Marketing 0

Challenges of Serving Different Generations
Every generation is shaped by a different sociocultural environment
and life experience. Take, for instance, Generation X. Having either
divorced or two working parents, they grew up with minimum
parenting. As young adults, they were culturally influenced by MTV

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music videos. As a result, they value work–life balance more than
other generations and are considered more independent and
creative. As adults, they experienced the world without and with the
Internet—allowing them to adapt well to both traditional and digital
workplaces.
Every generation also has different preferences and attitudes toward
products and services—prompting marketers to respond with a
different offering, customer experience, and even business model.
Generation Y, for instance, puts more priority on experience over
ownership. They prefer using an Uber to owning a car. This
preference has led to the rise of all kinds of on-demand services.
Business models have also shifted from selling products to selling
subscriptions. Generation Y prefers streaming on Spotify to buying a
music album.
Despite understanding the distinctive needs of different generations,
most companies are not well-positioned to serve all of them.
Companies are often stuck with a rigid portfolio of products and
services that does not allow customization toward every generation.
It forces companies to serve only two or three generations at the
same time. Companies also struggle to adapt to the shortened
product lifecycle posed by the ever-changing needs and wants of
younger generations. Many companies across industries—
automotive, electronics, high tech, consumer packaged goods, and
fashion—feel the pressure to quickly develop new products and make
a profit in a narrow window.
Targeting also creates a dilemma since the most value is still being
created when brands are serving Baby Boomers and Generation X—
with their powerful resources and high willingness to pay. But most
brand equity is being created when brands are being endorsed by
Generations Y and Z—with their cool factor and digital savvy. And
most importantly, Generations Y and Z are beginning to influence
their Baby Boomer and Generation X parents in many purchase
decisions. Companies need to balance between two goals: maximize
value creation for the present and start positioning the brands for the
future.