Gen Y 5 - The Marketing View of Generation Y

Understanding Generation Y from the experience of marketing to them

Many of the behaviours and values that are intrinsic to Generation Y are showing up in how they want to be marketed to....this post explores what is showing up about Generation Y from the marketing perspective.

Generation Y is a significant market

The "collaborative partnership" relationship that Generation Y have with their parents has resulted in Generation Y having more financial clout in the market than expected. Generation Y have a significant impact on the purse strings of their parents because their parents:

• Spend a large proportion of their disposable income on their children
• Rely on their children to make technical buying decisions because of Generation Y's technical fluency
• Rely on their children to make product and service comparisons in a complex consumer market

Generation Y is a "marketing mystery"

Marketers are finding it extremely difficult to market to Generation Y because it is a very diverse group in terms of demographics. Generation Y is also a very "tight" group because they have a high level of influence amongst themselves...Generation Y prefer to market to themselves than to be marketed to.

Generation Y have low brand loyalty

Old marketing methods based around brand loyalty are not working. Generation Y is driven by what Generation Y themselves as a group deem to be hip and cool. They want to have products and services that are on the leading edge, and they will change suppliers at the flick of a switch to get this. They demand real intrinsic value in their products and services than than perceived values that are build around branding. Generation Y are also less likely to be influenced by celebrity and image marketing. Generation Y want more authentic and human marketing - they prefer to have the unvarnished truth rather than hype.

Generation Y is driving market diversity and innovation

This lack of brand loyalty by Generation Y is lowering the barriers of entry for new competitors. If suppliers have products and services of real value that are on the leading edge, then Generation Y would like to buy from them. Generation Y is always searching for the next best thing...driving high levels of innovation.

Generation Y need to participate and interact

Generation Y see on-line shopping as a sport. They see on-line as a medium by which they can influence the products and services that they have access to. They want to be able to vote and provide feedback...Generation Y are not prepared to just read marketing material in a magazine and then buy - they want to log in, provide feedback and also socialise with other buyers. They want to be involved in the creation of their products and services. They know what they want and they want to influence their suppliers to get it - Generation Y do not like to be told what they should want, they want to dictate what they want.

Generation Y need multiple marketing channels

Generation Y need a mix a marketing channels, with the on-line participatory channels becoming more and more of a necessity to reach them. The technology that is available is now driving unprecedented levels of customer choice....marketers are finding that they need to go to where Generation Y hang out and participate with them rather than waiting for Generation Y to come to them to purchase set solutions.

Generation Y prefer simplicity

Generation Y want stripped down brands that are forward thinking. They want their products and services to be more "real stuff" and less packaging.

Generation Y are sophisticated buyers

Generation Y have been making buying decisions for a lifetime. They are now the most sophisticated buyers in the consumer market.

Reference articles

Click on this link to access the links to the following articles: (2), (3), (4), (6), (10), (11), (12), (15)

Generation Y articles in this research series (in date order)

• First Steps conference - research background
• Generation Y research strand
• Generalisations & Generation Y
• Generation Y articles used for research
• Gen Y1 - role of Generation Y parents
• Gen Y2 - role of technology
• Gen Y3 - other factors influencing Generation Y & the Generation Y divide
• Gen Y4 -Generation Y characteristics and values in life
• Gen Y5 - the marketing view of Generation Y
• Gen Y at work 1 - characteristics and values at work
• Gen Y at work 2 - Generation Y and intergenerational conflict
• Gen Y at work 3 - Generation Y - vision, good work, work ethics, work-life balance
• Gen Y at work 4 - how employing Generation Y will benefit business
• Gen Y at work 5 - how to manage Generation Y
• Gen Y at work 6 - Generation Y and career
• Gen Y at work 7 - recruiting Generation Y

Posted by: Hina Patel