Capitalizing on the Growing Boomer Market

By Rob Jones

Despite some gray hair and expanding midsections, Baby Boomers are looking pretty attractive to advertisers these days. Marketers who once wrote off anyone over 50 are finding it hard to ignore 78 million people, especially if they have substantial amounts of money to burn.

Baby Boomers account for about half of the $4 trillion spent annually on goods and services in the United States, according to the Center for Community and Economic Development in Wisconsin. Besides the economy, Boomers are also having a dramatic impact on demographics. Close to 40 percent of the U.S. population is expected to be over 50 in the year 2020.

How can marketers cater to the needs of these former flower-power, peace sign waving, bell-bottomed, tie-dyed anti-establishment free thinkers who danced at the altar of Woodstock, fought in – and against – the Vietnam War, demonstrated in the streets while sprouting beans and ushering in women’s liberation and civil rights?

They rewrote all the rules and now it’s time to rewrite the rules of marketing to reach this very vibrant segment of the population.

Rule #1. Understand your market. Baby Boomers crashed onto the scene in the post-prosperity years following World War II. Born between 1946 and 1964, they’re now 43 to 61 years old, with almost half over 50.

Baby Boomers are one of the most health conscious generations in history, led by a very vocal Hollywood glam squad who turned 60 in 2006, including Suzanne Somers, Cher, Diane Keaton, Sylvester Stallone, Susan Sarandon, Tommy Lee Jones and Linda Ronstadt.

They refuse to miss a step, so any products that cater to Boomers’ desire to stay young have a leg up in the marketplace. Pharmaceutical companies are working overtime to develop new drugs for when the Boomers hit 65, with 900 medications for “diseases of aging,” including almost 150 for heart disease and stroke and almost 50 for diabetes, according to the Pharmaceutical Research and Manufacturers of America.

Boomers can expect health costs to continue to rise as they age, from $2,695 annually for people 45-54 to $3,262 for those 55 to 64 and $3,899 for anyone over 65, according to the Bureau of Labor Statistics.

Rule #2. Don’t stereotype. It’s easy to think of Baby Boomers as a homogenous group with gray hair and grandchildren, but that’s hardly the case. Boomers are becoming parents as well as grandparents. Although many are celebrating milestone wedding anniversaries, others are hitting the dating scene, often by computer. They’re empty nesters but also parents of “boomerang kids” returning home after college, a lost job or failed relationship.

Rule #3. Use appropriate language and images. Baby Boomers are so health conscious that many gyms are designing special programs for people 55 and over. For Boomers, 60 is the new 40, 50 is the new 30, and 40 is practically high school.

Therefore, it’s better to focus on life experiences and self-image rather than age.
By all means, avoid the words “senior” and “older” in favor of “prime,” “mature” or even “savvy” or “worldly.” Portray age-appropriate models, not anorexic-looking Gen Xers.

Rule #4. Diversify your ad mix. With so many specialty magazines and new internet media options, there’s never been a better time to laser target the appropriate advertising venue for your company. For example, since diabetes has a high incidence in minorities, take advantage of media that reaches this segment of the population by carefully studying the demographics and editorial slant of each advertising venue on the market.

Areas of potentially largest growth

Here’s what Boomers can look forward to health-wise, based on statistics of the current population from the Centers for Disease Control and the American Geriatrics Society: 88% percent of people over 65 have at least one chronic health condition, with the leading cause of death being heart disease. Seven million people 65 or older (or 20.1 percent of this age group) have diabetes. Meanwhile, 76 percent of breast cancer is diagnosed in women 50 or over.

Obviously any medications that cater to these illnesses are essential. As Baby Boomers age, also look for continued growth in assisted living facilities, cosmetics, plastic surgery, neutraceuticals, long-term care insurance, gyms, exercise DVDs, motor scooters and touring motorcycles.

And while the Boomers are going hog wild on their new Harleys, be sure to wave
when they pass by. Because make no mistake about it, they’re here to stay – and there’s plenty of tread left on their tires.

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About the Author
Rob Jones is senior vice president and general manager of Creative Marketing Alliance Inc. (CMA) based in Princeton Junction, NJ. A former vice president of marketing services for a Johnson and Johnson company, Rob has almost 30 years of strategic marketing and corporate sales experience. He earned his Master of Business Administration degree in Strategic Planning from Harvard University Graduate Business School, Massachusetts, and his Bachelor of Science in Pharmacy degree from Howard University in Washington, D.C.

CMA is currently celebrating 20 years of service and has received more than 160 industry awards in its three allied businesses: CMA Healthcare Marketing, CMA Marketing and Communications and CMA Association Management. For more information, visit www.cmasolutions.com or contact Mr. Jones at (609) 799-6000, ext. 38, or rjones@cmasolutions.com.