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Marketing to-generation-y

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  • Marketing to Generation Y
  • Marketing to Generation Y
  • Transcript

    • 1. Marketing to Generation YMarketing to Generation Y1
    • 2. Marketing to Generation YMarketing to Generation YMarketing to Generation YMarketing to Generation Y Demographic Trends Slides 7-14 Marketing Communications Slides 15-23 Spending Patterns Slides 24-31 Media/Technology Usage Slides 32-362
    • 3. A great deal has been written aboutA great deal has been written about‘Generation Y’ since the term was‘Generation Y’ since the term wasfirst coined in 1993 byfirst coined in 1993 byAdvertising AgeAdvertising Age magazine.magazine.A great deal has been written aboutA great deal has been written about‘Generation Y’ since the term was‘Generation Y’ since the term wasfirst coined in 1993 byfirst coined in 1993 byAdvertising AgeAdvertising Age magazine.magazine.3
    • 4. The term refers to the last generationThe term refers to the last generationtotobe born wholly in the twentieth century.be born wholly in the twentieth century.This group is also known asThis group is also known as“echo boomers,” the “millennials”“echo boomers,” the “millennials”or often “generation why.”or often “generation why.”The term refers to the last generationThe term refers to the last generationtotobe born wholly in the twentieth century.be born wholly in the twentieth century.This group is also known asThis group is also known as“echo boomers,” the “millennials”“echo boomers,” the “millennials”or often “generation why.”or often “generation why.”4
    • 5. While the youngest Generation Y isWhile the youngest Generation Y isonlyonly10 years old, marketers are focused on10 years old, marketers are focused onthose who are currently 15-30 yearsthose who are currently 15-30 yearsold.old.In the US, Generation Y is 70+ millionIn the US, Generation Y is 70+ millionpeople strong, almost double the sizepeople strong, almost double the sizeof ‘Generation X,’ its predecessor.of ‘Generation X,’ its predecessor.While the youngest Generation Y isWhile the youngest Generation Y isonlyonly10 years old, marketers are focused on10 years old, marketers are focused onthose who are currently 15-30 yearsthose who are currently 15-30 yearsold.old.In the US, Generation Y is 70+ millionIn the US, Generation Y is 70+ millionpeople strong, almost double the sizepeople strong, almost double the sizeof ‘Generation X,’ its predecessor.of ‘Generation X,’ its predecessor.5
    • 6. Generation Y in ContextGeneration Y in ContextGeneration Y in ContextGeneration Y in Context This is a generation who never knew life without AIDS,never felt the chill of the Cold War, who learned aboutthe birds and bees from President Clinton’s well-publicized antics, wore designer kids clothes, never wentto a library for research and can’t imagine life withoutATMs, DVDs, DVRs, IM, AOL and SUVs. Generation Y has always lived in a multimedia world andhas an innate ability to decode brand symbolism andiconography. The Gen Y world is one of contradictions that itcompletely embraces. Young people can switch onCNN and see disasters and then escape from it allon an iPod.6Source: Brand Strategy
    • 7. Demographic TrendsDemographic TrendsDemographic TrendsDemographic Trends7
    • 8. Generation Y Represents the FutureGeneration Y Represents the FutureMarket For Most Consumer BrandsMarket For Most Consumer BrandsGeneration Y Represents the FutureGeneration Y Represents the FutureMarket For Most Consumer BrandsMarket For Most Consumer Brands Gen Ys according to Census data were born between 1977and 1994, making this segment ages 15–32. There are approximately 70 million Gen Y consumers. By 2010, Gen Ys will outnumber Baby Boomers. Gen Ys will make up 50% of the 18-49 demo by 2010. The number of Gen Ys will grow to nearly 90 millionby 2020. This generation – sometimes called the Net Generation –is the most technology-savvy group of Americans.8Source: U.S. Census BureauGeneration Y or Millennials are crucial consumers for all kindsof businesses because of the size of this generationalsegment.
    • 9. Adult Internet Population by GenerationAdult Internet Population by GenerationAdult Internet Population by GenerationAdult Internet Population by GenerationPercentGen Y (18-32) 30%Gen X (33-44) 23%Younger Boomers (45-54) 22%Older Boomers (55-63) 13%Silent Generation (64-72) 7%G.I. Generation (73+) 4%9Source: Pew Internet & American Life Project, Generations Online 2009 1/28/09Percent of Internet users (does not include teens)
    • 10. U.S. Population DataU.S. Population DataU.S. Population DataU.S. Population DataU.S. Census Bureau population estimates for 2009: 2009 U.S. Population 307 million 100.0% Birth – Age 18 74,548,215 24.3% Age 18 – 24 30,412,035 9.9% Age 25 – 44 83,096,278 27.1% Age 45 – 64 79,379,432 25.9% Age 65 and over 39,570,590 12.9 %10Source: U.S. Census Bureau Population Estimates for 2009
    • 11. Percent Distribution of Total PopulationPercent Distribution of Total PopulationPercent Distribution of Total PopulationPercent Distribution of Total Population11Source: U.S. Census Bureau Population Estimates for 2009Total U.S. Population=307 million45-64Years25.9%65+ Years12.9%25-44 Years27.1%Birth-18 Years24.3%18-24Years9.9%
    • 12. Gen Y Racial and Ethnic CompositionGen Y Racial and Ethnic CompositionGen Y Racial and Ethnic CompositionGen Y Racial and Ethnic Composition Non-Hispanic White Alone 60% Non Hispanic Black Alone 14% Non-Hispanic Asian Alone 4% All Other Races 3% Hispanic (Any Race) 19%12Source: U.S. Census Bureau, National Population Estimates and Projections.Cited in MetLife Mature Market Institute 2009
    • 13. Family Life and Gen YFamily Life and Gen YFamily Life and Gen YFamily Life and Gen YAs young adults, many Gen Yers consider marriage to be anessential component of the American Dream.13Source: U.S. Census Bureau, DataFerrett, Current Population Survey, March Supplement, 2009. Cited in MetLife Mature MarketInstitute 2009.Marital Status Males FemalesMarried 21.3% 27.9%Widowed 0.0% 0.3%Divorced 2.0% 3.2%Separated 1.3% 2.1%Never Married 75.3% 66.5%
    • 14. Gen Y’s PrioritiesGen Y’s PrioritiesGen Y’s PrioritiesGen Y’s Priorities Gen Y places tremendous emphasis and precedenceon the following arenas:14Source: Millennials:” Confident, Connected. Open to Change”- Pew Social &Demographic Trends 2/24/2010
    • 15. Marketing CommunicationsMarketing Communicationsto Gen Yto Gen YMarketing CommunicationsMarketing Communicationsto Gen Yto Gen Y15
    • 16. Marketing to Gen Y Grows in ImportanceMarketing to Gen Y Grows in ImportanceMarketing to Gen Y Grows in ImportanceMarketing to Gen Y Grows in ImportanceAdvertisers are looking at creating new ways oftargeting Gen Y for several reasons: This consumer segment (or generational cohort) isharder to reach with traditional media. Gen Y is a collection of different psychographic groups,each with its own motivations and preferences. The Gen Y audience is very diverse and fragmented andconsequently more accepting than their predecessorsof diversity. Advertising to the traditional, mass audience frequentlydoes not have appeal for the younger cutting-edgeconsumers.16
    • 17. Reaching Gen Y with Effective MarketingReaching Gen Y with Effective MarketingReaching Gen Y with Effective MarketingReaching Gen Y with Effective Marketing They are family and friend oriented. This is why cell phonesand two-way paging are so attractive to them. Word-of-mouth marketing is very powerful with this groupbecause they are so friend conscious. Viral marketing as a popular and effective medium- go wherethey are in order to reach them. They are very optimistic and have a positive outlook onthe world. Non-profit sponsorships and cause marketing efforts will get apositive response. They are tenacious doers; offer products that help thembecome better. Make sure your marketing also reaches parents of Gen Y, forthey are close to their children, and still buy things for them.17Source: refresher.com
    • 18. Generation Y Places High Value On…Generation Y Places High Value On…Generation Y Places High Value On…Generation Y Places High Value On… Connection Diversity Living first Time with friends Civic activities Taking care of the environment Authenticity Quality Access to information Ongoing learning Career development Freedom to travel18Source: Marketing to Generation Y: What You Can’t Afford Not to Know, by Bea Fields, 12/25/2008
    • 19. Communicating with Gen YCommunicating with Gen YCommunicating with Gen YCommunicating with Gen Y Know that there are more media outlets for Gen Y to be aware of,and there are more opportunities for advertisers to reach them. Create effective communication via events, the Internet (instantmessaging), blogs, sponsorships, billboards. Plan strategically targeted messages. Follow the grassroots approach, and promote products at placesteens gather. High-pressure selling is out. These consumers are used to buyingonline- without pressure. They research the Web. They understand transparency in pricesand technical information- don’t talk down to them in the technicalterrain. Associates have to know more than these consumers have learnedabout the products on the Web.19Source: brandchannel.com
    • 20. Generation Y Replacing Generation XGeneration Y Replacing Generation XGeneration Y Replacing Generation XGeneration Y Replacing Generation X What this means is that the purchasing power is going tobe largely transferred from Baby Boomers, who are retiring,down to their children and grandchildren. Generation Y was born with a cell phone and a laptop intheir crib. To be “plugged in” 24/7 has almost become anatural extension of their being. This is the most optimistic generation to ever walk the faceof the planet. They care about the earth and servicing theitcommunity.20Source: Marketing to Generation Y: What You Can’t Afford Not to Know, by Bea Fields 12/25/08
    • 21. Gen Y Consumers Are OptimisticGen Y Consumers Are OptimisticAbout FutureAbout FutureGen Y Consumers Are OptimisticGen Y Consumers Are OptimisticAbout FutureAbout Future According to a survey by StrategyOne for Pepsi inNovember 2008, people born 1980-1990 remainconfident about the future despite the falling economy. Four out of five Millennials are hopeful about 2009. 95% agree that it is important to maintain a positiveoutlook on life. 77% have a strong sense of optimism about theircareers. 74% find that supporting causes makes them feel moreoptimistic.21Source: Center for Media Research, MediaPost 12/31/08 (Latest data available)
    • 22. So, How Do We Market To Gen Y?So, How Do We Market To Gen Y?So, How Do We Market To Gen Y?So, How Do We Market To Gen Y?In order to successfully market to Gen Y, we must firstrecognize the four areas Gen Y considers beforepurchasing a product or service: Cheap cost Good quality Fast service An “experience”22Source: Marketing to Generation Y: What You Can’t Afford Not to Know, by Bea Fields, 12/25/08
    • 23. Where Can We Reach Gen Y?Where Can We Reach Gen Y?Where Can We Reach Gen Y?Where Can We Reach Gen Y? Concerts (Gen Y loves live music). Extreme sporting events (skateboarding, snowboarding,BMX). Movies Hiking events (Gen Y love the outdoors). Video games and video game competitions Mashups23Source: Marketing to Generation Y: What You Can’t Afford Not to Know, by Bea Fields 12/25/08
    • 24. Spending Patterns of Gen YSpending Patterns of Gen YSpending Patterns of Gen YSpending Patterns of Gen Y24
    • 25. Gen Y currently spends over $200Gen Y currently spends over $200billion, and they drive many adultbillion, and they drive many adultpurchasing decisions.purchasing decisions.Gen Y currently spends over $200Gen Y currently spends over $200billion, and they drive many adultbillion, and they drive many adultpurchasing decisions.purchasing decisions.25Source: Fast Company Magazine 6/19/08 (latest data available)
    • 26. General Gen Y ExpendituresGeneral Gen Y ExpendituresGeneral Gen Y ExpendituresGeneral Gen Y ExpendituresUnder 25 25-34Food and Alcohol $4,895 $6,720Housing 9,975 17,218Apparel and Services 1,351 1,965Transportation 5,464 8,699Health Care 682 1,737Entertainment 1,608 2,766Personal Insurance and Pensions 2,283 5,510Cash Contributions 427 1,036Education 1,691 759Miscellaneous 949 1,650Average Annual Expenditures $29,325 $48,15926Source: U.S. Department of Labor, Bureau of Labor Statistics, Consumer Expenditure Survey, 2008. Cited in MetLife MatureMarket Institute.Average Annual Expenditures
    • 27. U.S. Total Annual Income by Generation,U.S. Total Annual Income by Generation,2007, 2012 & 2017 (Trillions)2007, 2012 & 2017 (Trillions)U.S. Total Annual Income by Generation,U.S. Total Annual Income by Generation,2007, 2012 & 2017 (Trillions)2007, 2012 & 2017 (Trillions)27Source: Javelin Strategy & Research cited in eMarketer 11/3/08 (Latest data available)$2.96$4.20$3.48$3.29$3.91$2.37$3.44$3.67$1.89Baby BoomersGenerat ion XGenerat ion Y2017 2012 2007
    • 28. Gen Y Advertising & Brand PreferencesGen Y Advertising & Brand PreferencesGen Y Advertising & Brand PreferencesGen Y Advertising & Brand PreferencesThe College Explorer survey of college students ages 18-30,conducted by Alloy Media & Marketing revealed: 41% of respondents prefer socially responsible brands. Important issues for determining socially responsiblecorporations (69% of respondents) were donating money to acause or charity or using eco-friendly business practices. 68% said the criteria for socially responsible corporations wasfair labor practices, 46% said supports diversity in theworkplace. 49% said that social messages incorporated into advertisinghave an effect. 93% say they are less likely to ignore an ad that promotes abrand’s partnership with a cause.28Source: Alloy Media & Marketing.com 8/4/08 (Latest data available)
    • 29. Gen Y New-Car Buyers Seek VehicleGen Y New-Car Buyers Seek VehicleSafety, Security and DurabilitySafety, Security and DurabilityGen Y New-Car Buyers Seek VehicleGen Y New-Car Buyers Seek VehicleSafety, Security and DurabilitySafety, Security and Durability Strategic Vision’s New Vehicle Experience Studyshows that Gen Y is not that different from older carbuyers. 79% of Gen Y buyers said their most importantconsiderations are safety, security and durabilityrather than how fun a new vehicle is to drive. 40% of Gen Y buyers said they definitely would buyToyota, and 36% said they same of Honda. Gen Y consumers constitute about 10% of the totalnew-vehicle market.29Source: MediaPost Publications 10/30/08 (Latest data available)
    • 30. Gen Y Are More Likely to Make Their OwnGen Y Are More Likely to Make Their OwnInvestment Decisions Than Other GenerationsInvestment Decisions Than Other GenerationsGen Y Are More Likely to Make Their OwnGen Y Are More Likely to Make Their OwnInvestment Decisions Than Other GenerationsInvestment Decisions Than Other Generations According to Scottrade, an online investing firm, 51% of Gen ymakes their own investment decisions compared with 40% ofthe total population. Only 5% of Gen Y has someone else making their investmentdecisions, compared with 10% of the total population. 34% of Gen Y investors say their investment decisions arebetter than average, compared with 25% of the totalpopulation. 79% of Gen Y investors are using financial websites to getinformation, compared with 48% of the total population. Scottrade is enhancing educational components of its onlineofferings for the Gen y consumer, and anticipating moremobile investing.30Source: Marketing Daily, MediaPost 11/12/08 (Latest data available)
    • 31. Gen Y Driving the Trend forGen Y Driving the Trend forEnvironmentally Friendly ClothingEnvironmentally Friendly ClothingGen Y Driving the Trend forGen Y Driving the Trend forEnvironmentally Friendly ClothingEnvironmentally Friendly Clothing Research from Iconoculture shows that 20-28-year-olds arewilling to pay more for organic and fair-trade products. Iconoculture’s research describes four distinct shoppingtypes: The Living Green consumer who has embraced the concept ofthe environmental lifestyle and is driven by dedication, purity andawareness. The Core Fashionista who is looking to build up the green in herfashion portfolio and redefining her sense of eco-chic. The Walking Green consumer who is driven by wanting tobelong to a greater community and is a trend follower. The Spending Green shopper who buys green clothes becausethat sense of exclusivity and entitlement are important to her,and buying green connotes luxury.31Source: MediaPost Publications 4/7/08 (Latest data available)
    • 32. Media/Technology UsageMedia/Technology UsageMedia/Technology UsageMedia/Technology Usage32
    • 33. The Media Consumption of CollegeThe Media Consumption of CollegeStudentsStudentsThe Media Consumption of CollegeThe Media Consumption of CollegeStudentsStudents According to conclusions from Alloy Media + Marketing’s 9thannual College Explorer Survey, anticipated annualtechnology spending among college students (ages 18-30)has reached an all time high at $6.5 billion, ranking 3rdinoverall discretionary spending. The study found that students are spending an average of12 hours daily engaged with some type of interactivemedia. Additionally, students are spending twice as much time ontheir computers as compared to television viewing.33Source: Alloy Media + Marketing 9thannual College Explorer Survey
    • 34. The Media Consumption of CollegeThe Media Consumption of CollegeStudentsStudentsThe Media Consumption of CollegeThe Media Consumption of CollegeStudentsStudents 33% of 18-24 year old students have increased theirconsumption of webisodes or user-generated videos sincelast year. 30% of 18-30 years olds report frequent video viewing onsocial networking sites. 61% of students are watching movies on computers vs.76% on their television.34Source: Alloy Media + Marketing 9thannual College Explorer Survey
    • 35. College Students Adopt New TechnologiesCollege Students Adopt New Technologiesto Engage, Connect and Entertainto Engage, Connect and EntertainCollege Students Adopt New TechnologiesCollege Students Adopt New Technologiesto Engage, Connect and Entertainto Engage, Connect and EntertainAlloy Media & Marketing’s 8th College Explorer surveyof college students ages 18-30 revealed: Seven in ten students now own a laptop. The college student, on average, consumers 1.9 hoursof MP3 usage. 5.0 hours of computer contact. Growing numbers of students use their cell phones forcommunication, entertainment and web access.35Source: Alloy Media + Marketing College Explorer, 2009
    • 36. Generational Differences in OnlineGenerational Differences in OnlineActivitiesActivitiesGenerational Differences in OnlineGenerational Differences in OnlineActivitiesActivities36Younger OlderOnline Activity Gen Y Gen X Boomers BoomersSource: Pew Internet & American Life Project, Generations Online 2009 1/28/09Watch videos 72% 57% 49% 30%Buy something 71% 80% 68% 72%Use social networking sites 67% 36% 20% 9%Make travel reservations 65% 70% 69% 66%Get info about jobs 64% 55% 43% 36%Send instant messages 59% 38% 28% 23%Download music 58% 46% 22% 21%Bank online 57% 65% 53% 49%Play games online 50% 38% 26% 28%Read blogs 43% 34% 27% 25%Download podcasts 25% 21% 19% 12%Create a blog 20% 10% 6% 7%Visit a virtual world 2% 3% 1% 1%
    • 37. Thank You!Thank You!Thank You!Thank You!37

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