Generational Marketing - PPAI by yaosaigeng

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									                                                 Annual Meeting
                                                  April 22, 2006


   Generational Marketing
      Adding value by tapping into the generation-
      driven 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
•   Gender
•   Employment
•   Income
•   Location/Geography
•   Race
•   Education
     Marketing Influencers
•   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 co-
    workers, 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.   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
      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

•   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
•   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…

•        In 2005, most retirees were Silents
     –      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


•   Largest generation in American history
•   Unprecedented prosperity and parental indulgence – free from the
    financial fears and threats that characterized their parents’ lives
•   First TV generation – advertising campaigns targeted to them
    heightened their self awareness
•   The first “youth culture” with their own music and heroes
•   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
•   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
•   Boomers value time and are willing to pay a premium for
    convenience
    Marketing to Boomers
      Born: 1943--1960                         Age: 46—63


•   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
•   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
•   Boomers are nostalgic and love things that tie into their history –
    Woodstock, Beatles, social crusades.
•   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


•       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
•       They do not respond to ads when so-called “experts” tell them what
        to buy.
•       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   “Been a long time since I rock and
Mercedes-Benz”                 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
•       Born in less auspicious times than Boomers, half of them grew up
        as latch-key kids who were used to fending for themselves
•       Always in the shadow of the Boomers, who were (and continue to
        be) the media darlings. They feel overlooked, ignored and
        misunderstood.
•       Realistic Pessimists, Xers are more careful about planning their
        future and saving
    –      According to US Census, 26% of unmarried Xers were homeowners. Boomers
           never hit higher than 21%
                 Generation X
      Born: 1961--1981                        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


•   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.
•   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
•   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
•   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


•   Gen Xers are technically savvy. Better have a well-designed Web
    presence – good graphics and seamless navigation.
•   Honesty is critical. Xers look at things critically and try to spot the
    lie. Be sure you deliver what you promise.
•   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


•   Even more diverse than Gen Xers. More than 40% of kindergartners
    are nonwhite.
•   Will be largest generation ever – even larger than boomers
•   Raised in an era of unprecedented “long boom” prosperity
•   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


•   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.
•   Faxes, computers, cell phones, ATMs, CDs have ALWAYS been a
    part of their lives
•   Some have seen as many as 20,000 TV commercials a year since
    birth
    Marketing to Millennials
      Born: 1982—2000(5)                       Age:5—23


•   Millennials are still young consumers (oldest in their early 20s),
    and it is still too soon to make any firm judgments. However…
•   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.
•   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).
•       Good news for small businesses: Millennials appear to be loyal to
        brands, albeit they want their own labels, not another generations
        labels.
    –      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


•   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.

•   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 70-
       75 years.

Managing the Generation Mix – From Collision to Collaboration
       Applying GM Principles
         Your Own Business
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                                                  Low Impact



 Product   Marketing Plan   Influence the   Choose the    How fast can
  R&D       Development         use of      promotional    you get me
                             promotional      product      something
                              products
   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 co-
    workers, parents, kids, neighbors, etc.

								
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