Archive for the 'Generations' Category

To be boring or to be entertaining?

Most conference exhibitors have a stand with panelling depicting the corporate logo, a few pretty pictures, TV screen and giveaways…pens, stress balls, playing cards etc… the problem is that all the corporate exhibitors do the same thing! Unless a customer knows what you do and who you are, all exhibitions tend to blend into the same ol same ol pot! Where is the innovation? Why spend thousands of pounds trying to connect with customers at a conference but then create no unique or memorable connection?

The task of getting greater connection has become even more difficult as Generation X and Millennials become decision makers for corporate companies…mainly because people from these generations demand an experience out of your marketing…they understand the rules of the game, they know you are selling to them, so if you are going to take up their time their attitiude is you had better entertain me!

I’m at the IFP conference today at the Celtic Manor Hotel in Wales where my colleague Graeme Codrington is presenting our Mind the Gap presentation on the different generations. Two companies stand out as exhibitors who are connecting with their customers. Investec Private Bank has a virtual golf simulator…clever because the Celtic Manor Hotel is the host of the 2010 Ryder Cup and because allowing conference delegates to come and swing a club enables them to make a lasting and memorable connection, the selling is left until later.

The Santander Group is leveraging off of their sponsorship of the McLaren F1 team. They have part of a life size F1 racing car replica which you get to sit in and race Lewis Hamilton…neat…staff crewing the stand are also dressing in F1 t-shirts creating a relaxed atmosphere.

No clues for which of the two stands out of about 50 or so at the IFP conference are getting the most interest and the most people connections!

Generations and Training

Generational theory is for all intents and purposes deceptively simple yet the effects of intergenerational differences on training within the workplace are anything but simple and increasingly are having a profound effect on the roll-out of training in organisations. This is prompting those responsible for the training portfolio to reassess how to train, how often and in what subject.

TrainingGone are the days of pure technical training where the outcome is centered on learning a skill intended to directly improve performance on the job. The need for increased emotional intelligence in the workplace has brought about a far greater need for programmes that offer development in areas like assertiveness skills, negotiation and how to handle difficult conversations which are aimed at Engineers and Sales Consultants alike. So while course content needs to be relevant to the job at hand, it should also bear relevance to personal lives which are as, if not more, important.

Traditional classroom learning too is being tossed out of the proverbial window. The new buzz word is impact learning, which requires trainers and teachers to act as facilitators – knowledgeable experts who, while imparting course content, develop relationships with their delegates, entertain and are able to adapt their personal training style and techniques to the requirements at hand.

Within this context and conscious of the changing profile of those sitting in the training room, it is important to have an understanding of the different generational attitudes to training and development. Without this framework the ability to connect and appeal is defunct. Continue reading ‘Generations and Training’

Help yourself…PruHealth connecting with customers

Earlier today I walked out of Piccadilly Circus tube station and was feeling a bit parched. Low and behold PruHealth were there to quench my thirst with a bottle of water and signs saying. “Help yourself” …clever, now this is a campaign that will connect with Generation X!
Here are some reasons why:
- Gen Xer’s want immediate gratification… the water gave me immediate gratification connecting me with the PruHealth brand and quenched my thirst.
- Gen X love stories or lines with multiple meanings. They have grown up in a complex rapidly evolving world and have learned to view things from different angles. The strap line “Help yourself” had several meanings.
- Help yourself to a bottle of water… no questions asked no reasons given …cool!
- On reading the marketing splurb on the bottle, “Help yourself” was also referring living a healthy lifestyle and benefiting from PruHealth’s lower premiums…
- They even have a fab interactive web based tool called a pruhealth-o-meter …cool name, it’s a bit quirky and fun, try it out! click here
- Pru also handed out a miniture Frisbee with the bottle of water… I’m not sure what that was all about as I don’t think that catching a Frisbee is a very active sport…but maybe my dog will like it ?
- One quick recommendation, don’t use the get a quote button until the customer has finished playing with the pruhealth-o-meter. Gen Xers like to be entertained but don’t hit them with the sales prompt too early. They get that you are selling to them but let them have their entertainment first.
- It’s also a pity that the pruhealth-o-meter doesn’t work on my iPhone… an alternative html version would get around this, not as flash but would give Gen X connectivity all the time.

Overall a really good campaign, it’s simple, engaging hits a number of Gen X driving values and leaves the choice up to the consumer to decide if they want to help themselves.

Nice one Pru!

Silver divorces - Boomers buck the trend

The Times and The Guardian reported on a very illuminating societal trend this weekend, they noted that divorce rates in England and Wales are now at their lowest level for 26 years. However, recently the number of divorces in the over 60’s category has been on the increase. This is a very interesting trend and in part explained by the fact that the oldest of the Baby Boomers or what we call “Cuspers” have been turning 60. Baby Boomers are defined as the generation born directly after WW2. They have a can do attitude, believe anything is possible and don’t settle for second best. As The Times puts it “they no longer think of it as the end of their lives but as a time of opportunity and reinvention. And in an age of psychotherapy, people get gripped by a desire to live as they really want to live rather than by someone else’s values.” Boomers led the charge to the divorce courts in the 80 & 90’s and became the most divorced generation ever. The latest trends suggest that as Baby Boomers enter retirement they are continuing to prefer to get divorced rather than head to the coast to slow down.

This has major implications for marketers especially those working for financial service companies. Whilst all other Generations show a reduction in divorce rates, Baby Boomers, because of their driving values and the windfalls they have made from the housing boom (watch this space…) feel wealthy enough to get divorced and start new lives. The products that are developed and marketing campaigns aimed at the over 50’s market need to take note of these changes in societal trends. The Baby Boomers are now making a very visible impact on over 50’s lifestages and we predict they will change retirement behaviour completely. Marketers that miss this change will quickly loose favour with Baby Boomers who move onto products and brands that continue to connect with them.

Click here to read

The Times post or here to read

The Guardian post

Tips to Improve Interaction Among the Generations

It seems that just about everyone is talking about generations and how to manage the mix of generations in the office these days. I was sent this interesting summary of generational values from the National Oceanographic and Atmospheric Association Office of Diversity (USA).

It’s a bit simplistic, but it’s a nice summary.

Continue reading ‘Tips to Improve Interaction Among the Generations’

Detailed Introduction to Generational Theory

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Detailed Introduction to Generational Theory

“Baby Boomer”, “Generation X”, the “Millennial generation”, “Generation Y” - these and other similar terms to describe groups of people of different ages have become fairly well known and well used in recent years. These terms arise from a theory that attempts to explain how different generations develop different value systems, and the impact that this has on how younger and older people interact with the world around them and with each other.

This understanding of different generations and the “gap” between them has many applications in all areas of life, from parents interacting with children, to sales people selling to younger or older clients, to managers who work with teams of people of different ages.

Continue reading ‘Detailed Introduction to Generational Theory’

Marketing with a WOW factor

Radiohead have used some fantastic new technology to record their latest single. Creativity-online.com says this about the new video “Radiohead’s latest video, for the track “House of Cards” from the In Rainbows album, uses real time 3D recording instead of cameras, utilizing highly technical structured light and Lidar laser-enhanced scanners to model lead singer Thom Yorke and provide an otherworldly narrative accompaniment to the song.”

This is cutting edge stuff and if any marketers want to do something to impress Generation X and the Millennial generation then this is it. But don’t wait as it is notoriously difficult to impress these two generations and it won’t be long before the use of this technology becomes “so like yesterday.” Act fast the application of this technology has some WOW factor something that is very difficult to create in marketing these days.

Have a look at the video

Because you are worth it - Good example of Gen X and Baby Boomer campaigns

L’Oreal have launched a recent TV ad campaign targeting Baby Boomers for their Men Expert Range. (see the advert here) It is a pretty good one…for Baby Boomers that is. L’Oreal have long identified the pulling power of celebrity endorsement and use Pierce Brosnan as the face of this campaign. Pierce tells us how he likes to “fight for the causes he believes in” and “find time for himself” - all good noble Boomer causes. Pierce is a great role model for Baby Boomers and he exudes the youth and vitality which are major core value for this cohort.

Contrast this with another “viewer created” advert which I found on YouTube for L’Oreal’s same product range. This spoof advert would appeal to Gen X (see the advert here) and uses humour and paradox to connect with Gen Xers.

For now L’Oreal have it right, using celbrity endorsements is the correct way to go with Baby Boomers, as their core target market, are entering their post middle age years and their obsession with staying young and looking good makes them the perfect target market for L’Oreal. However, as Gen Xers enter the mainstream I hope they pick up on the changing values and attitudes of this younger generation and ditch the celebrity endorsement angle, it just doesn’t work for Gen X.

L’Oreal give the guy who created the spoof advert a job in your marketing department he is obviously worth it!

Introducing the Generations

- First published in the April 2008, Mortgage Solutions magazine

The era in which you were born has an extraordinary effect on your value system, your expectations of the workplace and how you approach life. In this article, Dr Graeme Codrington, one of the world’s leading experts on generational theory, gives an introduction to the concept of the generation gap.
Continue reading ‘Introducing the Generations’

Indiana McCain and the Election of Doom

I must give The Economist website the credit for this awesome headline. And I must agree with them that John McCain is in trouble. If elected as President later this year, he will be the oldest person ever elected American President. While this should be no factor, since life expectancy has been steadily increasing over the past half century, and McCain is sprightly, healthy and the very model of what today’s elderly can be, there is a problem.

McCain is not a Boomer. The Boomers (born after World War II and into the 1960s) are old and aging (although they will hate to read that bald fact stated so bluntly). They’re now in their mid 40s to mid 60s. But, they feel 25. Or, at least 35! Any decent marketing efforts aimed at them cannot treat them (or show visual images of them) as they are - i.e. over 50, ageing individuals. Marketing efforts aimed at Boomers should think of 35-39 year olds, and use similar images, too.

Americans are not ready for an old President. (There is a website devoted to things that are younger than Mr McCain - including the Golden Gate Bridge, plutonium, Coke-in-a-can, Velcro, 91% of Americans…). Or more specifically stated, Americans are not ready for an old President who is not a Boomer. In 20 years time, they’ll be ready for 70 something President, but not yet.

So, this should be a really fun election to watch. You will have either your first woman, or your first African-American. Or your first septuagint. Which of these is America more ready for. I’m not sure. But I am prepared to put my generational credentials on the line, and say that Boomers and Gen Xers would rather have a Boomer than someone from either the Silent or Veteran generations. So, for my money, on generational theory alone, McCain has no chance. But, then again, who would have thought that Indiana Jones would get another run at his age (actually, Harrison Ford is a Boomer in his 60’s - so maybe there is your answer!!)

Generation comparisons

Book coverI am a huge fan of Eric Chester, an American author, speaker and consultant who focuses on understanding what he calls “Generation Why” (what a cool title!! I wish I had thought of that first). You can see his excellent work at http://www.generationwhy.com.

He has a nice summary of the three generations now in the workplace. The dates on his summary reflect the consensus among American researchers. My own dates (Boomers 1946-1965; Xers 1966 - 1985 and Millennials 1986 - present) reflect more of an international bias, recognising that different countries arte slightly ahead or slightly trailing these median date ranges.

Read Eric’s summary at his website (and spend some time looking around while you are there), or see below.

Continue reading ‘Generation comparisons’

Targeting the Boomers

Springwise recently carried the following report on a new concept targeting the 50+ Baby Boomers, who don’t want to accept they are getting old.

Brain Gymns for Boomers

Our brains resemble our muscles in one key respect: don’t exercise them, and they’re likely to lose strength. Conversely, many experts now believe that brains stimulated in a healthy manner can better resist debilitating mental conditions such as Alzheimer’s. Which begs the question: how to keep brains in top shape?

The solution offered by vibrantBrains, a San Francisco start-up, is to create a workout centre for the brain, patterned after a health club. Instead of exercising muscle groups via a series of circuit-training machines, vibrantBrains members hone their mental skills using a variety of computer software programs and other tools, for a monthly membership fee of USD 60. vibrantBrain’s health-club-for-the-mind approach should appeal to the millions of baby boomers who’ve spent their adult lives regularly visiting gyms. As they approach retirement age, they’ll want to maintain their mental agility, too, as attested by sales of Nintendo’s Brain Age, which sold 10 million copies, according to the San Francisco Chronicle.

No doubt we’ll see plenty of additional products and services aimed at enhancing baby boomers’ brain power, joining a long list of companies already selling everything from vitamins to training seminars. Still, vibrantBrain’s model is unique. And from a business standpoint, it has a couple of profit-enhancing advantages over the traditional gyms that it’s based on. Space requirements are minimal compared to health clubs, and entrepreneurs won’t have to lease or buy an expensive array of exercise machines.

If the mental health club idea catches on, the real competition eventually may come from traditional health clubs, which could add brain-exercise routines as easily as they’ve added yoga and martial arts instruction. However, even if that happens, there should be plenty of opportunities for start-ups to differentiate themselves—from rehabilitative clinics for the elderly to centers focused on mental and physical exercises for kids.

Website: www.vibrantbrains.com

Wired Politicians

A week or so ago, Dean noted that the Tories in the UK were trying to target (or needed to try and target) a younger generation of voters. In the same week, I read an article in The Economist about how British politics was using (or not using) digital communication technologies and Web-based tools. Read it online here, or a summary below.

The internet and politics

Semi-connected

Apr 17th 2008
From The Economist print edition

British politics is missing out on the potential of new media

EVEN the least fogeyish of politicians have been flummoxed by the internet. Tony Blair, champion of all things modern, paid no end of lip service to the potential of new media as prime minister but was comically technophobic himself. Still, the internet plays a role in huge areas of British public life: party politics, punditry and government itself. But web aficionados lament a yawning gap with America, and with the most go-ahead corners of Europe.

The official websites of the main political parties—Labour, the Conservatives and the Liberal Democrats—get less web traffic than the most popular political blogs, and much less than even the far-right British National Party. No surprise, say cyber enthusiasts; they do a passable job as repositories of information but offer little scope for users to get involved beyond signing up for e-mail distribution lists.

Continue reading ‘Wired Politicians’

Tories target Generation X

Tories logoAccording to The Sunday Telegraph, April 20, 2008, David Cameron, the Conservative Leader is channelling considerable resources into targeting people between the ages of 29 to 40. The Tories see this group of 3 million voters as being key to their success in the 2010 general election.

Research shows this group, often referred to as Generation X, to be a demanding and less forgiving than older generations. The Tories have identified that issues such as housing, transport, the environment, crime, education and the NHS are more relevant to Generation X than tax cutting pledges of the Labour Government. This may be so but David Cameron should well consider the core driving values of this Generation especially as all their literature is aimed at them. Generation X are highly suspicious of marketing especially political marketing and if the Tories want to connect with Generation X they will need to have an in depth understanding of the formative events that shape the attitudes, views and norms of this very dynamic and constantly changing Generation. Our experience shows that research is often already out of date before the ink is dry because once you define Generation X they have an uncanny knack of changing. Understanding their core values will help the Tories to predict these changes and connect with Generation X, a generation that is coming of age and reaching positions of economic and political influence.

To read the full article see The Telegraph

Baby Boomer marketing campaign on steroids

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Marketers have long identified that Baby Boomers are attracted to products endorsed by celebrities. Louis Vuitton the French fashion design house has outdone itself with their current “where will life take you” marketing campaign. The list of celebrities is impressive with no less than Stefi Graf & Andre Agasi, Mikhail Gorbechev, Catherine Denevue and Rolling Stone’s guitarist Keith Richards all fronting the face of the campaign! “Countless Emotions…countless journeys” Louis Vuitton also tugs on the emotional heart strings of Boomers living life to the fullest and there is even a hint of nostalgia as all the celebrities are of yesteryear. Great campaign…if you are a boomer! Not sure how many Generation Xers this ad campaign will appeal to but I can’t imagine many and yet I’m sure that as Generation X approaches the heights of their careers (the oldest of the Gen Xers are nearly forty) they would form a large proportion of LV’s target audience.

Have a look at the campaigns micro site by following this link to the Louis Vuitton
site
and then click on the LV core values film

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Continue reading ‘Baby Boomer marketing campaign on steroids’

Getting a generation out of debt

The Fast Company magazine of Dec 2007 ran a story that combines some of my favourite topics: young generations, technology and personal finance. It was called “Easy Money”. Read the full story here.

Here is a summary:

Americans under 35 spend 16% more than they earn, on average. College graduates leave school with an average of $20,000 in student loans and almost $3,000 in credit-card debt. This demographic, in sum, is sorely in need of an easy-to-use solution to their ample money woes. “There’s this dull throbbing sense of guilt that we should be doing something, but where do we start?” says recent Stanford grad Ramit Sethi, who draws more than 150,000 readers a month to his blog Iwillteachyoutoberich.com.

In the past six months, a slew of free online services has popped up to answer this question, offering widgets for budgeting, automatic bill pay, mobile alerts, and social networking. All are fighting to be the anti-Quicken. Although Intuit’s venerable personal-finance software commands 70% of the market, its $30 to $100 price tag, hundreds of features, and required hour or two a week of data entry are unlikely to appeal to a generation raised on Halo and diagnosed with ADD. Sure enough, Quicken’s 15 million users have an average age of 47. If personal finance for most folks is like personal hygiene–an unpleasant chore motivated by necessity–Quicken is Old Spice.

Meanwhile, the Axe Bodyspray of personal finance–cool, fresh, and even sexy–is an upstart named Mint. Its unique features, wrapped in an exceedingly clean and appealing design, are winning tech-industry plaudits and brisk traffic. …It signed up more than 40,000 users in the two weeks after launch. So has Mint cracked the code on getting Generation Debt to buckle down and take responsibility for its finances?

Continue reading ‘Getting a generation out of debt’

Managing Millennials

This article is an excerpt from Connecting Generations: The Sourcebook by Claire Raines (2002).

For more about the work that Claire and her colleagues do, go to her website.

I get questions every month from businesspeople looking for something about the newest generation of workers. They’d like an updated version of Twentysomething or Beyond Generation X, books I wrote in 1991 and 1996. Along with Bruce Tulgan’s Managing Generation X, they’re the classics on managing and motivating young employees. The thing is, the young employees we were talking about in those three books are well established in the workplace today, and the next generation is showing up with a whole new perspective, a different set of values, a distinctive work ethic. They’re as different from Generation X as they can be. By and large, it’s the Gen-Xers who are managing them, and who are looking for help in understanding just what the Millennials are all about. Thus this article. I think you’ll find a fairly comprehensive treatment of Millennial employees.

Continue reading ‘Managing Millennials’

A lesson from politics…

Obama and ClintonPolitics in America is hotting up and I’ve been curious to note that with all their charisma and pedigree the Clintons have started falling behind and even though Hillary did rally in New Hampshire primary they still trail Obama. Now I’m not into politics but what did interest me was what John Sviokla had to say on a new post in Harvard Business. He has identified that Hillary Clinton and Barack Obama treat their supporters differently. Clinton considers her backers as “customers” while Obama sees his supporters as “members”

For example, Sviokla points out that their two web sites differ radically. On Obama’s you received “points” for each activity you do such as creating a profile, making your profile public, logging in, or befriending a link and you can “climb” this social/political ranking by engaging more–hosting events, linking to others, raising money and many other forms of participation. To anyone in the MySpace/Facebook generation this type of functionality is expected. In contrast, joining the Clinton web site gives you an identification tag like TZ3QQ7, so that any donations can be tracked – sounds just like the old style “frequent purchaser” numbers that everyone from CVS to American Airlines uses.

Continue reading ‘A lesson from politics…’

1968 nostalgia

It’s 40 years later! Prepare yourself for a year (or at least a few weeks) of breathless nostalgia as the Baby Boomers put on their misty eyes and remember back to one of their most defining years as young people (and just when you think it’s over, the 30 year reunion of the “summer of ‘69″ will be upon us next year).

For the record, I wasn’t there. My parents weren’t married yet (although that was becoming less and less of an issue for childbearing in 1968). But, in my studies of generational defining moments, 1968/9 is one of those periods of a few months in which it can be said, “everything changed”. (Probably the most defining such period in recent history was April 1989 to February 1990 - Tiananmen Square, the Berlin Wall comes down, Perestroika and Mandela’s release all within 8 months!).

But back to 1968. Before you look at my list of highlights below, why not take the “do you remember 1968″ online quiz.

Now, here are the highlights:

Continue reading ‘1968 nostalgia’

Face the facts… about ageing workforces

One of the issues we are tracking closely at TomorrowToday is the ageing Boomer generation, and the impact they are likely to have on the workplace, on retirement (we prefer to call it retyrement) and society as a whole. Here is a great piece I saw recently in an online mag called S+B (Strategy and Business). Read the original here, or scroll down.

How to Be a Demographic Realist
by Lord Andrew Turnbull
 
11/08/07

To prepare for the implications of aging populations, individuals, organizations, and society as a whole must confront assumptions that are no longer valid.

Across the developed world, the demographic profile is changing. According to United Nations projections, the proportion of the global population over 65 years old will triple between now and 2100, from 7 percent to 21 percent. The population is aging more rapidly in some countries, such as Italy and Japan, and less rapidly in others, such as the United States and the United Kingdom. But in all countries, this demographic shift raises challenging new questions, not just for retirement and how it is to be financed, but also for the world of work — and the transition between the two.

Although most people understand that this change is taking place, they do not realize how large it will be and what its implications are for our working lives, for how we provide in advance for retirement, and for how support and care will be provided and funded in the future.

Continue reading ‘Face the facts… about ageing workforces’

Boomers Turning 60 - coming into their branding prime

Boomers are variously defined as those people born from the mid 1940s to the mid 1960s around the world. Most researchers use the end of the Second World War as a reference point, which means that as of 2006, this group of people has started to turn 60. They are not old, though. Don’t be confused about that. This demographic tidal wave will have a greater effect on institutions and businesses than the aging of any previous generation. Because of the size and spending power of the boomers, mature values and trends will dominate marketplace realities.

The Chief Marketer recently put out a list of 5 ways in which the Boomers will continue to shape the marketing and branding landscape. Here is what they said (from author, Brent Green):

Continue reading ‘Boomers Turning 60 - coming into their branding prime’

Shinsedae - a new generation in Korea

A frequently asked question when we present “Mind the Gap” - a presentation about different generations - is whether these generations can be found all around the world. People battle to believe that the elegant simplicity of the generations model applies in different countries and across multiple cultures.

Of course, the generational model is not applicable to every single individual everywhere (which model is?), but it IS exceptionally robust. And more and more research around the world is showing this to be true. The latest piece of research I picked up comes from one of the students my colleague Keith had contact with at the Asia Pacific Leadership Programme he teaches at every year at the University of Hawaii (read more about this amazing program at Wikipedia).

The title is: Shinsedae: Conservative Attitudes of a ‘New Generation’ in South Korea and the Impact on the Korean Presidential Election, By Park Sun-Young - click here to read it in full.

Continue reading ‘Shinsedae - a new generation in Korea’

Digital Generation is Losing Its Heritage

I was sent this recently:

The generation of young people who were born into the digital era may be more connected to each other, but less connected to their cultural heritage, warns sociologist Jos de Haan of Erasmus University Rotterdam. They are “chatting” more but reading less; playing more, but researching and learning less than preceding generations.

Though adept at finding their way around the virtual world, digital-era youth are not finding their way to institutions that connect them with the cultural riches of their past, according to de Haan.

The Internet is perceived as a rival to traditional culture, but it could become an ally: De Haan challenges museums, libraries, archives, and other institutions to do more to connect with the digital generation than merely digitize their collections.

SOURCE: Erasmus University Rotterdam, http://www.eur.nl/english/pressroom/detail/article/2177/

Where were you when … ?

I was at a youth camp in a cozy little mountain campsite. The morning was cold, I remember, and as I sloped into the kitchen where the team were preparing breakfast, I was told that Princess Diana was dead. There was sense of disbelief. Except for that mind numbing piece of information, that youth camp may have slipped from memory forever. But the mist hovering mid tree height across the dull brown grass lawns, even the sound of the small stream that ran past the bottom of the camp - all these things are indelibly imprinted on my mind. Because that’s where I was when Diana died. It was 10 years ago exactly today!

There are moments like this that occur every few years. Because of global media coverage, the last 50 years have increasingly provided globally shared moments. These would include (in reverse order):

  • 9/11 and the fall of the Twin Towers
  • The release of Nelson Mandela
  • The Fall of the Berlin Wall
  • The assassination of Martin Luther King, Jr
  • The death of John F Kennedy
  • VE day

Generational theory says that moments like this become iconic for all people, but they are values shaping for the youngest members of society. It is these global events that have shaped people around the world over the past century. For more on generational theory, see “Mind the Gap“.

CO2 Neutral products are becoming “fashionable” but are new product launches enough to target the “ethical consumer”?

ibuyeco, a new eco-friendly car insurance scheme that offsets 100% of customers’ CO2 emissions for the duration of their policy, was launched in the UK at the end of April 2007. The company has just started a strong above the line advertising, including television and other national media.

Created by the Budget Group, one of the UK’s leading insurance intermediaries, ibuyeco is one of the first car insurance products to offset 100% of a car’s carbon emissions. Customers pay an additional amount to their premiums. Payments are calculated on the type of vehicle and the estimated mileage, details provided by customers. Using this method, the typical family car travelling a mileage of between 10,000 and 12,000 would require an offset fee of roughly £20, for example. ibuyeco buy carbon credits through The Carbon Neutral Company who in return puts the money towards projects that reduce carbon emissions. These projects fall into different categories including: increased energy efficiency, forestry projects and renewable energy, and are based in both the UK and overseas.

The launch of ibuyeco is the result of a social trend that TomorrowToday has been researching for sometime and which we are calling the “rise of the ethical consumer”.

In November 2006 Barclays announced the first carbon neutral debit card and we’re expecting a large number of companies to follow ibuyeco and Barclays. The important issue though is, are these companies jumping onto the global warming marketing bandwagon or does carbon reduction form part of the company’s values and long term strategy? Another question is why did Budget need to launch a new company and why doesn’t it position the Budget brand as an ethical brand? Hiding behind a new brand for marketing reasons will not pay dividends unless the company itself changes.

When it comes to targeting the “ethical consumer”, made largely out of Generation Y, companies had best practice what they preach. If they don’t, this generation who is highly connected via the web will spread the word and ruthlessly weed out the pretenders.

Companies need to do more than launch new products and advertising campaigns professing to support initiatives that reduce global warming. Companies need to be taking steps towards reducing their own carbon emissions and communicating their efforts, in carbon friendly ways! Carbon reductions need to be part of the company’s day-to-day strategies and way of work. It has to become integrated into the company’s culture and demonstrated in a number of ways, from the way they employ recruits to how they run their meetings and sell their products. There is no point a company asking consumers to buy its product so that they, the consumer can contribute to carbon emissions, when the company itself is contributing to carbon emissions by making clients fill out massive application forms and accept loads of marketing mailings.

Our advice to companies thinking about targeting customers using carbon reduction schemes, is to first integrate carbon reductions into the fabric of their company’s culture before they launch new products. The new ethical consumer will buy from your company because of who you are (your company’s values) and not because of what you sell.