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by Renee Fellows

January 30, 2007—Are you looking to expand your current target market by advertising to a younger generation? Welcome to the Gen X/Gen Y demographic! Gen Xers were born between 1965 and 1976 and according to the 2000 census, make up about 17% of the U.S. population. That’s a pretty big fish to tempt even the smallest entrepreneur.

The Gen Yers loom even larger on the horizon making up nearly 25% of our population and range in age from 12 to 30 (born from 1977 to 1994). Controlling slightly less than half of the consumer spending each year, these markets are rapidly gaining the attention of marketers with their attitudes and wallets.

What are they looking for?

Unlike their baby boomer predecessors who were born during the post-World War II era, this population is tough, skeptical and fiercely independent in their thinking and spending. Growing into their 30's and 40's, they are now settling down, starting families and changing their spending habits to accommodate their new lifestyles. Prior to families, they were focused on education, careers and status symbols of their success (i.e., cars, clothing, electronics and vacations).

As they married and had children, a redirection of their spending moved toward their children (Gen Y). From extensive spending on sports and hobbies, the children of Gen Xers are lavished with far more dollars than any previous generation. In his recent article Marketing to Generation X, writer and marketer, Michael Fleishner says that both Gen X and Gen Y have much in common: “Both generations grew up with recessions, single-parent households, cable TV, the Internet and other personal technology. Consequently, these groups consume media differently from earlier generations.” Marketing to this demographic can be tricky, but highly rewarding when done correctly.

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For older generations, mom working outside the home was unusual and the divorce rate was less than 9% of the population. For Gen X/Y, over 60% of mothers work outside the home and divorce affects nearly 50% of our families. This translates into a population splitting their time between two or more households and a shift in what defines a normal family. Women’s rights to Baby Boomers means equal pay and financial independence, to Gen X/Y it means possessing the opportunity to choose everything from lifestyle to career.

Use the right tools for the job

While you may think that your target is living exclusively on the Web, think again. One of the most reliable methods for reaching your market comes to them the old fashioned way—in their mail box. That’s right, according to a study initiated by the U.S. Postal Service, Gen X and Gen Y sort and open their mail the exact way their parents did and rely on what’s in their mail for news, coupons and other information more than that from their electronic media outlets. While direct mail may not be the only option, it has surfaced as a surprisingly successful method for effectively spreading marketing messages and incentive offers.

Direct mail works

Furthermore, according to the report, 98% of both generations bring in their mail daily, while 70% of Xers and 82% of Yers report that they sort their mail immediately. As for using coupons they’ve received in the mail, 74% of X and 68% of Y say they have done so. In aggregate, USPS research has found that the two groups say they would rate 75% of their mail as being of immediate value. And, most importantly these groups all say that they appreciate the messaging and the fact that direct mail doesn’t encroach into their private media space.

While you may be suppressing the urge to run right out and implement an immediate direct mail effort, consider that direct mail works when efforts are combined with other media channels. For example, Gen Xers do utilize electronic media on a consistent basis. By tying in a direct mail effort with an email campaign, site advertising (such as banners) and even keyword use and pay per click advertising, the results will be compounded.

It’s about the relationship

Above all, remember that consumers are seeking a close, personal relationship with your product or service. The more effort you make to reach out and demonstrate that you identify with their lifestyles, the greater odds that you will get and keep them as a customer. While starting in the mailbox is a great way to begin that relationship, never forget that to keep them coming back you must follow through on your commitment and promises, provide outstanding customer care and stay abreast of issues and needs rather than wait for the consumer to tell you what those trends will be.

There are a multitude of tactics and strategies available to the marketer in today’s hi-tech environment. Learn where your target lives and more importantly what tools they use to make their lives easier and you will discover the best medium for the job.

Diversity

Gen Yers have grown up in a generation marked by diversity. Today’s youthful culture is increasingly multicultural, multilingual, and open to new ideas, so marketing imagery and language must reflect that diversity. If you’re considering using photos or stock images in advertising or marketing materials, be sure to include a wide range of races and ages that will pertain to your market.

Content-driven materials need to keenly focus on short bursts of critical information intermingled with captivating graphics and colors. It’s important to note that no matter what market you wish to target, that you must first and foremost make every effort to speak with respect to their values, needs and aspirations.

Timing is everything

Unlike marketing to more traditional age groups, targeting Gen Y is especially sensitive to the calendar. Don’t set your campaign into motion during peak stress times (such as mid-terms or finals weeks) or place commercial buys during the daytime hours when your population is attending school and away from radios and televisions. To effectively reach this population, you’ll need school calendars complete with vacation weeks, testing schedules and any other time-sensitive information you can access. And don’t forget to capitalize on significant milestones such as turning age 16, obtaining a driver’s license and graduations.

Not just for kids

Bear in mind that not only do you need to market to the youthful audience, but your ads also will be viewed by a second market—your target’s parents. That means to be successful you will need to devise a separate campaign to address their unique concerns and questions. The Ganz Company, manufacturer of toys and stuffed characters, heeded this warning when they devised a new stuffed animal line called WebKinz®.

If you have a child between the ages of 5 and 15, then you probably have a WebKinz living in your home, too. An ingenious way to sell a previously stale product line, the WebKinz comes complete with a unique identifier code tied to his/her paw and once registered through the WebKinz site, becomes an animated virtual pet complete with living quarters and such human characteristics as hunger, happiness, favorite games and best friends. The WebKinz’s owner can then add to their virtual pet’s world by taking a job to earn KinzCash and playing tournament games with other WebKinz pets in the Arcade.

The WebKinz product is well thought out and takes into consideration a parent’s fear of Internet predators. The WebKinz site is 100% secure, meaning that only approved friends can be added to the child’s friend list and that only predetermined conversations can take place by selecting phrases from a drop down list. No live communication is permitted through the system, yet the child is able to safely interact with the pet and other children online.

WebKinz created further safeties by allowing no exchange of names, email or physical addresses. A lengthy parent FAQ section explains in detail how the virtual pet works and assures parents of the company’s concerns and lengths to which they have created a safe place for children to play. Ganz has successfully managed to appease both audiences and eased the concerns of the parents by creating a safe place where children can learn money management, take responsibility for caring for their pet and build social skills.

There is much, much more to be learned about these growing markets over the next 10 years and we marketers will be observing with watchful eyes as they assume a majority presence in our culture.

 If you’re a small business thinking about targeting this affluent and diverse market, talk with us today by calling ClearPoint Marketing Communications at (603) 434-9433 or via email at Rfellows@oneclearpoint.com. We can help build a strategy that communicates your brand and positions your products or services above the competition.

Whatever your small business needs, your Fiducial tax and financial professional can analyze your situation and recommend an appropriate action plan. To locate a Fiducial office nearest you on fiducial.com, see the Zip Code Locator located in the upper right hand corner of the page. Do you have a particular topic that we should be writing about that can help your business? Please send your suggestions to: stephen.parezo@fiducial.com.

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