Mature Market Experts: Selling to Boomers, Seniors, and the Mature Market: Marketing to Baby Boomers, Seniors and the Mature Market - By Tom Mann, TR Mann Consulting: My partners at TR Mann Consulting and I regularly receive emails and phone calls from reporters, bloggers, advertising agencies, marketing firms, and consumer good manufactures asking us what the secret is to selling to Baby Boomers, seniors, and the Mature Market. I would argue that there are no secrets to selling to these different age groups, just refined techniques. Here are some baby boomer, senior and mature market marketing basics:

How is marketing to baby boomers different from marketing to seniors, the mature market or the public in general?

For decades now, marketers have been selling their clients on demographic breakouts. They tell you that the baby boomer generation (the 76 million Americans born between 1946 and 1964) represent unlimited herd-like opportunities. On top of the 76 million American Boomer goldmine is another six to eight million immigrant boomers.

The magic demographic breakout? People born between 1946 and 1955 are called leading-edge boomers by these marketers. Those born between 1956 to 1964 are commonly referred to as late- or trailing-edge boomers.

These lazy marketers will tell you that these are two sociologically distinct target audiences . . . the “leading-edge boomers” grew up during the Vietnam War era. They will tell you that they were shaped by the “cultural revolution,” modern feminism (remember Billy Jean King and Bobby Riggs?), the Beatles, the assassinations of JFK and Martin Luther King, and the civil rights.

And yes, these events did influence some of their decisions but unfortunately for marketers, it’s much more complex than that. Boomers and the mature market (like all humans) are driven more by their personal needs (remember Maslow’s pyramid?) and the stage of life they are currently in.

In short, marketers need to understand that it’s about “stage” . . . not age. In other words, where is that individual in their personal journey? Just because we are from the same generation doesn’t mean were in the same stage.

David Wolfe, one of my favorite bloggers and a true expert on aging states on his blog Ageless Marketing:

“Needs drive our behavior. Our need to be physically and mentally comfortable, whole, safe and secure does not change from one generation to the next. In Maslow’s hierarchy, that bundle of needs is the most basic of all needs. Then, our need for love and to be loved never changes from one generation to the next. The same holds true of our need for self-esteem and the esteem of others.

What does change from generation to generation are the ways in which we strive to meet our needs.”

By approaching consumer’s with a “stage mentality” new targeting opportunities arise. My favorite example of this is one of my clients, GRAND Magazine. GRAND doesn’t address the readers’ age; it addresses the stage of life this group (Grandparents) has just entered. By recognizing the importance of this role, the grandparent role, GRAND and its advertisers, connect with their audience on a much deeper level. Think about it this way, there are over 72 million grandparents in America, and according to Age Wave Communications they’ll spend over 30 billion this year on their grandchildren. And I would say that $30 Billion is low, I’ve seen estimates of over $75 billion a year!

Because we believe it’s about stage, NOT age, at TR Mann Consulting we have created a different set of lens for looking at the sales process called the Maslow-Mann Brand Match. The great thing about this approach is that unlike the traditional marketing approach it’s inclusive, rather than “cutting out” market segments . . . so your market opportunities are bigger, not smaller. For example, did you know that the average age of a grandparent in the U.S. is 48? If you applied a traditional approach to reaching grandparents (a presumed age) you would miss much of the market.

Why are so many people and companies talking about boomers and the mature market now? How much buying power do boomers and matures have?

You have to remember, every eight seconds, another boomer turns 50. Over 50% of the households in the U.S. are now headed up by a baby boomer. And the mature market continues to grow at an incredible rate; by 2010 one-third of the U.S. population will be over 50. By 2020, one in five Americans will be over 65.

More importantly, they control the bulk of the nation’s wealth . . . and they shop! According to a recent study by Nielsen and Hallmark Channels, households with baby boomer members account for nearly $230 billion in sales of consumer packaged goods and represent 55% of total consumer packaged goods sales.

Those numbers get even bigger when you include all the mature market, the 78 million American seniors who were 50 or older as of 2001 controlled $28 trillion, or 67% of the country’s wealth.

The mature market controls 70 to 79% of all the financial assets, 80% of all the savings accounts; 62% of all large Wall Street asset accounts; and 66% of all the money invested in the stock market.

Boomer women in particular will control the bulk of the mature market’s wealth. By 2010, women are expected to control 60% of all wealth in the U.S., according to a study from Allianz Life Insurance Company.

If you want to see more of these amazing numbers on mature women, click here.

What is the best way to market to boomers and the mature market?

Boomers and seniors are at completely different stages of their lives. It’s important to identify which stages most closely align with your product or service.

· Do they have kids at home? Young or returned to the nest?

· Do they have parents at home?

· Are they healthy? What ailments do they have?

· Are they retired?

· Are they active?

The point is, that by acknowledging that marketing is a whole lot harder than just selling to a “herd” of boomers you’ll start to position your product more carefully.

Aside from physical ailments and illnesses, as we age and mature, we tend to proceed further up Maslow’s pyramid with our needs becoming less materialistic and more emotional/spiritual. Creating advertising that connects emotionally and logically is essential. This is one of the reasons TR Mann Consulting likes to use testimonials for our clients. Testimonials tell stories, they connect emotionally and logically. Plus, they maximize the principals of authority and social proof (The principles of influence: Consistency, Likability, Authority, Social Proof, Scarcity, and Reciprocity — as taught by researcher, Dr. Robert Cialdini).

Next, you have to take in consideration the visual and psychological differences between the different stages. One stage might be “elderly with declining health.” For the 65+ audience your ads should look dramatically different than if you were targeting younger boomers exclusively. Why? Because vision becomes an issue for print and TV, as do fast cuts in TV commercials. Although, in my opinion, all your ads should include these inclusive visual techniques . . . after all, why cut out potential customers? (If you’re interested in learning more about the mature market and vision, click here, then go to the bottom of the page and select “Vision and Aging.”)

Want to learn more about Baby Boomers, Seniors, and the Mature Market?

Of course, an article this short can’t possibly cover a topic this complex and do it justice. But hopefully, it does stop you from buying the traditional “herd-mentality” marketing approach being sold by most marketers for reaching the Boomers. If you’d like to learn more to improve your chances for marketing success with the mature market, give TR Mann Consulting a call at 410-292-4333.

Note: this blog was orginaly published December 23, 2008. For some reason, when our blog was rolled over to our current URL this blog didn’t follow. Therefore, we have reposted.

Work — what they (sort of) mostly do and expect to retire at 66.  Now here’s where things get interesting: 8% work part-time, 6% are self-employed, 5% are looking for work, 7% are on disability, and 8% are fully retired.  Let’s turn that around and see it for what it is:  only 60% work full time for companies! Somewhat ironically, they expect to retire at 66, although 50% plan to either take their social security benefits earlier (before they are eligible for full benefits) at age 65 or get the partial benefit at age 62. Delusionally-speaking, 69% have set the date for taking social security as exactly the same as they said it was two years ago — despite declining value of their assets and the state of the economy, not to mention their level of employment.

What, me worry?  Here’s where the delusional part really begins in earnest. Sixty-six percent of them have one or both living parents. Half of them have children still living at home. But what are they concerned with — despite these two arguably significant future care-related issues? Twenty-five percent worry about affordability of their own health care, and only 18% of the respondants worry about remaining useful. Only 15% imagine they will want to or have to work part-time in their retirement years; only 13% of them worry about funding long-term care needs, and only 12% of them are concerned with outliving their money.

Middle boomers — read the older boomer tea leaves. In another MetLife report from October, the real world of older boomers is explored in the pleasantly-titled Buddy Can you Spare A Job? Three-quarters of today’s older boomer workers expect to work for pay after retirement, but fewer than 35% report actually making it happen.  Meanwhile, turns out that working in retirement correlates with better health. From this, we can conclude that older boomers need the money. Middle boomers will need the money too, and not just for their own health care costs. And it doesn’t hurt that working can be engaging, that it provides you with a purpose, and that it keeps your mind from rotting.

Mature Market Experts: More news and stats you can use on boomers, seniors and the mature market – Baby Boomers Starting Businesses At Record Pace. Who would have predicted that baby boomers (particularly those 55 to 65 year olds) are more willing to take on the risks of becoming an entrepreneur than younger coworkers? A recent study by the Ewing Marion Kauffman Foundation indicates that they are much more likely to so than the 20 to 34 year old age group. Layoffs and dips in their retirement savings may be spurring this trend. To read about this article in entrepreneur.com click here.

Personally, I think this trend may have more to do with life satisfaction than it has to do with finances. 

Mature Market Experts: More news and stats you can use on boomers, seniors and the mature market – After the Downturn, Will Seniors Retire? A new study released by economists Thomas Steinmeier of Texas Tech and Alan Gustman and Nahid Tabatabai of Dartmouth College suggests that most baby boomers will recover sufficiently from the 2008/2009 economic downturn to only slightly delay their retirement plans.The study purports that the average worker close to retirement age (53 to 58) holds only about 15.2 percent of their money in the stock market. The rest of their projected wealth comes from anticipated Social Security Benefits, pensions and other assets. [Author's note: this is based on the University of Michigan's Health and Retirement Study - does Michigan have a higher percent of pensioners than the rest of the country?] Also, the study’s authors suggest that the recession may actually encourage retirement for baby boomers in a very competitive job market. To learn more click here.

Mature Market Experts: More news and stats you can use on boomers, seniors and the mature market – Baby Boomers Boom into Volunteerism - Volunteerism is on the rise in the US. Some site the realization of increased need in this difficult economy as their motivator. Others are unemployed and willing and able to contribute their time, perhaps instead of the money they might have given in the past. The president’s emphasis on community service is also credited with the drastic increase in volunteers. Numerous people have signed up through the website www.serve.gov. Many of these volunteers are boomers, and nonprofits are benefiting from their business and professional skills, as well as more traditional physical labor. They in turn, site satisfaction as a major reward for their altruistic efforts. To read more click here.

Baby Boomers and Volunteering

• Nearly a third of all boomers – comprising some 25.8 million people – volunteered for a formal organization in 2005. (U.S. Bureau of Labor Statistics)
• At 33.2%, the volunteer rate for baby boomers is the highest of any generational age group, and more than four percentage points above the national average of 28.8%. (U.S. Bureau of Labor Statistics)
• A typical boomer volunteer serves 51 hours a year, or approximately one hour a week. (U.S. Bureau of Labor Statistics)
• The percentage of retired baby boomers who volunteered increased steadily, from approximately 25% in 2002 to approximately 30% in 2004. (U.S. Bureau of Labor Statistics)
• Volunteering tends to peak at mid-life, around the current age of baby boomers, and then decline slightly; declining further among the oldest old (typically 75+).
• The biggest single inducement for baby boomers to volunteer is being asked by someone with whom one has an established relationship.
• Baby boomers are less likely than older age groups to volunteer out of a sense of duty or obligation and more likely to volunteer as part of a social interaction.
• Baby boomers are more likely to volunteer as a result of social, self development, self-esteem, or leisure-focused motivations. Episodic, familiar, community-based opportunities are also preferred.
• Four out of five boomers see work as playing a role in their retirement years, with only 20% anticipating retiring and not working at all (AARP):
• Of U.S. workers over 45, 69% plan to work in some capacity during retirement, with only 28% expecting not to work at all.
• More than 75% of workers 45+ feel that work is important to their self-esteem.

(Research taken from the 2004 “Reinventing Aging – Baby Boomers and Civic Engagement” report, Harvard School of Public Health & MetLife Foundation Initiative on Retirement and Civic Engagement, unless otherwise cited.) Source: Get Involved

If you own or operate a retirement community or health club, you owe it to your residents/patrons and yourself to serve as a spark for their spirit of volunteerism. By enabling them, you not only engage their body, mind and spirit … you also open an incredibly valuable public relations source for the community. Many retirees are searching for new meaning in their lives. After all, society tends to devalue you once you retire. What’s the first question someone asks you at a party? “So, who do you work for?” Well, these stories don’t appear in the paper by accident, they are often guided by talented PR people. And the effect? Seniors look at a story like this and go, “I want to be involved!” Very often their next thought is, “Man, I want to live at a place where people are doing cool stuff!”

Think about it this way, have you ever placed an inspirational story about one of your residents/health club members? PR is even more powerful than advertising. It comes across as an unsolicited recommendation. I guarantee you, the stories that you don’t yet know about your residents/members will amaze you. And even more importantly, getting to know your residents/members this deeply, so that you can discover these stories, will be even more important than the PR itself. Your members will feel a real connection with you. They know that they belong and are cared for. Plus, most people love being stars!

Hint: These stories are EASY to create, if you know how to create real relationships with the people you work with and the surrounding community. If you’d like some more “relational marketing” ideas, check out this PowerPoint presentation.

Mature Market Experts: More news and stats you can use on boomers, seniors and the mature market – Incline Elevators Lift Retirement Real Estate. Many seniors dream of a lakeside home to retire to. Their search may lead them to the perfect house – except it is located on a steep hill. Incline elevators (which look like a small private tram) can overcome these barriers for the elderly, scaling 45 degree angles, and delivering them, and the grandkids to the lake below. While they can be costly (averaging $50,000.),  home buyers may be able to find homes at reduced prices because of the difficult retain. To read more click here.

Mature Market Experts: More news and stats you can use on boomers, seniors and the mature market – Are Baby Boomers Better Off Selling or Getting a Reverse Mortgage? AARP Magazine recently featured several articles about reverse mortgages and the aggressive, and sometimes misleading marketing of them to seniors. In addition to providing helpful guidelines when shopping for a reverse mortgage, one article cuts to the basic question. Before committing to a reverse mortgage, retired home owners should first weigh the pros and cons of selling versus aging in place. They may be surprised to find other alternatives, such as retirement communities, to be a more attractive alternative (to aging in place) in the long run. To read more click here. In addition, they may find alternative options of getting much needed capital like life settlements, a more attractive choice.

Mature Market Experts: More news and stats you can use on boomers, seniors and the mature market – US  Companies Are Unprepared for Baby Boomer Retirement from Workforce. An overwhelming majority of surveyed domestic companies are unprepared for the exodus of boomers from their companies, according to a recent study by Sloan Center on Aging & Work at Boston College, The Pressures of Talent Management. The sudden loss of this pool of experienced talent is sure to throw a wrench into future productivity, unless these companies develop coping strategies. Seventy percent of these firms report not knowing the age of their employees, nor their retirement plans. Forty percent believe retirement of this population will have detrimental effects on their business. The 696 firms studied account for approximately seventy-five percent of the jobs and payrolls in the U.S., employ more than one million workers, and represent the ten leading sectors of the economy. Fifty-six percent of these companies had not assessed the skills they will need. Co-author Marcie Pitt-Catsouphes, director of the Sloan Center on Aging & Work states “The out-migration of a generation of workers will upset the entire balance of the workplace,” “U.S. companies need to start planning strategically for workforce sustainability. The current abundance of older worker talent and experience is going to dry up, and businesses will very soon need to fill hundreds, if not thousands, of jobs.” Some economists expect a shortage of 10-15 million workers in the coming decade. For more info click here.

Mature Market Experts: more news and stats  you can use on boomer, seniors and the mature market – Study Finds Affluent Boomers Are Returning to Spending. Bob Shullman, president of Ipsos Mendelsohn, reports that the well off (households with incomes of $100,000 plus) are still planning to buy expensive consumer goods. He notes that this study reveals an increase in the affluent’s economic optimism in the period ending Sept. 1, 2009 – 54% up from 50% in April and July. The economy has not altered major plans, such as retiring, of very wealthy baby boomers. Also, unaffected by hard times is the number of publications read, which actually increased form 8 to 8.5 in 2009; issues actually read jumped from 17.9 to 19.2. Many business magazines and newsweeklies increased their readership (including TR Mann Consulting’s client GRAND Media) this past year in this specific group. To learn more about this study click here.

Mature Market Experts: more mature market news and stats more often – Seniors Keep on Working. Many seniors are are choosing to work into their 70′s and 80′s for various reasons. Due to financial concerns in the recent economy, countless baby boomers are no longer secure that they have the funds to sustain a retirement that could now last more than thirty years due to the increase in life expectancy. Others simply wish to remain busy and active while they are healthy.  The Bureau of Labor Statistics reports that about seven percent of those over 70, or 1.1 million people over 74,  remain in the work force at least part time. The ideal of a retirement filled will leisure and travel has hit up against the harsh reality of decreasing retirement funds and drastically escalating health care costs. “Policy changes like the elimination of mandatory retirement laws and the Social Security earnings penalty for workers who are full retirement age have also made it easier to remain employed later in life, both in full-time and part-time jobs.” says Carole Fleck in the AARP Bulletin. The Center for Retirement Research at Boston College estimates that of those born between 1948 and 1954, 52 percent may be unable to maintain their lifestyle in retirement. Of those born between 1955 and 1964, 64 percent may be unable to retire with ease. To learn more click here.

Mature Market Experts: more news and stats you can use on boomers, seniors, and the mature market -  5 GRANDparent Facts You Should Know - (1.) The average age of a first time grandparent is only 48. As baby boomers find themselves grandparents, they’re “thinking outside the rocking chair,” reports Linda Matchan of the Boston Globe and rejecting traditional stereotypes in favor of a younger, hipper image. They like adventure, iPods, even Facebook. And, whatever you do, don’t call them “Grandma” or “Grandpa”. (2.) Grandparents are expected to spend $2 trillion on consumer goods this year alone according to a report by Peter Francese, founder of American Demographics Magazine.  (3.) 55% of grandparent homeowners do not have mortgages. (4.) 75% of the wealth in the U.S. is controlled by grandparents. (5.) 72% of grandparents take care of their grandchildren on a regular basis.
 
If you’re not marketing to grandparents yet, contact GRAND Media today and let Christine Crosby, the publisher, help guide you to them.

Mature Market Experts: more mature market news and stats more often – Economic Downturn Has Spurred Grandparents’ Giving – The mature market continues to utilize their financial power to support their kids. Almost two-thirds of America’s grandparents have provided financial support to their grandchildren during the last five years, 40% for general purposes and 26% for education, according to the MetLife Mature Market Institute’s QuickPOLL, Grandparents: Generous with Money, Not with Advice. The average amount provided was $8,661, or about $370.7 billion total in the last five years. One-quarter (25%) say the economic downturn has caused them to increase the help they give to their grandchildren.

The 2009 Grandparents Poll revealed that grandparents prefer to help their children and grandchildren while they are alive, rather than leaving a lump sum in a will, an interesting phenomenon.

In addition, the data indicates that those with less income and net worth are giving a higher percentage than they did before the most recent economic downturn – and some of them are feeling the pinch, with more than one in five (22%) overall reporting that their generosity has had a negative impact on their own financial picture.

“The survey points to the universal bond between grandparents and their grandchildren, and the generous nature of grandparents, regardless of asset and income levels,” said Sandra Timmermann, Ed.D, director of the MetLife Mature Market Institute.

“Grandparents are more willing than ever to help their grandchildren, even though they may be suffering economically. While they clearly want to make sure their grandchildren are financially secure, only a small percentage of those polled said they have talked to their grandchildren about the importance of hard work, saving for a rainy day and intelligent use of credit.”

Other information learned from the 2009 Grandparents Poll includes the following:

• Of the minority who do impart advice to their grandchildren, the most common missives are to save and invest early (85%) and to stay out of debt (75%).

• Those grandparents with at least a college degree are more likely to support education (37% vs. 24% of those without a college education).

• Nearly half of education supporters (46%) set up a college fund; 26% are paying for pre-college expenses and 24% help with college tuition or loans.

• 83% are giving cash; in-kind gifts like cars and computers rank second.

• Half of those polled (52%) say their children are raising their grandchildren differently than they raised their kids. Of that group, 64% say their kids are more lenient with their children than they were and 55% said the youngest group has fewer household responsibilities.

• 30% of those polled have encouraged or have spoken to their adult children about life insurance as a way to protect the future of their grandchildren.

• The majority (78%) say it’s more important to distribute smaller gifts throughout their lifetimes as needed, rather than leaving a larger sum of money as a legacy at death.

“Like grandparents in earlier generations, today’s grandparents want to be involved in their grandchildren’s lives. What may be different today is that grandparents are helping their children and grandchildren to meet immediate financial needs,” said Dr. Timmermann. “Grandparents with the financial resources will want to make more long range plans too, assuring that their grandchildren have enough money to fund college tuition and that the family has the financial security should something happen to one or both parents. Grandparents are also in a unique position to provide another valuable legacy, that of helping grandchildren to understand the value of a dollar and the importance of saving money.”

Methodology
The 2009 Grandparents Poll was conducted by Harris Interactive in May 2009 via its QuickQuerySM online omnibus service. Participants included 1,077 U.S. adults age 45 and older who have grandchildren age 25 or younger. Data were weighted to be representative of the total U.S. population on the basis of age, gender, race/ethnicity, education, region, household income and the propensity to be online.

For more information about the MetLife Mature Market Institute, please visit: www.maturemarketinstitute.com.
Grandparents: Generous with Money, Not with Advice can be downloaded from http:// www.maturemarketinstitute.com under “What’s New.” It can also be ordered by e-mailing, maturemarketinstitute@metlife.com, or by writing to: MetLife Mature Market Institute, 57 Greens Farms Road, Westport, CT 06880.

Editors note:  I love the folks at The MetLife Mature Market Institute. They do great work and their press releases are full of great findings (as you can see by this one). As I have blogged before, Grandparents are a major consumer market. There were 69 million U.S. grandparents in 2000, a number expected to grow to 80 million by 2010, and they spend a median of $489 per year on their grandchildren, about $30 billion annually. Source: AARP Special Study, 2002

U.S grandparents and the mature market:

- Over 75% of the 50+ market are grandparents

- Average age of the first-time grandparent is 47

- Over 70 million grandparents in the U.S. (More than the entire population in the U.K.)

- 4,000 Baby Boomers become grandparents every day

- The 50+ population is projected to grow to 23% in the next ten years while growth in the 18-49 segment will be flat

Source: GRAND Magazine

PS    GRAND Magazine, one of TR Mann Consultings’ clients, offers an exceptional opportunity for marketers to capture an audience at a highly defined stage, at an exceptional cost per thousand. Grandparents will continue to spoil and spend money on their grandchildren even in the worst economy.

Mature Market Experts: More mature market news and stats more often – According to a recent MSNBC story, after seeing their stocks and real estate take a beating, Americans seniors are turning to plan C for their retirement plans … working longer:

“The numbers are stark. An April survey by the Employee Benefit Research Institute found that 53 percent of American workers have put away less than $25,000 in retirement savings and investments. That figure doesn’t include home equity and the lump sum value of pension plans. Some 20 percent said they had saved less than $1,000.”

How will working longer effect seniors outlook towards retirement communities, long term care insurance, reverse mortages, and life settlements?

Source: MSNBC

Mature Market Experts: more mature market news and stats more often – Baby Boomers and the Inheritance Tax – With retirement looming large, about 76 million baby boomers are faced with one common question “How to manage inheritance and the taxes and issues associated with it”?

Not just for the rich, inheritance tax has now come to haunt even the middle class. According to estimates given by experts, baby boomers will have an inheritance of around $40 trillion from the previous generation. In the current scenario, inheritance is not restricted to an estate or property but also includes 401(k), IRA s and other savings related plans. With the disappearance of the tax cuts created during the Bush regime, baby boomers are now faced with higher tax rates both on income earned and on inheritance (The inheritance tax for 2009 is at 45 % (maximum rate) and $3.5 million is the exclusion amount).

This generation is the first among generations to have a majority of dual income households. This makes the estate plans more complex as both the incomes of the couple are merged together, thus making it imperative for baby boomers to come up with well prepared ,extensively and carefully planned estate /inheritance plans.

Any asset which is not included in a will invites higher inheritance tax and administrative costs, thus further emphasizing the need for careful estate plans and also factoring tax planning when making wills and inheritance plans.

Though there has been many an estimates in trillions on the value of inheritances by baby boomers, and how cash rich there going to be, a recent study by AARP’s Public Policy Institute says that massive wealth transfer as estimated may not happen. Though parents have accumulated huge wealth; longer life expectancies, soaring health care cost, long term care costs, large families and the recession have all contributed to chipping off a considerable size in the inheritance.

According to the AARP study, around 80% of boomer households have never received an inheritance and nor do they expect to receive any in the future. Among the 19% of boomer households that did receive an inheritance, the median amount received was at around $64,000. 

Another study conducted by the two famous economists, Gokhale and Kotlikoff, found that bequests received by boomer parents in 1962 equaled to 3% of their labor income, while those who inherited in 1997 equaled to 3.7% of their pay. According to them, it is quite unlikely that this figure will cross 5% before 2020.

The recession has added to the woes of the baby boomers. Many of them are forced to withdraw their 401(k) on account of low savings, or loss of job. Cashing out the whole contribution attracts higher taxes and a penalty of 10% if the person is below the age of 60.

Financial companies need to recognize that we are in uncharted waters — and that marketing and communications with boomers and beyond will require higher levels of honesty and frankness then they are accustomed to providing.

Mature Market Experts: more mature market news and stats more often – The collapse of the RV industry - According to the Warranty Week, no segment seems to have been harder hit by the recent recession than recreational vehicles with the virtual collapse of the RV (recreational vehicles) industry. The report states the accruals made by manufacturers in the RV industry over the past six years increased in the second quarter of 2005 to $79 million, whereas in the final quarter of 2008 they were barely over $41 million.

The industry’s current problems stem from consumer loss of income, fluctuating interest rates, increase in fuel prices and diminished home equity financings over the last two years.

Despite being among one of the cheapest ways for Americans to vacation, Mark Schone, attributes the industry’s sudden breakdown to recession. In addition the industry has also experienced a unique and painful credit crunch, which makes it difficult to arrange loans for those who still have hopes. The two major RV manufacturers, Country Coach and Monaco Coach are on the verge of bankruptcy (by the way, if your company faces bankruptcy – regardless of industry – my brother’s firm, Equity Partners, might be able to help).

A study conducted by the University of Michigan’s Survey Research Center outlines the main reason for the growth in the numbers of RVs owned by Americans. RVs had reached record levels in the past couple of years. By the end of the decade, the number of consumers aged 50 to 64 will total 57 million or 38 percent which is higher than in 2000, as noted by Dr. Richard Curtin, director of surveys at the University of Michigan. Today there are around 8.5 million functioning RVs, which has led to a drastic growth of 58% since 1980 and one-in-12 vehicle-owning households in the above age group own at least one RV.

Even though there was a sudden decrease in the value of manufacturers’ sales of RVs in 2001, the RV market has shown immense growth in the following years. In 2004, the sales had increased by 6.7% to reach $11.4 billion, which was higher than the $7.4 billion in 2001.

Since 70% of RV production is located in Indiana and 15% in Oregon and California, these states are currently experiencing wild unemployment. Indiana currently has the highest unemployment rate in the United States.

My partners and I, at TR Mann Consulting, believe that the industry association needs to make an aggressive advertising move. This recession is actually an opportunity for them to gain market position by positioning themselves as a vacation value. But they need to do so, by making a move to mainstream media . . . something they have been historically reluctant to do.
References

http://www.rvindustrynews.com
http://www.msnbc.msn.com/id/30066873
http://www.rvnews.com/acover.cfm
http://www.nmma.org/lib/docs/nmma/gr/policy/Obama_letter_final.pdf
http://www.manufacturing.net/News-RV-Industry-Struggles-As-Pension-Funds-Dry-Up-030509.aspx?menuid=248
http://www.rvtradedigest.com/web/online/Industry-Business-News/CNBC-reports-that-RV-industry-is-ready-to-signal-a-turn/1$5189
http://www.rv-n-motorhomes.com/RV-Facts-Statistics.html

Source: AARP’s research “A year-end look at the Economic Slowdown’s Impact on Middle-Aged and Older Americans”

What are we supposed to make of this Mature Market Experts? What is arguably (forgive me, Erickson) the most dominate brand in senior housing is trading at less than 50 cents a share as of this writing. That same share was trading north of $26 on the first trading day of this calendar year.

For a bit of perspective on how Sunrise might emerge from these straits, I recommend long time industry analyst and skillful writer Steve Monroe’s blog www.levinassociates.com/dealmakersforum/dealmakers%20blog.htm.

As a marketer, here is what I take away:

1. Aging continues, as far as I can tell. Although with all of the news being financial, it is possible someone has found a way to prevent it and the media hasn’t picked up on it yet.

2. With aging, comes change. I’d argue that a retiree experiences more change in a shorter period of time than any other age group, save perhaps infants to 3 year olds.

3. These changes create specialized needs for a constellation of products and services.

4. Unfortunately, most of the changes aging brings are negative – can’t drive at night, lost a spouse or a friend, grandkids are off to college, a health issue …

5. We work for companies that provide services and products to meet the needs these changes create.

6. Being in marketing, we are responsible for half of the most critical financial equation in the financial world – revenue. Bringing in more revenue than expenses still carries the day.

7. Inspiring people to purchase your company’s products and services is, in most instances, a noble pursuit. You improve people’s lives.

Now is the time to market like hell — write stronger copy … fight for that marketing budget … attend to the myriad of details … establish stronger relationships with prospects … dig deeper into that database … do more and do better.

All in the name of inspiring more people to buy than ever before. The times demand that we deliver extraordinary results for our customers, our companies, and ourselves.

That’s my two cents. Add another 48 and you too can attend Sunrise’s next annual meeting.

]]> http://trmann.com/wordpress/2008/11/20/a-share-of-sunrise-for-4-bits/feed/ 0 http://trmann.com/wordpress/2008/09/29/mature-market-experts-stat-of-the-day-savings-and-401k-plans/ http://trmann.com/wordpress/2008/09/29/mature-market-experts-stat-of-the-day-savings-and-401k-plans/#comments Mon, 29 Sep 2008 14:17:30 +0000 Tom Mann http://trmann.com/wordpress/?p=2021

Boomers and the 65+ view finances completely different.

Is the mature market financially sound going in to retirement?Only about 40% of boomers have managed to save $100,000 or more, and hardly anyone is maxing out a 401(k) plan.

Source: Dan Kadlec, Boomers: How to age gracefully, CNNMoney.com

In my 15+ years of dealing with the 65+ market, once they are retired, the only “pocket” they will ever pull money from for “daily expenses” is social security. This is one of the reasons less than 3% of the age and income qualified mature market ever makes the move to a retirement community. The value of the home and income-earning assets is viewed as “untouchable.” Understanding their financial mindset is essential to commercial success regardless of what you are selling.

]]> http://trmann.com/wordpress/2008/09/29/mature-market-experts-stat-of-the-day-savings-and-401k-plans/feed/ 0 http://trmann.com/wordpress/2008/09/26/how%e2%80%99s-the-economy-affecting-the-mature-market/ http://trmann.com/wordpress/2008/09/26/how%e2%80%99s-the-economy-affecting-the-mature-market/#comments Fri, 26 Sep 2008 14:19:47 +0000 Tom Mann http://trmann.com/wordpress/?p=2023 How’s the economy affecting the mature market? Here’s NBC’s nightly news take on the subject. What are you seeing out there?