Marketers love assigning names to explain segments of the population. For instance, back in the 1970s marketing research firm Claritas (now part of Nielsen) introduced a naming system for identifying lifestyle segments. Called PRIZM, their method created segments using demographic data (e.g., income, age, geographic location, ethnicity, etc.) which was then matched with certain behavioral information (e.g., activities, purchase behavior, political leaning, etc.).
One reason marketers like assigning names to segments is that it makes it very easy to explain their primary target market when talking to non-marketers, including those in their own company. Instead of saying their target market consists of wealthy, suburban living customers between the age of 45 and 64 who are college educated and have children at home, it is much easier to assign a label to this segment by saying their market are the Blue Bloods.
While the approach used by PRIZM and other segmentation models takes into account several variables, another way of classifying groups is more simplistic and considers only a few segmentation dimensions. One of the most popular is based on generational data, specifically on when someone was born. Examples are fairly well known and include Baby Boomers (those born between the mid-1940s and the mid-1960s), Generation X (born between the mid-1960s and the mid-1980s) and Millennials (born between the mid-1980s and early 2000s). These groups are labeled as generational as these are often viewed as being born during the time when the previous generational group has children.
However, it is important to note that creating these demographic categories and names is not set in stone. In fact, the labels and time span become accepted only because these are picked up by mainstream media based on work from a popular writer/researcher who coined the term. So it is with some reservation that we discuss what may be the newest generational label: Generation Z. The Gen Z group represents consumers born after the mid-1990s. According to this story in Shopper Marketing, this group possesses certain traits that set them apart from previous generations with the most notable being that they are the first generation to have always been exposed to the Internet. The impact this group may have on consumer purchasing is discussed in the story.
Over time, it remains to be seen what label is eventually bestowed on this population cohort. What will also be interesting is what name is given to the generation that follows Gen Z since we have reached the end of the generation-naming alphabet.