Market Segmentation by Generations
Posted by Linda in Market Segments, tags: generations, Market Segmentation, Market Segments, target marketMarket segmentation by generations enables you to determine characteristics of your target market.
It reveals differences between generations to help you discover the best appeals to use in your marketing. For example, World War II women, represented by the picture below, differ from all other generations of adult women in the USA today. So you have to market to them differently than to women in the Baby Boomer, X and Y generations.
Market Segmentation By Generations
Reveals Four Adult Generations
Generation research has determined that four types of generations cycle though USA history. These types and the present adult generations that they represent are, from the oldest adults to the youngest:
1. The adaptive generation, represented by today’s WWII Generation, become active problem solvers in order to adapt to major historical and economic changes.
2. The inner fixated idealist, represented by today’s Baby Boomers, are indulged kids, me-oriented youth, and mid life moralizers.
3. The reactive generation, represented by today’s Generation Xers, include under-protected youths, alienated risk takers who burnout young, mellow into pragmatists and become conservative at middle age, and caustic as elders.
4. The civic generation, represented by today’s Generation Y, are protected by adults and become strong-willed, moral, serious, and optimistic with age.
Market Segmentation By Generations
Is Based On Historical Influences
In addition to the four types of generations, generation research holds that the historical events of people’s lives have a profound influence on the type of people they become. Therefore, people in different generations are different because they have experienced different events at different ages.
Events can be historically or culturally significant:
- Historical events change history, but the exact time of the event may be difficult to pinpoint. For example the great depression was a historical event for the WWII generation.
- Cultural events affect us psychologically for a while, but don’t necessarily change the way we live. For instance the Hindenberg represents a cultural event for the WWII generation.
When the two combine, they comprise a defining moment. Defining moments have the most profound influence on a generation, and the more impressive the age of people in the generation when the event occurs, the more profound its influence.
Following is a brief description of adult generations in the USA today.
Market Segmentation
For The WWII Generation
The oldest generation is called the World War II Generation or WWII Generation for short. This generation represents today’s retirees.
You can best market to this generation by understanding how it differs from other generations and how the older and younger members of this generation differ from one another.
- Those born from 1901 to 1924 are active, confident problem solvers, intelligent and have a sense of optimism.
- Those born from 1925 to 1942 want to stay young and are attracted to adventure.
Both groups become less materialistic as they age, but still comprise important target markets, especially for those in the health care and home improvement industries.
Market Segmentation
For Baby Boomers
The next oldest adult generation is called Baby Boomers. Boomers are nearing retirement age, but aren’t expected to retire in the traditional sense.
Market segmentation research reveals that Baby Boomers believe they are important. To market to them successfully, you must recognize their need to feel important, and their drive and individualism.
Baby Boomers are smart consumers. Because of the Baby Boomer generation’s size, businesses have long catered to its members with customized and personalized products and with niche marketing.
So if you want to market to Baby Boomers, you need to market to niches of them with personalized products and excellent service. You also need to use market segmentation to determine characteristics that differ between older and younger Baby Boomers. You can read more about marketing to Baby Boomers at
Improve Your Baby Boomer Market Strategies
Market Segmentation
For Generation X
The present reactive generation is called Generation X.
Market segmentation research reveals that Generation X members distrust their elders, especially Baby Boomers. They also don’t respect people just because of their positions.
If you want to do business with Generation X members, you have to earn their trust and keep it. You can reach them best by word-of-mouth because they don’t trust traditional media.
If you reach them, earn and keep their trust and provide the products they need, you will find Generation X members to be materialistic and rabid consumers.
Generation X members start their own businesses at three times the rate of Baby Boomers.
So they comprise an especially important to business-to-business market.
Market segmentation provides additional characteristics to aid you in marketing to this elusive generation.
Market Segmentation
For Generation Y
The youngest adult generation today is called Generation Y.
Marketing to Generation Y isn’t easy because its members have few shared experiences, and their tastes constantly change. Plus, their media preferences differ from all other generations.
Still market segmentation reveals many characteristics that will help you market to Generation Y effectively.
And because of the large size of Generation Y, and how much its members spend, it’s a profitable market. Generation Y members spend $95 billion annually.
Market Segmentation
For Generations
Conclusion
Present generations differ from one another because each generation experienced different historical events, were raised differently and were given different social missions.
This requires a different type of marketing for each generation. So if you want to market your products and services successfully, you must know the generation of your target market and its distinguishing characteristics.
You can also read distinguishing characteristics by life stages.
Or you can get my ebook – Know’em, Sell ‘em: Discover The Best Appeals For Your Target Market. Just click the art in the upper left corner.
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Posted 3-11-08:
Market Segmentation
By Generations
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Your generations definitions must’ve been written by a gen-y or Milly, obviously. Give me a break, Moral????? You say x-er’s are materialistic??? No wonder gen-x’ers have been known to be misunderstood. You have no clue except that we were underprotected and y’s were OVER protected and pretty much Boomer wanna be’s. Sorry, but moral is per inividual. You aren’t getting away with blessing a group of people of being moral. And it definitely won’t be the X’ers who’ll save this country from the Boomer/Banker melt down. The haven’t a clue. Peace out…
Hi Tony,
Thanks for your detailed comment.
The information that I provide on all segments comes from secondary research, not my own opinions. I believe most of the research articles included in that research was written by Boomers.
Anytime anyone makes statements about a group of people, it’s a generalization and doesn’t apply perfectly to everyone in the group. Please read my comments on market segmentation and stereotyping at http://www.strategicmarketsegmentation.com/blog/market-segmentation-vs-stereotyping.
I’m not trying to bless any generation specifically, but in a way, I bless all generations. Each generation is different. Each has its strengths and weaknesses. I believe that is good for our society and our world. As one generation swings the pendulum too far in one direction, the next one swings it back for better balance, while perhaps going too far on something else.
The point to generation research is to better understand and relate to people in generations different from you own. The more we know about what makes people the way they are, the better we can relate to them, and yes, market to them.
Warmly,
Linda
Very nice information. This is the information that I’ve been looking for. I’ve been looking for this throughout the web however they are not as informative as this
This post is really a must bookmarked for me! Thank you so much.
Just asking, do you use Aweber? If so, can you provide more information on this? I am subscribed to your rss to check if you are going to post something on Aweber.
Hi Free Acult …,
Thanks for subscribing to my RSS feed. You can also subscribe to my weekly email summaries. I think there’s a link to do so on every page.
Yes, I do use Aweber, and they offer a weekly blog summary that’s completely automatic. That’s great for me because otherwise I’d forget or get behind. I can’t tell you how to initiate it because I had it done. But if you’re technically savvy, you can probably figure it out. I bet Aweber has a how-to post on it. Good luck.
Warmly,
Linda