Marketing to the Baby Boomers

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Marketing to the Baby Boomers
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Why are we here today?

• Do you know who the fastest growing demographic
  is?
• Who spends the most money on luxury travel and
  new cars?
• Who accounts for more than 70 of all
  pharmaceutical sales and 25 of all toy sales?

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Whats in this workshop for you?

• If were successful today, then you should be
  able to
• Describe/explain at least 3 significant factors
  about baby boomers that affect your businesses
• Explain how you can refocus your businesses to
  meet the needs of baby boomers
• Use and apply the materials in your business today

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Before we proceed, think about your service or
product

• Make Action Notes
• What you know about your target market
• then consider how to adjust your marketing
  to -meet the preferences attitudes of
  this powerful demographic.

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Key Demographic Trends

• Consumer activity is the key driver of your
  business and understanding the changing trends
  that are affecting consumer behavior is critical
  to your success.
• Understanding consumer activity means better
  planning, with fewer surprises, and increased
  top-line growth.

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Some trends about 55
Of all money market accounts and certificates of
deposit Of all health care spending Of all
prescription drug purchases Of all new car
purchases Of all toy purchases Of all luxury
travel-top leisure activity for men women Of
all museum visitors are 55 or older Higher per
capita income than national average

• 70
• 60
• 74
• 41
• 24
• 80
• 42
• 26

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How to Sell Connect with Boomers

• Every 7 seconds, someone turns 50 years old
• With 76 million U.S. baby boomers making buying
  decisions now the potential growth from this
  group is enormous.
• Simply based on population growth trends if
  product is marketed to
• 50 audience maintains market share, sales
  should increase by 35
• to 50 in next 20 years. Conversely, a brand
  targeted at zero to 50
• age group will be flat sales.
  Rick Adler, Founder of The Senior Network

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Boomer factoids you need to know

• They view themselves as younger than they really
  are (by 20 years)
• They live active lifestyles and travel is high
  among their favorites
• They love discounts and arent afraid to ask for
  them
• They grew up with TV and a very knowledgeable
  about advertising
• They are connected and comfortable with
  technology
• They are healthier, more active and expected to
  live longer than their parents
• Researchers asked boomers what they like to be
  called.
• There was NO CONSENSUS.
• Terms such as active adults, mature, older
  adult, 50 plus, and even middle-aged were
  deemed inappropriate.

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Things to remember about doing business with baby
boomers

• Watch how your refer to them-they dont like
  being called old in any form
• Dont assume they are brand loyal
• Sell experience benefits that come with your
  product or service.
• Use images they relate to they tend to be
  nostalgic, evoke positive memories, while
  connecting to current lifestyles

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What are boomers saying about turning 60?

• Personal goals for the next 10 years?
• 10 mentioned spending more time with loved ones
• 87 taking better care of my physical health
• 72 wanted to spend more time on interests
  hobbies
• 71 doing the things I have always wanted to do
• If someone gave them the perfect gift for their
  60th birthday, what would it be?
• 23 could be called lifestyle gifts
  (first)
• 19 involved family ties and relationships
  (second)10 spending time with their spouses,
  children grandchildren
• 16 personal well-being.
  (third)

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Overall significance of the study

• Boomers turning 60 in 2006 remain substantially
  satisfied with their lives
• Nearly all have some substantial life change they
  want
• -87 take better care of their physical
  health
• -72 spend time with hobbies interests
• -47 do more volunteering
• Work will continue to play a major role in their
  lives -54 of
  60 year olds (compared to all boomers) plan to go
  back to work in the next few years.
• Over half of those working now (54) plan to quit
  working ASAP.
• -37 plan to work until I drop.

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60 year-olds asked about changes in next few years

• 57 do more traveling
• 45 save more aggressively for retirement
• 47 do more volunteer work
• 30 planned to move-many moving here
• 18 planned to move to a smaller home
• (but not to a less expensive home)
• within a three hour drive of the grandkids

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Boomers want

• Action packed retirement
• Some want to continue to work
• Boomers want -more activity -more
  amenities -more friends
• This generation wants to continue to rock and
  roll, not sit in rocking
• chairs. Dave Schreiner,VP Pulte
  Homes
• 55-75 year-olds estimated to reach 80
  million-plus by 2020, the active
• adult market represents one of fastest-growing
  segments in the
• housing industry. Dell Webb Baby Boomer
  Survey,2005

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How to communicate with boomers with print
materials

• Every business needs printed materials that sell
  your product or service, and sell it well.
• Key word is See - By 2010, 20 million baby
  boomers will face age-related vision loss and
  functional vision problems.
• Make it easy to read font size, clear, crisp
  concise
• Type size must be larger than normal. Use 12 pt
  type and larger
• Use an appropriate type-face such as Times New
  Roman.
• Never use only upper case letters.
• Make generous use of bullets or numbered lists
• Include images of single women since many of your
  audience will be widowed or divorced women.
• Choose colors carefully-use dark type on a light
  background. This provides contrast that older
  eyes need in order to see well.
• Remember -great words linger

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Electronic Marketing

• If you want to reach affluent, well-educated
  boomers, add online and email marketing to your
  print marketing.
• The percentage of seniors who go online has
  jumped by 47 percent between 2000 and 2004,
  making them the fastest growing demographic group
  on the WEB. (the Pew Internet American Life
  Project, 2004)
• Demographics of Internet Users Who Goes Online?
• Age
• 50-64
  58
• 65 23
• Household income
• 50,000-75,000 86
• More than 75,000 89
• Source Fox, 2004. N2204. Margin of error is /-
  3, at 95 confidence level.

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Why are Boomer website visitors special?

• Once a person enters the retiree demographic,
  he/she will be a member for life (rather than
  teens moving to 20s to 30s, etc. )
• There are currently more than 76 million seniors
  and over the next 20 years
• More than 70 million baby boomers will reach 60.
• This represents unlimited opportunity to expand
  your companys brand.
• This consumer group has the most disposable
  income with the greatest buying power
• interested in new services to enhance their
  lifestyle and is currently the largest consumer
  in more product categories than any other market
  group.

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Fast Fact-Adults 50 and older Switching from
Traditional Media to Internet

• 67.5 say online information is accurate
• 60.7 use internet more than a year ago
• 34.5 go to more websites
• 35 seek out travel information
• 33 education
• 32 online purchases
• 22 personal finance entertaining
• 77 search for healthcare information
• 
  Survey by Burst Media MarketingVOX, Jan. 2006

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Cohort Definitions-Birthdates

• GI Generation Born 1925 and earlier
• Silent Generation 1926-1945
• Baby Boomers 1945-1964
• Leading Edge Boomer 1946-1955
• Trailing Edge Boomer 1956-1964
• Generation X 1965-1979
• Generation Y 1980-2000
• Generation Z 2001-?
• Cohorts-groups with same significant life even
  within a specified period of time.

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BoomersLeading Edge Trailing Edge

• Distinctive
• Experiences
• Lifestyles
• Behaviors
• Both groups plan to work after retirement
• either full time or part-time

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Research/Segmentation Baby BoomersStudy shows
that Boomers Fall into 5 Distinct GroupsWill
help Marketers Tactics

• Status Seekers 26
• Traditionalists 23
• Blue Collar Skeptics 18
• Activists 17
• Achievers 16
• Research by Boston-based research firm Chadwick
  Martin Bailey in conjunction with Arnold
  Worldwide
• November 6, 2006

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Status Seekers

• Materialistic
• Feels money- best measure of success
• Enjoy finer things
• Willing to pay more for brand names
• 31 drive a vehicle that makes a
  statement about their personality style
• 
  Chadwick Martin Bailey Research Firm

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Traditionalists

• More conservative
• political, economic social views
• Smart consumers
• Interested in value variety
• 45 say they go out of their way to buy
• American-made products
• 
  
  Chadwick Martin Bailey Research Firm

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Blue Collar Skeptics

• Fall on low end of Boomers income bracket
• More stressed about time money
• Majority (68) feel they havent saved enough for
  retirement.
• 
  
  Chadwick Martin Bailey Research Firm

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Activists

• Most politically socially active segment
• Tend to be liberals
• Donate significant time money to charity
• Concerned with the environment
• Brand-loyal financially smart
• 
  
  Chadwick Martin Bailey Research Firm

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Achievers

• Adopts technology early
• Focused on success
• Heavily involved in social activities
• 24 claim to be 1st to have
• new gadgets devices
• 
  Chadwick Martin Bailey Research Firm

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Baby Boomers impact on

• Travel Leisure
• Fast Food
• Apparel/Retail
• Technology
• Health
• Financial Services

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Boomers wants

• Boomers love to travel
• Boomers like to eat out
• Boomers enjoy their cars motorcyles
• Boomers reach out to technology
• Boomers health choices
• Boomers issues with their finances

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Baby Boom Travel

• Travel Tourism is a 1.3 trillion industry in
  U.S. Domestic Travel Market Report,2002 Edition,
  Travel Industry Assoc of America
• Travel ranks among the top leisure activity for
  men women 50
• What do they want?
• Adventure Relaxation

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Seasoned Travelers

• Historical Romantics
• Road Warriors
• Luxury Seekers
• Cultural Explorers
• Experimental Adventurers

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Fast Food-After 50

• All have eaten out at a fast food restaurant in
  past 3 months
• Eat at hamburger chains more than others
• Leading non hamburger chains-Taco Bell Pizza
  Hut
• Male boomers more than female prefer fast food
  restaurants
• Women boomers more than men see fast food
  restaurants as a place to take grandchildren
• Tablecloth restaurants greater appeal for women
• 
  Howard
  Willens, Mature Marketing Research

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Food Tastes-Ethnic Foods

• Most popular ethnic cuisines in US Mexican,
  Italian, Chinese
• Food tastes bolder flavors
• Outlook for future
• Bolder flavors to tickle taste buds
• Ron Paul Jacqueline Rodriguez, Technomic,
  Inc.

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Retailers

• Boomers are do-it-yourselfers who do not trust
  authority
• Home Depot has blossomed
• with its promotion DIY lifestyle
• Installation services-DIFM
• Aka do it for me Seniorscopie.com

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Retailers

• Clothing retailers struggle to understand what
  Boomer women want
• Are Macys and other department stores coming
  back into vogue for the baby boomer women? AP
  article 4/12/07 suggests that even retailers
  who sought this demographic are failing by
  targeting age, rather than a lifestyle.
• Meaningful special occasion gifts for boomers
• Experiences
• Connections
• Memories
• Self-respect
  Brent Green

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Trends in Grandparenting

• Retailers are paying attention
• KB Toys launched Grandparents Reward Club in
  2006 Every Tuesday 10 discount off purchases
  of shoppers over 50
• Babies R Us hosts free seminars for
  grandparents in select stores-baby safety baby
  care
• It partners with Fisher-Price to sell a 60 page
  guide for grandparents called Loving Your
  Grandbaby

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Boomers HealthYou can stop normal aging

• Normal aging isnt normal at all.
• Its a choice you make by the way you live...
• The other choice is to tell your cells to grow-
• to build strong, vibrant body mind.
• Two master signals to our cells
• Exercise
• Emotion Dr. Henry S Lodge, Columbia Medical
  School, Published March 18, 2007
• Forever Young is the motto of Boomers

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Boomers Technology

• A great secret becoming known
• even though boomers did not grow up with
  computers
• Consumers 50 go online
• They bought 7 billion dollars online in 2005
• Baby boomers are the largest, most affluent,
  most gadget-grabbing generation in American
  History Michelle Edelman, LB Works, Chicago

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Baby Boomers Financial Industry

• Financial services industry is not effectively
  marketing its products services to baby boomers
  faces a huge obstacle in keeping them as
  customers, because they are not loyal to
  financial institutions
• Lisa Shidler, Investment News 3/12/2007

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Customer Service

• Central issue for financial services industry
• Boomers expect
• Prompt individualized customer service
• Not high touch but individualization
• Attitude Know Me as a unique individual
• Joan
  Seamster, Principal, Customer Insights

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Boomers

• Financial industry is missing the women market
• By age 56, average woman will be single
• 51 of women dont have a spouse
• lt 1 in 5 women have a financial adviser
  Investment News 3/12/2007

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Women and financial advisers

• Women are twice as likely as men to first
• Seek advice from a financial adviser
• Some of the hot buttons to winning
• Womens trust and confidence
• Connection
• Communication
• Relationships
• Trust
• Martha Barletta, author Marketing to Women

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How to understand boomers?

• Understanding human needs is half the
• job of meeting them .
• -Adlai E. Stevenson, Jr.

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Marketing to Boomers

• 1st impressions are important
• If you give them want they want, they will listen
• You may need a hook
• Youth
• Inclusion
• Quality Value
• Reassurance
• Use Visuals
• 
  
  Howard Willens, Mature Marketing Research

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Boomers Nostalgia

• Rock roll is a common thread of the Baby Boom
  generation.
• Boomers like connections to music of the 60s
  and 70s
• Microsoft paid The Rolling Stones 12m to license
  Start me Up for Windows 95
• Apple iMacs used Shes a Rainbow
• If your customers picks a product that does not
  meet their expectations
• You certainly dont want them humming another
  Rolling Stones song
• I Cant Get No Satisfaction

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Conclusions

• Boomers represent a large and growing segment of
  anyones market.
• Knowing how to do business with boomers will
  differentiate you from the competition.
• The most important tool in your marketing and
  sales arsenal is you reputation as an honest,
  ethical and helpful professional.
• Knowing how to serve baby boomers will grow your
  business.

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Celebration of turning 50

• Instead of thinking senior
• lets begin now by thinking 50
• by celebrating turning 50 and celebrating the
  second 50 years

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Longevity Its a celebration of life

• This is the first time in human history that
  the prospect of living a long, healthy, and
  productive life has become a reality for the
  majority of people in most parts of the world.
  What was once a special advantage of the few has
  become the destiny of many. And it is likely that
  this increase in longevity will continue. As
  important as is liberation by health, as powerful
  as is liberation by law, older people must be
  liberated, too, from stereotypes that limit their
  horizons. We are in the midst of the wonderful
  world of longevity. It is in our power to make
  it a celebration. Robert Butler,
  2001

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Marketing to the Baby Boomers

• Life events mean marketing opportunities
• They include new reasons and way to consume the
  same products they always have. Diane Crispell,
  Rpper ASW
• Its all about
• Finding Answers
• Creating Solutions
• Thank you for joining us today

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Marketing to the Baby Boomers

• Presentation prepared by
• Kathey Hickey Fulham, CPA, MST
• Certified Public Accountant
• Master of Science in Taxation
• Certified Public Accounting practice in the
  village of Osterville
• 7 Parker Road
• Osterville, MA 02655
• 508-420-3456
• www.KatheyFulhamCPA.com