1. Current Issues in Marketing

2. Lecture Outline: The Emerging PsychoSphere: Psychospheric Shifts G enerational Marketing  Generational Theory  Generations Defined:  Values & Lifestyles  Marketing Implications ….

3. S ocioSphere = inter-relationships among social institutions, associations, reference & affinity groups P sychoSphere = Identity, personal- perspective >>

4. The New Psycho-Sphere  “A new civilization is forming. But where do we fit in?” page 365

5. The New Psycho-Sphere  “It is though a bomb went off in our communal Psycho-Sphere.  We are, in fact, experiencing not merely the breakup of the Techno, Info & Socio- Sphere but the crackup of the Psycho- Sphere as well.” page 365

6. For Senior Generations Fully developed 2 nd wave Psyche before 3 rd Wave

7. The 2nd Wave Psyche A Nuclear Family Work- 9-5 Well Defined Roles Clear lines of Status Clear lines of Authority Sense of Community Structure Meaning to/of Life Values & Lifestyle

8. The 2 nd Wave Psycho Breakdown 1. “The sudden shift of social ground rules 2. The smudging of roles, status distinctions & lines of authority 3. The immersion in blip culture 4. Above all the break-up of indust-reality Have shattered the world image most of us carry around in our skulls” Toffler, 3 rd Wave, p.374

9. Here Yesterday-Gone Tomorrow “ In industrial era: Americans had layers of belonging- the job Nuclear & extended family; union, associations; church, charity & community service; the job … -- much of this is in decline… So much of what we cherish, what Americans like to call "the good life" has been stripped away at the end of the industrial age”

10. “With increased mobility & job turnover there is: A loss of “Place” – A loss of “Place” – losing ties to family & community… losing the sense of self A fear of losing the sense of self, the tie to job and work” A loss of “Place” – A loss of “Place” – losing ties to family & community… losing the sense of self A fear of losing the sense of self, the tie to job and work”

11. The Demise of the Job

12. The Loss of Identity In 2 nd wave society- Identity very much tied to job-title. “Company marques & hierarchy pegs tell us who we are & where we belong” In 2 nd wave society- Identity very much tied to job-title. “Company marques & hierarchy pegs tell us who we are & where we belong” 2 nd Wave

13. job Where is identity in an American job that was torn up … by multinationals… seeking efficiency town square shopping mall instead of the town square… all life gravitates to a consumer temple-city we call the shopping mall?

14. 192519552000196519751935198519601945 GI Boomer Silent Gen X Washed up –rode the Last Wave Caught Between Waves Millennial Grows Up w/ New Wave Riding the wave

15. Generations Variously Named & Dated: 1.Matures – < 1946 2.Baby Boomer – 1946-1953 3.Generation Jones – 1954-1964 4.Generation Rerun – 1965-1975 5.Generation Xceptional – 1976-1986 6.Generation M – 1987-1995 7.Millennials – 1996 and beyond 1.Matures – < 1946 2.Baby Boomer – 1946-1953 3.Generation Jones – 1954-1964 4.Generation Rerun – 1965-1975 5.Generation Xceptional – 1976-1986 6.Generation M – 1987-1995 7.Millennials – 1996 and beyond Depression cohort (1912 to 1921) WWII cohort (1922 to 1927) Post-war cohort (1928 to 1945) Baby Boomer cohort #1 (1946 to 1954) Baby Boomer cohort #2 1955 to 1965) Generation X cohort (1965 to 1976) N Generation cohort (1977 to date) Depression cohort (1912 to 1921) WWII cohort (1922 to 1927) Post-war cohort (1928 to 1945) Baby Boomer cohort #1 (1946 to 1954) Baby Boomer cohort #2 1955 to 1965) Generation X cohort (1965 to 1976) N Generation cohort (1977 to date) THE GI GENERATION: 1901-1924 THE SILENT GENERATION: 1925-1942 BABY BOOMERS: 1943-1960 GENERATION X: 1961-1981 GENERATION Y: 1982-PRESENT THE GI GENERATION: 1901-1924 THE SILENT GENERATION: 1925-1942 BABY BOOMERS: 1943-1960 GENERATION X: 1961-1981 GENERATION Y: 1982-PRESENT

16. 19272002 1946 19651984 Millions Senior/Silent < 1945 2010 – 65+ Baby Boom 1946 to 1964 2010- 46 to 65 Gen.X 1965 to 1983 2010 - 28 to 45 Gen.Y 1984 to 2002 2010- 8 to 27 Source: U.S. Bureau of the Census U.S. Generations :

17. Origins of our identity individuality Our individuality = result of Nature & Nurture commonality Our commonality = results from our shared culture & experience War; civil unrest; social movements Political persons & events; economic swings Scientific/Technological discoveries & advances Tragedies: Natural & Man- made Entertainment: Movies, TV, Music; artists, celebrities Clothing styles; Lifestyle trends, Fads

18. Come of age- Imprint on “Your-World” Each generation molded by world events that occur during its formative years. … distinct historical experiences create characteristics that stay w/ people thruout rest of their lives Each generation molded by world events that occur during its formative years. … distinct historical experiences create characteristics that stay w/ people thruout rest of their lives Generational Marketing: Reaching the Hearts and Minds of Consumers Ann A. Fishman, Circulation Management, Jul 1, 1998 http://circman.com/ar/marketing_generational_marketing_reaching / http://circman.com/ar/marketing_generational_marketing_reaching / Generational Marketing: Reaching the Hearts and Minds of Consumers Ann A. Fishman, Circulation Management, Jul 1, 1998 http://circman.com/ar/marketing_generational_marketing_reaching / http://circman.com/ar/marketing_generational_marketing_reaching /

19. Generational Life Experiences Called “Markers” Values are shaped by: Events Culture Politics Economy Technology Personalities Events Culture Politics Economy Technology Personalities

20. Some Defining Events- Senior Generations Depression cohort (born from 1912 to 1921) Lived thru- The Great Depression, high levels unemployment, poverty, lack of creature comforts, financial uncertainty WWII cohort/ GI Gen. (born from 1922 to 1927) Lived thru- : men leaving to war - many not returning, -- women working in factories, focus on defeating a common enemy Post-war cohort/ Silent Gen. (born from 1928 to 1945) Lived thru- : sustained economic growth, social tranquility, The Cold War, McCarthyism Born: <1945

21. Values

22. Born: 1945 ~1964 78 million “The Ed Sullivan Show”, Fallout Shelters, Poodle Skirts and Pop Beads, Slinkies, TV Dinners, Hula Hoops,The Peace Sign, “Laugh In”, Clinton, Midler, Leno, Streisand, Gates “The Ed Sullivan Show”, Fallout Shelters, Poodle Skirts and Pop Beads, Slinkies, TV Dinners, Hula Hoops,The Peace Sign, “Laugh In”, Clinton, Midler, Leno, Streisand, Gates Cultural Icons & Memorabilia Baby Boomer cohort #1 (born 1946 to 1954) Lived thru- : assassination of JFK, RFK, and MLK, political unrest, walk on moon, Vietnam War, anti-war protests, sexual freedom, civil rights – environmental- hippie & women’s movement, protests and riots, experimentation w/ drugs Baby Boomer cohort #2 (born 1955 to 1964) Lived thru- : Watergate, defeat in Vietnam, the oil embargo, raging inflation, gasoline shortages IDEALIST – Prophet: Inner- driven, moralistic generation - comes of age during a period of spiritual awakening

23. Values

24. “The Brady Bunch”, Pet Rocks, Platform Shoes, “The Simpsons”, “Dynasty”, ET, Cabbage Patch Dolls, Brad Pitt, Cameron Diaz, Carrot Top, TV-Friends, Brady Bunch, Ninja turtles Born: 1965~1983 48 million Gen X Initial Impact Events: Challenger explosion Iran-Contra social malaise Reaganomics AIDs fall of Berlin Wall Predom. of single parent families Cultural Memorabilia ADAPTIVE- Nomad: A hypocritical generation- coasts along on accomplishments of civics, lay the groundwork for new idealist era.

25. Values

26. Cultural Icons? Xena Warrior Princess Buffy The Vampire Slayer cell phones laptops/ ipods Cultural Icons? Xena Warrior Princess Buffy The Vampire Slayer cell phones laptops/ ipods Born: 1984 ~2002 first wired gen… Initial Impact Events : : Rise of the Internet 9-11 Cultural diversity 2 wars in Iraq CIVIC– Hero: Outer-driven, morally complacent generation -institutionalizes ideals of previous generations..

27. Values

28. The Next Generation- Ferals? Born: 2002+ Predicted to be-REACTIVE – ( Artist-Generation): Alienated, cynical generation-challenges the ideals of parents & develops into pragmatic, risk-taking adults..

29. Theory Advanced by: Strauss & Howe - most popular writers on generations ’92 - Generations ’97- The Fourth Turning ‘00 - Millennials Rising: The Next Great Generation FYI : http://www.fourthturning.com/ http://www.fourthturning.com/

30. Turnings = Generational shifts in zeitgeist – occur every ~20- 25 years At start of each turning, people change how feel abt. themselves, culture, nation, future… Turnings follow stages of human life cycle ( childhood, young adulthood, midlife, and elderhood ) saeculum 4 turnings= ~1 human life (80 to 100 years) a unit of time- ancients called the saeculum

31. The Pattern of Human Revolutions “We are now entering A decisive era of secular upheaval…A decisive era of secular upheaval… Old Artists Old Artists (Silent Gen) disappear Prophets Prophets (Boomers) enter elderhood Nomads Nomads (X’ers) enter midlife Heroes Heroes (Y’s) enter young adulthood Artists is A new generation of Artists is born “We are now entering A decisive era of secular upheaval…A decisive era of secular upheaval… Old Artists Old Artists (Silent Gen) disappear Prophets Prophets (Boomers) enter elderhood Nomads Nomads (X’ers) enter midlife Heroes Heroes (Y’s) enter young adulthood Artists is A new generation of Artists is born Predicted in 1990 The Culture wars America’s Unraveling into competing camps The Culture wars politics would become moralistic & mean “family values” would become a focal pt. emergence of hardened - alienated youth Gen-X

32. ADAPTIVE- Nomad: A hypocritical generation- coasts along on accomplishments of civics, lay the groundwork for new idealist era. 188019801960194019201900 REACTIVE – Artist: Alienated, cynical generation-challenges the ideals of parents & develops into pragmatic, risk-taking adults.. CIVIC– Hero: Outer- driven, morally complacent generation - institutionalizes ideals of previous generations.. IDEALIST – Prophet: Inner-driven, moralistic generation - comes of age during a period of spiritual awakening

33. 1 st : Upbeat era- strengthening institutions/ weakening individualism(‘40-50’s) 1 st : Upbeat era- strengthening institutions/ weakening individualism(‘40-50’s) For past 5 centuries, Anglo-American society has followed a recurrent pattern of temperament & consequence

34. 1 st : Upbeat era- strengthening institutions/ weakening individualism(‘40-50’s) 1 st : Upbeat era- strengthening institutions/ weakening individualism(‘40-50’s) 2 nd : Reactive Era - spiritual agendas/ social ideals (60-70’s)

35. 1 st : Upbeat era- strengthening institutions/ weakening individualism(‘40-50’s) 1 st : Upbeat era- strengthening institutions/ weakening individualism(‘40-50’s) 2 nd : Reactive Era - spiritual agendas/ social ideals (60-70’s) 3 rd : Upheaval- strengthening individuals/ weakening institutions(‘80-90’s) 3 rd : Upheaval- strengthening individuals/ weakening institutions(‘80-90’s)

36. Popular trust in virtually every American institution—from businesses & governments to churches & newspapers—keeps falling to new lows. Public debts soar, the middle class shrinks, welfare dependencies deepen, -- cultural wars worsen by the year.

37. For past 5 centuries, Anglo-American society has followed a recurrent pattern of temperament & consequence 4th: Crisis: Estab. new order- public consensus, aggressive institutions, personal sacrifice. (2000-2020)

38. Government governs, community obstacles are removed - laws & customs that resisted change for decades are swiftly shunted aside. People support new efforts to wield public authority, whose perceived successes soon justify more of the same.

39. Waves of Change may have constant interval but amplitude/magnitude of change is increasing amplitude/magnitude of change is increasing

40. Generations Ago 100,000Speech 750Agriculture 500Writing 400Libraries 40Universities 24Printing 16Accurate Clocks 5Telephone 4Radio 3Television 2Computer 1Internet/e-Mail 0AI & Nano-tech Technological The n ature & m agnitude of change between GENERATIONS is increasing

41. There is– Something Curious Going On…

42. The Law of Accelerating Returns technology & evolutionary processes progressing in exponential fashion

43. PEOPLE, PLACES & THINGS… MORALS, PRINCIPLES, HEROS Disposable… Mobile…Transitory… Ambiguous… Androgynous… Fragmenting…Society UP-Rooted by increased Choice & Conflict & Challenge IDENTITY ANCHORS

44. Presidents Commission on Mental Health Reports - fully ¼ of US citizens suffer from some form of severe stress National Institute of Mental Health researcher.. declares “ psychological turbulence” is rampant in American society- -is divided & anxious about the future..

45. A state of “shattering stress & disorientation resulting from too much change in too short a period of time” FUTURE SHOCK

46. Too much Information Too Much Choice 1 zebibyte = 2 70 bytes = 1180591620717411303424bytes = 1,024 exibytes Giga’s..Tera’s..Peta’s.. Exa’s…Zeta’s…..

47. Information Overload!?

50. Attention Deficit Disorder

51. But - perhaps Information Overload only problem- for some

52. 2 nd wave world = 1 thing at a time

56. “w/ so many of our habits, values, routines & responses called into question, it’s hardly surprising - we feel like people of the past---relics of 2 nd wave Civilization

58. Not ADD but CPA Continuous Partial Attention

59. Multi-tasking becomes the Norm

61. Old Adage = “A lone baboon is a dead Baboon” New Adage = “A non-networked person is … a lone baboon”

62. Generational Differences if ask somebody 50 +, they think it's probably a bad thing… 15-year-olds think it's awesome to always be connected… getting text & instant messages & cell calls….. ask somebody 35-50, they're ambivalent. Howard Rheingold The Next Revolution: Smart Mobs

63. new generation gap.. New gen using technologies to change the world, mobilize their social network, get information they need, broadcast information they want to broadcast. broadcast information they want to broadcast New gen using technologies to change the world, mobilize their social network, get information they need, broadcast information they want to broadcast. broadcast information they want to broadcast Howard Rheingold-2003 The Next Revolution: Smart Mobs “I think we're going to see a real generational cohort, who will have a shared Zeitgeist that will be shaped by this always- on world”

64. Generational Marketing Considerations

65. Key Problem for Gen. marketing practitioners -- Communicating between generations

67. Common Experiences Common Experiences Common AIO’s, values, tastes, style... Common responses to marketing mix variables Generational mindsets … are major factors in determining what & how consumers buy… The notion a group of people bound together by sharing experience of common historical events 1st introduced by Karl Mannheim - early 1920s

68. Generational Value Differences: GISilentBoomerXY Helpers Sacrifice “For the children” Right vs. Wrong Resentful “I’ve earned it” Do the right thing Me, me, me Forever young Choices privileges “It’s all about me” Suspicious Dis- enfranchised Non- confrontational Waste not Facts - family -fundamentals Optimistic Strong Empowered Care for others Care for environment Realism

69. Comparative Work Ethic Across Generations: Seniors: Boomers: Gen X’ers: Work Style: Team Player Self-absorbed Entrepreneur Rewards: You’ve earned it You deserve it You need it Work is: An obligation An Adventure A challenge Leisure: Reward The point to life Relief/fun Life: Sacrifice Prosperity Risks Seniors: Boomers: Gen X’ers: Work Style: Team Player Self-absorbed Entrepreneur Rewards: You’ve earned it You deserve it You need it Work is: An obligation An Adventure A challenge Leisure: Reward The point to life Relief/fun Life: Sacrifice Prosperity Risks What can I do for good of organization? How will this make me feel? What’s in it for me? Major Question:

70. Seniors Characteristics of Generations Boomers X Y No news is good news Once a year with documentation Interrupts & asks how they’re doing Wants feedback at touch of a button Buying Style Quality first, buy American Prestige first foreign is better Cheap: value added Get it anyway/ anywhere u want View of Feedback On Homes Buy a decent house Buy the most house you can Reclaim the inner city Livin’ with the parents- as long as necessary

71. Gen. Marketing Strategy Not a key behavior driver for all product categories- but is particularly appropriate for: Food Music Apparel Automotive Financial & Insurance as well as entertainment products.

73. G.I.’s & Silents – How to market to them Emphasize experience and wisdom Base decision making on established institutions and authority figures Key messages should focus on values such as frugality, responsibility and caution Like to spend money on grandchildren

75. Boomers : caught in cross current of waves- sensed “The times they were a Changing ”

76. 192519552000196519751935198519601945 GI Depression Boomer Silent War Baby Washed up –rode the Last Wave Caught Between Waves

77. Create products/messages that address boomers “identity crises” To Re/Define Oneself

79. “The generation that dropped acid to escape reality… is generation that drops antacid to cope w/ it” Marketing to Boomers The Music The Values

80. Focus on themselves- early ideals, present predicament & future well-being Many won’t retire Will begin second careers Retirement as work style, not lifestyle Won’t have enough money to retire (saving rates are low) Looking for meaning and fulfillment Want products that keep them healthy and sustain energy and activity levels Will remain dominant consumer group in marketplace for years to come - continue to expect to be center of attention Boomers: Marketing Considerations

81. Boomers The "Graying" of the Baby Boom Boomers Generation X

82. Emerging Gray $ Power Represent 50% of purchasing power (discretionary income) They are wealthier and healthier (mentally & physically) Major market for- Exercise facilities Cruises and tourism Cosmetic surgery, and skin treatments, Education gifts for family members (especially grandchildren) Represent 50% of purchasing power (discretionary income) They are wealthier and healthier (mentally & physically) Major market for- Exercise facilities Cruises and tourism Cosmetic surgery, and skin treatments, Education gifts for family members (especially grandchildren)

83. Can’t play on stereotypes: “1/3 of consumers over 55 deliberately did not buy a product because of the outdated images of mature consumers.” Don’t call ‘em Geezers

84. Key Trends Relating to The "Graying" of the Baby Boom Down-Aging Being Alive

85. Down-Aging The tendency for older people to act and feel younger than their age. Examples More youthful looking clothes Hair coloring / hair implants Adult camps and adventure vacations

86. Down-Aging - Examples  TV shows starring cartoon characters: "The Simpsons," "King of the Hill," "South Park," "Daria," "Dr. Katz," "The PJ’s," "Futurama," and "The Family Guy."  Disney & Warner Brothers stores; 80% of their sales are to adults- for adults.  eBay, posts 1000’s of hits for Pez  The median age Harley customer 42; ten years ago was 34.

87. Being Alive The desire to lead longer and more enjoyable lives Examples Vegetarianism holistic medicine (herbs, naturals, etc.) Meditation

88. For the X &Y generations: Increasingly weaned in & imprinted on post-industrial society

89. 1 month = new technology 1 day = new product / service 1 minute = new blog & web-site Change we now experience in one year… Our Grandparents experienced in one lifetime. For X + generations… it’s all about the rate of change

90.  Definitive acceleration of change brought on by 3 rd wave– increased diversity, mobility & innovation…  Clear break in continuity, predictability & naivety of the past  More & faster turnover of everything People, relationships, residences, jobs, products …

91. Jobs in Lifetime 2 nd Wavers : 1 job & 1 Gold Watch Millennials: How many jobs do you think you will hold in your lifetime? 1-335.7% 4-641.5% 7-1016.5% 10+ 6.2%

92. Who are You 3 rd Wave individuals much more likely to ID themselves according to their a vocation … as opposed to 2 nd wavers – whose ID was derived primarily by their vocation

94. Divorce one-parent families, step families working parents, latch-key lives violence on television, violence in the streets & breaking down of traditional values & sources of comfort "The Street-Savvy Generation" Nicknamed -- "The Street-Savvy Generation" because endured:

95. Generation X Address tough & unsettled economic & personal circumstances…. They've grown up in a world in which sex can kill you & government entitlement programs for older generations will make their taxes go sky-high.

97. Generation X How to market to them Live flexible lives Don’t buy a house and live in it forever Don’t graduate and get a job and work there until retirement Resourceful…Confident…Ambitious Depend on themselves and their own capabilities to get things done Low to no - confidence in public institutions –

98. 98 Generation X How to market to them Emphasize pragmatism Bottom line is about survival, not about ideology or mission Focus on getting by, not bigger causes and movements Prepared to do what it takes Financially conservative Pragmatism has led to a back up plan / holding a little back Later marriages ILYA’s – Incompletely Launched Young Adults Women in 20’s living with parents rose to 24% in 1993 from 17% in 1977 Men in 20’s living with parents rose to 35% in 1993 from 30% in 1977

99. Generation X How to market to them Abandon hard sell Get to the point and stick to the point Don’t drown message in warm and fuzzy or unrealistic promises Get some attitude Attitude, not brand, makes the sale Have some fun Xers are young people, full of energy and ready for fun Keep life in perspective Crusading is for Boomers, Sacrificing is for G.I.’s and Silents

100. Generation Y…  the cohort variously called : Gen- Y Echo Boom Net Generation Millennials

101. Millennials live & Learn : With technology With each other Online Doing things that matter Source: Achievement and the 21 st Century Learner

102. Y’s R Multicultural Diversity prevails : - wide range of global viewpoints Tolerant of cohabitation, single parenting & extended families; different sexual orientations Attitudes reflect interest in & acceptance of diversity in all areas of life in private & public arena 50% believed would be a black president & 58 % thought there would be a female president- in next 20 years ( 2001 Lifestyle and Media Monitor) Attitudes reflect interest in & acceptance of diversity in all areas of life in private & public arena 50% believed would be a black president & 58 % thought there would be a female president- in next 20 years ( 2001 Lifestyle and Media Monitor)

103. Y’s R Ambitious Most popular college majors: Medicine Education/teaching Business & marketing Most sought after qualities in careers: Responsibility Independence Creativity Idealistic & committed co- workers Most common job trends : Change Careers Seek security & benefits Stay with company that offers a challenge Engineering Law & politics Computer science

106. How to Market to Gen-Yer’s (Honda-example)

109. POP QUIZ GISilentBoomerXMillennial Helpers Sacrifice “For the children ” Right vs. Wrong Resentful “I’ve earned it” Do the right thing Me, me, me Forever young Choices privileges “It’s all about me” Suspicious Dis- enfranchised Non- confrontational Waste not Facts - family - fundamentals Optimistic Strong Empowered Care for others Care for environment Realism Match the Message

110. Save $$$ Provide for your children & grandchildren Responsibility Don’t be a burden to anyone Wise use of money Plan for your financial survival Save $$$ Provide for your children & grandchildren Responsibility Don’t be a burden to anyone Wise use of money Plan for your financial survival Your family would be proud! The right choice A good investment A good value A responsible decision Plan now for your future comfort Ensure your future independence Your family would be proud! The right choice A good investment A good value A responsible decision Plan now for your future comfort Ensure your future independence “just go on-line", interactive Build your own plan/policy Tailored to your need Take care of others Responsible decision Plan for the future “just go on-line", interactive Build your own plan/policy Tailored to your need Take care of others Responsible decision Plan for the future You protected your family A great value make claims without problems You were not wasteful – you used your resources wisely You left things better than u found them You protected your family A great value make claims without problems You were not wasteful – you used your resources wisely You left things better than u found them Tailored for you No waiting/convenience Expensive, but you are worth it Better investment than the stock market Forever young – maintain your youth Lifestyle enhancement (freedom) Protecting what you have Your legacy / immortality Tailored for you No waiting/convenience Expensive, but you are worth it Better investment than the stock market Forever young – maintain your youth Lifestyle enhancement (freedom) Protecting what you have Your legacy / immortality Boomers Millennials Xers GI Silent