News
ENLARGE
An important characteristic that seems to be shared by both locals and visitors to our resort communities is the pursuit of a resort-like lifestyle and the difficulty finding the resources (read cash) to do so. As the economy has constricted, so have both the additional money and time required to support these coveted ways of living. Something's gotta give, presenting interesting questions from a strategic marketing standpoint about how people prioritize their purchasing decisions when there is not enough “extra” to go around. Since our resort economy depends on tourist dollars, we'll focus on that specific segment, but much of the following principles also hold true for locals.
To address consumer motivation we look for guidance from Abraham Maslow, a 20th- century psychologist who created a hierarchy to explain the process people use to prioritize wants and needs. Aptly named Maslow's “Hierarchy of Needs,” his theories became popular in the 1940s-1950s and are the de facto “Economics 201” method for assessing consumer preferences. With apologies to Mr. Maslow for the liberties forthcoming, we'll try to torque his model to the modern era of the lifestyle consumer and their priorities.
n Needs: The foundation of Maslow's hierarchy addresses basic needs, suggesting people's first priorities are essentials needed to stay alive, such as food or water. Since those focused on getting bread on their table are rarely candidates for a destination resort vacation, we're disregarding Maslow's lower tier from our destination travel analysis, shifting our attention to the upper echelons of his pyramid and calling the results the “Hierarchy of Wants.”
n Wants: After needs are satisfied, Maslow claims (and we agree) that people begin focusing on their “wants.” Consumers in this broad market are willing and able to vacation, but also courted by countless competitors with offers to satisfy these “wants.” The trick is to make this group want what you have, or conversely, identify and focus on those who already do. The more consumers “want” something, the more likely they are to find a way to afford it, illustrated in our corresponding “Continuum of Engagement” to the left of the hierarchy. The propensity to engage based on wants is important to keep in mind in a market where money is tight and competition is fierce.
n Self-Actualization: The peak of both our buddy Abraham's hierarchy and our “Hierarchy of Wants” is called “self-actualization.” Those at the top prioritize the activities they are passionate about and always find the time and money to do so. At the very least, these consumers will engage in the activity, and are more likely avid participants. They declare “I'm a skier,” instead of “I go skiing,” letting their lifestyle define who they are and how they allocate their resources. Located at the sport's core, they generate both buzz and a contagious enthusiasm. The power of their passion pushes these consumers to allocate their resources in a way that almost always supports their passion, making them the most loyal segment in both good times and bad.
Mountain locals, here's a quick test to see if you belong in the self-actualized section at the peak of Maslow's pyramid. Take inventory of the toys you put on your car roof rack. If they are worth more than the car itself, bingo! You may not feel wealthy in an economic sense, but you're living a self-actualized lifestyle contributing to the core of sports and industries.
As resorts and their tourism-dependent businesses consider their product attributes and the associated target markets, remember the “Hierarchy of Wants.” Pinpoint those in the marketplace who have an emotional connection with your product and desire what you have to sell, focusing on the passionate and “self-actualized” followers whose relationship with you and your product helps define their lifestyle. Your message will likely hit home in all economic environments, and their loyalty will maintain the most equity going forward.
Admittedly, defining the identity-based customer and determining how a relationship with them can be built and sustained takes time. Stay tuned to future editorials where we'll work to help connect the dots and expand the ways that resort communities and their tourism-dependent businesses can employ the “Hierarchy of Wants” to effectively identify and target this crucial consumer.
Ralf Garrison is the founder and director of the Advisory Group, which provides marketing services to destination resorts around the country, owning and operating the Mountain Travel Research Program (MTRiP) and the Mountain Travel Symposium. You can contact Ralf at rgarrison@adv-grp.com.
To address consumer motivation we look for guidance from Abraham Maslow, a 20th- century psychologist who created a hierarchy to explain the process people use to prioritize wants and needs. Aptly named Maslow's “Hierarchy of Needs,” his theories became popular in the 1940s-1950s and are the de facto “Economics 201” method for assessing consumer preferences. With apologies to Mr. Maslow for the liberties forthcoming, we'll try to torque his model to the modern era of the lifestyle consumer and their priorities.
n Needs: The foundation of Maslow's hierarchy addresses basic needs, suggesting people's first priorities are essentials needed to stay alive, such as food or water. Since those focused on getting bread on their table are rarely candidates for a destination resort vacation, we're disregarding Maslow's lower tier from our destination travel analysis, shifting our attention to the upper echelons of his pyramid and calling the results the “Hierarchy of Wants.”
n Wants: After needs are satisfied, Maslow claims (and we agree) that people begin focusing on their “wants.” Consumers in this broad market are willing and able to vacation, but also courted by countless competitors with offers to satisfy these “wants.” The trick is to make this group want what you have, or conversely, identify and focus on those who already do. The more consumers “want” something, the more likely they are to find a way to afford it, illustrated in our corresponding “Continuum of Engagement” to the left of the hierarchy. The propensity to engage based on wants is important to keep in mind in a market where money is tight and competition is fierce.
n Self-Actualization: The peak of both our buddy Abraham's hierarchy and our “Hierarchy of Wants” is called “self-actualization.” Those at the top prioritize the activities they are passionate about and always find the time and money to do so. At the very least, these consumers will engage in the activity, and are more likely avid participants. They declare “I'm a skier,” instead of “I go skiing,” letting their lifestyle define who they are and how they allocate their resources. Located at the sport's core, they generate both buzz and a contagious enthusiasm. The power of their passion pushes these consumers to allocate their resources in a way that almost always supports their passion, making them the most loyal segment in both good times and bad.
Mountain locals, here's a quick test to see if you belong in the self-actualized section at the peak of Maslow's pyramid. Take inventory of the toys you put on your car roof rack. If they are worth more than the car itself, bingo! You may not feel wealthy in an economic sense, but you're living a self-actualized lifestyle contributing to the core of sports and industries.
As resorts and their tourism-dependent businesses consider their product attributes and the associated target markets, remember the “Hierarchy of Wants.” Pinpoint those in the marketplace who have an emotional connection with your product and desire what you have to sell, focusing on the passionate and “self-actualized” followers whose relationship with you and your product helps define their lifestyle. Your message will likely hit home in all economic environments, and their loyalty will maintain the most equity going forward.
Admittedly, defining the identity-based customer and determining how a relationship with them can be built and sustained takes time. Stay tuned to future editorials where we'll work to help connect the dots and expand the ways that resort communities and their tourism-dependent businesses can employ the “Hierarchy of Wants” to effectively identify and target this crucial consumer.
Ralf Garrison is the founder and director of the Advisory Group, which provides marketing services to destination resorts around the country, owning and operating the Mountain Travel Research Program (MTRiP) and the Mountain Travel Symposium. You can contact Ralf at rgarrison@adv-grp.com.
