MASTERING THE 65 MARKETPLACE

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MASTERING THE 65 MARKETPLACE

• A World Research Group WorkshopMarch 24, 2009

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Kurt Medina
President Medina Associates
www.medinaassociates.com
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WHO ARE THEY?

• What is the Make-Up of
• The 50 Mature Market?

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50 POPULATION
US Statistical Abstract 2008
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Population Distribution 1990
Statistical Abstract 2008
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Population Distribution 2000
Statistical Abstract 2008
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Population Distribution 2010
Statistical Abstract 2008
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Population Distribution 2020
Statistical Abstract 2008
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THE GOLDEN PROMISES

• 50ers comprise 31 of the U.S. Population
• BUT ......
• They own over 70 of the Nations Financial
  Assets (AARP 2005)
• They possess over 50 of all Discretionary
  Spending (AARP 2005)

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Distribution of 65 HH Income
--------- 52 -----------
----------------- 48 ----------------
Median - 24,509
2007 US Statistical Abstract
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The KEY To 50 Marketing
SEGMENTATION

• Lifestage
• Cohort

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The Three Most Meaningful Mature Market Segments
Pre-Retirees
ActiveRetirees
Boomers
Seniors
Age 50-62 Age 63-74 Age 75
(All ages are approximate at best)
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Whats On Your Website?

• Do you give visitors the ability to segment
  themselves at all according to their interests
  or concerns?
• Do you have different paths for prospects or
  returning customers?
• Do you have separate pages for caregivers or
  adult children?

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What Do You Call Us?

• Boomer and Pre-Retiree
• Anything BUT Senior or Retired
• Active Retiree
• By our real name
• Retirement?
• Senior
• Senior is fine
• We assume Senior means special deals

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When is Someone Old?
Roper 2003
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PERCEPTION OFPRODUCTS FOR SENIORS
(Asked of Seniors in Japan)

• Would you purchase a product designed for a
  senior?
• Yes 29
• No 71
• Why Not?
• The products are dull
• The products are over-simplified
• The products are not aimed at my lifestyle

Nikkei Marketing Journal 2004
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How Do We Slice the 50 Mature Market?
THE BOOMERS!
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The BoomersHave Redefined their world for EVERY
AGE they have passed through Today, Maturity
is no exception
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A couple of examples of Influences of the
Boomers

• They are also demanding better solutions and
  answers for long term care than just nursing
  homes.

• The Boomers are redefining how we deal with
  what used to be called infirmities

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The Changing Burden on Middle-Age Families 1990
- 2020
of Teens or OlderParents Supported Per Family
Neal Cutler-American Institute of Financial
Gerontology
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• Not only are the numbers of aging parents
  increasing
• But Boomers are far more committed to caring
  for their older parents than were previous
  generations.

USC School of Gerontology 2007
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Boomer Attributes

• Boomers like to think of themselves as special
• Offer them something unique to them
• Insider tips
• Customization NOT Mass

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Boomer Attributes

• Time Constrained
• Pre-packaged Starting Solutions
• Time is as important a currency as money

• Boomers seek VALUE ... As THEY define it

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How Do We Slice the 50 Mature Market?
RETIRED vs WORKING!
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Retirees

• The average Americanretires at age 62.5

Sort of ...
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Phased Retirement(Asked of 50ers)
Penn, Schoen Berland Assoc. 2007
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Retirees How Satisfied Are YouWith Retirement?
Boston College Center for Retirement Research 2004
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Concerned About Finances
Gallup May 2007
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How Do We Slice the 50 Mature Market?
GRANDPARENTS
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What is the ONE Nameyou can Safelycall almost
EVERYONE over 50?

• GRANDPARENT !

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Grandparents

• 76 of all Americans over age 50 are grandparents
• 50 of all Americans over age 65 are
  great-grandparents !

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Grandparents are involved with their Grandchildren

• 83 of grandparents spoke with a grandchild on
  the phone last month
• 82 saw a grandchild last month
• 55 of grandparents bought a gift for a
  grandchild within the past month
• 53 sent a greeting card to a grandchild
• 72 of grandparents have shared a meal with a
  grandchild within the past month

iGrandparents.com
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What Do They Buy for their Grandkids?

• 26 of all toys are bought by Grandparents
• 28 of all K-5 childrens clothing is bought
  by Grandparents
• 60 of all grandparents bought one or more
  books for the grandchildren last year

iGrandparents.com
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How Do We Slice the 50 Mature Market?
LIVING WITH ORWITHOUT SPOUSE
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55 WOMENLiving Arrangements
US Census Bureau 2006
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55 MENLiving Arrangements
US Census Bureau 2006
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Number of Men per 100 Women
US Census Bureau 2004
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At Home -- Alone

• Of the 21 million 65 households, almost 10
  million were single people living alone
• And almost 80 of all single person households
  were headed by women

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Whom Do Mature Marketers Need to Keep in Mind?

• WOMEN!
• Older women are generally more open to change
  than older men
• Women normally make more family expenditure
  decisions than spouses AND
• There are MORE Women

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COHORTS, LIFESTAGES PHYSICAL AGING
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The Four Most Meaningful Mature Market Cohorts
WorldWar II
SilentGeneration
Boomers
Depression
1946 1935-1945 1925-1935 Up to 1925
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Comparing The Segments
WorldWar II
SilentGeneration
Boomers
Depres-sion
Pre-Retirees
ActiveRetirees
Seniors
Age 50-62 Age 63-74 Age 75
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WHAT Influences the Mature Market?

• Physical Maturation

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Its Harder to See Hear

• EYESIGHT
• Blues/Greens/Purples
• Glare Sensitive
• Less light to eye
• Become more farsighted

• Use Reds Yellow
• High Contrast
• No Glossy Paper
• Large enough type

• HEARING
• Loss in Higher Tones
• More loss in men
• Sound discrimination

• Male vs Female Voice
• Beware of ambient noise for telemarketer reps

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Other Areas Decline as Well

• CHRONIC ILLS
• Arthritis
• Others

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Chronic Conditions
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• AGE
• 65

Center on Aging Society 2003
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5 Most Prevalent Chronic Conditions
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Cognitive Changes

• INFOPROCESSING
• Slower processing
• Difficult to sort relevant from irrelevant

• MEMORY
• Loss of short term memory
• Less ability to retrieve without familiar base
• Verbal declines more than visual memory

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Learn HOW The Mature thinks as well as WHAT they
think

• Move from Left Brain to Right Brain

• Lead with a Right - then follow with a Left
• Use Logic - but logic AFTER instinctive
  acceptance

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FOUR UNIVERSAL 50 APPEALS FORTHE NEW MATURE
MARKET
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4 Universal 50 Appeals

• 1. Autonomy and Self-Sufficiency

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Older Views on Independence

• 1. Physical/Lifestyle Independence
• To do what I want .. When I want
• To make my OWN decisions. Not to have my
  kids or someone else decide for me
• 2. Lack of DEpendence on Others
• I dont want to be a burden on my children
  or anyone else

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Boomer Views on Independence

• Physical/Lifestyle Independence
• Its MY Turn and I Deserve It!
• Im going to make my own choices NOW
• If you dont meet my needs, Im out of
  here!

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Whos in Control?

• The Mature Market Wants to Be in Control
• Financially
• Living Situation
• Product Selection
• Develop products that will Respond to their
  wishes

• Create promotional approaches that Educate
  before you sell

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4 Universal 50 Appeals

• 1. Autonomy and Self-sufficiency
• 2. Connectedness

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Social CirclesPRE-RETIREMENT
WORK
FAMILY
FRIENDS
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Social CirclesPOST-RETIREMENT
FAMILY
FRIENDS
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Social CirclesPOST-RETIREMENT
FAMILY
FRIENDS
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Social CirclesOLDER AGE
FAMILY
FRIENDS
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4 Universal 50 Appeals

• 1. Autonomy and Self-sufficiency
• 2. Connectedness
• 3. Expanding Horizons

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Active Retirees
The most exciting part about being an ACTIVE
RETIREE
are the new and EXPANDEDHorizons that you give
yourself
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Me

• Retirement is a time when its OK to start
  thinking about Me
• What can I learn?
• What havent I done?
• What can I do?
• How do I/WE want things to be?

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Continuing Education

• Ongoing education, both formal and informal, is a
  KEY aspect of Expanding Horizons
• Elderhostel is the single largest mature (55)
  education/travel program with hundreds of
  thousands of annual participants

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4 Universal 50 Appeals

• 1. Autonomy and Self-sufficiency
• 2. Connectedness
• 3. Expanding Horizons
• 4. Value

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Whats the best way to a 50ers heart?

• 1. Have a Sale ... Give a Discount ... or
  Create a Promotional Price
• 2. Give better Value through Something
  extra ... Better quality ...
  More convenience

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Value wins every time!

• Value is Quality for Money Spent
• Your prices must stay within a reasonable Range
  of your competition
• But youll win on perceived quality,
  convenience, company reputation, empathy,
  delivery method or offer terms

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Create Value

• A Simple Way to Create Value
• Add REAL Customer Service to your product
• This creates value both Up-Front and for Repeat
  Purchases

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Why are YOU Special?

• What can make Your Company TOTALLY unique?
• Give A Rose with every smile you give on
  the phone!

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Creating Effective50 Advertising
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Some Creative Don'ts ...

• DONT shout
• DONT hype and hustle
• DONT use scare tactics
• DONT use in-appropriate images or items

• DONT make the graphics difficult to read (or
  write on) for an older eye

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Two PersonalCreative Don'ts ...

• Dont start an ad or a brochure with a question
  that can be answered by the word No!

• Dont start an ad, brochure or letter with copy
  that starts with the word If!

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Some Creative Dos ...

• DO use appropriate models
• DO use testimonials
• DO use visual icons
• DO be positive

• DO use appropriate models
• DO use testimonials
• DO use visual icons
• DO be positive
• DO Emphasize BENEFITS

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Some Additional Dos ...

• Write Personal Letters

• Use STORYTELLING

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Letters

• Older prospects especially want a letter to be
  personal.
• Businessformat is notpersonal

• Except perhaps for invitation mailings letters
  are critical.
• Letters speak directly to the prospect and do
  so in a different non-promotional voice

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Letters

• (IndentParagraphs)
• Signature BlockCenter-Right
• Make the first paragraph VERY short
• Always include a PS
• Use a headline to set the letter up

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Design Requirements for the Mature Market

• CLEAR, CLEAN and SIMPLE
• Use serif type
• Dont put body copy over a design background or
  in reverse type
• Allow ample space on order forms to write names
• Use high contrast graphics
• Larger type 11 pts for brochures, 12 pts for
  letters

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More 50 Design

• Use bright colors

• Use original photography where possible
• If not possible, avoid the stereotyped plastic
  smiling seniors
• Use models 10-15 years younger than target
  (definite MAYBE!)
• But maintain age parity between males and females
• Also be sure to include SINGLE females

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Emphasize Guarantees

• The more you can Guarantee, the better off you
  will be
• The more solid the Guarantee, the better off
  you will be
• How can you build guarantees with both
  tangible and intangible products?

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Medicare Program Guarantees

• How many Guarantees can you create for your
  Medicare Products?
• Guaranteed Satisfaction
• Guaranteed Year-to-Year continuation of benefits
• Guaranteed Corporate Financial Stability
• Guaranteed Real Person Personal Assistance
• Guaranteed Peace of Mind
• Guaranteed Annual in-person contact
• Guaranteed Smiles
• Guaranteed (more !!!)

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How Can You BeMore Effective?

• Dont have your mail look the same as everyone
  else.
• Dont be sterile.
• Dont be all business
• Speak directly to your prospect

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50 DRTV Rules of the Road

• Start with 2-4 seconds of non-message space to
  get attention
• Keep main points as simple as possible
• Use graphics to reinforce voice
• Use repetition for major point(s)
• No fast cuts. Let the viewers mind dwell on the
  image
• 120s 90s preferable for direct selling
• 800 on-screen 3 times and minimum of 30 seconds
  in a 120 second commercial

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The Mature Market and The Internet
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On-Line U.S.A. Access by Age (Jan 2009)
Pew Internet Project Jan 2009
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OnLine Shopping Attitudes
Pew Internet Project Feb 2008
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I believe Web Content is geared toward my age
BurstMedia Sep 2008
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What do the Mature Do On-Line?
Boomers Active Retirees
Seniors

• E-Mail
• Search
• Health Information (women)
• Get Product Info
• Travel Reservations/Info
• Buy Something
• News
• Visit Govt Site
• Financial Information (men)
• Religious Info

50 of users in the abovesegments regularly do
this
Pew Internet Project Jan 2009
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Mature Web Sites(Major Sites with Largest
Proportion of 55 Visitors)

• MedcoHealth.com

• AARP.org

• CastleMountains.com

• ProxyVote.com

• Genealogy.com

• Blair.com

• Eons.com

Media Metrix 2002Nielson/NetRatings 2004
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Opportunity Area

• Add an Information Article capability to
  your website.
• Encourage visitors to send informational
  articles (with your name of course!)