Jrnl 304 Blog #1

The article states that out of the 49 million Americans living in the U.S, 1 out of 6 people live in households with three or more generations. Between 2000 and 2009, multigenerational household have increased by more than 30%. Because of the increase, it can have a significant impact on marketers in categories ranging anywhere from insurance to packaged goods.

The article also states that due to the economy, many older generations are moving in with younger ones and vice versa. Due to the economy changing, saving money is playing a huge role in multigenerational households. Whoever is the head of the household is usually in control of the money. They stated in the article “that whoever pays the bills had a bigger voice.”

Multigenerational families are also looking for houses together. Real estate companies now have to change the way they are selling houses to appease to multi-gen households such as a fifth bedroom or separate bathrooms. They also have to create specialized tours of homes to help the buyers envision the abode better. Other companies are also advertising to the older generation such as Toys R Us where they are offering discount coupons to grandparents.

I think the way marketers are handling the economy and the older generation moving in with younger generations is smart. They are appeasing to the older audience who usually has more experience dealing with money and how to budget there costs. Since multi-generations are living together and spending less on wants but more on needs, marketers have creatively tried to entice grandparents to spend their money with coupons designed only for the older generations. They have also created a strategy to appeal to all generations of the family.

This could affect advertisers and media planners negatively and positively. Negatively because since generations are moving in together and have less money to spend on their wants. Due to the economy being down many people are saving their money. This can be a positive thing because marketer are creating products that help families that need to manage their budget and shared expenses. Like every problem there is always a way to get around it and make something good out of it.