Wednesday, February 28, 2007

X & Y

Generation X and Y are a huge American market that may not be marketed to in the best way possible. Do companies really know the audience representing this audience? Some may, but not all companies marketing to these groups are as effective in reaching this population as they could be.

Generation X, people born between 1965 and 1976, have been known to be independent and skeptical. At this point in their lives, Generation X'ers are a more mature audience. They are settling down and many of them are engaged in family life. These people are currently in today's job world and have become a "wired" group. They do not respond to traditional media as the generations before them have.

Generation Y, people born between 1977 and 1994, are known more for being optimistic and positive as a whole. They are harder to reach through traditional media and are more educated when it comes to marketing. This group is not easily fooled and are marketing savvy. They also tend to be less brand loyal because this generation grew up with so many options.

Generation X and Y make up about 42% of the US population, but the question is how do you reach these groups if they show limited response to traditional media? One effective method actually does come from a traditional source. Michael Fleischner recently wrote about the success of direct mail when targeting generation X and Y. Direct mail is certainly used to advertise in today's age, but the response from this traditional source is shockingly high. About 87% of generation X and Y bring in the mail each day it is delivered, with a very high percentage using coupons received in the mail. According to the study Fleischner wrote about, X and Y's say that 75% of the mail they receive is "valuable."

These high percentages indicate how well received mail is in the eye of these consumers. If 42% of the population rates mail that high as a way to reach them, more companies should take advantage of it. However, the success of direct mail could easily be lost if too many companies caught on to this effective communication medium. Mail would turn into a clutter making each piece of direct mail less important to its receiver.
The real success of direct mail, aimed at the people from generation X and Y, comes with the online content that they are directed to. These generations are very influenced by the Internet. Their daily lives are dependent on the Internet. These wired generations use the Internet to shop, communicate, research and educate themselves. Successful companies have been supplementing their direct mail with the Internet. Direct mail, many times, gives the consumers motivation to visit their site. They can offer contests, sweepstakes, discounts, and more. Direct mail will not work by itself with this market. It can be very useful if it is integrated into a marketing mix that reaches the target audience.

1 comment:

Kim Gregson said...

10 points for the week - the x, y comparison was interesting