Shifting Psychographics

To successfully market a product or service, it has long been considered essential that you know something about your market's demographics and psychographics. But how well do companies really know their consumers?

Tom Peters wrote again today about marketing to the boomers, one of his big talking points the past few years. And he's right - though they represent the majority of the buying power in this country, we continue to construct massive advertising campaigns that are "hip" and "edgy" and geared towards a younger audience.

But at least we're reaching the coveted 18-34 year old demographic effectively, right?

Perhaps not.

"Recent findings published by the American Sociological Association and based on U.S. Census data show a sharp decline in the percentage of young adults who have finished school, left home, gotten married, had a child and reached financial independence, considered typical standards of adulthood. In 2000, 46% of women and 31% of men had reached those markers by age 30, vs. 77% of women and 65% of men at the same age in 1960. "

Young people are taking more time to grow up, get hitched and settle down. Which means that their purchasing behavior is likely changing as well.

I know a lot of young folks who live very zen-like existences. They keep their crappy car and live in a small place with few possessions. This is partially because they don't have much money to spend, but more importantly (according to them) is because they don't want their lives to be tied down with "stuff." They want to be able to pursue that new opportunity across the country or take that trip through Europe for three months. They want to keep their options open.

So, less buying power plus a lifestyle that is not centered around the accumulation of more things. Why in the world are we still constructing marketing plans around reaching this demographic when there are more profitable markets waiting for a smart company to impress them?

It's crazy to think that the simple act of marketing to the people with the most money might require a premarketing mindset.