Boomer News & Views

Assisted Living

A few days ago I received a request from someone who was writing an article about the coming market for “Assisted Living Facilities.” The writer was interested in “the next generation of senior housing residents. Specifically, the group of seniors who will enter assisted living residences in the next 5-7 years.” The writer asked for my input on the following:

• “How would you define this market?”
• “How would you characterize their lifestyle?”
• “What about their income or spending habits?”
• “What do they expect in housing options?”

Inasmuch as I try to limit my writing to conditions (marketing & otherwise) that relate to Boomers (and even the older Boomers will likely not be ready for assisted living in the next 5–7 years), the request did set me to thinking. In the end I did respond—and I thought my response would make a useful posting.

I wrote the following:

If you are talking about today’s Baby Boomers—now age 41-59, then you are expecting some will be ready for assisted living when they are age 64–66. If you toss in the Wartime Babies (1940-1945) then you have the oldest today (age 65) as the likeliest candidates for assisted living in 5-7 years. Boomers themselves are further away.

Assuming this older group is not too dissimilar to the true Baby Boomers (and evidence suggests they are quite similar) then candidates for assisted living are:
• Well educated
• Financially secure

Because of their education and income position, they are up with the times and follow the trends. They own computers; are on the internet, where they shop, invest, do research, and, of course, are heavily into email. They also buy digital cameras, plasma TV, cell phones, new cars, etc. In other words, unlike what many marketers believe, they are not afraid to try new products. Oh yes, they travel!

In short, they are as “with it” as those 30–40 years younger

As far as housing—and likely with regard to a potential assisted living facility as well, they want to stay close to their family and friends—and had been planning to do so before their need to move into an assisted living facility. That is, they had planned to stay where they had been living for the past many years (as opposed to moving away to Florida, Arizona, or where have you)—many of them because of a desire to remain in a mixed-age neighborhood (the idea of a 55+ community, and/or being far from family and old friends being a turn-off).

With regard to housing options—and consistent with their other spending habits—this is a highly knowledgeable group of people. They want what is new and is modern and is convenient right now—and they will demand it in any assisted living facility they consider.

For that reason, the rise in the number of assisted living facilities (they seem to be springing up everywhere) is likely to bring about a highly competitive market. The facilities management that understands its emerging market, and builds to suit its emerging needs, will be successful.

To summarize, the emerging market for assisted living facilities knows what it wants and will be a tough sell. The Baby Boomers, when they reach that age, will be even tougher!

The 18-49 Rut

The watchword of marketing and advertising gurus is—and has been for quite some time—the 18-49 age group. This is the main focus of their advertising messages and is, coincidentally the main focus of media planners and media buyers.

Why is this age group their focus? What is so magical about it that the bulk of advertising and sales promotion communications programs and dollars are reserved for them? These experts tell us the purpose of their efforts to this age group is fourfold:
• They (the 18-49 age group) is still in the process of forming brand buying habits, so marketers wish to shape their thinking and buying habits for the future.
• They are the biggest market for all kinds of products, from baby food to automobiles, to new houses.
• They will be around longer than those older
• Those over age 49 are already set in their ways brand-wise—and are not as likely to be buying certain products or services as frequently—or in quantities.

Before we examine these issues in depth, in a future blog, I would ask this question: How many of you are aware that the 18-49 target group was invented—out of whole cloth? It was a means of addressing the biggest, best educated, most affluent sector of the economy—the Baby Boomers and the Wartime Babies?

That’s right. Along around 1958, when those born in 1940 were turning 18—and the U.S. was still in the middle of the Baby Boomer baby boom—a very smart but unknown advertising guru decided that targeting the emerging market of post-war adults was the wave of the future for marketers.

He was right! At the time!

But, that 18-49 are group he invented is now age 41-65. But, they remain the biggest, best educated, most affluent sector of the economy. They also continue to be the biggest market for all kinds of products and brands—whether they be old-reliables, or newly emerging.

So, why are they continuing to target the 18-49 group?