GENERATION

XBy: Cyndy Hecker • Sarah Aitken • Angie Coburn

Who Are Generation X?

• The term “Generation X” originated from the book by Douglas Coupland entitled Generation X: Tales for an Accelerated Culture.

• Coupland chose the unknown variable “X” to describe a generation that defies definition.

• All do not agree on the date range that defines the generation. 1961-1981, 1964-1984, 1965-1985

• Also known as the “13th Generation” from the book Generations, by William Strauss and Nell Howe, who believed 1961-1981 was the 13th Generation to know the flag of the United States.

What Defines Generation X?

• Generation X is also known by the following labels –• Lost Generation• Baby Busters• MTV Generation

• Gen Xers came of age during times of economic and political ups and downs.

• They grew up in the shadow of the Boomers.• Xers are sandwiched between two larger generations.• Defining question: “Where were you when the space shuttle Challenger exploded?”

Psychographic Segmentation of Generation X

• A generation is not defined so much by the years it shares, but by the shared experiences of its members.

• Generation X covers a broad span of time. Thus, Xers can be broken down into “cohorts” within the generation.

• “Trailing-Edge Baby Boomer Cohort” (“Leading-Edge Gen Xer”)

• Born 1955 to 1965• Experiences – Fall of Vietnam, Watergate and Nixon’s resignation, the oil embargo,

raging inflation rate• Less optimistic about their financial future• Mothers enter workforce• An actor in the White House and MTV means appearances matter from now on.

Generation X-pectations

8%10%

10%

72%

Boomers

OtherHispanicAfrican AmericanWhite

16%

19%

12%

53%

Gen X

OtherHispanicAfrican AmericanWhite

Gen X is more culturally diverse.

MRI Doublebase, 2005

Gen X-change

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110

120

130

140

BoomersGen X

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Gen X reflects the shift to a service economy.

MRI Doublebase 2005

Gen X-plosion

Own iPod

Cellphone w

/camera

Cellphone has P

DA

Cellphone w

eb enabled

Use text

msg

Online m

ore than 1x/d

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Used email last

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Use insta

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Listen to

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Technology Gen X v. Boomers

Gen XBoomers

Thou

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Gen X-Files

• Past labels pasted on Generation X –Skeptical Pragmatic

Adaptable Self-Reliant

Informal Technoliterate

Diversity Minded Focused on Today

Slackers Irresponsible

Aimless Lazy

Cynics Shirkers

Drifters Selfish

Disrespectful Disloyal

Transient Grunge

Media Portrayal of Gen X

• In 1990’s, they are portrayed as flannel-wearing, alienated, overeducated, underachieving slackers with body piercings, who drank franchise-store coffee.

• The show “Friends” is often known as a Generation X portrait. The characters were teenagers during

the 1980’s and have the typical attitude and lifestyle of their generation, especially in the employment and relationships subjects.

The Life Experiences That Shaped Generation X

To understand how to reach Generation X today, we need to understand the environment of Post Modern thinking.

• They were “latchkey” kids because mom and dad were both at work when they got home.

• These are the “TV” kids because television became their authority on sex education, relationship advice, and career choices.

• These are the “whatever” kids because, with lack of family values being communicated, a growing distrust in politicians, and a “Televangelist” orientation to religion.

• This generation said “whatever” to most anything of worth.

As Generation X Continues to Grow

• They were “angry” kids because they were growing up in a broken, abusive, and often-empty homes – dysfunctional.

• Gen Xer’s graduated from college with degrees that were deemed worthless by the work force.

• After graduation, there were no jobs for them, and suddenly the American dream of having it better than your parents became the American joke.

• They work to live, not live to work.• Rather than collect “things” they began to collect

“experiences.”

Generation X Grown Up

How have the experiences and labels affected the Xer’s traits and values?• Delayed personal commitments, like marriage• More accepting of cultural diversity• Leadership can’t be assigned, it has to be earned• Self-Reliant• Seeks balance between work and family• Focus on results• Pragmatic, expect efficiency• Appreciate clear communication about their goals and responsibilities• Expect up-to-date technology• Like immediate, tangible rewards• Enjoy freedom to get the job done in their own way

So how do marketers reach a skeptical, cynical, suspicious generation who have “been there, done that?”

Marketing & Generation X

• Marketers can’t afford to ignore these 50 million customers which spend an estimated $125 billion annually

• Advertisers need to understand Gen Xers independence and their faith in their own abilities

• Generation X is:– Better informed– More tech savvy– Less gullible– Independent– Skeptical of traditional marketing

Marketing to Generation

Social MediaDirect MailE-Mail

TV Commercials

On-line

Ways marketers can reach Generation X:

• Over the past 10 years advertisers have not changed their advertising message to Generation X. What has changed is the channels in which they are using to reach this generation.

• In the past 10 years social media has exploded• Regardless of whether Gen Xers purchase in person or online, they are

probably using the internet to research their options. Xers spend at least 8 hours per week online

Gen Xer’s views on marketing

• Due to their lifelong exposure to mass media– they are aware of manipulation– They don’t accept information thru the media as factual– They don’t dislike advertising, they dislike the hype– Gen Xer’s need to believe they are receiving value

• Due to the diversity of this generation and their distrust of advertising, Generation Xer’s present many challenges for marketers

Strategies

• Advertisers need to focus on the things that are important to Gen X– Family– The environment

• Gen X was raised with TV but they invented a lot of the technology and applications used on the internet today. So marketers must use all forms of communication to reach this generation

• Gen X marketing requires elements of high perceived value, quality, less hype, more facts and a marketing message that is honest and straightforward. Generation Xers are more cynical about advertising. Less likely to be taken in by fads or product hype, and more likely to say “show me”

• Some companies are using music from the past decades to get the attention of potential buyers

– (ex. Fisher Price uses the song “Walking on Sunshine” by Katrina and the Waves in one of its toy commercials)

Recommendations to marketers

• Create short informative ads– (don’t waste their time and give them the product details and facts)

• Show the variety of Gen Xers in your advertisements– (Generation X is a very diverse group)

• Sell online to provide convenience– (Gen X loves to research and buy online, and when they want something,

especially information, they want it now)

• Interactive, easy and informative

Recommendations to marketers

• Ask their opinion

• Use all forms of media– Social media should be part of your campaign, not all of it

• Good strategy results can be viral, but viral can not be your only strategy

• Remember what someone says about you is more important than what you say about yourself.

• Convince them your product is reliable and will simplify their lives

Examples of companies that are focusing their marketing and business strategies around

Gen X

• Geico: 15 minutes could save you 15% or more on your car insurance

• Allstate: You’re in good hands

• Avis: We try harder

• Your time is important (so we won’t take much of it)

• We can protect you (playing on their fears)

• We go the extra mile for you (knowing Gen X expects more for less)

Slogans Gen X focus

Nissan’s add tries to entice Gen X by appealing to their adventurous side

Starbucks“Perfect Cup of Coffee” – Starbucks history has shown that they place a huge emphasis on product quality. Their coffee, even if priced slightly more expensive than expected, is notorious for satisfying customers with its rich, delicious taste and aroma.

Viral Marketing – The Starbucks marketing strategy has always focused on “word-of-mouth” advertising and letting the high quality of their products and services speak for themselves. For years, this has been uniquely Starbucks, and it has played a huge part in making Starbucks Coffee Company a success.

- Starbucks focuses on Gen Xers need for quality and their desire to make their own choices and decisions.

Louisville’s GEN X Radio Sept 3, 2009 Louisville’s Clear Channel Radio changes it’s call letters and format from WLUE “Louie” FM to WLGX “Louisville’s Gen X Radio”

• It can also be heard on www.genxlouisville.com or on smart phones

• Louisville’s GEN X RADIO is the newest concept in American Radio, – focusing on active women 25-44 whose youth was influenced by the pop music of the

late 80’s and 90’s. – Unlike traditional radio formats it is not defined by one genre of music.– Rather, it’s a “feel” or “vibe” that was present in pop culture during its time– It’s the songs that defined a generation of women growing up in the 80’s and 90’s with

Pop, Rock, R&B, Grunge, Hip-Hop, Hair Bands, Boy Bands and everything in between.

YouTube - progressive insurance commercial

Progressive Insurance CompanyCoupon Lady

-

Geico Insurance CompanyCave Man

YouTube – geico insurance commercial

• When Geico came out with the Caveman marketing campaign, they were able to bypass Progressive and take over as the nations #3 insurance company

• Gen X – the caveman

How Marketing Affects Market Share

• When Progressive came out with the Flo commercials the company experienced a 12 percent jump in the number of policies purchased over the phone or through its Web site (brand recognition rose 17 percent in 2008)

• Gen X – there is something real about her that appeals to the generation that wants the facts and wants to hear it from their friends

Generation X and the Fitness Industry

• Gen Xers unabashedly admit to being self conscious regarding their physical appearance

• Focused on improving health due to aging factors (i.e. high cholesterol, blood pressure)

• Offset of high health insurance costs• Share explicit conviction that regular exercise plays a vital role in helping

people look and feel more attractive • Disdain for physical activities that are dull or tedious, prefer activities that are

interesting, engaging, and exciting• Place significant value on a club’s social ambiance, extraordinary sensitive to

the clubs appearance, cleanliness, and entire visual dimension of the club experience

• Interested in finding camaraderie with in the membership• Aging children and stability in careers allows extra time for a fitness program • Constitutes 45% of current health club memberships• International Health, Racquet and Sport Club Association reports GenX is the

single largest component of the health club memberships to-date in the US

Fitness Industry Examples

Bally Total Fitness • Holding Corporation • 300 locations nationwide • Wide array of classes (25)

from palates to martial arts• Fun energetic atmosphere• Regular promotional

discounts

The Zoo • Franchise • 6 locations in Montana,

Florida and Texas• Buddy workouts which

offer financial savings and camaraderie that enhances strong motivation and promotes socializing

Generation X and the Golf Industry

• Gen Xers are key target market for high fashion golfing apparel and foot wear • Comfort with high technology makes them prime candidates for the latest

technological golfing equipment • Golf popularity over the past decade has been exponential due to Tiger

Woods and his 1996 winning of the Masters, says Robert Gregory, vice president and publisher of American Express Publishing's year-old Travel & Leisure Golf magazine

• Average golf players age is 39 (male) and 42 (female), only 13.5 percent are retired

• The average reader for Golf Digest is a male in his early forties with a household income of $117,900 and a median net worth of $941,300

• Gen Xers are coming to the part of their life in which they can partake in such events as golf holidays in which they place a premium on their leisure time

• Seniors (50+) play more and spend more, but they don't comprise the largest segment of golfers. The largest group are people in their thirties; 25 percent of golfers are in their thirties, and 22 percent are 18-29. This means that better than 50 percent of all golfers are under 40."

Golf Industry Example

Product Eligible Models Rebate Limit

Drivers Rapture V2, G15, i15, Rhapsody $30 1

Fairway Woods Rapture V2, G15, i15, Rhapsody $20 4

Hybrids Rapture V2, G15, i15, Rhapsody $20 4

Irons Rapture V2, G15, i15, S57, Rhapsody $10 12

Wedges Rapture V2, G15, i15, Tour-W, Rhapsody $10 4

PuttersiN Series, iWi Series, i-Series, Karsten Series, Redwood, JAS Series

$15 1

Generation X and the Alcohol Industry

• Research has found that consumers establish their life time drinking habits and preferences in their mid to late 20’s

• Overwhelming percentage of advertisements are targeted for Generation Y to lock in customer loyalty in early years

• Marketing campaigns have encountered skepticism focusing primarily on Generation Y because youth are exposed to and affected by alcohol marketing

• GenX consisting of 50 million customers who spend an estimated $125 billion annually are a market that has great potential for substantial return in the alcohol industry

• Premium and ultra premium products while popular with Generation Y, are more ideal to market to Generation X due to higher price and sophistication associated with them

• Gen Xers are volume consumers of distilled spirits, particularly rum, tequila and vodka

• Alcohol industry continues to be and increasingly competitive market: extensive brands for distilled spirits, beer & ale, wine and low alcohol refreshers

• Wine industry in particular would benefit from direct marketing to GenX

Alcohol Industry Example

• Johnnie Walker’s Red Label and Black Label products • Traditional target market were urban men 25-34• Blended scotch whiskey fell drastically out of favor among American consumers

during the 1980s and 1990s, losing more than 20 percent of its sales volume due to preference switches to clear liquors

• The updated “Keep Walking” concept marked a key shift in the brands approach to marketing

• Marketing was aimed at scotch drinkers who were already familiar with the brand

• the agency felt that if those who occasionally drank Johnnie Walker could be encouraged to drink it regularly, then they would serve, ultimately, as brand representatives among their friends and acquaintances

• ‘‘Journeys’’ print series, which featured profiles of men who had achieved success in unconventional ways

• ‘‘Cave’’ summarized an unconventional career path, showing a rear view of a man who was standing at the mouth of a cave that opened on to the ocean

Generation X and the Technological Industry

• According to the US Census Bureau 2008 statistics found 83.8 million people between the ages of 35-50 use the internet on a regular basis

• Since Gen Xers are tech savvy and conduct thorough research they obtain information on everything from parenting to consumer products online

• Gen Xers have become dependent upon such products as computers, mobile phones, and PDAs for business purposes as well as their person lives

• Turned to shopping online due to convenience associated with purchase as well as price matching ensuring to get the best price possible

• Increased popularity of online banking has made it primary means of banking and monitoring accounts for Gen Xers

• Heightened popularity of social networking with peers• The comfort level that Gen Xers possess make marketing for high-end

technology items ideal, although they want the best price possible, they will be more apt to purchase a high price tag item if they feel it is a wise purchase

Technological Industry Example

• 3 devices in 1: Mobile Phone, ipod, Internet Device • Time magazine named it the Invention of the Year in 2007• iPhone 3GS was announced on June 8, 2009, and has improved

performance a camera with more megapixels and video capability, and voice control

• With a retail price tag of $599 for the iPhone 3GS, Generation X are more of the ideal market versus Baby Boomers who would be more hesitant to purchase a complex phone and Generation Y having less disposable income than the precedinggeneration

Questions?

Generation XWith Generation X it’s no longer

about getting attention,it’s about earning their respect