Generation Y?

Generation Y, also known as the Millennial Generation are the demographic sample of the population which follow after Generation X. Generation Y, unlike many of the other generations have no precise beginning or end. With reports stating the generation ranges from the mid 1970's to the late 1980's and ending anywhere between the early 1990's and early millennials. This equates to members of the generation ageing anywhere from 32-12 years of age. The most common range reflects births from 1980-1999 giving a child born in 1980 time to grow into adulthood and be able to reproduce their own offspring at the turn of the millennium. Members of this generation are also called Echo Boomers, due to the significant increase in birth rates through the 1980s and into the 1990s, and because many of them are children of Baby Boomers. Generation Y makes up 85 million people.  

 Generation marketing

Generation marketing is a useful tool to marketers who are wishing to target a particular generation, as certain forms of advertising and marketing will be effective with some generations but not others, this is because the method of marketing to a specific generation affects the way that we promote and sell products and services. We are all a product of our generation. Each generation has their own characteristics and because of this we can usually categorize generations by the way that we act and speak as well as our belief systems.

 Consumer Behaviour

With regards to Generation Y, they were the first demographic to grow up with a television and internet in their homes. They were also the first generation to be introduced to the mobile phone amongst various other technological advancements, because of this, this generation has grown up in a world of media and their day to day lives are influenced massively by technology in comparison to previous generations, where such technology simply did not exist.  This has a huge influence on consumer behaviour, which as stated by Schiffman; “is the behaviour that consumers display in searching for, purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs.  Consumer behaviour focuses on how individuals make decisions to spend their available resources such as time, money and effort on consumption-related items.”

 

The following models can be used to display the process of consumer behaviour in a simplistic manner.

Here, Kotler’s model shows that the processes of consumer behaviour is the result of a number of factors which initiate a purchasing decision from a consumer in relation to their society and culture. These different factors lead to different decisions being made in comparison to other generations. Kotler’s model, which shows the processes of consumer behaviour, concludes that it is a number of factors which initiates a purchasing decision from a consumer in relation to their social and cultural factors which influence their lives.

Another factor which influences consumer behaviour is values. Values are described as “important and enduring beliefs or ideals shared by the members of a culture or society about what is good or desirable and what is not. Values exert major influence on the behavior of an individual and serve as broad guidelines in all situations.” This will have an influence on consumer behaviour for example with regards to Muslims; they will not purchase alcohol because of their beliefs against consuming the substance. Therefore they will not be targeted by marketers of alcohol or advertisements including alcohol as they have no interest in the product due their values. Another example in relation to Generation Y would be through technology. Because Generation Y have grown up in a world of technology and media, they will be easily reached through forms of web communication such as emails and banner advertisements on social networking sites due to them constantly being online. However, to generations such as the baby boomers they will not be as interactive on the internet as it is a “new” and “foreign” world to them.

Marketers can also target their niche market by understanding the formation of “groups”. A group can be described as “A collection of individuals who have regular contact and frequent interaction, mutual influence, common feeling of camaraderie, and who work together to achieve a common set of goals” By understanding groups, a marketer can understand how to interact with that group of people as a collective , whilst still making their marketing interact with the group on an individual level. For example using such words as “You” will target the individual, however the marketing strategy will be formulated through appealing to a specific group’s values and beliefs

Key Events

Key Events in history can have a huge impact on a society’s beliefs and values. In particular, with regards to the different generations, different reactions and responses are a result due to the different ages, values and beliefs.

Here are just a few key events which have occurred in the lifetime of Generation Y:

·         1978- Worlds first test tube baby was born

·         1979- Britain’s first female prime minister is elected. Margaret Thatcher. Conservative

·         1981- Racial tensions spark riots in the UK

·         1982- Economic recession in Britain saw vast unemployment across the UK

·         1984- 12 month miner’s strike over pit closures begins.

·         1989- The invention of the World Wide Web by Tim Berners Lee.

·         1997- Princess Diana dies in a car crash

·         2001- Foot and Mouth disease wreaks havoc across Britain’s farming industry

·         2001- Islamic terrorists crash aircrafts into targets in New York and Washington

·         2003-Britain join the US in an invasion of Iraq

Many of these events have shaped the values and beliefs of not only Generation Y, but society as a whole. Since the late 1980’s society has seen huge technological advances such as the first test tube baby and the internet. With the introduction of the internet, a whole new world was born, anything from online gaming to shopping, to speaking to people on the other side of the globe with just the simple click of a button was now possible. This in turn opened up a limitless amount of opportunities for society. With regards to values, because of the internet, generation y has always had access to computers and emails and recently; social networking sites. Family and friends who were on the other side of the world were now on their computer screen in the room with them. This in some ways has made the world much smaller in respect of the view of the world to previous generations. People have been brought closer together, not just in the form of keeping in contact through the internet but also in relation to race and discrimination. Although racism still exists today, Generation Y has started out in a world where there were equal rights for blacks and whites, as well as men and women. With the introduction of Margaret Thatcher, Britain saw the introduction of the first female Prime Minister. This set an example to Generation Y that women could succeed in the work place as well as men. The introduction of the contraceptive pill in the 1970’s allowed women to go out to work and have careers, instead of being stereotypical homemakers, and so women  born in the 1980’s were free to go into further education and break the “glass ceiling”.  This obviously became more and more evident as those who were born later in the 1990’s also saw the introduction to equal pay and maternity and paternity rights.

Generation Y have also seen a lot of devastation in their life time, with vast unemployment in the early 1980’s which has now repeated itself with the economy decline of 2009 to present day. The death of Princess Diana saw the UK lose one of the Royal family whom represented the UK positively across the globe, and was seen as a role model to many. The 9/11 terrorist attacks in 2001, affected society World-Wide. With further attacks in London with the bombings, the world for Generation Y has started to become not as safe as it used to be. Generation Y have also seen a war with Iraq, and more recently the UK riots of 2011. For Generation Y the world has become a less structured, place to live. Society’s beliefs have begun to flex from their rigid formations of what is right and wrong, and has begun to be more open to different views and cultures. Technology has made the world modern and up to date where almost nothing is impossible. This in return has had an effect on the consumer behaviour of Generation Y. They are typically more open minded to new things, however, they have also been branded as “lazy” due to the advancements of technology replacing jobs which would have been done manually by previous generations. For example, instead of going into town, Generation Y are more likely to shop online from the comfort of their home.

Buying Behaviour

 Since the beginning of the recession, Gen Yers have consistently indicated a greater willingness to spend more in the coming months than Gen Xers or Baby Boomers. They also are significantly less likely than older consumers to indicate plans to continue recession-induced shopping behaviours in the recovery.Gen Y, with 85 million members, actually outnumbers the Boomers, but currently only accounts for 6% of all households and 4% of household spending, primarily because most are not yet heads of households. Gen Yers may spend the next few years leaving home, “boomeranging” back and leaving home again before establishing their own homes. This would delay the maximum impact this generation could have on spending for big-ticket items such as furniture, appliances and home improvement goods.

However, ‘PriceWaterhouseCoopers’ advises that with fewer debts and a less-urgent need to accumulate wealth in the immediate term than older shoppers, a higher proportion of this generation’s income is discretionary. As a result, until they establish their own households, most of the income earned by this generation is highly likely to be spent. In addition, Gen Y is accustomed to instant gratification; a tech lifestyle is a need, not a want. For Gen Yers, spending on the technology staples of this generation, such as iPods and MP3 players, smartphones, laptop computers, and video games, will remain a priority and will continue to create unique opportunities for tech-oriented retailers.

Research Methods

 There are many different forms of research which can be conducted by marketers in an opportunity to gain information from the different generations. These research methods can be broken down first and foremost into Primary and Secondary research. Primary research is the research which is conducted by an individual such as constructing and handing out questionnaires, which in return creates new data. However, Secondary research is the use of previously collected data, which is not your own, for example newspaper articles, journals and internet sources. The data which is collected from the primary and secondary research is then categorised into qualitative and quantitative data. Qualitative data is data in the form of words, such as descriptions. Qualitative data has a lot of detail in it and is therefore difficult to process and categorise because it requires a lot interpretation from a marketing perspective. Quantitative data, on the contrary, is data in the form of numbers, so; demographics, graphs and figures. This form of data is much easier to analyse, as it can be processed by a technology such as computers etc. Qualitative and quantitative data in relation to questionnaires would be open and closed questions. An open question allows the consumer to answer in detail without any guidelines, whereas closed questions simply require a yes or no answer.

Marketers can also conduct research in the form of focus groups and surveys. Focus groups require a group of people to test drive a product or service in a controlled environment and then report back on their opinion in the form of either an interview or a questionnaire. A survey is simply data collection method where information is collected about individuals in order to achieve a data sample of that group of people.

How to reach Generation Y

“The focus of your brand or product has to be on value, utility, enhanced communication and enhanced life experiences, because that's what this group is about.”

Experts point out that perhaps the most important thing to remember about millennials is that despite their aptitude for social networking, they are highly individualistic. Gen Y members have many options available to customize nearly every aspect of their lives, from their clothes to their music collections — and to the way they consume marketing messages. They can make these choices instantly online or on their phones, and, though they often turn to their peers for suggestions, the places where they spend their disposable income is ultimately up to them. So, by speaking to them in the medium they want, respecting their tastes and offering them something that feels more like entertainment and less like marketing, marketers can capture Gen Y's attention.

Because of this the best way to reach Generation Y to achieve consumer research is through technology. Because this generation spends so much time online, much of their information is readily available for those who know where to look. Take Facebook as an example, with 900 million active users with every single user having to input their personal data in order to set up an account, has a huge database of almost 1 7^th of the population of the world. Not only that but every time an active user clicks on a link or “likes” a page, that data is also added to the ongoing data files of Facebook, which are later sold to marketers who want to target individuals with their personalized strategies, such as online billboards which advertise that persons specific interests. It is also possible to target this generation through the form of television and through the mobile network as almost every member of this demographic own a phone.

http://www.youtube.com/watch?v=I1qTbs8K3go

This advert represents Gen Y in many ways. In particular the modern music will instantly capture a Gen Y audience, as music has become an ever increasing part of people’s lives with the introduction of mp3 players and smartphones, allowing music to become a part of day to day life. Through-out the short clip, the audience sees a display of individualism expressed through the form of clothing, and actions. From a man with a light bulb shaved into his hair to women with fairy lights in their bicycles all of these images are triggers to Generation Y, as they are all about individualism and making a change. The advert itself is also marketing a smart phone which is the epiphany of Gen Y today, due to the need to stay connected with society.