Generational Marketing: Breaking free from stereotypes

Generation labels are popular buzzwords in the business world, with marketers and market researchers often defaulting to talking about – and targeting – Gen Z, Millennials, Gen X or Baby Boomers. But how much do these labels actually mean? And are the stereotypes attached to them helpful when trying to connect to consumers as real people?

While segmenting people by generation can certainly be a useful starting point, it also runs the risk of being quite simplistic. We go in search of generational differences, but too often they are fuzzy and unclear. Often it’s people’s life stages and need states which play the bigger role in their attitudes, values and consumption behaviors. 

With the return of inflation and a slowdown in purchasing power growth, price and affordability are also playing an increasingly important role in the way people chose brands. 

One fundamental truth remains: people crave connection. They want to feel seen, understood, and valued by the brands they engage with.
In this paper, we show how marketers can break out of the constraints of narrow generational definitions and stereotypes, sharing four ways for building stronger brand connections with the consumers that matter most.

Generational segmentation can be a useful starting point, but do not assume it will be your final destination.

Key takeaways: 

• Generational segmentation has limitations: While useful as a starting point, relying solely on generational labels can lead to inaccurate assumptions and missed opportunities.  Individuals within a generation have diverse outlooks and aspirations; other factors beyond age significantly influence consumer behavior.
• Life stages and individual needs are crucial: People's purchasing decisions are often driven more by their current situation than the generational category they are placed in.  Marketers should focus on understanding these needs and tailoring their messaging accordingly. 
• Empathy is key to cross-generational connection: Brands that demonstrate empathy by understanding and addressing the unique challenges and aspirations of different demographics can build stronger connections and drive engagement across generations.
• Price and value remain paramount:  Despite differences in values and priorities, consumers across all generations prioritize price and value. Brands need to deliver on these fundamental expectations to remain competitive.
• Data-driven insights refine targeting:  Marketers should leverage data and AI-powered tools to move beyond generational stereotypes and target audiences based on a more nuanced understanding of their needs, psychographics, and behaviors.