mass Media Bank Paper

mass Media Bank Paper - Carlos Rodriguez Professor Tulloch...

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Carlos Rodriguez Professor Tulloch Mass Media 9-12-07 Generation Why Not? Generation-Y, essentially classified as the children of the baby boomers between 15 and 30 years of age, are a new breed of consumers. This tech-savvy generation of smart, aware, motivated, and highly independent individuals is out to conquer the world. Unlike their mothers and fathers, however, these young adults have been taught the benefits of fiscal responsibility at a young age and have a greater propensity to save for the future. This, coupled with their strong influence over their pampering parents’ capital, makes the members of generation-Y an extremely important target for banks. While financial institutions have been aware of this influential target market for quite some time, many have experienced great difficulty in getting this brash group’s attention. Having grown up in the consumer age where there is an advertisement on every product, these young adults have become immune to most traditional channels of marketing. In Spain, however, the main banks have made great strides in adopting a marketing platform that successfully attracts young adults. So why are the large US Banks, who are supposed to be at the forefront of innovation, not capturing this audience? Is it that they are uninterested or unable? In this paper, I analyze the direct approach Spanish banks have recently taken to capture their teen-age market and compare it with the indirect approach used by US Banks of focusing on the parents. Through this analysis, I will asses the cultural differences between these countries that contribute to the varying strategies and outcomes for the banks. According to a Datamonitor report published in May 2005, young adults in the US and Western Europe have a total income of US$798 billion 1 . Although the size of this group, in terms of percentage of population, is actually falling, their 1 “Young Adults Lifestyles & Social Trends”
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disposable incomes are increasing at higher rates. Another attractive aspect of this group for financial service providers is that despite their intuitively distrusting nature, these teens are in a vulnerable transition period where they must begin making financial decisions on their own. They do not want to borrow their parent’s credit cards to make purchases. They do not want to have to ask for permission to shop online. However, they also do not want to be thrown to the wolves by amounting large sums of debt without even realizing it 2 . Essentially, young adults in Western Europe and the US want to have personal access to their own funds, in a simple, easy and fun way that they can trust and understand. From student loans, apartment loans, and car loans, to online shopping for clothes, books, and music, these individuals have a wealth of needs and they do not want their parents in charge of it. Without any formed loyalties, these young adults are looking for the financial institution that is most appealing to their needs. In a research study conducted in 2002, 72.1% of 18-29
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This note was uploaded on 04/09/2008 for the course MASS MEDIA Study Abro taught by Professor Metes during the Fall '07 term at Duke.

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mass Media Bank Paper - Carlos Rodriguez Professor Tulloch...

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