29. Generational Classifications (The Greatest Generation through to Generation Alpha)

 

Generational insights enable marketers to understand psychological and sociocultural factors impacting consumers potentially at a deeper level. Obviously, there are differences within the consumer buying behaviour of such generations and other segmentation techniques can enhance a deeper understanding of specific segments. Yet, there can be generational behaviours that do span different generations because generations in broad terms share a similar sociological or cultural experience of the world at a particular time.

According to the American Marketing Association¹,

“A generation is defined as “all of the people born and living at about the same time, regarded collectively.” It can also be described as “the average period, generally considered to be about 20-30 years, during which children are born and grow up, become adults and begin to have children.” The term generation is also often used in the social sciences to mean “a delineated population who experience the same significant events within a given period of time.””

Defining the Social Generations

The Greatest Generation (1901-1927)

This generation spanning 26 years were born from 1901-1927 and fought in World War II.  

The Silent Generation (1926-1945)

This generation (also known as “The Lucky Few”) spanning roughly 20 years were born during and me of age in the post-World War II era.

Baby Boomers (1945-1965)

This generation spanning roughly 20 years were born after World War II when there was a significant increase in the birth rate. This group are the largest spenders in many countries and yet, they are often neglected in the marketing communications of many brands using contemporary channels.

Generation X (Gen X) (1965-1980)

This generation spanning roughly 15 years were born after the Baby Boomers when there was a drop in the birth rate. This group also are significant spenders in many countries and yet, they too are often neglected in the marketing communications of many brands using contemporary channels. For some professional sports teams, Baby Boomers and Generation X may compose of the largest audience for both GA (General Admission) and Hospitality tickets. It is worth reviewing fan surveys (e.g. The Premier League Fan Survey and club research to understand the live audience profile). This may be a challenge for professional sports teams but it is important that marketing communications of many brands use appropriate channels for the brand buyers.

Millennials (1981-1996)

This generation spanning roughly 15 years grew up around the turn of the millennium. Sometimes this group is split further into ‘Gen Y’ or “Xennials”. Hybrid Gen X may overlap with older millennials) with “true” millennials being younger and being born closer to the turn of the century.

Generation Z (Gen Z) (late 1990s to early 2010s)

This generation spanning less than 15 years succeeded the millennials. This generation are the spenders of tomorrow but have generally less spending power now than older generations. There media consumption and use of media channels are slightly different than older generations. Social media use is extensive.

Generation Alpha (Gen Alpha) (Mid 2010s to Mid 2020s)

This generation spanning less than 12 years are considered to have birth years in the mid-2010s. This is the first generation to only know the 21st century. This generation have less spending power (but may influence elder consumers buying behaviour through ‘Pester Power’ than older generations. The media consumption and use of media channels are significantly different than older generations. Social media use is extensive, yet due to Moore’s Law² media use and the adoption of technology will change media consumption habits more quickly.

Moore’s Law and the Speed of Change (and the significance for brands)

Due to the speed of change, even where ages are quite small, the speed of change may see consumers only 5 or 6 years apart have very little in common. Consumers respond to and use technology in radically different ways. Yet, from a brand perspective, it is important to know whether investment in communications will generate brand and commercial returns, or whether these changes will only decrease margins by increasing costs with little short and long term returns.

From a social science perspective, “generations” are getting shorter, and many futurists³  argue that they can be further fragmented due to the speed of change.

Life-stage boundaries and generations

Besides technology, enhancements in natural and biological sciences have also broadened and lengthened time horizons or windows. Access to and flexibility with fertility treatment may mean parents may have children in their 20s, 30s or in their 40s and this has significant differences about choices and consumer buying behaviour across different life stage choices and experiences.

Sources

¹ American Marketing Association (2022), “Generational Insights and the Speed of Change”

² Intel (2022), “Moore’s Law Now and in the Future”  www.intel.com/content/www/us/en/newsroom/opinion/moore-law-now-and-in-the-future.html

³ Future Proof Strategies (2023), “What is a Futurist?”  https://www.futuristsspeakers.com/what-is-a-futurit-futurologist-defined-definition/