Transcript generational marketing

Changing Consumer Attitudes,
the Impact on
the Hospitality Industry
YOU KNOW YOU ARE LIVING IN 2005 WHEN:
1. You accidentally enter your password on the microwave
2. You haven’t played solitaire with real cards in years
3. You have a list of 15 phone numbers to reach your family of three
4. You email the person who works at the desk next to you
5. Your reason for not staying in touch with friends and family is that they don’t
have email addresses
6. You go home after a long day at work and still answer the phone in a business
manner
7. You make phone calls from home and accidentally dial “9” to get an outside line
8. Your VCR is now the 8 Track of the 21st century and you are thinking you need a
TV no thicker than an encyclopedia. What are you going to do with your
entertainment center armoire?
9. Leaving the house without your cell phone, which you didn’t have the first 20 or
30 (or 60) years of your life, is now a cause for panic and you turn around
to go and get it.
10.You start tilting your head sideways to smile :)
Attitude (ǎt/ ĭ-tōōd) noun
A state of mind or a feeling, disposition
Synonyms: position, posture,
sentiment
WHAT DOES THIS MEAN?
YOU CAN’T APPLY OLD NORMS TO
NEW ATTITUDES
THIS REQUIRES THAT YOU KNOW
YOUR AUDIENCE,
WHAT THEY THINK AND FEEL
San Francisco,
Demographics
Madison, Wis.
Demographics
Psychographics
Psychographics measures peoples
propensity to buy
People with the same demographic profile
may have radically different buying
patterns
Top Ten Lifestyle
Propensities
San Francisco
Psychographics
Madison,
Wisconsin
• Top Ten
Lifestyles
GENERATIONAL MARKETING
• Baby Boomers
– VIP services
– Forever young
– Nonconformists – unless it’s serving
them
– Participants
– Adventure
– Diversity – pack lots into one vacation
– Spas; holistic destinations
– Nostalgia
GENERATIONAL MARKETING
• Generational Marketing
– How we act depends on our
generation
– Influences
• purchase decisions
• brand awareness
• travel experiences
– Opportunities and Challenges
– Not the only factor influencing people
GENERATIONAL MARKETING
•
•
•
•
•
•
Matures (1901-1924, 79-102)
Silent Generation (1925-1942, 61-78)
Baby Boomers (1943-1960/2, 43-60)
Gen X (1961/3-1981, 22-42)
Generation Y (1982-2000, 3-18)
Generation 9/11 (2001-present, 2 )
GENERATIONAL MARKETING
• Baby Boomers
– “Me” generation
– Put individual desires ahead of good of
a group; job ahead of family
– Huge economic gains
– Brand savvy
– Feel the country owes them
– Resent authority
– Passion for introspection and selfenlightenment
GENERATIONAL MARKETING
• Generation X
– Being authentic means showing savvy
– Distrustful
– Real
– Wired
– Unafraid to try something new,
challenging
– Family
– Spiritual
GENERATIONAL MARKETING
• Generation X
– Extreme sports
– Depth of purpose
– Eco-tourism
– Finding themselves in challenges
– Brands are meaningless
– Really smart, savvy, skeptical
– Need one of their own to talk to them
GENERATIONAL MARKETING
• Matures
– On the road from scout meetings to Sun City, this
generation…
• Triumphed over the Great Depression
• Vanquished the Germans and Japanese
• Built suburbs and shopping malls
• Instituted the New Deal
• Built interstate highway system
• In 1927, Charles Lindbergh made the first
transatlantic flight
• … accomplished their goals through HARD
WORK
GENERATIONAL MARKETING
• Matures
– Tremendous growth in country
– Feel they owe the country
– Look for value
– Enjoy community, commonalities,
connecting
– Getting to the end of their travel years
GENERATIONAL MARKETING
Defining Idea
Celebrating
Success because
Rewards because
Work is
Leisure is
Education is
Matures
Duty
Victory
Fought hard
and won
Boomers
Individuality
Youth
Were born,
therefore should
be a winner
Deserve it
Exciting
adventure
Point of life
Earned it
Inevitable
obligation
Reward for
hard work
A dreamA birthright
Xers
Diversity
Savvy
Have two
jobs
Need it
Difficult
challenge
Relief
A way to
get ahead
HOTEL MARKET TRENDS
 Favorable near term and medium term hotel
market dynamics
 Favorable supply/demand dynamics for the next
3-4 years (probably 4-6) especially in major urban
markets
 New supply additions look to be very moderate for
the next couple of years
 Some markets actually seeing reduction in supply
due to condo conversions




Less reliance on 3rd party distribution
Pricing power is finally returning
Seller’s market
Electronic marketing focus
YOU MUST KNOW HOW
YOUR CUSTOMER’S
CULTURE CHANGES
OVER TIME
You must know how your
audience views and is reacting
to the trends that flow through
the marketplace
HOW DO YOU RECOGNIZE CHANGING
CONSUMER ATTITUDES?
Fad Vs. Trend
Fad
Trend
•Whimsical pop-culture
reflection
•Links to socio/demographic
data and cultural forces
•Short-lived or little potential
for long-term relevance
•Evolved over time with
potential to evolve further
•Niche or sub-segment
focused
•Can cross segments and
geographies with relatively
broad appeal
EIGHT TRENDS AFFECTING CONSUMER
ATTITUDES TOWARDS HOTELS
1. Increasing Affluence and Style Consciousness
2. “Trading Up”
3. “Experience Economy”
4. Mass Customization / Personalization
5. Increasing Number of Women Travelers
6. Increasing Interest in Wellness
7. Internet Changing Buying Behavior
8. Authenticity/ Homegrown
Increasing Consumer Affluence
And Style Consciousness
• Consumers are
becoming more
affluent which is
contributing to an
increase in style
consciousness
Michael Graves
“Trading Up” Consumer Behavior
Customers willing to spend more to
have a better/more memorable
experience…
……..while rabidly pursuing
bargains on products
perceived to be commodities
Emergence of “Experience Economy”
 Experience becoming more important
attribute when choosing products
 We are evolving toward an “Experience
Economy”
Agricultural
Industrial
Information
Experience
EXPERIENCE ECONOMY
• People are collecting experience “Merit
Badges”
– Vacationers are collecting experiences rather than
consuming things. It is no longer what one has,
but what one does. Destinations are about the
experience rather than the attributes. Within
experience collecting, the following values exist:
a. Learning
b. Growth
c. Freedom
d. Exhilaration
e. Fun
Mass Customization/
Mass Personalization
Increasing rejection of “one size fits
all” brand/product approaches
CRM
Becoming
More
Important!
Mass Customization/
Mass Personalization
• Fingerprinting
– People, especially boomers, are on a search for
personal identity. This is the one area where they
seek affinity with groups and others with similar
quests. This explains the rise in personal coaches
and holistic journeys. Affinity travel is the niche of
the future. Be a dream maker. Fulfill a fantasy.
The values that relate to Fingerprinting are:
a.
b.
c.
d.
e.
Consumer identity
Individuality
Do-it-yourself
Affinity – paring with others of like mind
Self-esteem
An Increasing Number Of Woman Travelers
WOMEN TODAY
•Today’s Female Customer – Multiminding vs. Multitasking
•Women’s buying has grown tremendously and is expected to
increase dramatically in coming years
•Women Control 80% of household buying decisions
•The US economy is increasingly female-driven
•$3.3 trillion in consumer spending
•Make 62% of all car purchases
•Take more than 50% of all business trips
Increasing Consumer Interest In
“Wellness”
WELLNESS: NATURAL HIGH
• People are seeking a natural experience and seek
balance in their hectic lives. Vacationers search
for an experience that allows them to unplug from
hype and stress. This is the halo of rural, simple
life. Spas, self-discovery camps, spiritualism, ecotourism all fit within this area.
a. Well-being
b. Fitness
c. Balance
d. Vitality
e. Conservation
f. Spirituality
g. Environmentalism
SENSE OF AUTHENTICITY / HOMEGROWN
– People have a passion for the real America and
authentic experiences. Arts and crafts and
nostalgia are important. Within this area
experiences such as antiquing, authentic foods,
backroad experiences, kitsch, festivals and rural
travel are important.
a.
b.
c.
d.
e.
f.
Authenticity
Rediscovering the familiar
Honoring your roots
Curiosity
Discovery
Romance
The Internet Is Changing
The Rules Of The Game
The Internet is leveling playing field for
independent/boutique products and
companies
….Small players can compete effectively with
bigger players by creatively using the internet
INTERNET USAGE
• 56% of the 213.9 million adults in the
U.S. currently use the Internet - 120
million adults (2004)
• Usage has flattened
• 82% indicate they are travelers
• Among the 145.7 million past-year
travelers, 67% use the Internet
• Frequent travelers (5 or more trips)
have high likelihood of using – 74%
INTERNET USAGE FOR
TRAVEL PLANNING - 2004
•65% of online travelers say they
consulted the Internet to get
information
•26% used Internet for business travel
planning (similar to 2003)
•94% of trips planned were for leisure
•76% did trip planning online – 69% in
2003
CONSUMER INTERNET USAGE
Used internet to…
Obtain travel info and pricing
Make a travel booking
Hotel reservations
Airline reservations
Car rental reservations
Complete vacation reservations
Average number of sites visited
2003%
2004%
57
38
67
65
29
21
N/A
65
45
73
64
32
20
3.9
INTERNET USERS
•
•
•
•
•
•
•
Women
Men
Boomers (35-54)
Married
Children at home
Employed full-time
Annual HHI
51%
49%
47%
66%
42%
62%
$73,000
E-MARKETING
• Travel suppliers such as hotels, airlines
and online travel agencies have been
successful in using email marketing to
communicate with current and potential
customers (whether or not booked
travel)
• 37% of all online travelers (36 million)
have registered or subscribed to travel
websites
• 47% say they have registered with three
or more travel websites
E-MARKETING
• Online promotions seem to have an
influence over consumers
• In 2004, 11% of online travelers claimed
they had taken a trip they otherwise
would not have taken based on an
emailed travel promotion, discount or
offer (the same share as in 2003)
WHY IS ALL OF THIS IMPORTANT?
BRAND OR PRODUCT AWARENESS IS
NOT ENOUGH TO INSPIRE BRAND
LOYALTY….
TODAY WE MUST UNDERSTAND OUR
CUSTOMERS’ ATTITUDES IN ORDER
TO SPEAK TO CUSTOMERS IN THE
WAY THEY WANT TO BE SPOKEN TO
CUT THROUGH THE CLUTTER