Seniors Gain the Market's Attention

Every product or service has a target market. For years the popular demographic for many products or services has been 18-34 year olds. The marketplace is shifting and there is a growing target market that will only enlarge and build in buying power—the senior market. Baby Boomers are maturing and they are impacting marketing trends. The assisted living and senior housing markets are well aware of these trends, but all businesses must be prepared for significant changes in marketing.

The 2000 US Census reported 13.3 million Americans between 55 and 59, 10.7 million 60 to 64, 18.1 million 65 to 74, 11.7 million 75 to 84 and 3.3 million 85 or older. Be assured that an expanded senior market for senior services will also bring expanded competition and the watchful eyes of the senior consumers and their families.

In addition to the aging of the Baby Boomers, the definition of "senior" is also transitioning. The median age for first-time grandparents is 47 years old. In fact, the American Association of Retired Persons (AARP) begins targeting prospects who are 49 years old for membership.

The buying power of seniors is great. Consumers 50 years old and over now control more that 77% of the disposable income in the United States (that equals to approximately $1.6 trillion dollars). The Baby Boomers are the most active spenders in American history. Further, the US Census Bureau reports the number of American citizens ages 50 to 69 will jump over 87% in the next 15 years.

It is easy to see that marketing to seniors is important. It is not so easy to market to this group of consumers the same way; all combined in one "old category." There is a wide range of age groups, psychographics and incomes within the seniors market, therefore, lumping all seniors into one large category is a mistake. Many aging adults see themselves as much younger than their actual years due to society’s increasing attention to healthy lifestyles and maintaining youthful attitudes. Many are watching the same TV shows and shopping at the same stores as most 30 year olds.

The range in the growing "seniors" market may include a grandfather in his late 80's, to a grandson is his 40's. This is a wide range with very different needs and interests. Mature adults vary in their perception of what a senior is; a 48-year-old usually does not perceive herself or himself as part of an older demographic, and many times works to defy the natural pattern of aging.

The various strategies and opportunities to market to the large and powerful Baby Boomers are clearly worth exploring.