Teenagers, youngsters and what companies do to reach them profitably

Content

1.) Introduction

2.) What are teenagers and youngsters?
2.1.) Children vs. teenagers
2.2.) Teenage reference groups
2.3.) Values and Conflicts
2.4.) What brands mean to teens

3.) What makes the youth market so interesting for many companies?
3.1.) Appealing aspects of the teen market
3.2.) The teen market – A danger zone?

4.) Teen advertising in practice
4.1.) Teen’s most wanted
4.2.) What works, what doesn’t
4.3.) Practical examples

5.) Conclusion

6.) Bibliography

1.) Introduction

Teenagers are a relatively new cultural phenomenon. It was not until 1956 that the term “teenager” emerged in the American vocabulary when the beat band “Franky and the Teenagers” presented themselves as representatives of this new subculture^[1]. However, it has to be remarked that there is no universally valid definition of what a teenager is. Especially from a marketing point of view there are several approaches to define this target group. Depending on the industry it can vary from thirteen to up to people in their mid-twenties. For that reason we defined our topic as teenagers and youngsters emphasizing an age cohort of people between 15 and 19 years of age.

The transition process from being a child to being an adult with all its physical and mental changes would therefore be enough of an explanation for this term paper. Youth can be both an exciting and a terrible time in a person’s life.

We decided to deal with the consumer behavior of teenagers because they have created a highly interesting marketing situation in the last decades. Teenagers go through a unique phase in life and thus their entire behavior including their consumer behavior differs from that of other age groups.

In this term paper we roughly examine the marketing-relevant framework of teenage behavior. In order to be able to reduce complexity and explain valid concepts of teenage behavior, we sometimes had to generalize, although we are aware that the assumptions we make are sometimes slightly simplified.

2.) What are teenagers and youngsters?

2.1.) Children vs. teenagers

The consumer behavior of children differs from that of teenagers. From a marketing point of view, the most important characteristic of children is that they are usually not the ones who make the decisions on what clothes they wear, what sports they do or beverages they consume. Although they start to develop their own opinion, it is mostly their parents who ultimately make the purchasing decisions. In the case of teenagers decision making is more of an independent process so companies can target teens more directly than children.

Companies do try to target children by creating advertising spots, mainly on TV or through engagements in events for children but after all it is difficult to make children really respond to the advertising in the way that they create a purchase intention and act accordingly. That is due to the fact that children are mostly not able to fully comprehend advertising plots. And what is more, companies have limited opportunities to reach children which leads us to the issue of media consumption.

Teenagers read fashion, sports or lifestyle magazines which makes them receptive for print advertising. Children still being limited in their ability to read and comprehend abstract topics are less likely to purchase magazines and respond to the advertising. The ability to understand advertising is also an issue which needs to be taken into account more closely. Teenagers are exposed to products and the according advertising to a larger extent than children. This fact in combination with their increased independence and mental maturity results in a better understanding and higher awareness for advertising.

In order to be interesting for companies, a target group needs purchasing power. Children on average do not have much money at their disposal and in conclusion lack economic strength. They do influence their parents, though. This enables them to trigger purchases but as in the end it is the parents who make the buying decision, children only have a very limited economic power. Teenagers, in contrast, posses both direct and indirect buying strength as we will show in part 3.1.).

2.2.) Teenage reference groups

In order to target teenagers effectively and profitably companies need to know who their target group refers to. Teen idols and key influencers as well as “teen enemies” have to be identified.

In the case of children, there is no doubt that the parents are the strongest reference group. But while growing older and becoming more and more mature, teenagers separate from their families which is a natural process assisting the purpose of the development of a young person’s own personality and identity. The US teen magazine Seventeen, for instance, owes its existence to the banal insight that teenage girls do not want to look like their mothers^[2].

So while children seek and find trust and orientation in their parents, teenagers do so by referring to their peers. A key word in this context is the term “in-group”. Young people who represent an unconventional, cool or laid-back attitude are an appreciated guideline for teens. Belonging to the “in-group” of hip teenagers and not to forget being different from their parents are issues which drive teenage thinking and behavior to a large extend. This becomes evident through the following quote of a sixteen year-old girl who replied

“I like the kind of music that pisses my dad off”^[3] when she was asked what kind of music she preferred.

Marketers trying to play a role with their teenage clients must well remember the concept of reference groups. A worst case scenario for a company trying to target youngsters would be the product associated with the values of the parent’s generation. This is exactly what happened to Levi’s Strauss who missed the repositioning of their Jeans because they had wrongly assumed that their fashion was resistant to changes in trends. An outline of the Levi’s example is provided in part 3.2.) The best case would be a positive association with the values of teenagers and therefore the feeling among the target group that the product helps them appear rebellious, cool, careless et cetera.

In conclusion the identification of reference groups belongs to the essential tasks when companies attempt to define a teen profile to target. This delicate task has to be taken very seriously as a marketer’s success depends on a clear profile that has to be defined prior to any other marketing activity.

2.3.) Values and Conflicts

In all developed cultures teenagers are struggling with basic issues when they proceed to become adults. According to a study conducted by Saatchi & Saatchi there are four universal areas of teenage conflict^[4] ; Independence vs. Sense of Belonging, Rebellion vs. Conformity, Idealism vs. Pragmatism and Narcism vs. Intimacy. These four issues have to be and are taken into account when companies attempt to develop successful products for teens and youngsters and advertise them attractively.

Teenagers have to become independent personalities. That is why they separate from their families. On the other hand they have to join a group that supports them, just like their peers. So the phenomenon of independence vs. sense of belonging has led to the boom of the internet subculture. The internet provides the opportunity of unlimited communication with young people but remain independent and anonymous at the same time. In fact that makes teens so receptive for internet communication and this is why direct communication is well received among young people.

Rebellion vs. conformity. At a certain age, teens start to rebel against socially standardized norms and behaviors. But still they want to be accepted by others and get on well with others. For this reason many companies come up with cult brands that have dangerous names and a rebellious image. Teens buy these products as an act of rebellion and yet to show solidarity to their peers.

Teenagers tend to consider adults as hypocrites and liars. Themselves in contradiction they consider as honest, frank and truthful. But unfortunately this picture is not always compatible with reality. Thus marketing experts support the need of teenagers for being real and genuine to make teens buy their products. Especially with Levi’s jeans and their aura of authenticity which is conveyed through the advertising this becomes quite apparent. That is how marketers use the conflict of Idealism vs. Pragmatism to be accepted among their target group.

Narcism vs. intimacy. Teens can be obsessed with their looks and their consumption needs. But on the other hand they want to be understood and want to be taken seriously. Nobody likes to be considered as a superficial consumption zombie. So again the need to be respected as a person becomes obvious.

2.4.) What brands mean to teens

A brand is an augmentation of a core product^[5]. Adding distinctive tangible or intangible values such as a certain image or emotional benefits to a mass product is supposed to make a product unique and distinctive from the competitor’s products. Therefore a product bearing a certain brand label and being sold at a higher price than a no-name product always serves purposes other than simply satisfying basic needs. A forty year old man, for example, would not only buy a Hugo Boss Jacket to protect him from the cold but also to satisfy status needs and compensate personal lacks. For teenagers, however, brands even have a higher importance than for most people of other age groups.

Teenagers use brands as a form of self expression. By purchasing brand articles they confer a distinctive image onto themselves and use the brand image as a vehicle to emphasize their attitude. Belonging to a (reference-) group and at the same time positively standing out from that group or claiming a certain position in the group are further targets. Put the other way around, brands strongly act as a form of orientation since the brands purchased by the members of an “in-group” provide a guideline for others.

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^[1] Cf. Solomon, Michael, 2003 (10th Edition): Konsumentenverhalten. München. Pearson Studium. Page 407

^[2] CF. Solomon (2003), Page 407

^[3] Statement by unknown person. Seen on MTV. 2005

^[4] Cf. Solomon (2003), Page 408

^[5] Cf. Bergemann, Britta (2004): Marketing 2 Course Handout: Branding. Villingen-Schwenningen