Transcript Generational Marketing - Promotional Products Association

Annual Meeting
April 22, 2006
Generational Marketing
Adding value by tapping into the generationdriven attitudes, influences and tendencies
that shape the marketplace
Paul Bellantone
VP – Marketing & Business Development
Promotional Products Association International
WIIFM
“What’s In It For Me?”
The Old Way
• MALE v. FEMALE
• WORKING v. RETIRED
• RICH v. POOR
• OLD v. YOUNG
The New Way
The New Way
5 Stages of Retirement
Culture v. Customer
Culture v. Customer
Marketing
• The commercial process involved in
promoting, selling and distributing a
product or service
Marketing Influencers
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Gender
Employment
Income
Location/Geography
Race
Education
Marketing Influencers
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Birth order
Television
Geographic sprawl
Work (pressure of time and money)
Family structure (2 income/lifestyle)
Normal life stages and familial commitments
Marketing Influencers
AGE
•
Used as more than a numerical identifier to denote
young and old
•
A means of identifying the responsiveness to a
particular group or ‘cohort’ to a message based on life
experiences
Generational Marketing
1. Because generations were raised during different eras,
they have particular sensibilities that shape their
(consumer) behavior
2. Understanding the eras and events that have shaped
consumers’ lives can help you and your clients better
plan promotions that speak to that behavior
Does Size Matter?
“Every 20 years or so, a new generation is formed.
Since each varies dramatically in size, its consumption
behavior is predictable. Big ones need more food and
bicycles. Little ones eat and ride less. Historic behavior
proves that size also affects personality.”
Kenneth Gronbach – DMNews’ Outlook, February 2005
Generational Marketing
• Definition:
The process of promoting, selling and distributing
products or services based on the fundamental
values, attitudes, and influences of a shared age
group that shape their consumer behavior
Generational Marketing
is More Art than Science
Today’s Goals
•
To examine the differences between generations and how
each generation’s fundamental values, attitudes and
influences shape their purchasing behavior – reach,
influence and sell
•
To recognize that age – in relation to life experiences –
does make a difference in how we reach, influence and
sell
•
To identify generational tendencies of our clients and
their customers and implement programs that will lead to
greater return on investment
•
To better understand how to get along with our coworkers, parents, kids, neighbors, etc.
Who Are We Talking About?
Generational Tag
Year of Birth
Current Age
1. GI Generation
1901—1924
82—105
2. Silent Generation
1925—1942
64—81
3. Baby Boomers
1943—1960
46—63
4. Generation X
1961—1981
25—45
5. Millennials/Gen Y
1982—2000(5)
6—24
6. Unknown (?)
2001(6)—2020(?) </=5
Who Are We Talking About?
Generational Tag
Year of Birth
Current Age
1.
1901—1924
82—105
2. Silent Generation
1925—1942
64—81
3. Baby Boomers
1943—1960
46—63
4. Generation X
1961—1981
25—45
5. Millennials/Gen Y
1982—2000(5)
6—24
6.
2001(6)—2020(?)
</=5
GI Generation
Unknown (?)
The Silent Generation
Born: 1925 – 1942
Age: 64 – 81
•
Shared sense of commitment, camaraderie and postwar era
•
Overshadowed by the greatness of the GI Generation before them
and the sheer number of postwar Baby Boomers that followed
•
Depression-bred habits of frugality and saving
•
Accustomed to government intervention and programs (Social
Security and Medicare)
•
Integrity and honesty are paramount importance
Marketing to Silents
Born: 1925 – 1942
Age: 64 – 81
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To appeal to this group, opt for a courteous, straightforward
approach
•
Messages that are conservatively stated; words such as
“dedication” and “sacrifice” trigger a positive response.
Warranties are a hot button.
•
Silents respond well to marketing with a personalized touch. They
appreciate holiday cards and thank-you notes. They are more likely
to accept a marketing call – not because they want to but because
being polite is important to them
•
Tradition sells. The Silent is going to be interested in the heritage
of the company and how long its been around – which may be an
obstacle to start-ups.
Marketing to Silents
Born: 1925 – 1942
Age: 64 – 81
•
Not prone to buying luxury items, though they will lavish money on
their children and grandchildren
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Tight-fisted tendencies make them challenging and attractive to
marketers. The over-60 crowd controls more than 70% of the net
worth of US households
•
Appealing consumers because of loyalty. Once they establish a
relationship with a product or company, they’re likely to stick with
it.
Silent Generation
Born: 1925 – 1942
Age: 64 – 81
For Your Information…
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In 2005, most retirees were Silents
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Those retiring at age 70 were born in 1935
Those retiring at age 65 were born in 1940
Those retiring at age 62 were born in 1943
By 2012, there will be virtually no members of this
generation left in the workplace.
Managing the Generation Mix – From Collision to Collaboration
Baby Boomers
Born: 1943--1960
Age: 45—62
As Baby Boomers have grown up, they’ve taken America
along for the ride. Their sheer numbers turned almost any
passing interest they had into a national phenomenon.
Think Hula Hoops in the ’50s, campus activism in the ’60s
or disco in the ’70s.
Now, with the oldest of this generation already over 50,
they’re set to re-define middle-age and retirement as we
know it.
Managing the Generation Mix – From Collision to Collaboration
Karen Akers, Associate Editor – Imprint Magazine
Baby Boomers
Born: 1943--1960
Age: 45—62
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Largest generation in American history
•
Unprecedented prosperity and parental indulgence – free from the
financial fears and threats that characterized their parents’ lives
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First TV generation – advertising campaigns targeted to them
heightened their self awareness
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The first “youth culture” with their own music and heroes
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Growing up in postwar prosperity, Boomers were exposed to
unprecedented educational and economic opportunities. They
quickly developed a sense of entitlement, which led them to be
dubbed the “me generation”
Baby Boomers
Born: 1943--1960
Age: 45—62
•
The first generation to see the workplace as an arena where they
could make a difference
•
Competitive and free-spending
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Image-conscious Boomers view cars, houses and almost all
material possessions as merit badges – a way to show the fruits of
their hard labor. Unlike Silents, they do not deny themselves
luxuries
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Boomers value time and are willing to pay a premium for
convenience
Marketing to Boomers
Born: 1943--1960
Age: 46—63
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Marketers must be nimble. Having been catered to all their lives,
Boomer’s expect companies to shift products and services as their
own preferences change
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While it is easier to make them buy than Silents, they are not as
brand loyal. You need to keep giving them reasons to buy your
product
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Boomers are nostalgic and love things that tie into their history –
Woodstock, Beatles, social crusades.
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Boomers respond well to humor and are able to poke fun at
themselves and accept it in marketing
Marketing to Boomers
Born: 1943--1960
Age: 46—63
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Boomers dislike anything that smacks of a cookie-cutter approach.
They want to customized products and services
•
Best selling technique is a consultative approach, and they should
be approached as partners
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They do not respond to ads when so-called “experts” tell them what
to buy.
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Boomers value education, and when it comes to goods and
services, they want a lot more detail than older generations.
–
A Silent might accept a doctor’s prescription without much explanation. A
Boomer will research and suggest a specific treatment.
Baby Boomers
Born: 1943--1960
Age: 45—62
“Oh lord, won’t you buy me a
Mercedes-Benz”
“Been a long time since I rock and
rolled”
Janis Joplin
Led Zeppelin
Baby Boomers
Born: 1943 — 1960
Age: 45 – 62
For Your Information…
In March 2001, the AARP rolled out a new
magazine, My Generation, targeting the growing
wave of its newest members, Boomers.
GI and Silent subscribers to Modern Maturity have
decidedly different issues than Boomers do, says
AARP, and they “didn’t want their publication to
focus on Boomers and that cohort’s “complex
problems.”
Managing the Generation Mix – From Collision to Collaboration
Generation X
Born: 1961--1981
Age: 24—44
•
They are a sensitive and short-nerved generation which makes
them more difficult to reach
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Born in less auspicious times than Boomers, half of them grew up
as latch-key kids who were used to fending for themselves
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Always in the shadow of the Boomers, who were (and continue to
be) the media darlings. They feel overlooked, ignored and
misunderstood.
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Realistic Pessimists, Xers are more careful about planning their
future and saving
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According to US Census, 26% of unmarried Xers were homeowners. Boomers
never hit higher than 21%
Generation X
Born: 1961--1981
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Age: 24—44
Grew up in recession and saddled with large school loans, Xers are
more restrained about spending than Boomers
Marketing to Generation X
Born: 1961--1981
Age: 24—44
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Gen Xers are a marketing challenge. Inundated with advertising
since birth, Xers are predisposed to being critical. They know ads
are trying to make them buy.
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Bothered by negative stereotypes (slackers in flannel shirts), Xers
hate generational labels. Instead of approaching them as a
generation, show respect for them as individuals, or
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Appeal to them through individual affinities such as “computer
literate” or “fashion forward” – part of a group that may be
interested in what you are selling
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Because of their restrained fiscal focus, Xers appreciate value.
Forget about selling image; VALUE is the hot button
Marketing to Generation X
Born: 1961--1981
Age: 24—44
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Gen Xers are technically savvy. Better have a well-designed Web
presence – good graphics and seamless navigation.
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Honesty is critical. Xers look at things critically and try to spot the
lie. Be sure you deliver what you promise.
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Xers are environmentally friendly and a quick to do their part by
buying recycled products. They also like products that haven’t been
animal tested.
Millennials/Generation Y
Born: 1982—2000(5)
Age:5—23
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Even more diverse than Gen Xers. More than 40% of kindergartners
are nonwhite.
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Will be largest generation ever – even larger than boomers
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Raised in an era of unprecedented “long boom” prosperity
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Immediate information and access through technology and media
– Real World, 24/7 news and instant messaging.
Millennials/Generation Y
Born: 1982—2000(5)
Age:5—23
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Highly regimented and structured: homework, hobbies, team
sports, self-enrichment activities. Pressure and time constraints
are normal to this group. They thrive in a fast-paced world.
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Faxes, computers, cell phones, ATMs, CDs have ALWAYS been a
part of their lives
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Some have seen as many as 20,000 TV commercials a year since
birth
Marketing to Millennials
Born: 1982—2000(5)
Age:5—23
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Millennials are still young consumers (oldest in their early 20s),
and it is still too soon to make any firm judgments. However…
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This will be the largest and most actively consuming generation
ever. It is already the same size as the Boomers and growing and
will have more than a five times stronger economic impact than
Boomers had at comparable ages in adjusted dollars.
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Although they are highly educated and pragmatic (twice as many
college-educated members as Boomers), they are far more upbeat
than Xers (Optimistic Realists vs. Realistic Pessimists)
Marketing to Millennials
Born: 1982—2000(5)
Age:5—23
•
Most technically savvy and culturally diverse of all generations.
Marketing materials must have an electronic component (and
feature diverse faces).
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Good news for small businesses: Millennials appear to be loyal to
brands, albeit they want their own labels, not another generations
labels.
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This group has generated success for Tommy Hilfiger, A&F and Hollister butd
tougher times for Levi Strauss. They are not only receptive to newcomers, but
seem to prefer them
Heroes and idols are an important theme (Tiger Woods and Brandi
Chastain), which may begin a new round of endorsements.
Marketing to Millennials
Born: 1982—2000(5)
Age:5—23
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They are marketing savvy and don’t want to be told by advertisers
that something is cool. They’d rather find it out on their own or from
a peer.
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Word-of-mouth and Viral Marketing are effective ways to reach this
group. Try enlisting other “cool” teens to use and distribute
products – stickers, magnets, t-shirts and other products that can
be given away easily and quickly.
Millennials/Generation Y
Born: 1982—2000(5)
Age:5—23
For Your Information…
In 2005, the youngest Millennials were 5 and the
oldest were 23. Nearly 22 million are already in the
workforce as full-timers, part-timers or interns.
Millennials have more spending power than any
generation before them.
Millennials will have a major impact on the workplace
and consumer spending for every one of the next 7075 years.
Managing the Generation Mix – From Collision to Collaboration
Applying GM Principles
Own Business
Your
1. Identify your business goals, areas of expertise and
positioning
• Solutions provider/consultant
• Full service marketing expert
• Order fulfillment specialist (order taker)
2. Identify your target audience
1. Focus on specific marketplaces or broad based
2. Are you and your customers of the same mindset?
Applying GM Principles
To Clients’ Programs
1. How are you currently perceived by your clients?
• Marketing consultant or product source
• PPAI’s 2005 End-Buyer Study reveals that there is
little differentiation in perception between the role
of a “supplier” and “distributor”
2. How sophisticated is your client to the role of
promotional products?
• Part of a strategic, integrated marketing plan or
just something to give away/sell?
Applying GM Principles
To Clients’ Programs
Applicability of the Product:
3. What is your client trying to accomplish?
• Who is the audience and what are the goals of the
program?
• Directly relates to the product selection and
measurable outcomes
Applying GM Principles
to Clients’ Programs
Applicability of Product:
4. When are you brought into the buying cycle?
• At the stage where you can influence the message OR as
a ‘supplier’ to provide a particular product.
High Impact
Product
R&D
Marketing Plan
Development
Low Impact
Influence the
use of
promotional
products
Choose the
promotional
product
How fast can
you get me
something
Applying GM Principles
as Suppliers and Promotional
Consultants
Technology
Jump drive
Photo mouse pad
Travel
Backpack
Pill case
Awareness/Fundraising
Silicon bracelets
Lapel pin
Packaging
Same product.
Different Generational Appeal.
Information Resources
PPB Magazine
February 2005
November 2004
Information Resources
Corporate Logo
Magazine
Promowear
Magazine
www.BuildAPromotion.com
www.PromoBusinessBuilder.com
Information Resources
Internet
The End
Q&A
Reviewing Today’s Goals
•
To examine the differences between generations and how
each generation’s fundamental values, attitudes and
influences shape their purchasing behavior
•
To recognize that age – in relation to life experiences –
does make a difference in how we reach, influence and
sell
•
To identify generational tendencies of our clients and
their customers and implement programs that will lead to
greater return on investment
•
To better understand how to get along with our coworkers, parents, kids, neighbors, etc.