Missing out on the boom

Editor’s note: Howard Willens is president of Mature Marketing & Research, Boston. Leslie Harris is managing partner of Mature Marketing & Research.

Recent articles in the trade press have pointed to efforts by marketers and advertisers to reach and attract Boomers. However, our research findings show that these efforts are falling short.

The data indicates that Boomers continue to await evidence that marketers take Boomer needs into consideration when they develop new products and services - as well as evidence that their advertising understands and addresses the issues that motivate Boomers.

Our most recent study confirmed that Boomers are savvy, up-to-date consumers. It told us that Boomers carefully plan their purchases of key items, adapt to changing conditions and attitudes, are open to new developments, seem to be among the leading users in a surprising category, and desire to stay healthy and continue in the mainstream.

Let’s examine these findings with regard to Boomer attitudes towards several important product and service areas - specifically in terms of what they imply for marketers and advertisers.

New product acceptance
Many marketers believe that Boomers are set in their ways and are therefore less likely than younger segments to try new products, especially packaged goods.

In our investigation of four product categories, nine out of 10 Boomers told us they would be very or somewhat likely to try new products in these categories: packaged foods, household cleaning products, personal care products, over-the-counter drugs.

Additionally, seven in 10 Boomers told us they are very or somewhat likely to try new brands in existing product categories.

The implications here for marketers are clear: To attract and satisfy Boomers, they must focus aspects of their product development and communications programs on Boomer needs and motivations.

Purchase planning
Our study investigated purchase planning for a limited number of what are, for the most part low-impulse-purchase products - each in a different price and utility category. The purpose of this line of questioning was to determine the extent of pre-planning for each, assess observed differences among the different price levels/utility levels, and draw inferences based on the findings.

We learned that Boomer planning for the purchase of household appliances and small/new technology electronics is apparently on an as-needed or as-persuaded basis, rather than being part of a long-range plan.

One in three Boomers plan to purchase a narrower utility product in the next three to six months. Of greatest interest/need are: household appliance (washing machine/dryer, refrigerator), digital cameras, and laptop computers. Only one in 10 have similar plans six to 12 months out.

Utility in these particular categories is determined by use, need, importance and interest - and is balanced by price.

On the other hand, Boomer planning for a new vehicle purchase or lease - a more expensive/broader utility item - is a longer-term process (and is identical for domestic and import nameplates). One in 10 are planning to purchase or lease a new vehicle in the next three months. Three in 10 are planning to purchase or lease in the next 12 months.

The higher the price, and broader the product utility, the more likely a product is to have a relatively long purchase planning cycle. And, conversely, products that are relatively lower priced, narrower utility items seem to generate need or interest more quickly (as with new technology items) and thus, have a shorter purchase planning cycle. (This example also tends to illustrate the interest that Boomers have in new technology items, as will be illustrated further in a later section.)

Marketers of lower-impulse items of varying utility who desire to attract Boomer money would do well to consider these timing implications in their communication and promotion planning.

Significant product categories
No study of ideas and attitudes in the Boomer marketplace would be complete without an assessment of their attitudes and behavior towards two product categories that are important aspects of American culture.

  • Motor vehicles

One of the major problems the domestic automotive industry had to overcome has been a public belief that imports are better vehicles overall - specifically in terms of quality, dependability, reliability and gas mileage.

Our research indicates this attitude seems to be abating significantly among Boomers. Two out of five strongly disagree that domestic manufactured cars are less reliable than imports (male Boomers to a still greater extent). An additional one in five disagree somewhat.

In other words, 60 percent of Boomers are now strong targets for domestic vehicle nameplates.

The opportunities this attitude opens to domestic manufacturers are obvious. They must continue to create reliable products that have appeal for Boomer men and women. But more importantly, their advertising and public relations agencies must create communication programs that focus on reliability as a key issue - and convincingly demonstrate a high level of reliability to all prospects, particularly this newly interested group of Boomers.

  • Fast-food restaurants

Half of Boomers surveyed patronize fast-food restaurants on occasions other than for lunch during the workweek. This sub-segment of apparent heavy and loyal fast-food fans apparently view these establishments as “filling stations.” That is, they utilize fast-food restaurants as places where the can inexpensively satisfy their hunger with a food they like, and then move on. They also like the atmosphere of their favorite fast-food restaurants and are comfortable with other patrons in these establishments.

Fast-food chains in general will continue to attract the Boomer “filling station” market, as they satisfy a basic, utilitarian need. However, a product-oriented differentiation - and a feeling of continued comfort and welcomeness - is the order of the day for fast-food marketers wishing to attract and/or retain these Boomers.

Technology, including computers and the Internet
Boomer embracing of technology is - to some observers - a phenomenon. Their ownership of computers and cell phones is at least on a pace with the rest of the U.S. population and in some instances outstrips other segments. Boomer affinity to technology likely stems from convenience, especially the Internet and the handiness of cell phones.

Our research indicates that Boomers are highly receptive to - and are a good market for - today’s new technology products. For example, as our latest study found:

  • Nine in 10 Boomers own a computer; almost all of these people also subscribe to an Internet service.
  • Boomers are participating to a significant extent in other electronic technology as well. Four in five own a cell phone (as compared with a U.S. population average of 70 percent). Two out of five own a digital camera - and their interest is growing (driven by taking vacation pictures and grandchild pictures, and not having to bother with the inconvenience and the expense of film and film processing).

Boomer ownership and use of these products is one more piece of evidence disproving marketer attitudes about older people being slow to accept new products and brands.

Housing
Boomers are unwilling to spend their retirement years in a place for “old people.” Rather, when they retire, they wish their life to continue as it is - in a “normal” environment, with different kinds of people.

Only one third of Boomers are planning to move to a new residence in the next 10 years. Half will stay in their current state; the other half is planning to move to another state.

Half are planning on a more expensive home, half on a move to a less expensive home.

The vast majority prefer their main residence - should they move at all - to be in a traditional subdivision that encompasses a full range of ages, as opposed to a planned community of seniors.

The implications of this attitude are enormous for real estate companies, developers and operators of so-called retirement communities.

Personal health
Personal health is a major Boomer concern and activity. Most Boomers now pay more attention to and participate in a wide variety of health-care related activities as a way of preserving their health. The consequences of these Boomer activities have wide-ranging implications and potential for appropriate marketers.

For example, we learned that:

  • Three out of four Boomers are on some form of diet, either self-regulated or with a commercial diet center. Considering the size of the Boomer segment, marketers of supplements and diet plans should take notice.
  • Two out of three Boomers are taking vitamins and/or mineral/herbal supplements as a way of addressing their health needs and concerns. Marketers of these products should pay attention to Boomer motivations, and how they focus their communications and promotional programs.
  • Two out of three Boomers walk for exercise at least three times per week. Consider the potential for such products and services as walking shoes, warm-up suits, shorts and t-shirts, athletic socks, water bottles, energy bars and supplements, pedometers, hats and caps, small radios and CD players, etc.
  • Half of all Boomers have purchased and use exercise equipment at home. Attention manufacturers of relevant equipment: All of your potential is not to be found among the young and muscular bodybuilders!
  • Fifteen percent of Boomers belong to a health club. Again, considering the size of the Boomer segment, this is no small number. Sports and health clubs be aware that all of your potential is not Generation X! There is a group of people out there who exercise to maintain their health and vitality - but with a different set of motivations.

Half of all Boomers surveyed told us that advertising convinced them to investigate a particular drug further with their doctors. This tends to support the benefit of marketers understanding Boomer needs and motivations. That is, since prescription drug advertising will focus on those most likely to have the problem for which it is the cure, chances are that Boomers will likely see themselves (or people looking like themselves) and their specific needs in the advertising.

Boomers and marketers
For some time now we have been tracking how Boomers view marketers and advertisers, with regard to their interest in providing Boomers with products and services they need, as well as interest in communicating messages of relevance and importance to them.

As we learned in all previous studies, Boomers continue to give marketers and advertisers failing grades.

  • Three out of five rate manufacturers poor to fair with regard to understanding their interests in developing new products. Only 6 percent rate them excellent or very good.
  • Three out of five rate those who create advertising poor to fair when it comes to understanding their needs and interests. Only 4 percent rate them excellent or very good.

In an effort to help clarify Boomers’ reasons behind these attitudes, we added a series of questions to our most recent study. These questions assessed Boomer motivations connected with choosing a specific company or brand for its product or service - as well as the degree to which these motivations/needs are satisfied.

- Products/services and marketers: With regard to motivation for purchase, 70 percent of Boomers rated the following 9 or 10 on a 10-point scale: offers products/services that are reasonably priced; offers high-quality products/services; respects me as a customer; offers products/services that meet my needs.

With regard to satisfaction of these motivations, only one in three rate each of these 9 or 10 on a 10-point scale.

- Advertising and programming: Three in five Boomers feel that advertising in the major media would cause them to consider trying a product or service. The balance feel it has no influence at all.

Three in 10 believe that advertising should use actors and models their age if it wants to attract their interest. Half believe that TV programming should use more people their age. One in four are satisfied with television and television advertising as it is.

For the most part, Boomers continue to be disappointed with the degree to which marketers are satisfying their product needs. And, the majority feel that advertising is not speaking to them - in terms of message, or in terms of showing people like them using the products.

Profess interest

Marketers and their advertising agencies continue to profess interest in reaching the Boomer market with appropriate products. They have communicated their interest by recently sponsoring a number of conferences on the importance of reaching the Boomer market, as well as how to reach them (for example, a recent J. Walter Thompson-sponsored event).

Further, several major advertising agencies have publicized their establishment of departments or subsidiary agencies whose sole function they define as researching and developing programs to reach the Boomer market (including JWT). And, articles in the trade press have pointed with pride to the major efforts being made by marketers and advertisers to reach and attract the Boomers.

Based on the trends established by our research, the “success” of these efforts has been negligible to non-existent. On the contrary, our findings indicate that Boomers continue to be dissatisfied, both with marketers offering products that meet their needs and with advertising that understands and addresses their needs and motivations.

In short, we have observed little change from the attitudes expressed by Boomers three years ago, when we first began to measure this subject.

Obviously, there is a lesson to be learned here. As evidenced by Boomer attitudes, marketers wishing to attract Boomer money need to develop products that meet Boomer needs. They also need to convince Boomers that they care and to promote these products with marketing and advertising programs that attract Boomers’ interest.

Our current study offers some direction. We can see quite clearly that Boomers are savvy, up-to-date consumers, with a specific set of needs, motivations and behavior patterns. And, we can see that their needs, motivations and behavior are different from those of all other segments in today’s marketplace.

For the most part, marketers seem either to not understand this, or choose to ignore it. The result is that in many instances, lack of marketer attention puts Boomers into the position of shopping and buying specific brands in many product categories primarily out of need rather than out of specific interest. In many of these categories, Boomers are more likely to shop on the basis of price and convenience, rather than out of brand/store loyalty.

This Boomer response to marketer inattention strongly suggests that if marketers want to build Boomer loyalty, those marketers had better show Boomers strong evidence that they understand Boomers are different, that they appreciate these differences and that they will address these differences in their products and communications.

Otherwise, to Boomers these marketers will remain just another brand or store, etc. They will attract Boomer business solely on the basis of price or convenience advantages - as opposed to building, addressing and satisfying Boomer needs and motivations.

Simply stated Boomers are the major segment in today’s marketplace - in numbers and wealth. But despite their powerful status, all Boomers want is for marketers to treat them as they would any other segment. That is, understand them, speak to them, and give them what they want.