Marketing to The New 50+ Population: It’s Not Your Parents’ 50+ Population American Marketing Association Marketing Research Conference September 27, 2005

AMA Marketing Research Conference 2 Does this look familiar to you? Which group includes your age?     50+ What’s wrong with this picture?

AMA Marketing Research Conference 3 The 50+ market is NOT monolithic As complex and diverse as younger groups Includes three distinct generations!  GI Generation (Before 1925)  Silent Generation ( )  Leading Edge Baby Boomers ( )

AMA Marketing Research Conference 4 A word about demographics 82 million are 50 or older -- 28% of the population By 2020, 116 million will be 50 or older -- 36% of the population When the Boomers begin turning 65 between 2010 and 2020 the 65+ population will grow 35%, while the under-65 population will increase just 4%

AMA Marketing Research Conference 5 Beyond Demographics It’s even more important to understand where they are “coming from” Cohort groups are most influenced by events in their formative years -- from Core values are established The pull of the cohort group is redefining age 50 just isn’t what it used to be

AMA Marketing Research Conference 6 GI Generation Born into a world without television Grew up during the Depression, fought in WW II and were defined by both Created the world we live in today - - consumerism, suburbia, discount shopping, fast food, highways Believed in “the future” and the American Dream, fueled by the GI bill First generation to live long enough to enjoy life after work

AMA Marketing Research Conference 7 The Silent Generation Came of age during the Cold War, years of conformity Women were encouraged to marry, discouraged from having careers Defined more by what they weren’t than what they were--neither war veterans nor boomers—like the proverbial middle child When the turmoil of the 60s caught up with them, there was a huge backlash Levittown, NY 1948

AMA Marketing Research Conference 8 The Boomers Leading Edge Boomers (born ‘46-‘55) are all over 50  Came of age during the first child-centric era, the first mass consumers  The 1950s was a time of unprecedented growth and prosperity  The Woodstock generation, the protest generation Formative years were the turbulent 60s  Cold War, assassinations, Vietnam  Civil Rights movement, Women’s movement, student protests

AMA Marketing Research Conference 9 The Boomers Have always embraced the new and unknown, maybe because they felt so safe and secure Their numbers alone would be enough to change the world of aging, but it is their expectation that business and industry should meet their needs that is redefining everything  “age rebelliously”  “60 is the new 30”  “the new middle age”

AMA Marketing Research Conference 10 GI Generation - 10 million, 80 and older Optimistic Patriotic, sense of history Entrepreneurial Can-do spirit Outer-directed Traditional values, family oriented First “senior citizens”

AMA Marketing Research Conference 11 Silent Generation - 42 million, More cautious Little sense of their place in history Corporate rather than entrepreneurial Outer-directed, mediators Highest rate of divorce Never felt “young” till they were middle aged First beneficiaries of the Women’s and Civil Rights Movements

AMA Marketing Research Conference 12 Leading Edge Boomers – 40 million, Rebellious and self-confident Connected to the times in which they grew up Best educated, professionals Made up their own rules Inner directed, individualistic Redefined gender roles and relationships Married later or not at all Re-inventing aging and “retirement”

AMA Marketing Research Conference 13 Communications Implications GI Generation  Watch more television  Patriotic, traditional values  Respond to messages showing them as independent Silent Generation  Still read newspapers regularly  Value opinions of experts  Respond to images of extended families, groups of friends Baby Boomers  Use the Internet for information and shopping  Anti-authority, less likely to respond to testimonials  Respond to nostalgic settings, especially from the sixties

AMA Marketing Research Conference 14 Learning more about the 50+ Market Opinion 50+  Omnibus study from TMR, Inc. among a projectable sample of 500 people per month, or 6,000 per year  Quick, cost-effective way to size a market, identify behaviors, test purchase intent, or learn about attitudes  Studying retirement and home furnishings this month

AMA Marketing Research Conference 15 Redefining Retirement—Age More than 1 in 5 Boomers expect to retire after the age of 65 Source: Opinion 50+, July 2005Base=113

AMA Marketing Research Conference 16 Redefining Retirement—Work Source: Opinion 50+, July 2005Base=501

AMA Marketing Research Conference 17 Affluence Over 50 Source: Opinion 50+, July/August 2005Base=1002

AMA Marketing Research Conference 18 Home Furnishings Source: Opinion 50+, July 2005Base=501

AMA Marketing Research Conference 19 Healthy Self-Image Source: Opinion 50+, July/August 2005Base=1002

AMA Marketing Research Conference 20 Healthcare treatments

AMA Marketing Research Conference 21 Presence of Children Under 18 Source: Opinion 50+, July/August 2005Base=724

AMA Marketing Research Conference 22 Internet Usage Source: Opinion 50+, July/August 2005Base=1002

AMA Marketing Research Conference 23 Internet Activities Source: Opinion 50+, July 2005Base=635

AMA Marketing Research Conference 24 Learning more about the 50+ Market Traditional research  Surveys—phone, central location, online  Focus groups Seminars and workshops  Product-specific, category-specific  New product development, positioning, communications

AMA Marketing Research Conference 25 Main Take-Aways Three segments in the 50+ population  GI Generation (80+)  Silent Generation (60-79)  Baby Boomers (50-59) They are not as different from younger generations as you might think  Internet usage  Presence of children  Affluent, and will spend on themselves Communications strategies and executions should be tailored to the segments’ “personalities.”