Marketing’s “X” Factor … and Y

(This article originally appeared in the Jan.-March issue of Builders Digest.)

When you’re selling the “American Dream” do you know who’s doing the dreaming, and what their dream actually looks like?

Purpose is the only thing in marketing that remains the same. Strategy and technique?… not so much. They evolve over time. They chase group movement and tendencies, and identify and exploit new and emerging technologies. Successful marketing connects with people in ways, and at times and in places, that they are most available and receptive to the message. This is not a static point but moves around.

To reach your customers with your marketing message you have to go where they are. Once upon a time that was gathered around the TV set en masse, at 8:00 every night. Easy to find and easy to communicate with. No longer. Here’s a snapshot of the cohort currently moving into and through the market. How will you reach them today?

“Generation X” is comprised of all people born between (roughly) 1963 and 1978. Today, these people are in their mid 30’s to mid 40’s. Acknowledging broad strokes and generalizations, here are some generational X notes.

• they grew up in a dual income family, changed by divorce; went to daycare; learned to be independent
• they are the most ethnically diverse generation of any that has come before
• the “isms” of prejudice (racism, sexism, ageism) are almost a foreign concept
• they’re not jaded to marketing, just savvy … and impatient

In making a purchase Gen-X recognizes value, seeks it out, and takes pride in the ability to find it on their own. Finding it includes research and detail. Show a Gen-X buyer exactly what you have to offer with facts, in digestible detail, and they will make their own decision.

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“Generation Y” also referred to as the Millennial Generation or Generation Next (born roughly mid 1970’s to late 1990’s) follows X and represents an equally strong home buyer market, especially as first time home buyers. Gen-Y tends to be realistically optimistic about the future. They will pay more to be closer to their work and they seek out alternative transportation. From a spring 2009 study by The Concord Group of Newport Beach, CA, here are some numbers:

• 50% say they are likely to purchase a home within the next three years
• 50% say tax credits or lower interest rates would motivate them to purchase a residence sooner.
• 70% believe home prices will be higher or at today’s levels in two years.
• 62% say wealth creation is a very big advantage of real estate ownership.

Instant communication and social networking are just a part of everyday life for this generation … always have been. Gen-Y spends about 3.5 hours a day online. They also stay in touch with their parents. Interesting.

Both of these groups have been inundated with advertising almost from birth. They recognize it and know it, and they can smell the proverbial smoke and mirrors B.S. from a mile away. My best advice on marketing to Gen-X and Gen-Y: locate them where they are (they are very social, both online and out in the world) and give them an honest reason to make their well-reasoned decision in your favor.