Marketing: Old vs. New Priorities Part IIByRaymond D. Matkowsky
Last month, I wrote about how marketers have to change their marketing emphasis from the 18 to 49 year old group to Baby Boomers. If you did not read the article, you can find it here. I have since been accused of having a bias against millennia. For the record, I am a Baby Boomer and no, I am not bias against millennia. I feel that many in the millennia group are bias against Baby Boomers. They feel that we are relics of the past and should get out of their way. I am not going to address that problem here. It has no marketing significance.
Marketers are in business to make money. To do so, you must follow the money and you must also take cultural events into consideration. There is no doubt about it. Baby Boomers have the most discretionary funds of any other group. Besides that, they have spent the last 30 years obtaining the material goods they already need. They are willing and can spend on non-necessary items and services.
Beyond Discretionary Funds
My reasoning goes beyond discretionary funds though. Many Millennials have subprime credit scores according to TransUnion Credit Reporting Agency. The subject of credit scores requires some discussion. Many people subscribe to the theory that the more money you make, the higher your credit score. This is untrue. Income does not enter into any credit score calculations. What has the most effect is the amount of debt that you carry and how well you pay your bills. In fact Millennials’ average income is similar to that of Generation X and Baby Boomers. Yet, 43 percent of them have scores below 600 (subprime). The average Generation X score is 650 (Average). The Average Baby Boomer’s score is 709 (Good). Clearly, the Baby Boomer is a more attractive marketing client.
Home Ownership
Home ownership has been the linchpin of the economy. Millennial aged people have a low rate of home ownership. It is suspected that low credit scores and high student debt are responsible factors. Many cannot start families. But, many marketing pitches are geared to home owners and family life styles. In fact, many home owners spend a substantial portion of their income on the home. They add to the economy where Millennial don’t. Addressing Millennial with these kinds of marketing messages would result in a high failure rate.
Historical Marketing
I believe that marketers are making a mistake if they divert the majority of their marketing dollars to try to entice the 18 to 35 year old (Millennial) consumer. However, marketers continue to try variations of the basic 18 to 49 age (Millennial and Gen X) theme. For example, a large U.S. national chain has recently announced that they will start to open smaller stores stocked with goods to attract Millennial buyers. History has indicated that the chances of these variations succeeding are poor. This has been tried before and has failed several times. It is time to try a new approach, go where the money is and with a group that has the ability to spend. The money is with Baby Boomers and they have the ability to spend.
Where Do You Market?
For those that advertise on television, choose your stations carefully. There are some stations that have an older viewership (AKA: Baby Boomers). There are some stations that have programs appealing to Generation X viewers and some to Millennial viewers. Apportion your advertising dollars accordingly. Shift money away from millennial programs to baby boomer programs.
Baby Boomers still read newspapers. They listen to radio stations that play 60s and 70s music that reminds them of their teenage years. Advertise in magazines that Baby Boomers subscribe to. Sponsor baby boomer events. Give baby boomer information seminars.
In short, if Millennial, Generation X, and Baby Boomers were vegetables, Baby Boomers would be the crisp head of lettuce, Generation X would be a useable head, and Millennial would be wilted from the pressures of their age group.
If you have any further suggestions, do not keep it to yourself. Help your fellow readers!
If you have any questions, comments or suggestions drop me a line at rdm@datastats.com.
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