Introduction: The over 50's are a generation that are very choosy of what they want to have and what they will like and dislike. As most pensioners have time they watch TV this means the media have to also advertise to the older generation too.
THE MARKET OPPORTUNITY
For years, marketing to the over 50's was highly comical to those outside that age bracket. Support tights, colostomy bags, retirement homes and chair lifts were the order of the day. In the last few years, a significant change has taken place.
Lets face it, only direct marketing can profitably address the very many different and complex targeting issues within this enormously attractive target sector.
Companies of all shapes and sizes, from all market sectors, have identified the lucrative potential of the target market. And, what's more, they have diverted serious chunks of marketing budget into this area.
But, in general terms, the vast majority of those companies have completely failed to understand the market place and its complexities.
To start with, it's not a single marketplace.
It is in fact, a target market, sub-segmented into close on 40 different types, which demand to be spoken to individually. These types are determined by the mental persuasion of the individuals within them, overlayed with other discriminators such as age and wealth, lifestyle and sex.
For example, we all know individuals, say, between 50 and 60 years of age. There is a dramatic difference between some of them. The way they walk, talk and dress. And, more importantly, the way they think.
Some 50 year old these days are 51 going on 35. They are computer literate, style conscious, knowledgeable about contemporary music and, probably more 'groovy' than grey. Remember, both Mick Jagger and Paul McCartney to name but two, are now the wrong side of 50. They consider themselves to be in the 35 year old marketplace. However, there are others in that same segment that are old before their time and it shows in everything they do.
For marketers, of course, this is a great problem.
Talk to those two different type examples in the same way and you'll probably alienate both of them. The former type wants to be recognised and addressed as a youthful over 50. The latter is mentally older, is happier in that shell and wants to receive messages with an older 'feel' and relevance.
This of course represents another nail in the coffin of image advertising and a further attraction of direct marketing.
Funny ad
But, in general terms, the vast majority of those companies have completely failed to understand the market place and its complexities.
To start with, it's not a single marketplace.
It is in fact, a target market, sub-segmented into close on 40 different types, which demand to be spoken to individually. These types are determined by the mental persuasion of the individuals within them, overlayed with other discriminators such as age and wealth, lifestyle and sex.
For example, we all know individuals, say, between 50 and 60 years of age. There is a dramatic difference between some of them. The way they walk, talk and dress. And, more importantly, the way they think.
Some 50 year old these days are 51 going on 35. They are computer literate, style conscious, knowledgeable about contemporary music and, probably more 'groovy' than grey. Remember, both Mick Jagger and Paul McCartney to name but two, are now the wrong side of 50. They consider themselves to be in the 35 year old marketplace. However, there are others in that same segment that are old before their time and it shows in everything they do.
For marketers, of course, this is a great problem.
Talk to those two different type examples in the same way and you'll probably alienate both of them. The former type wants to be recognised and addressed as a youthful over 50. The latter is mentally older, is happier in that shell and wants to receive messages with an older 'feel' and relevance.
This of course represents another nail in the coffin of image advertising and a further attraction of direct marketing.
Funny ad
Secondary research
According to a recent TGI survey, the Third-Agers can be divided into five lifestyle groups:
'Thrifty Traditionals', accounting for 17% of the age group. They are not well off and budget for every penny, are heavy TV viewers and read down market tabloids.
'Outgoing Fun Lovers' contribute another 20%. They are magazine oriented, enjoy travelling, eating out, entertaining and are above average viewers of TV.
'Astute Cosmopolitans' account for 18% of the age group. These are the ones with most money, read broadsheet newspapers, specialist and lifestyle magazines. They enjoy foreign holidays and are light TV viewers.
'Apathetic Spenders' for a further 22% of the group. They take on debt through credit cards and do not like foreign holidays. Favoured newspapers are the tabloid press.
'Temperate Xenophobes' make up the remainder. They love the Radio Times, most definitely do not like foreign food or travelling abroad and are heavy TV users.
THE ATTITUDE OF THE MARKET
In the last decade, we have witnessed the arrival of the sceptical and cynical consumer. No one believes anything anymore.
We have over four decades of television advertising to thank for that.
The over 50's are far more receptive to modern methods of communication than their counterparts of 10 years ago and understand its ways, its methods and its tricks.
Some were teenagers in the magical times of the late fifties and sixties and are well- versed, well travelled and very street wise.
DISLIKE OF ADVERTISING INCREASES WITH AGE
The over 50's are traditionally regarded as heavy users of financial service, health and leisure products, with a high emphasis on travel both UK and overseas. They are also heavy consumers of toiletries and cosmetics, drinks and gardening products. Some recent consultancy research identified that the Third-Agers in certain markets, showed a propensity to be a marketers dream.
In the last decade, we have witnessed the arrival of the sceptical and cynical consumer. No one believes anything anymore.
We have over four decades of television advertising to thank for that.
The over 50's are far more receptive to modern methods of communication than their counterparts of 10 years ago and understand its ways, its methods and its tricks.
Some were teenagers in the magical times of the late fifties and sixties and are well- versed, well travelled and very street wise.
DISLIKE OF ADVERTISING INCREASES WITH AGE
The over 50's are traditionally regarded as heavy users of financial service, health and leisure products, with a high emphasis on travel both UK and overseas. They are also heavy consumers of toiletries and cosmetics, drinks and gardening products. Some recent consultancy research identified that the Third-Agers in certain markets, showed a propensity to be a marketers dream.
For example:
Financial Services
27% More likely than average, to have stocks and shares
61% More likely than average, to have unit trusts
Travel
10% More likely than average, to take 3 or more holidays per year
42% More likely than average, to have been on a sea cruise within the last year
Drink
52% More likely than average to drink Scotch Whisky
10% More likely on average, to drink Gin
Most recently retired people ARE better off than their counterparts were 20 years ago.
Financial Services
27% More likely than average, to have stocks and shares
61% More likely than average, to have unit trusts
Travel
10% More likely than average, to take 3 or more holidays per year
42% More likely than average, to have been on a sea cruise within the last year
Drink
52% More likely than average to drink Scotch Whisky
10% More likely on average, to drink Gin
Most recently retired people ARE better off than their counterparts were 20 years ago.
Most recently retired people have paid off the mortgage and have the opportunity to sell their property and move to somewhere smaller or nicer in the country. A lot have shares in the major utilities which they have seen rise in value, timeshare properties they purchased during their years of highest earnings and possibly, even some collections they have built up.
ADVERTISING LIKES AND DISLIKES
Some companies are already heavily investing in campaigns to the Third-Agers. Travel operator and magazine publisher Saga has been targeting retired people for close on 40 years, with great success.
Significantly, in recent times, it has lowered its age parameters from 60 to 50, to take full advantage of the trend of retiring early.
Car Insurance companies have also produced specific policies for the 50+ marketplace, as they represent the safety and security conscious individuals that are very attractive.
But, by and large, companies are either ignoring the sector or marketing to it, very badly. The differentiation that's required to connect to the specific target segments within this group is being totally ignored.
REFS:
http://www.tgisurveys.com/freedata/
Significantly, in recent times, it has lowered its age parameters from 60 to 50, to take full advantage of the trend of retiring early.
Car Insurance companies have also produced specific policies for the 50+ marketplace, as they represent the safety and security conscious individuals that are very attractive.
But, by and large, companies are either ignoring the sector or marketing to it, very badly. The differentiation that's required to connect to the specific target segments within this group is being totally ignored.
REFS:
http://www.tgisurveys.com/freedata/
Consumer Behaviour: A European Perspective
by Michael R. Solomon (Author), Gary Bamossy (Author), Soren Askegaard (Author), Margaret K. Hogg (Author)
Financial Times/ Prentice Hall; 3 edition (21 Jun 2007)
1 comments for this post
Great to see so much secondary research going on but don't forget the academic input from Solomon and try to make it flow more - it is all a bit fragmented in style