EDWARD S. SUCHERMAN & ASSOCIATES LTD.

My last article discussed selling to the changing face if the baby boom in 2010.  This time, I want to concentrate on other demographic groups.

The baby boom began in 1946 and lasted 17 years, until 1963.  They were followed by Generation X – the Yuppies themselves.  This group is even more materialistic than the baby boom.  Also, they can be quite sheltered.  I will never forget when my niece, who was magna cum laude at Michigan (suma cum laude in her field) and then went on to NYU law school, said to me, “You mean Paul McCartney was in a band before Wings?”  She also did not know the name, work, or history of Leonardo da Vinci.

But man, has she made money as a lawyer!  And she married a lawyer.  How has the Great Recession changed her and her spending habits?  Her portfolio losses have horrified her.  She will not buy anything she feels is un-cool.  No Hummer for her…but a BMW? Anytime.  Greed is out and opulence is out and ostentatious behavior is out.  But she buys strictly quality.  She knows about unemployed Americans, but does not deeply empathize with their suffering the way I do.  She is able to focus on her work, her children, and her husband and block out most everything else.  She will continue to spend (she is currently remodeling her entire home) because she does not believe this could ever happen to her.  And I think she is right about that.  She continues to prioritize her and her family’s health, education, prestige, professional reputation, and so on.  For her, healthcare comes first (and remember, 85% of all healthcare decisions are made by women).  She cares about climate change and is conservative about her fashion.  She buys gold, not designer, jewelry.  Drives luxury foreign cars.  Has traditional tastes.  Rarely looks at art.  She knows she has a lot, but she still wishes she had more. Quietly.

The next general demographic group is Generation Y.  By and large, in 2010, these people will have not yet reached the career heights of Generation X.  They are also not quite as materialistic or as well educated.  They are the ones who will be buying new and smaller homes, buying smaller cars (they cannot afford hybrids, shopping at Wal-Mart and not understanding that getting it – or caring – that discount buying is putting their neighbors (or themselves) out of work, because cheap comes from foreign labor, usually from Asia.  They are the great mass of consumers who are deep in debt and will be spending less and really struggling through the Great Recovery.  More women are working in this group, and men completely understand it – most have grown up with it.

Between teenagers (always market to them with energy) and Generation Y is the Echo Boom, the children of the Baby Boomers.  These people will lead the construction recovery.  They will be purchasing apartments or condos near trains and public transportation, in urban infill sites.  These young, hopeful, recent college grads will buy blue jeans for home and appropriate clothing for work. They will eat a lot of fast food, yet they are well aware of healthful alternatives.  No smoking, no gas guzzlers – but they will consumer plenty of beer at their parties.  They will buy all the newest, coolest electronics.  They are the future of our nation, and they are emotionally caught between their ideals and dreams and the brute cruelty of reality.  Their plans have been altered but not shredded by the Great Recession.  Careers, life, and children are yet ahead of them.  Their parents were Hippies who turned into the worst materialists.  They are much more spoiled but not as idealistic as their parents.  They anticipate good treatment on their first jobs, quick rewards for hard work, and more time off for enjoying life.  Work ends at 5 PM and does not start again until 9 AM.  Of course, all this may change with time.  But now, they do not demand good service or good quality, like their parents, but they certainly demand good treatment.  Their optimism is severely tempered by the lack of jobs as they come out of college in 2010.  Many service companies are “hiring” Echo Boomers  part time or as apprentices – for little or for free. They are also sensitive to their parents, who have their own job and financial problems. They have little or no family financial backup, so they have no choice but to be frugal.  They will frequently avoid health insurance and put off marriage and children, because their financial situations are so frightening.

This brings us back to fear.  I cannot emphasize this enough: as you present your marketing messages to your customers, keep in mind that they are full of fear.  Show them strength, confidence, leadership, empathy, and fearlessness.  As you know from my last article, I also feel that every company needs to emphasize trust in 2010.  And they had better mean it – talk alone will not re-establish the bond of trust, as Americans are way too skeptical to be toyed with, especially in banks and financial services.  This also means opportunity.  People trust no one, so they have no brand loyalty…so it is the perfect time to market aggressively and gain market share.

LATER: A great way to finish this article is by quoting an article that appeared last Sunday in Parade Magazine.  It agreed with me (my last two articles) on every count and gave numbers based on a national Parade poll:  79% of Americans have felt the impact of the downturn; 33% said it had a major impact on their lives; 80% were forced to do more with less; 61% said they did everything right and still lost (lack of trust!!); 71% feel they have been betrayed by their government; 76% will never trust investments the way they used to.  At the same time, basic values are changing — “creating a meaningful life” and “giving back” have become important to 68%; 83% are reconsidering what they actually need in life; 52% are forming stronger bonds with spouses.  Meanwhile, a new Parade demographic, “Anxious Moms” (the old soccer moms) “spend their time making ends meet” and are having marital problems.

Changes, and opportunities, are in the air. Keep your hands on the pulse of your market in 2010 – your business depends upon it.  It’s a great time to be a marketer.

Ed Sucherman

The Marketing Machine

edsucherman@gmail.com

www.edsucherman.com

Tags: Demographic change, Fear, Market Share //