For example, the Gen X target market comprises the individuals between the ages of 20 – 35. They are better educated than some of the other groups and more ethnically diverse than the Baby Boomers. Being individualistic, self-reliant, and freedom loving, they prefer products made in the U.S, but since they are culturally diverse, they will consider imported products. Like the Gen Y market, they are technologically savvy.
Characteristics
Spending a significant amount of their time at home, they are fond of tangible products such as cassettes, cable T.V., VCR’s, calculators, microwaves, and some imports. “They spend $125 million a year on eating out, buying clothes, and taking vacations,” says Kathleen Gage of the CM Marketing Group. Therefore, this is an ideal market for the hospitality, the restaurant industry, as well as home goods.
The Opportunity
The hospitality industry would make great gains in marketing their products to the Gen X group as this industry includes lodging as well as restaurants. Restaurants would do well to market their businesses online to this culturally diverse group, particularly if they are in resort areas. Many of the more established restaurants may be missing out on profits if they ignore this group’s buying habits.
Ideal Communication
Since they spend time on the Internet and watching television with a remote control, Gen X’ers will respond to television advertising as well as research information on the Internet. Traditional forms of advertising, such as direct mail marketing, are not recommended because of how they spend their time. However, they may respond to telemarketing, since they buy digital products.
Computer Sales
Because they spend most of their time at home and are technologically savvy, they are more likely to have Internet businesses. Therefore, they are better prospects for online credit card processing and digital marketing products. They will research their information on the Internet, as well as inquire about the value of the products they plan to purchase.
Customer Service Tip
Better educated and having grown up in a declining economy, they seek value in their products and will inquire as to how the products offer more value than others. If Gen X buys a product and finds value in it, they are likely to respond by using a loyalty program at restaurants and lodging places. Being individualistic, they may not respond to recommendations of their friends, but would investigate before purchasing a loyalty program.
In conclusion, Gen X would make a great target market for loyalty programs for the hospitality industry because of their spending habits. They would respond to Internet marketing because they surf the Internet.
