MRKT3001 Summer 2021
Chapter 2 Assignment
Pick two of the age groups discussed in this chapter. Compare and contrast their purchases of
the following product categories and how it would impact the way brands would be marketed
to each group.
a.
b.
c.
d.
Clothes
Vacation packages
Investment services
House cleaning and lawn services
I will be discussing Baby Boomers and Generation Y, or Millennials as they are often called.
According to the book, Generation Y spends 1.5 times more than the average person on
clothing. This makes sense with the increased focus on personal appearance due to both the
social pressures of impressing their peers in school and in public as well as the need to appear
professional in the workplace, two very different situations but both of which would contribute
to increased spending on either end of the defined Generation Y age range. Baby Boomers on
the other hand spend less on their appearance as they are either approaching the end of their
careers or are retired and therefore have probably built up a sufficient wardrobe or do not face
much societal pressure to keep up their appearance. Marketing for these products is more
likely to focus on younger consumers, using models and advertisements to put them in the
public eye and sending the message that past purchases are out of date.
On the other hand, Baby Boomers spend much more on vacation packages than do Millennials.
Boomers who are still working most likely have larger incomes due to experience and time in
the workforce while retired Boomers have access to their retirement savings and much more
free time. Thus, travelling makes sense as they do not have families to take care of and can
spend more on luxuries like vacations. Alternatively, Millennials are still in the early stages of
their careers if they have begun them at all. Additionally, Millennials are more likely to have
significant debt due to constantly growing education costs and are more likely focused on their
immediate needs and wants than luxuries such as vacation packages. In terms of marketing,
these products would more likely be targeted at the older demographic using television
advertisements that display luxurious destinations.
Investment services are interesting because Millennials and Baby Boomers both use them,
although for separate purposes. Baby Boomers will use them for managing their retirement
savings and potentially supporting themselves after retirement, whereas Millennials will use
them to prepare for their eventual retirement. Although they are just entering the work force,
Millennials have been shaped by the economic problems of the 2000s and know to prepare for
the future themselves. Marketing is likely to be aimed at both demographics, encouraging
Millennials to begin investing through a particular firm and trying to persuade Baby Boomers to
switch and allow a new firm to take care of them through retirement.
Finally, neither Baby Boomers nor Generation Y individuals are likely to focus on house cleaning
and lawn services. These services are more often used by members of Generation X, whereas
some Baby Boomers will prefer to do these tasks themselves and Millennials either do not own
a home or do not want to pay for someone to do these jobs. Marketing for these services, if
directed at one of these demographics, is probably aimed at older Baby Boomers who are
retired and do not have the physical ability or energy to do these tasks but have the money to
pay for them.