Marketing Myopia II

Despite all the evidence pointing towards the contrary, the fact remains that those making marketing recommendations, and those making marketing decisions, still act as if they believe the hokum that “old folks”—most likely their parents—are firmly set in their ways. That is, once they hit age 50, they refuse to learn anything new, and are stuck on their habits, as well as the brands and products they started using when they were in their 20s and 30s.

Those advertising professionals who are averse to marketing to older consumers continue to cite two mantras: matures buy price—and matures don't switch brands. It is almost gospel among this group that mature consumers just buy brands they have always bought, right up to the time they become dependent and go to a nursing home.

Marketing Myopia!

Boomers and Matures spend more per capita on groceries, health products and travel than any other age group. Travel is an especially important market for mature Americans. They go on an average 3+ trips a year, more than any other group, and Adventure Tourism, is rising in importance as the mature market becomes increasingly dominated by the adventurous Baby Boomers.

Further, today’s people over age 50 are different from earlier generations. They are active, can-do adults with an optimistic outlook—not the stereotypes of older people that were held the 70s, 80s and 90s. Boomers value youthfulness, independence, freedom and self-expression. And, they do not believe that age 50 is the end of their adult life—but in a sense is the beginning.

They are of this world, in this world—and are very much participants in the political and social life of the country. They understand that this is a changing world—and they are willing to accept that change. As stated by 67-year-old Lenny Wilkins—until this week coach of the New York Knicks— “If your mind is active and you are aware of what is going on, age has nothing to do with that.”

In marketing terms, they express this attitude by their openness to new ideas and to their willingness to try new products and brands.

For example:

·        Boomers and pre-matures have embraced new technology. Their purchase and use of computers, cell phones, PDAs, etc. is at least equal to that of those younger—and in some cases even greater. They have embraced the internet—and not only to email their children and grandchildren—but also for on-line banking, shopping and research.  

We know of a 58-year-old retiree who seeks out Web sites for new asset allocations. Prior to retiring, he had never gone on line. After retiring, he became "addicted" to the Web, and now uses the Web to discover new investment strategies.

We know of a computer teacher whose phone rings off the hook with calls from seniors who know how to use email and to search the web, but who now want to learn how to use word processing, spread sheets and accounting programs.

·        Based on recent research, 70% of supermarket shoppers age 50 and above have tried new products. Successful examples include breakfast cereals that emphasize their nutritious-ness, low-sodium content, lower or no cholesterol—and that is good for the digestion.

·        The same research also showed that their acceptance of off-the-shelf new products extends to personal care products, household cleaning products and over-the counter drugs—and that they are willing to try other new products and brands as well.

Additionally, many buy the same kinds of things as younger adults, but for their new grandchildren instead of their children. In fact, grandparents spend a median of almost $500 per year on their grandkids—especially for clothing, books and toys.

In short, Boomers (pre-matures as well) are savvy up-to-date consumers. They carefully plan their purchases of key items, adapt to changing conditions and attitudes, are open to new developments—and desire to stay in the mainstream.

It is time for marketing and advertising professionals to recognize this, to believe the evidence—and seek to maximize profits for their companies and clients.

Comments

[Linda]

I would like to bring up a interesting point in the discussion of Boomers. I am a child of Boomer parents who just realized her parents were "Boomers" about a year ago. Working for a monthly publication that focuses on the active older adult, I knew what a senior was and I knew what a boomer was. I knew that my parents were nearing retirement but not seniors. So people wonder how could I miss the fact that my parents are baby boomers, very simple my parents weren't born here. Both were transplants from Hong Kong and China, but both remember where they were when Kennedy was shot when they lived overseas. We think of boomers as as maybe 5th-6th generation americans but we seem to forget about the mass amount of transplants who came over during that time period also.

And to add an extra to Barry's listing, we do need to define Boomers a little better. In the TV documentary/ Book Boomer Nation, Pop icon Madona was considered a boomer. Though I think it's great to have someone that many people recognize comercially as a boomer but how do boomers relate with these "young-timers" who only fit part of the description of Boomers.

[Barry]

I think it is time to add a parenthetical addition to the word "boomers." And this would be the current age definition, as in "Boomers (Ages 55-59)" or whatever age encompasses Boomers.
Reason?
It is starting to get confusing. Many people define boomers as those born in 1947 and later, a result of the postwar baby boom. But a look at Census records indicates that the boom started earlier, even before the war ended, and ended not as a generation, but as a return to normal but increased birth rates in the 1950's.
If we say Boomers began with births in say 1944, or even 1943, then the Boomer generation ended in 1963-64.
That means Boomers came into being in say, 1998, and will continue until 2018. Further, that means that Boomers has been used to define too narrow a segment, which started earlier than most marketers accept.
So let's just say that if you are age 55 to 62 right now, you are a Boomer.
And, you will continue your Boomer status until 2018, at which time you may become a Senior, although I wonder if Boomers will ever accept "Senior" status.