Generation X
Generation X, also known as the "baby busters" or the "shadow gen-
eration," is
group of people born from 1969 to 1980. This group has been labeled with
a "slacker" stereotype. Imagine 45 miilion humans that are characterized as culturally illit-erate, apathetic, and directionless. From a marketers' perspective, they have a total dispos-
able income of
billion. In tune to the newest rage, Xers-highly steeped in a culture
of sound bytes- seem to know instinctively what they want. And, more importantly, what
they don't want. 8
Unfortunately, the more marketers learn about this group, the less it appears to be a
market segment. For example, Xers' lifestyles range from the 10 million who are full-time
college and postgraduate students to the 15 million who are married. They are also the most
radically diverse generation in history Yet their opinions about life in the United States mir-
ror those of the general population. For instance, 52% of Xers believe that "quality of life"
is good compared with 53% of the entire population, and 64% of Xers are more "stressed
about money this year," compared to 58% of the general population.
Given the diversity of Generation X, what are the possibilities that an integrated mar-
keting strategy can be targeted to this group? The key will be finding subsegments within
this 45-million-person group. For example, level of education might be a point of distinc-
tion. Those in college or with a college degree are likely to be computer-literate and can
be reached by online media. Their optimism and general concern for a simpler life sug-
gests that noncondescending marketing messages through public relations or cause-related
activities would prove effective.
The Baby Boomlet
Just like the baby boomers, the group of 72 million children
of the baby boomers, called the "baby boomlet" or the "echo boom," is creating new waves of change. This group spans 1975 to the present. In 1995, the boomlet had 72 million people under age 19. It is 60% larger than the baby boom. Even if 1995 is
final year for
boomlet births, this generation will grow through immigration for several more decades.
By 2015, the baby boom1et will again outnumber the boom.
The baby boomlets will acquire their own attitudes, often shaped by new technology
and glObal changes. Global conversations on the Intenet will change their outlook on the
world. AIDS will change their attitudes toward relationship, marriage, and family. Real-
time information and the customization of the information will produce a very discerning
consumer. F;nally, their attitude will also be shaped by defining events . For instance, it will a generation that expects terrorists acts, such as the Oklahoma City and the 1996 Olympics
bombings. Memorable events will have a lasting effect on their outlook.
Cultures and S ubcultures
All of us are part of a cultural fabric that affects our behavior, including our behavior as
consumers. Culture is the sum of learned
values, and customs that regulate the behav-
ior of members of a particular society. Through our culture, we are taught how to adjust to
the environmental, biological , psychological, and historical parts of our environment.
Beliefs and values are guides of behavior, and customs are acceptable ways of behav-
ing. A belief is an opinion tnat reflects a person's particular knowledge and assessment of ("I believe that ..."). Values are general statements that guide behavior and influence beliefs and attitudes ("Honesty is the best policy"). A value system helps people choose between alternatives in everyday life. Customs are overt modes of behavior that constitute culturally approved ways of behaving in specific situations. Customs vary among countries, regions,
and even families. In
societies, for instance, usury (payment of interest) is prohibited,
so special Islamic banks exist that provide three types of accounts: non-profit accounts, profit-
EXTERNAL FACTORS THAT
PLANNING
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sharing deposit accounts, and social service funds. A U.S. custom is to eat turkey on Thanks-
giving Day. However,
exact Thanksgiving Day menu may depend on family customs.
Dominant cultural values are referred to as core values; they tend to affect and reflect the core character of a particular society. For example, if a
does not value efficiency
but does value a sense of belonging and neighborliness, few people in the culture will want
to use automatic
machines. What do Americans value? Clearly, a catchall phrase such
as the "Protestant work ethic" no longer capt'Jres the whole value system.
Core values are slow and difficult to change. Consequently, marketing communica-
tion
must accurately portray and reflect these values.
Secondary values also exist in any culture. Secondary values are less permanent val-
ues that can sometimes
influenced by marketing communications. In addition, second-
ary values are often shared by some people but not others. These values
as a basis
for subcultures.
A natural evolution that
in any culture is the emergence of subcultures. Core
values are held by virtually an entire culture, whereas secondary values are not. A subcul-
ture is a group of people who share a set of secondary values. Examples include Genera-
tion X and environmentally concerned people. Many factors can place an individual in one
or several subcultures. Five of the most important factors that create subcultures are:
o Material culture. People with similar income may create a subculture. The poor,
the affluent, and the white-collar middle class are examples of material subcultures.
o
Social institutions Those who participate in a social institution may form a sub-
culture. Examples include participation in
parenthood, a retirement com-
munity, the army, and so on.
o Belief systems.
with shared beliefs may create a subculture, such as shared
beliefs in religion or politics. For
traditional Amish do not use several types
of products, including electricity and automobiles . A whole set of factors has also
been correlated with whether a person is a uemocrat, Republican, Independent, Lib-
ertarian, or Socialist.
o Aesthetics. Artistic people often
a subculture of their own associated with their
common interests, including art, music, dance, drama, and folklore.
o
Language. People with similar dialects, accents, and vocabulary can form a sub-
culture. Southerners and northerners are two traditional categories.
MARKETING CAPSULE
1. Environmental scanning refers to activities directed
c. Legal and ethical factors
toward obtaining information about events and trends that
d. Economic and political issues
occur outside the organization and that can influence the
e. Technology
organization's decision making.
f. Social trends
2. The following external factors affect planning:
a. External agencies
b. Competitors
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