Increasingly Bifurcated Consumer Market

I have been conducting in-depth customer needs research on behalf of a few different clients as of late. In the process of conducting this research, I have discovered something quite interesting. Customer needs and benefits have become more bifurcated. That is, the needs and benefits are becoming more separated into one of two buckets. I will label the two buckets "Self-focused Needs" and "Outward-focused Needs." 

Here are some of the needs that arise within the "Self-focused Needs" bucket:

• Wealth
• Income
• Power
• Social status
• Fame
• Prestige 
• Superiority
• Creature comforts
• Luxury

And here are some of the needs that group together in the "Outward-focused Needs" bucket:

• Making a difference
• Contributing to a better society
• Helping others
• Valuing diversity
• Curiosity
• Open-mindedness
• Community
• Global awareness
• Environmental sensitivity
• Empathy
• Compassion
• Aesthetic appreciation

The people who seek to fulfill self-focused needs view those who seek to fulfill outward-focused needs as "soft," "weak," "naive" or "politically correct." This (self-focused) group is driven more by the sense of a zero sum (win-lose) game, a hyper-competitive environment, hierarchy and fear.

The people who seek to fulfill outward-focused needs view those who seek to fulfill self-focused needs as "selfish," "black and white thinkers" or "spiritually unevolved." This (outward-focused) group is driven more by a non-zero sum game, cooperation/collaboration (win-win) and the view that the world is innately friendly and good. 

I find this to be truly fascinating. It is something marketers should keep in mind as they approach customers. 

Marketing and the Deep Understanding of Human Behavior

The best marketers understand why people behave in the ways that they do. They understand people's underlying phobias, fears and anxieties. They understand their hopes and aspirations. And they understand their attitudes, convictions and values.

The best marketers constantly observe human behavior but also strive to understand the motivations that underpin that behavior. The best marketers have some of the skills of anthropologists, psychologists and sociologists and they are constantly conducting informal ethnographic research.  

Do you know what it is like to live and work in a big city such as New York? Do you know what it is like to live and work on a dairy farm? How about a ranch? Do you know what small town life is like? What is it like to be a poor unemployed African American in a dangerous urban neighborhood? What is it like to be a CEO? Or an oil rig worker? Or a soldier who has seen the worst of war? Or the son of a high profile politician? 

What's it like to live in Burlington, Vermont or Corpus Christi, Texas or Boulder, Colorado or Akron, Ohio? What is it like to live in Tokyo or Zurich or Almaty, Kazakhstan? 

What is it like to live in Cuba today? What is it like to live in Syria today? What is it like to live in Papua, New Guinea today?

What is it like to not have a car and only use pubic transportation in a big city? What is it like to not have a car and to walk or ride your bicycle everywhere?

What is it like to never get any exercise other than pushing the buttons on a remote control? What is it like to work out two hours a day and have a perfectly sculpted body?

What is to like to live in the jungle? What is it like to live in the desert? What is it like to live on a remote island?

What is a mother who just lost her teenage son in a tragic traffic accident feeling? Or a father who's daughter just won a gold medal in the winter Olympics? What is going on in a Tea Partier's head? How come some people are so liberal? What does it feel like to be a 45 year-old laid off factory worker who has not worked for five years?

If you are pro-life, do you really understand what motivates pro-choice people? If you are pro-choice, do you really understand what motivates pro-life people? If you are a strong gun control advocate, do you understand why some people will fight to the end to preserve their right to bear arms? If you are a gun advocate, can you put yourself in the shoes of a staunch gun control advocate?

What is it like to have grown up Mormon? What is it like to have grown up as an Evangelical Christian? What is it like to have grown up in a nudist colony? 

What is it like to have grown up with an abusive father? What scars remain from having been raped as a teenage girl? What is it like to have had a near death experience? What is it like to have experienced altered consciousness as the result of a drug induced trip? Why do some people have strange compulsions?

Why are some men afraid of strong women? Why are some people so self-centered? What is it like to have grown up in an orphanage? What is it like to be a refugee? What would life be like if you knew that you had a disease from which you could die at any moment? What is it like to be HIV+? 

How does it make you feel that your spouse makes five times as much income as you do? How do you feel about graduating in the bottom 10% of your class? What's it like to win $100 million in a lottery? What if your brother is a doctor, your sister is a lawyer and you are an unemployed contractor?

These scenarios are just the tip of the iceberg. My point is that marketers should constantly consider how others are feeling, what their insecurities are, what pressures they have to bear, what forms their attitudes, what their beliefs are and what fears drive their behaviors. Because marketers need to know what motivates people. And the only way to do that is to understand people, not just at a superficial level, but deep down. 

And it would help to understand different societies and cultures and even to understand different psychological disorders such as social anxiety disorder, post-traumatic stress disorder, obsessive compulsive disorder, bipolar disorder, depression, narcissistic personality disorder and hypomania. 

It is even instructive to know the different motivators for people's religious fervor. A good book to stimulate your thinking on this is The Varieties of Religious Experience by William James. Further, it would be very helpful to understand what it is like to be a working poor person, a blue collar worker, an upper middle-class professional and the member of an elite uber-rich family. 

Again, marketers must strive to really understand human motivations at a deep level. I wish you great success in developing your anthropology, psychology and sociology skills. 

Should Marketers Rely on the Reptilian Brain to Motivate People?

Roughly, the brain can be divided into three parts, the reptilian, the limbic and the neocortex. The reptilian brain focuses on survival and is primarily driven by fear but also includes emotions such as aggression, greed, dominance and submission. The limbic system is the emotional part of the brain and it relates pain and pleasure to activities that hurt and help you. It does this by linking particular activities to pain and pleasure in one's memory. The neocortex is the newest addition to the human brain. It controls functions such as logic, reasoning, creative thinking, language, the integration of sensory information and other higher thinking functions.

Marketers have found that people make decisions primarily based on emotions, and in particular, the emotion of fear. That is, people primarily use the reptilian and limbic parts of their brains to make decisions even if they view themselves as being highly evolved rational human beings. 

Here is what I would ask marketers to consider. Through fear-based brand messages, we continue to fan the flames of peoples' fears, fears that cause anxiety and irritability and often irrational behaviors. While this usually works, I would ask you to consider brand campaigns based on noble values - freedom, beauty, grace, kindness, compassion, joy - these sorts of things. Consider Dove's Real Beauty campaign or Patagonia's Don't Buy This Jacket campaign or even Newman's Own's All Profits to Charity approach. All three campaigns are highly successful. 

Marketers can make a positive difference in the world by helping humans move beyond the ancient reptilian brain to parts of our brains that are more aligned with how we want to evolve as a species.

Maslow's Hierarchy of Needs

Every marketer would do well to understand Maslow's Hierarchy of Needs. First, people's physiological needs must be met, then their safety and security needs. Next, they need to feel as though they belong somewhere. After they have found their tribe, they seek the respect of others. When they become fully confident about their social status, they refocus their energies on achieving their highest potential, emphasizing ethics, creativity, spontaneity and other higher ideals. 

Most, but not all, brands focus on the top three rungs - love/belonging, esteem and self-actualization. Think of the brands that focus on belonging. Certain beer brands do this. Part of Harley-Davidson's brand position is the "comradeship of kindred spirits." Friends was a television show completely based on the concept of camaraderie. A significant portion of people are focused on achievement and self-esteem. Because of this, many brands primarily confer social status. Consider Mercedes-Benz, Gucci and Salvatore Ferragamo. Others are focused on self-actualization. Patagonia and Newman's Own are examples of this. Some brands straddle different needs. Tesla operates in both the esteem/social status and self-actualization rungs as does Apple. With its fun designs and high price points, Vilebrequin also straddles the esteem and self-actualization rungs. Dove's Real Beauty campaign both promotes self-esteem and an enlightened view of "real beauty," causing it to span the top two rungs of Maslow's Hierarchy. Robert Graham's tagline is "knowledge wisdom truth." This, together with its highly creative designs, places it on the self-actualization rung.

Historically, Volvo focused on a safe ride especially for family members, putting it on the safety and love/belonging rungs. Because of its price point, it was also partially on the esteem rung. With its frequent repositioning over the past decade, its owners have pushed it up more to the esteem rung.

Where does your brand operate on Maslow's Hierarchy of Needs?

Brands, Pain & Pleasure

People are attracted by anticipated pleasure or driven away by anticipated pain. These are humanity's primary motivators. These motivators are so powerful that they override almost every other motivator. It is important for brand marketers to understand this. Your brand either needs to promise some sort of future pleasure or the ability to eliminate or significantly reduce some sort of future pain.  There are many possible paths to perceived pain and pleasure. Your brand needs to tap into at least one of them. Know that pain and pleasure can be physical or psychological or even spiritual.

Fear of death and damnation and lack of status and lack of virility and lack of acceptance and even the lack of meaning are all possibilities. On the positive side, safety and comfort and social status and sexual gratification and personal control and freedom are other possibilities. But the possibilities in both directions are innumerable.

The key is to understand that people will do almost anything to avoid pain and to seek pleasure.

Understanding Your Consumer

I am in the process of buying another sailboat. As I look at sailboats and ponder this decision, I realize how complicated it is to know what I want and why.

How much do I want to spend? Can I afford a new boat? Will I pay cash for it or finance it? Do I want a boat that has been kept in salt water? How much will it cost to haul the boat from the place we buy it to the place we will sail it? Do I want a maintenance free boat? (There is no such thing.) How important are classic lines and the aesthetic appeal of the boat? (A lot.) How important is it to have the best looking boat in the harbor? Will I be racing the boat? Do I want it to have a specific PHRF rating? How well does it point up into the wind? Does it sail well in light air and in heavy winds? How big of a boat do I want? Does it need to be rigged so that I can single hand it? (Yes.) Do I want a ship’s wheel or a tiller? (A tiller.) What equipment comes with the boat? What electronics does the boat have? What sail inventory comes with the boat? Where will I be sailing the boat, on Lake Ontario (a Great Lake), Canandaigua Lake (a Finger Lake), the Maine Coast or somewhere else? One yacht broker suggested that I buy a larger boat and then charter it through a boat chartering company in the Caribbean. When I decide on what body of water I will sail the boat, then I need to decide in which bay, harbor or port I will keep it. This includes deciding on the marina (or yacht club). It also includes deciding on a slip or a mooring.

Will my wife be joining me on the boat? How often? How big does the cockpit need to be? Does it need to seat eight people comfortably? Does it have a dodger to keep us out of the sun? Does it have a cabin? Does it have a head? Does it have a galley? How many people does it sleep? Will we be inviting other couples out with us? Overnight? How much teak and mahogany does it have below deck? How will the boat affect my relationship with my wife? How will it affect our social life?

What will the resale value of the boat be when I want to sell it? (A fraction of what I paid if it is a new boat but perhaps something very close to what I paid for it if it is an older boat and I maintain it well.) How often will I use the boat? Will it distract my wife and I from our social calendar, our other hobbies and our travels? Or do we want it to become a significant part of our lifestyle? Will we anchor the boat in coves and sleep on it at night? Will we swim off the boat or is the water too cold or too polluted? Are we mostly going to do day sails or will we sail it for longer periods of time? If we sail it on Lake Ontario, will we just sail it locally or will we sail it to Toronto, Niagara-on-the-Lake, Sackets Harbor, the Thousand Islands, Montreal, Quebec City and the Gulf of St. Lawrence? If we sail it that far, will we sail it into the other Great Lakes, down the Eastern Seaboard and across the Atlantic Ocean? What additional equipment will we need if we do that? How important is brand? I am partial to Hinckley, CW Hood, Baltic, Nautor’s Swan, and Leonardo, but they tend to be too expensive for me. I have also found that I like Frers, Colgate, Schock Harbor, Tripp and Hylas. But I might be convinced to buy another brand. Would I ever consider mass production brands such as Catalina, Hunter, Beneteau or Jeanneau? Should we just charter other people’s boats in cool places instead? Or should I just volunteer to crew on someone else’s boat at one of the local yacht clubs? Or maybe I should just get a Sailfish or a Hobie Cat.

This is the type of detail a company must consider when developing, branding and selling its products. This is the nuance of a person’s purchase decision.

What People Want

Brands that really understand consumers and their needs and desires are more likely to succeed, especially if they are able to successfully fulfill these needs and desires.

So what do people want?

People want to be safe. They want to be free to pursue their dreams. They want to be accepted by others. They want to be respected and even admired. They want to be loved. They want to be at peace. But sometimes they want to feel the rush of adrenalin.  Sometimes they want to be surprised. Sometimes they want to feel on the edge. It makes them feel more alive.

People are attracted to beauty in all of its forms – beautiful people, beautiful homes, beautiful cars, beautiful boats, beautiful gardens, beautiful architecture, beautiful clothes, beautiful jewelry, beautiful paintings, beautiful furniture, beautiful appliances and the list could go on and on.

People enjoy stimulation of their senses. They enjoy colors and flavors and scents and sounds and textures.

People appreciate noble qualities such as wisdom and truth and grace and beauty and freedom.

People like stretching and motion and physical exertion – skiing and skating and dancing and yoga and swimming and tai chi.  

People like learning and variety and stimulation and anything that is new.

People like wealth and status and power.

Immersion in nature rejuvenates people. It offers them solace. It calms them. It centers them.  

Whether brands deliver these things symbolically, metaphorically or in actuality, deliver them they must if they are to remain relevant and in demand.

Understanding the Customer

Brand naming, brand positioning, brand architecture, product design, package design, advertising campaigns - what do all of these and every other marketing component have in common? To be successful, they must be based on a deep understanding of the customer, including his beliefs, attitudes, values, hopes, fears, desires and needs.

I continue to be surprised by how many of our clients lack this customer insight. They create new brands and sub-brands without it. They name brands without it. The create tag lines without it. They design products without it. They create new packaging without it. And they even develop new advertising campaigns without it.

Every organization should have resources and processes/mechanisms to gain deep customer insight. This could be in the form of consumer managers, marketing research professionals, salesforce feedback mechanisms, customer co-creation processes or something else.

Related to this is the belief that "our brand is for everyone," giving the marketer a "pass" on creating more focused marketing messages and campaigns. "We can't say anything in particular because our brand appeals to such a large cross-section of people."

Central to brands are their focus and targeting. This is what makes them relevant and compelling. Take the time to get to know your customers so that you are able to focus all that you do for greatest advantage based on their particular beliefs, attitudes, values, hopes, fears, desires and needs.

I wish you every success with this.

Why People Buy Products, Services and Brands

Why do people purchase the products, services and brands that they do? At a minimum, marketers should think about this periodically. Ideally, marketers should always be thinking about this. So, why do people purchase specific things?

• They solve problems.  They make my life easier or safer or more pleasant.
• They are whimsical. They make me smile or laugh. They make me feel playful. They entertain me.
• They are beautiful. They are a source of awe or wonder. They calm me. They make me feel good about my life. I love to be surrounded by beauty.
• They surprise me. I love their unexpected nature. They fulfill my need for mental stimulation and variety.
• They make me feel important. They give me status. They feed my ego.
• They are addictive. They fulfill a deep craving. They are pleasurable. They are satisfying.
• They provide me with information or knowledge or access.
• They give me more time. They increase my freedom. They reduce my workload. They release me from mundane tasks.
• They reduce my anxiety. They increase my peace of mind. They give me one less thing to worry about.
• They stimulate my senses. They look, smell, taste, sound or feel good.

Think about this. What are some other reasons people buy things? Why do you buy what you buy? What was the most recent product, service or brand that you purchased? Why did you purchase it? Why did you choose it over the competitive alternatives? What was your most memorable purchase? What made it memorable? What product, service or brand do you value the most? Why do you value it?

This sort of thinking should be second nature to marketers. After all, isn’t marketing the art and science of motivating people to buy specific products, services and brands?

What Do Upscale Consumers Want?

• High quality including choice materials, fine craftsmanship and superior aesthetics
• Outstanding customer service including attentiveness, respect, courtesy and civility
• Exclusivity, rarity and unique privilege of ownership
• Brands that confer status
• History, pedigree and a well told brand story
• Minimized risk

(c) 2014 by Brad VanAuken, excerpted from Brand Aid, second edition, to be published in December