Presentation on theme: "Marketing to Generations X & Y"— Presentation transcript:
1 Marketing to Generations X & Y Presented by Kaleen Haines
2 Generation X & Y Who are they? What do they value? How do you reach them?First time that the generations are marked by smaller periods and not by a single significant event, such as a war
3 Who is Generation X Born between 1965-1980 Major events: AIDS, Fall of Berlin Wall, Cold War, Pop Culture, High Divorce Rates, Invention of PC, Multiple Recessions, Homelessness, InternetOther names: Street Savvy Generation, MTV Generation, “Baby Bust”, “Latchkey Kids”Independent & SkepticTechnologically savvy and highly educatedMore health conscious than their parentsResentful & RebelliousDiverseSelf-oriented and pragmaticAdopted hand-me-down issues from the BoomersSee themselves as survivalists, and that no one will take care of them other than themselvesSeen multiple institutions fall around them (marriage, economy)Street Savvy Generation & Latchkey Kids because they grew up with a TV as a babysitter and parents at work
4 Why Gen X 22% of total spending Powerful, married with kids market Prime in purchasing power (peak income and spending years)Tammy Erickson, author of “What’s Next Gen X”. She says, "[Gen X] really have gotten the short end of the stick from a monetary standpoint. Right now at the recession the bulk of Gen X is in both their peak income and peak spending years of life. Your peak income is being limited at a time when you'd want to be maximizing it. And your peak spending is occurring at the time when you're least likely to have a lot of discretionary income. They're much poorer as a generation than boomers were through no fault of their own."Why Gen X Won't Save Our Economy: Inside the Story by the Numbers; By: Matt Carmichael; September 06, 2010
5 Generation X Values Work/Life Balance Fun Flexibility & Freedom Work is “just a job”Trust (in order- self, friends, others, media)Straight TalkRisk Taking"They have trouble making decisions. They would rather hike the Himalayas than climb a corporate ladder. They have few heroes, no anthems, no style to call their own. They crave entertainment, but their attention span is as short as one zap on the TV dial. They hate yuppies, hippies, and druggies. They postpone marriage because they read divorce. They sneer at Range Rovers, Rolexes, and red suspenders. Things they hold dear are family life, local activism, national parks, penny loafers and mountain bikes. They possess only a hazy sense of their own identity but a monumental preoccupation with all the problems the preceding generation will leave for them to fix." This description, taken from a Time magazine cover story, describes Generation X. June 9, 1997
7 Marketing to Gen XersProduct concerns – (1) Affordability, (2) Quality, (3) TrendyInternet & Mobile Technology Strategies: Generation X is the most likely group to bank, shop, and look for health information online.Use Yelp (more likely to research while shopping online)69% own a PC, 56% own a mp3 playerWilling to try new brands (note affordability)Clear Communication is key ( blasts should have the name so they don’t feel grouped)Offer 100% money back guaranteesGive suggestions, not rulesDirect MailExperience-based MarketingUse humorBe genuine, relevant , and transparentSkeptics needs reason to buyPew Internet & American Life ProjectNear equal in ownership to Gen Yers in most areas. They just use the technology differently (less texting, picture sending, social media networking, etc.) Gen X is also very similar to Millennials in ownership of certain devices, such as game consoles. Members of Gen X are also more likely than Millennials to own a desktop computer.Direct Mail: Gen X seems to have a greater appreciation for direct mail than the older Baby Boomers. According to a study conducted for the U.S. Postal Service, 86% of Gen X bring in the mail the day it’s delivered. Gen X rate 75% of the mail they receive as valuable. 74% of Gen X Direct Mail readers read retail advertising mail.Online: Gen X online habits are so fractured that it’s hard to pin down. However, more than any other generation, Gen X likes to research while shopping online. They read more reviews, and visit more opinion sites. This would suggest a couple of tactics, ramping up your presence on Yelp and other opinion websites, also using Keyword Search Engine Advertising.Marketing to Generation XWritten on June 27, 2011 by Jay EhretRob Frankel, author of The Revenge of Brand X offers his opinion as to the cause of this: "Gen X is called Gen X because they had no unifying cause. Consequently, consumerism moved into the vacuum. The way to target Gen X'ers is by trying to convince them that other Gen X'ers are doing the same thing; something they can join and to which they can belong."-Has Gen X Fallen Through the Cracks; Vivian Manning-Schaffel; December 16, 2002
9 growth trend is especially pronounced among year olds—Twitter use for this cohort roughly doubled between November 2010 and May 2011, from 9% to 19%Twitter Update 2011Jun 1, 2011by Aaron SmithPew Internet and American Life Project
10 Honda Success http://www.youtube.com/watch?v=HYhrYCBdFp0 Honda’s research showed that Gen X had stronger emotional needs than the boomers. They want to be practical and responsible, but not wait for nice thingsHonda worked with IMDB, MTV.com and Citysearch to gather their existing content with high Gen X appeal in one place for Accord to sponsor. IMDB is creating a microsite of its video content from 1980s movies. Accord is the charter sponsor of Citysearch's "on the street" videos highlighting local hotspots in top-10 markets. And MTV will have a custom co-branded environment with content including vintage video, movies and music popular with Gen XersHonda's in Hot Pursuit of Gen XWith All the Boomers It Can Handle, Automaker Goes After New DemoBy: Jean Halliday Bio RSS feed Published: September 10, 2007
11 Volkswagen “Driver’s Wanted” Advertising that works for Gen Xer is aimed right at their love of "experiences," those activities that arouse their sense of adventure and passion. Volkswagen of America's "Drivers Wanted" spots hit that chord. "VW of America hired a new agency because the population dip was killing them and their sales were at an all-time low in this country," points out Ms. Daniels. "The agency did research to find out who the VW driver was. It turned out that the car appealed to people who like the driving experience but couldn't yet afford a BMW: the Gen Xers. So they developed the "Drivers Wanted" campaign and aimed it right at them. The spots were successful with Gen Xers because they had the kind of 'energy' this group admires. Their style was quirky and the campaign even offered the ultimate Gen X status symbol, a Trek bike, as a give-away. The combination struck a chord with Gen X and they bought. The results were a 25% increase in sales and a real niche as the Gen X car.“
12 Volvo S60 http://www.youtube.com/watch?v=p6CI6avLN6M Gangeri: In the fourth quarter of 2010 we launched our new sports sedan, the Volvo S60. We continued that launch through a multichannel, integrated approach, and delved into some mobile efforts. In conjunction with the S60 launch, we ran a value-add campaign with Major League Baseball. We chose MLB because the S60 is one of the more male-focused vehicles in our lineup. MLB has an At Bat iPad app that gives baseball fans the ability to watch every single Major League Baseball game on their iPads. The paid app is on the pricier side—$120 for the season.As an MLB partner, we created a branded Volvo wrapper for the At Bat app. We felt that if we were going to sponsor the app, we needed to create a value proposition. So we gave the first month of the application away for free. We weren’t just throwing marketing messages at the app users; we were giving them something back. And then, if they were interested in learning more about Volvo, they had the opportunity to dig deeper. We also ran media against that campaign within appropriate online properties.How Volvo Targets Gen X DriversPosted By: Stephanie ReeseAN INTERVIEW WITH : Linda Gangeri Manager of National Advertising Volvo CarsAugust 3, 2011
14 Burton Snowboardsa new product can be customized to the needs of this group and do very well. Ms. Daniels sites Burton snow boards as an example of a products that has changed an industry by appealing to Gen X. "Skiing is a Baby Boomer activity. Snowboarding became the icon for Gen X and Burton owned the market for quality boards," she says.Marketing to Generation X ParentsBy KGA Advertising
15 Pepsi http://www.youtube.com/watch?v=po0jY4WvCIc Generation that put the “pop” in pop cultureCombines both pop culture and music
16 Do Nots with Gen Xers Force a connection Recycle the past Hard Sells Mass MediaHype & GimmicksDirect AdvertisingOver use political, moral, or emotional topicsBrand Labeling & StereotypingTraditional notions and normsGen Xers are familiar with marketing techniques aimed at boomers, and aren’t receptive to themGen Xers are highly emotion, and use of political, moral, and/or emotional tactics should be used cautiously6 Rules of Marketing to Generation XPosted by Cheryl Sowa on Tuesday, December 22, 2009
18 Generation Y Who are they? What do they value? How do you market to them?
19 Who is Gen Y Born between 1981 – 1994 Events: War, 9/11, Columbine, Rise of Technology, Social Media, Reality TVChange in parental relationshipQuick, Mature, Smart, DemandingSelf SufficientCelebrate diversityAKA Millenials, Nexters, Net Generation, Echo Boomers, Nintendo GenerationGrown up in Information AgeGrowing up in a digital world holding new beliefs and ideologies.“Parents today treat their children almost as equals and give their opinions considerable weight when making major purchases. As a result, today's Generation Y teens have direct input into virtually all purchasing decisions that their parents make, adding to their impact on the marketplace.” Grown Up Digital, Don TapscottMajority will never own a watch or landline phone (Marketing to Gen Y, Lacroix)More than 60 million Gen Yers (doubles Gen X) Gen Y as a demographic is going through huge life changes right now: graduation from high school or college, moving out of the house, getting married, starting new jobs, and starting families.
20 Why Target Gen YSize 3x’s the size of Gen X (approx. 70 million strong)Accustomed to more possessionsGreat purchasing power ($600 billion)Will replace baby boomers68% of new births are to Millenial momsKids today have roughly four times the amount of toys that their parents had at that age. Forexample, the average amount spent (in adjusted dollars) on toys for kids hasgone up from about $50 per child in 1972 to over $200 per child in 1992, themiddle of Generation Y. Growing up in possession of many different productshas set this young generation’s expectations for future purchases at a high level.Of the $6.5 trillion spent on an annual basis by consumers in theU.S., over $600 billion is spent by the approximately 70 million members ofGeneration Y. Today, these Millennials have $150 billion in direct purchasingpower and almost $500 billion in indirect purchasing power, amounts fargreater than what their parents ever had. Replacing baby boomers in purchasing power.
21 Generation Y Values Community Environment Optimism Authenticity InnovationWants to make a difference/Meaningful workWants significance rather than successPassionEntitled: I don't feel "entitled" to anything I haven't earned, but I certainly feel entitled to pursue success in life by any and every means necessary.Job Hopping: Most importantly, I have been able to learn so much while still earning a living and making a professional contribution to the industry. Call it what you will, but "job hopping" isn't a matter of loyalty, it's about students graduating into a terrible economy and making the best decisions based on the options available. Besides, if the past 15 years have taught us anything about companies, it's that loyalty is no longer rewarded. The longest-working employees are typically the first to get cut when the ax falls.2011 Cisco Connected World Technology Report showed:Social media access, device freedom and a mobile work style are becoming more important to college graduates than salary3/5 students think they have a right to work remotely with a flexible schedule7/10 students believe being in an office regularly is unnecessary'Millennials Are Morons' Stories Are Slight to Entire GenerationIt May Be a PR Coup for a Women's Etiquette School, but This BusinessWeek Trend Piece Is Bad JournalismBy: David Teicher Bio Follow on Twitter Author RSS feed Published: November 08, 2010
22 Marketing to Gen YersSocial Media – This is the most effective way to reach Generation Y onthe Internet. Facebook, MySpace, Twitter, YouTube, Second Life, Flickr,and DIGGBlogsMake them feel specialBe smart and funny (but simple)AUTHENTICITYExperiential opportunitiesShow, don’t tell and then LISTENConnect to LifestyleBe socially responsible and invest in employeesWants cheap, high quality product, fast service, and an experience (Marketing to Gen Y; Lacroix)Less skeptical, more brand conscious, & loyal (Tapscott)Quickest changing demographic, and hardest to reachThink of them not as where the message ends, but as message carriers. WOM incredibly important.94% of Gen Yers responded that they would purchase a product if they had a good experience with it (Event Marketing Institute Survey)Let Gen Yers define what the experience/product means to them, not you telling them what it isExperience marketing: concerts, extreme sporting events (X games), movies, outdoors, video games, social networking sites (Marketing to Gen Y; Lacriox); product development, prosumption, collaborationConnecting to Lifestyle, they buy multiple products in relation to lifestyle products (not just one or two)
25 Old Spice http://www.youtube.com/watch?v=uLTIowBF0kE Generation Y. The campaign includes TV commercials, takes advantage of socialmedia, and has a quirky interactive webpage geared at this segment.In addition to the highlysuccessful TV commercials are a series of YouTube videos starring “the manyour man could smell like” answering user submitted questions in a comicalfashion. A large number of the questions don’t have anything to do withdeodorant, but are extremely effective in engaging Generation Y.Successful because genuine, not trying to hard to be funny, simple, unique, and memorable.Takes full advantage of social media. The YouTube videos are the topic of constantdiscussion between teens and their peers, adding to the products credibility.There are ads on facebook directing consumers to the website and YouTubechannel which has resulted in the initial video reaching almost 20 million views!Old Spice’s attention to the interests and lifestyle of Generation Y has made thiscampaign their most successful to date.Source: Marketing to Gen Y; September 2010; Shikatani Lacriox; Campbell Anderson (intern)
26 Ford’s Success Ford’s People Fleet Ford MustangReality Based MarketingThe Peoples Fleet has five Ford Fiestas for eight weeks. Four organizations get cars for all eight weeks while the fifth Fiesta is called the Project Car. It's awarded for one week to nonprofits across Los Angeles through an application process. Every Tuesday a webisode is released about each of the four featured organizations. In addition, there is a project element called "Your L.A.," inviting people to submit an idea for improving Los Angeles. The vote with the most ideas will be award $10,000 to make their idea happen. Ford Drives Gen Y Project in L.A.The People's Fleet Works With Communities to Give Their Goals a LiftBy: James Toney Bio RSS feed Published: October 22, 2010Simply put, the People's Fleet is a fleet of five vehicles available to nonprofit organizations in Los Angeles for a specific amount of time to help them accomplish their missions. We then create webisodes to showcase the impact the nonprofits are making locally and to encourage more support for them. No one has to petition friends to vote in order to receive a car�you simply apply and, if one is available, you get it.November 1, 2011: Year-to-date, Ford is the best-selling brand of vehicles in America with sales totaling 1,700,618, up 17 percent. With this performance, the Ford brand is now on track to increase its market share this year by about 1 percentage point – which would mark market share gains for three consecutive years. (MediaFord.com)
27 YouTube Partner Program http://www.youtube.com/creators/ The YouTube Partner Program allows budding entrepreneurs to get paid to make videos and pocket a cut of the ad revenue."We have hundreds of partners that make over $1,000 a month, and we have several that are making six figures and really are supporting a living off of YouTube," Mehotra says.Vloggers have to comply with FTC and disclose sponsorship interestSources: How Cool Brands Stay Hot websiteGMA: July 2010 (Noll & Ferran)Haul Videos"Haul videos are the perfect marriage of two of Generation Y's favorite things: technology and shopping," Kit Yarrow, a consumer psychologist, told "GMA" in March for an initial report on this phenomenon. "It's a vicarious pleasure. You don't have to spend the money and you still get the thrill; it's a bit like pornography.“The stores are also compensating some of the vloggers. J.C. Penny has deals with six girls to create back-to-school videos in exchange for gift cards from $250 to $1,000, according to a report by USA Today.Not just brag rags, but also discuss deals they scoreResulting in millions of views/hits, sponsorships, deals, and magazine spreadsForever 21 video – over 1.3 million views in 1 yearApprox 160,000 haul videos 2010, now 408,000 haul videos on youtubeHaul Videos (Forever 21)
31 Sprite’s Truth Hunters Sprite bringing their ‘Brutal Honest Truth’ brand idea to life via the ‘Truthhunters’ video content seriesSuccessful companies include: Apple, Adidas, American Apparel, Target, H & M, Levi's,Vitamin Water, American Apparel
32 The Do Nots with Gen Y Email blasts Trying to be hip Cold Calling Hard Sell ApproachForce fed, mass media message
33 Newcastle Brown http://newcastlebrown.com/yourlabel/index.php OMG, like w8, did you see Steve’s label on his NewCastle? It was so kewl! Maybe we should show it in Dr. Forrest’s class. (:-DExample targets prosumption and collaboration
34 The Do Nots with Gen Y Force fed, mass media message Email blasts Trying to be hipCold CallingHard Sell Approach
35 Getting the best of both Authentic, honest messagesSocial MediaDon’t try to be hipCorporate Social ResponsibilityHumor & Fun
36 Marketing to Gen Y from Gen Y Marketing to Generation Y:understanding and appealing to the Millennial generationAuthor of Marketing to Gen YIntern at company (seeking Bachelor’s degree in Commerce-Marketing Mgmt)
38 Sources“6 Rules of Marketing to Generation X ;” Cheryl Sowa; December 22, 2009“Marketing to Generation X;” Jay Ehret; June 27, 2011“Marketing to Generation X Parents”; KGA Advertising; Ken Gronbach, president of KGA Advertising of Middletown, CT“Why Gen X Won't Save Our Economy: Inside the Story by the Numbers;” Matt Carmichael; September 6, 2010Marketing to Generation Y; Campbell Sanderson; Shikatani Lacriox Inc., September 2010 White Paper;“Summer Lovin': Four Ways to Connect With Gen Y This Season;” Charlie Horsey; June 14, 2011Slideshare presentation“What Do Young Workers Want: Social Media, Device Freedom;” Ryan Kim; November 2, 2011“Grown Up Digital;” Don Tapscott; 2009
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