Gen Z is defined by their place in history. They began being born in the early 1990's and are sometimes called the 9/11 Generation because they were in early elementary school when the 9/11 attacks took place. Remember those kids President George Bush was reading to the morning of that day? They have grown up with the great recession, their parents losing jobs and losing their house in the process. They have experienced a serious economic downturn that has had an impact on what their parents can purchase for them. On the technology side of things, they have always had the internet at their fingertips. They are sometimes called the iGeneration because they have grown up with iPods, iPhones, texting, Facebook and Twitter. They don't remember the Cold War. To them it is as distant as the Civil War. In watching the Olympics, when footage of bygone competition is shown, they wonder what country would wear CCCP on their uniforms. It looks strangely like some sort of old hyperlink code.

Right now the oldest members of Gen Z are coming of age. In marketing terms, those are the years between age 18-25 that dries the paint on how you will think for the rest of your life - or at least a good portion of the years where you are in a prime age group to make major purchases. How will marketing to Gen Z differ from previous generational groups? Here are some early predictions.

They will be more frugal with their money

This is the first generation since the Silent Generation of the Great Depression that has seen their parents' standard of living decrease significantly. Sallie Mae, one of the lenders for the federal government's student loan program, recently issued a report that showed that students are taking an increased role in paying for college.¹ They are also looking for ways to cut costs, like cheap housing options and online courses from junior colleges that will transfer. The impact of all of this is a more frugal generation than those preceding it. In the last of their formative years, Gen Z is learning to make do with less. In marketing terms, this means that you will need to adjust your pricing structure. Whereas Generation Y was used to only the best, Generation Z will be looking for the bargain. When given a choice of three price points with increased quality, they will choose the bottom two instead of the top.

I was speaking to a young man just the other day. He is 20 years old and I was asking him about his computer choices. He explained that he thought the new pads were merely toys for old people and that he did not find them very useful. "They don't have a usb port, so what good is that?" He much preferred Mac to PCs. He also told me that if he were to purchase a new computer today, he would choose the MacBook Pro, but the 13 inch version not the 15 inch. "It'll save you about $600 for two inches less of screen. And I don't care if I have a retinal screen, LED is okay with me," he told me. "Plus, it is lighter and easier to carry around."  It should be noted that Mac also produces a MacBook Air that has an 11 inch screen and costs around $200 less than the laptop he picked out. Do you see where this is going? He chose the middle price point. He sacrificed a few nice features on the more expensive machines and settled for what he thought was a bargain. Your marketing has to take this into account. If Gen Z is looking for a bargain, you should always give them at least three price points and expect them to take the middle.

They will know how to handle debt better than their parents

Gen Z is having to take on more debt at an earlier age than their predecessors did. My prediction is they will have an aversion to it and see it as the big corporate bad guys sticking it to them. Like the earlier mentioned Silent Generation, they will have a distaste for getting in too tight with lenders. The days of overspending your credit card limit may have seen its end with this generation. Part of that has to do with their realization that their parents got too far in debt to save things that were precious to them, like their home. Their parents have not saved for college. Instead they spent the college fund quicker than they could earn it. The result is these kids are sharing a greater load of their college education than Gen Y did. They also have the uncertainty of landing a job once they get out of school. The logic says they will learn to manage debt and pay it off quicker than their parents did. This will have a profound impact on the way you market to Gen Z. Helping them to open a revolving credit line at your store will not work. In fact, we may be in the resurgence of the old layaway plans for consumer spending. You don't get the product until you have paid it off.

Technology demands

Gen Z will expect everything to be accessible on a mobile device. They will value personal relationships with your sales staff, but they will not call to place an order. Neither will they show up to your location to place an order. They will demand that all your goods and services be accessible to them on their phone. Note that I did not say on their computer, but on their phone. This is not just a library of apps, it is the ability to quickly search and access your product offerings and make a purchase. Sales will take on more of a customer service role than a traditional selling role when Gen Z comes of age. It is already happening. Colleges have gone away from traditional bookstores in lieu of online stores that connect with the registrar's office. When a college student registers for a class, they are sent a text asking whether they want to purchase or rent books, if they want them new or used, and when they will be moving into their dorm room so the books can be delivered.

This is the world in which Gen Z is coming of age. This is your new norm once they matriculate and enter the business world. If you intend to do business with them, make sure your marketing efforts shift with their times.

1. How America Pays for College 2012, Sallie Mae report,  https://www1.salliemae.com/about/news_info/research/how_america_pays_2012