How to Market to an Aging Boomer: Flattery and Euphemism - Coursework Example

Running head: Situation Analysis: How to Market to an Aging Boomer: Flattery and Euphemism Situation Analysis: How to Market to an Aging Boomer: Flattery and Euphemism Insert Name Insert Grade Course Insert Tutor’s Name 27. October 2011 Table of Contents Abstract……………………………………………………………………………..3 Introduction…………………………………………………………………………4 Current Industry Analysis…………………………………………………………4 Situation Analysis………………………………………………………………….5 Marketing Strategy…………………………………………………………………6 Marketing Recommendations…………………………………………………….8 Conclusion………………………………………………………………………….9 References…………………………………………………………………………10 Abstract For a long time, aging market has been ignored and convectional marketing strategies have been used with disregard to aging consumer needs. However, this aspect is likely to change with increasing aging population of baby-boomers. This group of demographic segment promise lucrative market for many firms given their increased consumption behaviors. Nevertheless, success will not be derived from convectional marketing methods, but it will largely depend on devising new marketing strategies that capture both intrinsic and extrinsic needs of older consumers. This means that new marketing strategies will be developed and they will largely reflect the need for product design, product labeling and font size, modification of store layout, and enhancement of persuasive communication strategies. Moreover, sensitivity of consumer age issue should be observed and marketing strategies should reflect this need. Situation Analysis: How to Market to an Aging Boomer: Flattery and Euphemism For a long time, marketing in aging population has tended to exhibit less seriousness. Many marketing strategies in this demographic segment have been poorly developed and for a long time elderly market has been largely ignored. Nevertheless, the baby-boomers as they age are changing the trends and what is being witnessed today constitute increased attempts by firms to appeal to this prospective market (Court, Farrell and Forsyth, 2007). Therefore, how well can consumer needs of aging population fulfilled in the most appropriate way through different marketing strategies? Answers to this question remain an area of investigation and is likely to continue into future. Current Industry Analysis America like other developed societies grapples with the issue of aging population that is projected will increase in the years to come. In the past, this demographic segmentation has not been given much attention as majority tended to buy less and save more. Nevertheless, with the increasing aging of the baby-boomers, the pyramid is being inverted as more aged baby-boomers increase their purchase behaviors unlike their past counterparts. The overall market for older people is increasing in almost all sectors and this can be evidenced from increasing sales in travel and leisure activities, fast food, automobiles, clothing and fashion, technology, drugs and health care, financial services, property, and many more (Lee and Kiley, 2005). In America today it is estimated baby-boomers account for 76 million of American consumer market, which represent 50% of the overall market (Lee and Kiley, 2005). The reasons associated to baby-boomers increasing spending on consumer goods have been identified as the increasing life expectancy among the aging population and the tendency of majority of baby-boomers to save less and spend more (Lee and Kiley, 2005). For example, in the coming ten years it is projected that baby-boomers will spend about $50 billion on consumer goods and services. The baby-boomers are likely to spend their resources, wealth-purchasing property, and pursuing active lifestyle while in less terms giving such wealth to their future generations (Lee and Kiley, 2005). This particular aspect gives candid picture of how baby-boomers are likely to increase and influence consumer market in the coming years. There, it can be concluded that market size being influenced aging population is increasing and serious business investors cannot ignore this aspect. Strategic positioning is increasing in major business sector to cash-on’ this increasing market niche in America. Situation Analysis Ellen Byron captures the current market situation in the aging market through the article titled, ‘How to market to an aging boomer: flattery, subterfuge and euphemism’ (Byron, 2011). Many baby-boomers unlike their predecessors have demonstrated increased consumption tendencies and this can be linked to their long-held values attitudes on consumption, income, and personal satisfaction needs (Byron, 2011). Still ‘arrested’ from their youthful massive spending on purchases, baby-boomers are revolutionalizing the market industry with their increased consumption behaviors, which is exhibited in their education, income, living arrangements, asset and spending, and many more (Byron, 2011). However, even with these prospects, the author recounts the dilemma most marketers have been confined to in trying to balance baby-boomers consumption needs, firms market objectives, and the need to remain sensitive to issues of aging consumers. Their consumption behavior combines with intrinsic psychological aspects that most marketers in the past would have considered inappropriate or even less warrant attention (Byron, 2011). Baby-boomers do not want to be told they are old and this has to be reflected in product design, production, positioning and distribution, and subsequent consumption. Marketers find the issue of age to be sensitive to the baby-boomers where baby-boomers do not want to be regarded to be old, aspect marketers have to strategically integrate in their product and service production and marketing strategies. The entire scenario being brought out in this article is that with aging population, convectional marketing strategies cannot suit the aging population and this forces the entire marketing fraternity to device new marketing strategies that accommodate the needs of aging population. Marketing Strategy Ellen Byron provides numerous marketing strategies that different market players are employing to attract the baby-boomer market segment. According to the author, baby-boomers needs, aspirations and demands have to directly and indirectly be manifested in products and services they buy (Byron, 2011). Further, the marketing strategies have to painstakingly suspend the aspect of ‘oldness’ in product or service design, production, marketing and subsequent consumption (Byron, 2011). Marketers are employing superior and accommodating marketing strategies that integrate customer needs, products lines are being overhauled, and the general marketing methods are changing while redesigning of store layouts is also changing (Byron, 2011). For instance, some firms are modifying their communication methods in which case sensitivity of older people issues is observed and communication pace with older consumers has been slowed down (Byron, 2011). Moreover, handling and fixing older consumers needs has improved and most firms are training their workforce to be fast in ensuring the needs of older consumers are met with little complains or setbacks. Byron (2011) further notes that firms are improving the appearance of products making it possible and easier for older consumers to have easy time in reading them. For example, majority of firms are making typefaces larger and store shelves are being lowered to make older consumers access those store shelves more easily and comfortably (Byron, 2011). Product redesign is another marketing strategy firms are embracing and this has to do with overhauling product structure and form. Products like coffee cups are having their features like handles being modified to make it more easy to hold, lamps are being used instead of overhead lights, and also TV are being turned off when older clients visit firms to minimize noise interference (Byron, 2011). Advertisement and product promotion is another area most firms are modifying with aim to capture and integrate older consumer needs. Advertisement ads are having relatively young people, with image, brand, and design being modified to integrate popular consumer needs. Gender-specific and strategic positioning is also another aspect most firms are integrating in their marketing strategies to appeal to older people (Byron, 2011). On overall the new marketing strategies being adopted by firms for older consumer market fulcrums around changing product form, product design, appearance, color, font, and related features. In addition, store redesigning is taking place as firms try to integrate consumer convenience and comfort in shopping. Marketing recommendations Nussbaum and Coupland (2004) observe that marketing for older people remain an inter-disciplinary area that requires interrelated knowledge of different fields. Among many marketers, addressing the marketing needs of older people require adopting new strategies with regard to: product design; product labeling in the appropriate typeface, color and size; store layouts that are convenient to older people; and services that promote independence and allow for ‘aging in place’ (Nussbaum and Coupland, 2004; Kohlbacher and Herstatt, 2011). Further, it is suggested that appropriate communication strategies are key to enhance marketing goals for older population. In this way, different authors have established that communication messages directed to older consumers should remain informative, persuasive, and attractive while at the same time fulfilling consumers’ diverse expectations (Nussbaum and Coupland, 2004). Older people are much sensitive of their age and they will want products and services that fit and comfort them (Williams and Page, 2010). Therefore, to perfectly address this market segment, marketers need to design products and adopt marketing strategies that enhance self-esteem and self-fulfillment of older people (Williams and Page, 2010). For instance, it is observed that when marketers incorporate life satisfaction goals into marketing strategies, older needs are fulfilled in the most appropriate way and this lead to creation of meaningful relationship with the aging consumers (Nussbaum and Coupland, 2004). Conclusion Marketing strategies for baby-boomer market is changing the marketing field with every effort directed at understanding and responding well to the needs of older people in this market. Therefore, successful firms in this market will have to research and adopt the most appropriate marketing strategies that address consumer needs. Such strategies will largely be manifested in terms of product design, product labeling and typefacing, and modification of store layout. Moreover, communication and remaining sensitive to older people’s needs and concerns should remain part of marketing strategy development. References Byron, E. (2011). How to market to an aging boomer: Flattery and Euphemism. The Wall Street Journal, February 05. Retrieved October 29, 2011, from http://online.wsj.com/article/SB20001424052748704013604576104394209062996.html. Court, D., Farrell, D & Forsyth, J. E. (2007). Serving aging baby boomers. McKinsey Quarterly. Retrieved October 29, 2011, from http://mkqpreview2.qdweb.net/Marketing/Serving_aging_baby_boomers_2068. Kohlbacher, F & Herstatt. (2011). The silver market phenomenon: Marketing and innovation in the aging society. NY: Springer. Retrieved October 29, 2011, from http://books.google.com/books?id=rGAx5Nu326kC&pg=PR15&dq=aging+baby-boomers+and+product+marketing+strategies&hl=en&ei=ZTmsTsbTDYj_-gaagI3qDw&sa=X&oi=book_result&ct=result&resnum=10&ved=0CGIQ6AEwCQ#v=onepage&q=aging%20baby-boomers%20and%20product%20marketing%20strategies&f=false. Lee, L & Kiley, D. (2005). Love those boomers: Their new attitudes and lifestyles are a marketer’s dream. Bloomberg Business Week. Retrieved October 29, 2011, from http://www.businessweek.com/magazine/content/05_43/b3956201.htm. Nussbaum, J. F & Coupland, J. (2004). Handbook of communication and aging research. NY: Routledge. Retrieved October 29, 2011, from http://books.google.com/books?id=5TJrqjTXL5sC&pg=PA330&dq=aging+baby-boomers+and+product+marketing+strategies&hl=en&ei=ZTmsTsbTDYj_-gaagI3qDw&sa=X&oi=book_result&ct=result&resnum=9&ved=0CFwQ6AEwCA#v=onepage&q&f=false. Williams, K. C & Page, R. A. (2010). Marketing to the generations. Journal of Behavioral Studies in Business. Retrieved October 29, 2011, from http://www.aabri.com/manuscripts/10575.pdf. Read More