior. The US Framework, a graphic representation of VALS ("Values, Attitudes And Lifestyles"), illustrates the eight types and two critical concepts for understanding consumers: primary motivation and resources. The combination of motivations and resources determines how a person will express himself or herself in the marketplace as a consumer.
VALS assigns individuals a VALS type on the basis of their responses to questions in the VALS Survey. VALS-typing populations of interest, such as customers or constituents, is the first step in a VALS approach to achieving strategic marketing and communication goals.
Using VALS provides clients with:

  • A fresh perspective by effectively "putting them inside the head" of their customers
  • Rich, customized, consumer profiles or personas
  • Distinctive communication styles of their best targets.
The main dimensions of the VALS framework are primary motivation (the horizontal dimension) and resources (the vertical dimension). The vertical dimension segments people based on the degree to which they are innovative and have resources such as income, education, self-confidence, intelligence, leadership skills, and energy. The horizontal dimension represents primary motivations and includes three distinct types:
Consumers driven by knowledge and principles are motivated primarily by ideals. These consumers include groups called Thinkers and Believers.
Consumers driven by demonstrating success to their peers are motivated primarily by achievement. These consumers include groups referred to as Achievers and Strivers.
Consumers driven by a desire for social or physical activity, variety, and risk taking are motivated primarily by self-expression. These consumers include the groups known as Experiencers and Makers

Primary Motivation: Ideals, Achievement, and Self-Expression

The concept of primary motivation explains consumer attitudes and anticipates behavior. VALS includes three primary motivations that matter for understanding consumer behavior: ideals, achievement, and self-expression. Consumers who are primarily motivated by ideals are guided by knowledge and principles. Consumers who are primarily motivated by achievement look for products and services that demonstrate success to their peers. Consumers who are primarily motivated by self-expression desire social or physical activity, variety, and risk. These motivations provide the necessary basis for communication with the VALS types and for a variety of strategic applications.

Resources

A person's tendency to consume goods and services extends beyond age, income, and education. Energy, self-confidence, intellectualism, novelty seeking, innovativeness, impulsiveness, leadership, and vanity play a critical role. These psychological traits in conjunction with key demographics determine an individual's resources. Various levels of resources enhance or constrain a person's expression of his or her primary motivation


VALS type of individual:

Primary Type- Striver, Secondary Type – Experiencer

As is clear from the framework, a striver is one who stresses on Achievement but lacks resources compared to an Achiever. The resources in this case are not necessarily financial and could also mean the efforts put in or the energy levels of the individual. In addition being someone who places a great emphasis on Achievement, it is imperative for a Striver that his achievements are valued by others and hence he seeks the approval of those around him and emulates the behavior of those that he perceives to be affluent and successful.
A case in point could be a Tata Nano. Indeed for someone switching from a 2-wheeler to a 4-wheeler, buying such a product is an achievement, a way of showing others that he too can buy what those around him are buying.
Another example could be light-weight jewellery, or American diamonds, which look just like their more expensive counterparts but are definitely more affordable and define success for the striver.

So what kind of market strategy would work for a Striver?

Take a look at the following ad:

Medium : TVCs work best to showcase emotions and have a wide reach. This ad by Tanishq for affordable diamond jewellery targets a striver who wishes to own exquisite diamond jewellery and flaunt it.
Message: The TVC essentially says “Now you can show off your very own diamond set, that looks as good if not better than your rich neighbors and guess what? It is within your budget”. So we see that, the strategy to market a product to a striver, is to emphasize on the point “because you are worth in” , not in a way that a premium brand like L’oreal does rather in a way that says “ you deserve it, you can afford it, so why not go for it!?”

VALS Type- Thinker

Now a thinker is someone who is motivated by ideals, and has a well- defined thought process. She takes informed decisions after a thorough research on the product, its features and functionality. She is conservative, practical and knowledgeable and has a high regard for institutions and authorities.

Marketing and selling a product to a Thinker would involve taking her through the buying process by assisting her at each stage of information search and evaluation of choices, in such a manner that information is readily available at every stage. The product could be anything from a can of juice to a television set or a car, but the strategy is the same. Provide all the information about the features, attributes and benefits and educate her on the benefits of the features rather than the feature itself.

The thinker looks for comfort, durability and value in the products she purchases, so services and warranties are crucial. Also since they are governed by ideals a high emphasis is placed on quality, and compliance to standards and rules. In essence they are rationalists and not driven by emotions

The best example in this regard could be for a savings scheme or a product that ensures health for the family. The ads below illustrates this :
Why the ad works?

Message: A thinker is motivated by ideals. The message of the ad resonates with this ideology of the thinker, as it talks about the importance of saving, regardless of the amount. The option of saving is conservative and practical and talks of value, just like the thinker desires.
Relationships: The father-son scene towards the end of the ad, is indicative of the concerns that a parent has for his child and how inculcating a savings mentality can go a long way in ensuring a secure future for the child. It makes every parent and individual give a serious thought to the management of their wealth.
Value: The value is high in terms of durability, practicality and consistency. This value proposition is conveyed effectively through the ad.



No comments:

Post a Comment