|
|
|
Marketing to the Aging Baby Boomers
The baby boomers have been
setting consumer trends for half a century now, and as they move through
their 50s and into retirement, they will continue to do so.
We are likely to see a
significant change in consumer behavior for this demographic –
consumption patterns in an older generation unlike any we have seen
before – and it means you will need to reassess your marketing
strategies
This is not to say that baby boomers are a homogenous group. They vary
widely in terms of class, education and lifestyle. And depending on how
you define ‘baby boomers’ there may be a 20-year gap between the oldest
and youngest in the group.
The boomers set trends not because they are cohesive, but simply through
the force of numbers. They represent a huge bulge in the population
graph.
For example, over-50 households
currently control about 40 percent of discretionary income in the US,
though they account for only about a third of the population. The
proportion of over-50 households is set to double in the next 25 years,
giving this group truly overwhelming market dominance.
While baby boomers are a heterogeneous group, some broad similarities
stand out. The boomers will be more educated seniors than we are used
to. More of them have a university education, and this affects their
tastes and the products they prefer.
They are likely to be more active. The boomers have fought the ageing
process every step of the way. This is the generation that made jogging
a fashion and has been behind a host of lifestyle, nutrition and health
trends.
Travel and leisure industries are likely to be affected by the changed
demographic. Baby boomers are increasingly entering the ‘empty nester’
phase, and people in this age group tend to have the finances and the
inclination to travel more, particularly if they are well educated.
The travel sector may find a decline in demand for packaged tours and an
increase in demand for adventurous alternatives, as active and healthy
seniors opt for energetic holidays.
Nobody likes to be told they are ‘over the hill’, but the baby boomers
are likely to be particularly sensitive to the label ‘elderly’. Many of
them still think ‘young’. They are more likely to be individualistic,
critical and uncomfortable with institutional authority than their
predecessors. And they do not like to be categorized. So marketing will
need to be directed towards ‘experience’ rather than ‘age’.
This means that you will have to research and segment your customer base
and target your marketing more carefully, as you do not want to alienate
clients by appearing to label them. Remain aware of the diversity of the
group you are selling to.
Some baby boomers will have had new families in their late 40s, while
others will be putting their kids through college. Some will be hale and
hearty, while others will be suffering health problems. Some will be
comfortably retired, while others will be struggling. Some may feel that
age gives them a certain status, while others will be highly sensitive
and defensive about age.
Prospering in this market will mean selling to sophisticated and
discriminating customers. While mature consumers control over 70 percent
of the net worth of American households, they are not throwing their
money away.
Research has shown that they look for value, are suspicious of hype and
are not particularly brand loyal. This may mean that lower key and
subtler marketing will work better than high pressure techniques. It
will mean patience and adopting marketing techniques that take account
of consumer sophistication.
Useful general Web resources include:
International:
World Advertising Research Center
Asia-Pacific:
Market Research Society of Australia
Market Research Society of New Zealand
|
|
