Tag Archives: customer expectations

The Growing Importance of Generation Z

1 Sep

Evans on Marketing:

Some food for thought on Labor: Be sure you understand Generation Z!

Originally posted on Evans on Marketing:

Our marketing dictionary keeps growing — in this case, we’re talking about consumer typologies. Among them are the Greatest Generation (born 1925-1945), Baby Boomers (born 1946-1964), Baby Busters (born 1965-1975), MTV Generation (1975-1985), Generation X (encompassing Baby Busters and MTV Generation), Generation Y — also known as Millennials (1985-1995), and Generation Z (born 1995-2007).

Now, that the oldest Generation Zers are adults, it is time to pay more attention to this emerging market segment.

One firm that has studied Generation Z in depth is sparks & honey, which has been selected by Advertising Age as one of theTop Ten Agencies to Watch for 2014.

According to sparks & honey:

“Marketers have been focused on Gen Y (a.k.a. Millennials) for more than a decade. In fact, Millennials are the most researched generation in history! But Gen Z is different from the Millennial generation. In many ways, Gen Zers…

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What Would YOU Do If You Won $100,000?

29 Aug

Well, this is not like winning a $100 million lottery. However, it is a good sum of money for [most of] us to have to spend. As marketers, we’d like to know if answers to this question differ by age group.

According to recent research by Harris Interactive, as reported by eMarketer:

“2014 polling by Harris Interactive asked US internet users what they would do if they won the lottery or received an inheritance of $100,000 and found that 18-to-36-year-old respondents were most likely to pay off any existing debt or loans if they were to get so lucky. Millennials were also relatively likely to save the money for a rainy day fund or unexpected expenses, cited by 43% of respondents from that age group. However, they weren’t so hot on planning for retirement, with around one-quarter saying they would do that with the money. This was on par with 18- to 36-year-olds using the $100,000 for big purchases: 27% said they would buy a house, while 25% would get a car.”

Click the chart to read more.
 

 

Trends in Online Shopping

24 Aug

As we have reported before (click here, for example), online retailing remains strong both in the United States and around the world.

Here is an infographic from SnapParcel, an Ireland-based courier service, that looks at the evolution of E-commerce in the United States and around world. As Multichannel Merchant reports, global online retail sales have increased by 17% annually since 2007.
 

 

Ad Age’s 2014 Hispanic Fact Pack

22 Aug

There are more than 55 million Hispanics in the United States, representing about 17 percent of the total U.S. population. As such, Hispanics represent an important — and growing — market segment for marketers.

One good resource for understanding and marketing to Hispanics is the FREE Advertising Age Hispanic Fact Pack 2014. Click the contents to access the full report.
 
Hispanic Fact Pack
 

A New Focus for P&G

19 Aug

Procter & Gamble, the long-time world leader in consumer products and the leading global advertiser, is ready to embark on another new strategy. It has tried many tactics in recent years to try to stimulate company growth and profits.

P&G’s latest approach may seem counter-intuitive — to grow by shrinking its brand portfolio. However, this idea does seem on target and reflects the essence of the Pareto 80/20 Principle that relatively few products account for a disproportionate amount of sales and profits.

As reported by Rachel Abrams for the New York Times:

“After years of expansion into areas like pet food and beauty products, Procter & Gamble announced that it would cut as many as 100 brands from its arsenal to focus on others, like Tide, that made the company a powerhouse over the decades. The move is part of a strategy to improve the company’s financial performance by doubling down on about 80 brands that generate 95 percent of the profits and 90 percent of sales, according to A. G. Lafley, the firm’s chief executive. The company, and the industry at large, have faced pressure as consumers continue to spend less than they did before the financial crisis.”

[According to Lafley,] “‘This new streamlined P&G should continue to grow faster and more sustainably, and reliably create more value. Importantly, this will be a much simpler, much less complex company of leading brands that’s easier to manage and operate.'”

Click the image to read more of Abrams’ story.

 

Photo by Mario Anzuoni/Reuters

 

Amazon Versus Hachette, Amazon Versus Disney, Etc.

18 Aug

As the world’s largest book seller and online retailer, Amazon is never afraid to flex its muscles with regard to suppliers. So, these questions come into play: Is Amazon acting as an advocate for lower consumer prices (as the retailer claims)? OR is Amazon an unrestrained bully trying to increase its margins at the expense of its content providers (as critics claim)? WHAT IS YOUR CONCLUSION?

For several months, Amazon has been  battling with publisher Hachette. Consider this observation in Catey Hill’s report for MarketWatch:

“Amazon and book behemoth Hachette — along with some publishers’ groups and writers — are at one another’s throats, in a fight that’s escalated just within the past week. Amazon, which accounts for about 60% of the digital-book market, wants to use its market power to get Hachette to lower E-book prices, while Hachette says that this is ‘punitive,’ hurts authors and bookstores, and doesn’t take into account the costs — like royalties, marketing and expenses — that go into creating books. Hachette also notes that 80% of its books are already selling online for $9.99 or less, which is the price at which Amazon hopes to sell many of its E-books. For its part, Amazon has used its leverage against Hachette by delaying shipping and stopping pre-orders on some Hachette books.”

Now, Amazon has also decided to do battle with the Walt Disney Co., another behemoth content provider. Consider this observation in Greg Bensinger’s report for the Wall Street Journal:

“When Amazon.com Inc. wants to fight, it turns to a familiar playbook. The latest to feel the Seattle retailer’s sting is Walt Disney Co. Amazon isn’t accepting pre-orders of forthcoming Disney DVD and Blu-ray titles including Captain America: The Winter Soldier and Maleficent. As Amazon continues its well-publicized battle with Hachette over E-book costs, it has now engaged in a battle with Disney. It is the same tactic Amazon has employed in a bitter four-month spat with Hachette Book Group over E-book pricing. To press its point, Amazon suspended pre-orders for physical copies of many Hachette titles and lengthened shipping times or pared discounts for others. The tactics underscore Amazon’s unusual sway in E-commerce, where it is by far the dominant player, particularly for books and media.”

Click the image to see a Wall Street Journal video on this battle.

Photo by Associated Press

 

What Binge Viewers Want

14 Aug

In recent years, due to the widespread availability of DVRs and on-demand programs, more people have been engaging in “binge” viewing — whereby they watch multiple episodes of a program (typically, a series) at one time.

Marketers need to understand this new segment of binge viewer and respond to the desires of this segment.

Consider these observations from eMarketer:

“Ever sat down to watch an episode of a TV show and gotten sucked in for hours on end? That’s called binge-viewing, and a May 2014 study by Annalect — which defined binge-viewing as watching three or more episodes of the same television show in one setting — found that 63% of U.S. TV watchers ages 18 and older fell into this category (though just 30% actually said so).”

“Those who did binge-view voiced a strong aversion to advertisements during their TV time, with 58% saying they liked binge-viewing because they didn’t have to watch ads. A close 57% said ads prevented them from fully enjoying their TV shows, and 53% didn’t think that commercials even had a place in the binge-viewing world.”

 

Click the chart to read more.

 

 

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