Age of Relevance in Marketing
In North America, we use an age classification as one way to segment based on the "generational" gaps. There are a few prominent ones to think about when you develop a consumer based marketing strategy (and even a little bit in the B2B space) and how to execute to those individual.
First lets start with some quick classifications and some stereotypes of the most common generations you might be directing your US marketing towards. I am using the birth years as defined in Wikipedia, although there seems to be varying opinions on the ranges of birth years from source to source.
The Boomer Generation (1943-1960)
"Boomers" is a term used to describe the 76 million Americans born during the Post-World War II baby boom. Almost from the time they were conceived, Boomers were dissected, analyzed, and pitched to by modern marketers, who reinforced a sense of generational distinctiveness. The baby boomers were the first group to be raised with televisions in the home, and television has been identified as "the institution that solidified the sense of generational identity more than any other." They also introduced the world to rock and roll music , for which they hold tremendous pride.
While in their youth, they rebelled against what many referred to as "the institution" and sought after great independence from their parents lifestyles and the government. They sought extremes of independence and many started having children later in life. Many practiced "Free Love," and some felt that marriage wasn't of the same importance as it had been in the past and divorce rates skyrocketed in this generation. About 42% of baby boomers were dropouts from formal religion. They are often classified as "The Me" generation," "The Hippie" generation, "The Lost" generation and several other classifications. They are independent and very social.
Generation X (1961-1981)
Your humble narrator is among the 51 million members of Generation X that grew up in a very different world than the boomers. Divorce and working moms created "latchkey" kids out of many in this generation. This led to traits of independence, resilience and adaptability.
Generation Xers were brought up on television, Atari 2600s and personal computers. They are the generation that was raised in the 1970s and 1980s. In their youth, a pop-culture book led to the term "The Slacker Generation" and society at large started to believe that Generation X was made up of cynical and unmotivated slackers who dressed terribly, listened to depressing and angry music and still lived at home because they could not get real jobs. Generation X took rock and roll and drug use to a whole new level from the Boomer generation.
Generation X feels strongly that they don't need someone looking over their shoulders. At the same time, this generation expects immediate and ongoing feedback, and is equally comfortable giving feedback to others. Other traits include working well in multicultural settings, desire for some fun in the workplace and a pragmatic approach to getting things done.
Generation Xers ushered in the computer generation and are by in large quite comfortable with computers and the Internet. While still very interested in in-person social environments, Generation Xers are equally comfortable with social online settings.
Generation Y (1982-2002)
Generation Y (often referred to as "Millennials") are the 70 million Americans that have grown up in a world with diverse Internet resources, iPods, MySpace and intense multi-tasking — simultaneously chatting on AIM, finishing a problem set, watching television and listening to music. These kids are the kids of the Baby Boomers, heavily immersed in a digital world that may explain Millennials' reputation for being peer oriented and for seeking instant gratification.
According to a study by Career Builder, 87 percent of hiring managers and HR professionals say Gen Y exhibits a sense of entitlement that older generations don't. Many are empowered by their financially stable Baby Boomer parents who allow them to live at home until later in life. Gen Y workers characteristically want better pay, a flexible work schedule and company-provided BlackBerrys and cell phones.
Although they are still in their relative youth and shaping their own identity, American Millennials show less personally social characteristics, a significant portion of which preferring online and telecommunication based socialization. They are completely comfortable with gadgets and new technologies in an unprecedented way. Most don't even actively recall a time before a proliferation of cell phones and home computers.
TARGETING BY GENERATION
In many ways, the three generations are completely different from a targeting standpoint.
The Boomer Generation were the first and last generation who for the most part respond to more traditional means like Television, Radio, Newspaper and direct mail. Surprisingly, A survey of 1,210 Boomers by ThirdAge and JWT Boom revealed that 72 percent of Boomers have broadband connections in their homes. Boomers also are heavy users of “bread and butter” applications such as research before shopping, online shopping and communications and research, the study suggests. What Boomers aren't big on is blogs, social networking, audio and video downloading and streaming as well as networked videogames.
Many marketers believe that Boomers aren't as responsive or trusting of direct online solicitations and prefer traditional marketing means for product and service introductions then they research on their own using Internet technologies and email. Once completed, they make purchase decisions. this may or may not hold true in all cases, but its a pretty good assumption in my opinion.
Gen X uses technology when it intersects with a personal need or fulfills a desire. Studies reveal that 69 percent of online Gen Xers shop online, and 65 percent bank online, higher percentages than any other generation. Gen X is also ramping up its Internet and mobile activities, including reading blogs (21 percent of online Gen Xers do it at least monthly, up from 15 percent in 2007) and texting (61 percent of Gen X mobile subscribers do it today, up from 49 percent in 2007).
Gen Xers in the US ushered in the era of email marketing and advertising and are comfortable with direct online and email solicitations. They also characteristically respond to some of the traditional marketing communications like TV, Radio & print, yet many marketers agree that online means are still more cost effective and show great returns than the higher cost traditional means.
Gen Y is the audience that most marketers are trying to understand right now. Nine in 10 North American Millennials own a PC, and 82 percent own a mobile phone. But it's technology use that sets this generation apart: Gen Y spends more time online — for leisure or work — than watching TV. Seventy-two percent of Gen Y mobile phone owners send or receive text messages, and 42 percent of online Gen Yers watch Internet video at least monthly.
Many marketers feel that Millennials are less responsive overall to direct online solicitations as well as traditional, often preferring social networking assistance like user generated content, blogs and other peer-to-peer means to help them make their buying decisions. This is potentially in some ways an advantage to you global marketers simply because Generation Y is the first truly global generation that have peers worldwide in the sphere of influence.
THE BOTTOM LINE
In North American marketing, there are many, many channels of communications from traditional print, television, radio to online like email, web pages, amazon, ebay and more recently social networking sites like Facebook, MySpace and thousands of other social networking platforms.
The mix that your company needs to design can often be attributed to the Generation you are trying to target. Be sure to do the research and seek out the best mediums to attract and convert business.
Good Luck and be sure to contact us at AmeriStart if you need assistance in creating new marketing mixes to introduce your products and services to the North American Marketplace.
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