Marketing to the younger generation
 

by Prasanna Perera, Marketing and management consultant, Chartered marketer, CIM, U.K.

During weekends, Majestic City is packed with teenagers and young adults who patronise stores selling fashion wear, accessories, music, mobile phones and IT gadgets. They meet friends, visit fast food restaurants, visit internet cafes and watch movies. We call them Generation Y.

The Generation Y's were born between 1979 and 1994. There are more than a few million Sri Lankans in this age group 11 to 26 years. These young people are very different from the older generation, Generation X, who were born between 1965 and 1978. Hence, the marketing strategies to serve the Generation Y's have to be different.

To understand the consumer behaviour of Generation Y's, it is important to review their formative years. They grew up in families with baby boomer parents who were more educated and have better financial resources. Market research has shown that many baby boomer parents born from 1946 to 1964 have taken a more open and liberal approach in raising their children. These parents encourage their children to participate in joint purchase decisions, be open and friendly and express their feelings.

The younger generation of today have grown up in a fast changing information technology environment and are more receptive to new technologies. They are the innovators and early adopters in the use of technology related products.

These youngsters want to own the latest mobile phones, enjoy SMS'ing their friends, listening to ring tones on their friends mobile phones and spend their free time on surfing the internet and playing video games. Technology has definitely shaped the way these people live.

There is no doubt about it. Generation Y's tend to spend their money or their parents money, on products such as fashion accessories, entertainment, sportswear and sports equipment and IT.

They believe that life is fun and virtually live for the day!! Besides Majestic City, you could observe Generation Y's patronising Creascat, Liberty Plaza, Reebok and Adidas outlets, selected night clubs and restaurants.

Marketing to generation Y

Market research has revealed that the younger generation spend less time watching TV, reading newspapers and books. They prefer to be IT savvy and spend their time with computers, playing video games, listening to music and going out with friends.

As such, the traditional marketing communication methods used to reach the Generation X's may not be effective for Generation Y's. Particularly, Generation Y's may not choose a brand just because it is endorsed by a famous face. Generation X's on the other hand tended to adopt brands endorsed by their celebrities. herein lies a major difference. It is also being high lighted that Generation Y's are less brand conscious and are willing to experiment with brands which are less known.

Their choice of brands could be influenced by their peers and through word of mouth, they would update each other on market happenings. (New brands, new gadgets, new trends).

The many marketers of today are in the baby boomer and Generation X age groups. They may be unclear about what Generation Y's want, as they cannot relate to the Generation Y culture, (Yuppies). For example, many Generation X's buy consumer durables that are well-known and advertised heavily. Generation Y's on the other hand may not choose well-known brands just because they are well established and well known. Instead, they are looking to consumer durables (household appliances, electronics) that represent their individuality.

In other words, they are attracted to appliances which help them cope with their stressful lifestyles and which come in trendy designs and cool colours. Therefore, companies may have to emphasise on style and uniqueness in their product designs.

Advertising research has also revealed that many Generation Y consumers do not respond to traditional advertising approaches of using celebrity personalities and enhancement of brand image. Instead, they respond to humour and advertisements which speak their language.

The usage of the internet as a viable media alternative should also be considered. Brand building by word of mouth impact should be looked at, together with brand promotions at point of usage. For example Reebok at sports events gyms etc.

In conclusion, marketing to Generation Y requires a more innovative approach. Internet based communication strategies, together with experience based sales promotions would be ideal. Further, word of mouth advertising using both offline and online strategies should be utilised. Word of mouth advertising is preferred by Generation Y's, since they are influenced by their peers.

The bottom line in marketing to today's generation, is to understand their buying patterns and behaviour. The Generation Y's are undoubtedly different to the Generation X's and the quicker today's marketers understand it the better.