Ms. Knutson

Sales & Marketing

Reaching the Matures: The 1st Hump in Your Generational Marketing

By Bonnie Knutson, Professor, The School of Hospitality Business/MSU

Okay, consider these three points:

1. Whom do you think of when you hear the word Doctor? Well, if you are a member of the Mature generation, you probably think of Dr. Spock. Baby Boomers lean towards Dr. Strangelove. For, Generation X, it is Dr. Kevorkian, and for the Millennial generation (sometimes called Generation Y), Dr. Phil comes to mind, of course.

2. Say the word gay, and Matures will start singing a line from an old Christmas carol, "Don't we now our gay apparel, fa la la la la la, la la la." Baby Boomers look to see if someone is coming out of a closet, while Gen X visualize a Gay-Pride parade led by a cluster of rainbow striped flags. And Gen Y? Why they envision The Fab Five, -- Kyan, Thom, Jai, Carson and Ted - stars of Bravo's celebrated TV show, Queer Eye for the Straight Guy.

3. You know you are a Mature if Paris brings to mind a picture of American armed forces triumphantly liberating the city In World War II. You know you are a Boomer when Paris represented the dream destination for your honeymoon. You know you are a customer of Generation X when Paris was someplace to go for a weekend shopping trip. But you are a customer of Generation Y when the name Paris is automatically followed by the name Hilton.

Within these three examples lie the wisdom of an ancient proverb and the genesis of generational marketing for hotels: Men resemble the times more than they do their fathers. Members of a generation are forever connected by virtue of the fact that they shared life-defining experiences during their formative years - world events, natural disasters, economic conditions, politics, and technology. These common experiences created bonds that tie consumers of a generation together into cohorts with similar attitudes, values, and life skills that affect everything from how they spend, what they save, and, yes, even if they stay at your hotel. And for the first time in our history, there are four distinct generations of consumers to whom you are marketing the same product - i.e. your hotel.

The market always evolves to the different needs and values of each generation. For example, Betty Crocker introduced a line of ready to bake cake mixes in the 1950s; they flopped. This was the era of stay-at-home moms - today's Matures. To these women, who grew up during the depression and World War II, sacrifice was a virtue. Anything that was too easy was suspect. Convenience seemed like cheating. So the idea of saying they baked a cake by opening a box and just adding water went against their values. It was foreign to one of their generational markers. Finally, Betty Crocker figured this cohort value out and reformulated the mix to require adding an egg. The new mix succeeded because there was a sense of work; it was in line with their generational values.

Similarly, in the 1970s, sales of Seagram's slipped because Baby Boomers weren't drinking as much as their parents were. And they were too "in a hurry" to "learn" to sip and enjoy liquor or to wait to develop a taste for scotch. After a lot of generational thinking, Seagram's figured out that the boomer generation wanted something easier to drink. So the company had an Aha moment and concentrated its marketing efforts on a new line of white spirits, like vodka, which could be mixed with juices or sodas. And vodka didn't demand an acquired taste. This product line appealed to the Boomers' demand for easy access to pleasure and enjoyment - a generational value.

For any hotel, generational marketing is a strategic business perspective that studies the effects of age cohorts on marketing decisions. So in this article, the first of a four-part 2008 series, we will look at the first "hump" of a hotel's four-humped customer camel - the Matures or Silent generation. In subsequent articles, we'll look at the 76+ million Baby Boomer group, the infamous Generation X, and the generation that will be filling your hotel's coffers in the coming years - the Y or Millennial generation.

So just who are the Matures? And how can you best reach them? Let them tell you...

We were born before 1945 and number 50+ million. We are Clint Eastwood, Queen Elizabeth II, Jack Nicklaus, Betty Ford, and Rosy the Riveter. And yes, we are even the Rolling Stones. Born before 1945, we are still a powerful economic force.. We came of age in the shadows of the economic turmoil, common enemies, and America's emergence as a major force in the world and in our daily lives. Our attitudes toward life and work were formed in the throws of the Great Depression, the New Deal, two world wars, rationing, and the G.I. Bill. We were marked by tough times that required us working together for victory. As a result, we value teamwork, self-discipline, sacrifice, hard work, and putting money away for a rainy day. We believe in duty, institutions, authority, patriotism, and law and order. And, in our minds, rewards are earned.

These values still determine the way in which mature consumers relate to your hotel. This group looks at leisure time and retirement as rewards for years of hard work and saving money. As such, they are willing to spend their wealth to enjoy their twilight years to the fullest, especially in travel. And, they want to feel valued for their experiences, their abilities, and their loyalty to you.

So what products and programs can your hotel offer that will be in tune with the values of this generation? Here are some ideas to get your creative juices flowing:

Purge old positioning.

Older people do not identify with other older people, I remember when my mother would come to visit and I'd ask her where she wanted to go for lunch. Pulling herself up to her full 5 feet 2 inch height, she would fold her hands across her chest and defiantly proclaim, "Not that old people's restaurant!" She was referring to area restaurant that was known to be a haven for the 65+ market. And... mom was 87. Perhaps the biggest mistake hotels make is marketing products or services developed especially for seniors. For example, when Affinity shampoo came on the market as a product developed especially for older adults who wanted to improve the appearance of their "old hair," it flopped. But when Johnson & Johnson repositioned it to highlight an older woman's special kind of beauty, sales rose. Similarly, Heinz encountered the ire of the mature market when, in the 1950s, it launched Senior Foods (soft food for older adults with dentures). Needless to say, it failed.

Multi-generational Activities.

Family, legacy, and heritage are extremely important to your mature guests. Consequently, there are new opportunities with grandparent-grandchild events (golf, computer camp, and scrapbooking weekends - yes, even for grandfathers). Michigan State University's Alumni Association took a page from Disney and developed Grandparents University - a weekend for grandparents and grandkids to live in a dorm, enjoy a wide array of activities together, and just bond. It sells out within 24 hours. Many hotels celebrate Mother's Day and Father's Day, but what about Grandparents' Day, which is the first Sunday after Labor Day? What an opportunity to generate goodwill, revenues, and memories for grandchildren, who are your future guests.

Use Some Snail Mail.

This group is one of two market segments (the other is children under 12) that still enjoy receiving mail that doesn't have an "e" in front of it. So while Matures are the fastest growing group on the Internet, they still open their mailboxes everyday and like to "reach out and touch someone" via personal correspondence from their favorite butcher, baker or candlestick maker... and hotel, B&B, resort, or spa.

Grow the Font.

About every six months or so, I head to the dollar store and come home with about ten pairs of those magnified reading glasses. There is one in every room in my house, in my office, my brief case, my handbag, my car, my husband's car, and our daughters' homes. I don't do this because I like glasses, but because I'm over 40 and can't see up close anymore. Science has shown us that at about age 40, eyesight starts to diminish. And by age 65, the ability to focus and distinguish among certain colors diminishes further. Look at the contrast and font size of your restaurant's menu, your in-room brochures, and the print ads you put in a newspaper or magazine. How readable are they to aging eyes? In Florida, many restaurants keep a supply of these dollar store reading glasses for customers who might forget theirs at home. Do you have any in your hotel's restaurant? Remember the old adage: If I can't see your product, I can't buy your product.

Nix Any "Q-tip" Attitude.

Finally, eliminate the notion of "age" in any marketing piece because this age group does not think of itself as old. It's clear that you cannot call them seniors, golden-agers, matures, or even retirees, but you can call them valued guests. Dove hit the marketing nail on the head with its Campaign for Real Beauty. Marketing to the burgeoning number of mature consumers will be an increasingly important strategy for a success for all hotels in the coming years. This cohort is growing in size, is comparatively wealthy, and accounts for more than half of all discretionary spending and 80% of luxury travel. It will also be a marketing challenge because it is an amazingly diverse market. They cannot be lumped into one older category. Just as one retailer has discovered, "one of the first truths any marketer needs to face as they start to look at 'the mature market', it doesn't exist." But as the old axiom goes, anyone who doesn't start thinking about that now is a day late and a dollar short.

And, you may wonder what Q-tip means. Well, we have good friends who spend winters on South Padre Island. According to them, the local nickname for older "snow birds" is Q-tips because they have white hair and wear white tennis shoes.

Your REVPAR will thank you!

Bonnie J. Knutson is a professor in The School of Hospitality Business in the Broad College of Business at Michigan State University. She is an authority on emerging lifestyle trends and innovative marketing. Her work has been featured in The Wall Street Journal, USA Today, and on PBS and CNN. She has had numerous articles in industry, business, and academic publications. Bonnie is a frequent speaker for executive education as well as business and industry meetings, workshops, and seminars. Dr. Knutson is also editor of the Journal of Hospitality & Leisure Marketing. Ms. Knutson can be contacted at 517-353-9211 or drbonnie@msu.edu Extended Bio...

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