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TRANSCRIPT
Changing your mind about the
ageing consumer
Marketing to and understanding the consumer decisions of this burgeoning and increasingly important group
Mark Beasley [email protected]
Marketing & the UK’s ageing population
Mark Beasley
rhc advantage Marketing consultancy specialising in the mature (50+) market www.rhcadvantage.co.uk
Changing your mind about the
ageing consumer
The Mature Marketing Association is on a mission to challenge age myopia in business and marketing. Interested? Please join us
Mark Beasley Chairman The Mature Marketing Association www.the-mma.org
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The Mature Market Report definition of ‘Mature Marketing’
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Two Professors, 60,000 words, 210 pages 300+ UK and European data, literature & research sources A definitive and comprehensive introduction to this important subject Scope:
- Macro-environment - Consumer environment - Marketing environment - Marketing communications
Further information and executive summary: [email protected]
When do you stop being young?
15-24 you stop being young at 28 80+ you stop being young at 42 Average 35
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When do you start getting old?
Aged 15-24 you start getting old at 54 Aged 80+ you start getting old at 67 Average 58
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Why does this matter?
Perceptions of ‘old age’ are subjective & relative. Plus... Negative attributes, cultural stereotypes & value judgements Age prejudice
-64% think that age prejudice is a serious issue
Predictors of attitudes to age across Europe Dominic Abrams, Christin-Melanie Vauclair and Hannah Swift
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In three years' time: Over 55s Growth The over 55s will have become the mainstream market in the UK Growth will outstrip the rest of the market 50% (£53 billion) of expenditure on food, drink & household products New market and brand thinking The ‘mainstream market’ will be re-defined, as the population ages Age no longer a ‘shortcut’ to explain consumer behaviour Brands will be in transition, moving away from youth & family values But
Most marketers are failing to reach older consumers effectively
This report was published in October 28th 2003 !! Has your business acted yet??
‘The Older Consumer’ - a report from Reuters Business Insight and TNS
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The Business Case Ageing population Economically active Market Failure: increasing perception gap Mutual benefit in closing the gap
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Long-term structural change A mega-trend
Demographics
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Source: UK Office for National Statistics (ONS)
There are now more adults aged over 45 than there are aged under 45
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Source: UK Office for National Statistics (ONS)
There are now more people aged over 65 than there are aged under 16
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152.6m
30% 30%
25%
20%87
87.5m
17%
15%
2010 2020 2030 2040 2050 2060
Source: EU Population Projections - Eurostat
Total population growth 2010 - 2060 +3.2%
The
per
cen
tage
of
peo
ple
age
d 6
5+
acro
ss E
uro
pe
From 17% to 30% of population +50% in next 20 years
Population growth is driven by over 65s The ageing population is itself ageing
• The number of people aged over 65 in Europe will almost double between 2010 and 2060.
• The total population will increase by just 3%.
• Source: Eurostat
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Cognitive Response, processing & retention of information
Sensory Sight, hearing, touch,
smell, taste, oral Physical Mobility, Dexterity,
flexibility, weight & body size, digestion, muscle strength, hair, skin, menopause, (in)continence, nutrition
Physical ageing
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• 50% of registered disabled people are over 65
• Increased longevity
means: A. More physically
active ‘older’ people
B. Longer – but not necessarily healthier – lives
Disability
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Economic Economic
‘Most advanced economies.... technically insolvent’ - WEF
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Macro economy Macro-economy - pressures
‘Most advanced economies.... technically insolvent’ - WEF
Reduced output growth & productivity
Increased pressure on the state - care, health, housing, pensions
Smaller workforce paying higher taxes
Expenditure peaks
Savings & investment decline
‘Most advanced economies are technically insolvent’ - WEF
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Individuals - economic uncertainty and diversity
Pensions – private and state Diversity – wealthy segments / inadequate financial provision Social and healthcare provision Lower return on investments & savings Longer working life / later retirement / high unemployment Increased entrepreneurship Inter-generational pressures
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35% of the population
Income peaks at age 50
80% of the wealth
47% of expenditure
Economic behaviour of people over 50 Economic behaviour of people over 50
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Expenditure: 50-64 highest-spending age group 50+ are 35% of the population and account for47% of expenditure (£300 bn pa)
Household & Per Capita Expenditure
£600
550
500
450
400
350
300
250
200
150
100
50
0 460 185 562 191 497 225 321 185 218 151
Household Per Capita Household Per Capita Household Per Capita Household Per Capita Household Per Capita
Average weekly expenditure. Based upon weighted data and including children's expenditure.
Source: 'Family Spending 2008' Office for National Statistics, based upon Expenditure and Food Survey 2007.
65-74 75-plusUnder 30 30-49 50-64
Household expenditure on food & non-alcoholic drinks: 1. 30-49 2. 50-64 3. 65-74 Expenditure on health increases with age
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Age UK estimates pensioner poverty in the UK affects 1.6m people living on or below the poverty line and 900,000 people living in severe poverty
The next cohort of 50-64 year olds will not be as well-off as the current cohort
Economic diversity and change
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Socio-cultural aspects of ageing
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New ideas of age and ageing Blurring age demarcation
Active consumers longer
Longer, healthier life
Denial of actual age
Cognitive vs. physiological age
Inter-generational complexities
‘Sandwich generation’
Caring for elderly parents
Funding grown-up children
‘Boomerang generation’
Important role of Grandparents
‘Club sandwich’ (4 generations)
Family disruption
50% of children born out of wedlock
25% of people never have children
25% of children live with one parent
Parents have children later in life
‘Silver Splitters’ / divorce / re-marriage
Complex extended families
25% live in single-person households
Economic disruption
Economic uncertainty & pensions
Unemployment 50-65
Retirement (later, or not at all)
Diversity: 2 million in poverty
Woman main earner in 40% of h/h
Age & Social Disruption
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Old people seen as: a burden, dependent, feeble, frail, inadequate, lacking in creativity & dynamism... “Ageism is now the most widely experienced form of discrimination in Europe. “ (Age UK report 2013)
Socio-cultural aspects of ageing Old age is culturally unattractive
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Want to be defined by activities, attitudes, desires, interests, lifestyle and needs– not age
DENIAL
Refuse to look, think, feel, behave or accept
chronological age
Dislike of being defined, portrayed or targeted by age
Refuse to accept social stereotypes, assumptions and prejudice
DENIAL
‘The Happiness Curve’. Increased confidence, cheerfulness and optimism with age
Psychological ageing
Increased diversity with age – attitudes shaped by environmental factors
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Julie Clark Shubert
Rockers in their seventies...
New perceptions of age and ageing
IMAGES REMOVED FOR COPYRIGHT REASONS. SORRY!
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Glamorous celebrities in their late sixties
Models in their eighties
Julie Clark Shubert
Julie Clark Shubert. ‘The Change’ – YouTube. www.allthingsjulie.com
Real people are role models as well!
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“I am still an active and discerning consumer.”
Attitudes to marketing
Sceptical Experienced Require evidence
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“I feel ignored, excluded, mis-understood, patronised and stereotyped.”
Attitudes to marketing communications
I am still active I will make my own decisions I want facts and information, not emotion and irrelevant ‘creativity’ I do not aspire to be young
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• Lack of focus on older consumers -‘Despite all the evidence, advertisers continue to pursue youth. Age is just not a sexy word in marketing terms.’ -– Szmigin & Carrigan, 2006 - “95% of marketing budgets are aimed at consumers aged under 50” – Datamonitor
• ‘An environment which lacks empathy with older people’ (Director-General IPA)
• Marketing theory and practice are rooted in the past. Targeting youth and younger
adults is a habit many businesses have yet to break.
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Age has serious limitations as a primary targeting factor
Age disruption
Diversity and complexity within older age group
Blurring of boundaries across age groups
Important role of other segmentation variables
Particularly: attitude, education, gender, health, income, occupation, social class, wealth
Inter-generational purchasing (and consumption) roles
Segmentation
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Age Silo Products designed and marketed specifically at and for older people. May target end user and/or also audiences
Targeted Marketing The age-related positioning of
age-neutral products
Age Neutral Products bought by all ages and
marketed across the age spectrum.
Barriers are removed. Inclusive
approach.
Selected Marketing Product and marketing campaign
modified to increase relevance
to older consumers, but without
overt targeting.
Age Negative The positioning of products
intended mainly for older
people, but which avoid any
suggestion of age
Positioning – strategic options
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Age Silo
Products designed and marketed specifically at and for older people.
May target end user and/or intermediary / influencer audiences
Images removed for copyright reasons! Sorry.
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Age neutral or negative
Products bought by all ages and marketed across the age spectrum
May be purchased by older people but this is not promoted.
Barriers are removed. Inclusive approach.
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Images removed for copyright reasons! Sorry.
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TARGET MARKET Objectives
Segmentation Targeting
Positioning Branding
SERVICE
Customer experience /
journey. All points of
contact. Process
PRODUCT
Design Functionality
Packaging Convenience
Quality
PROMOTION
Promotion Mix Media
Communications strategy
Tone of voice
CRM
PHYSICAL
ENVIRONMENT Access
Facilities Recognition of physical needs
PLACE
Retail activity Telephone
Online Route to market
PRICE
Pricing strategies Price promotion Price packages
Payment methods Credit
PEOPLE
Culture Training
Empathy Empowerment Frontline staff
Marketing Mix
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MARKETING MIX
ELEMENTS (200+)
Product
Service
Pricing
Distribution
People
Process
Physical environment
Promotion
ASPECTS OF
PHYSICAL
AGEING (22)
Cognitive
Sensory
Physical
Audit > Assess > Align
Source:
Stroud & Walker 2013
Marketing Mix alignment
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Physical Ageing •Formulation
-Nutrition - Digestion - Mastication - Age-related health issues
• Food safety and hygiene • Portion size Economic • Premium price / VFM Psychological • Denial of ageing
Product
Diversity! There is not a single target audience
IMAGES REMOVED FOR COPYRIGHT REASONS. SORRY!
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Ability to read labels / instructions /information
Intelligibility and relevance of information provided Ability to hold pack
Ability to open pack
Portion size and use-by date
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• Rest areas and seating • Retail layout, including narrow aisles • Shelving height • Toilet facilities • Trolley depth • Staff – availability, empathy & knowledge
Physical environment
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IMAGES REMOVED FOR COPYRIGHT REASONS. SORRY!
‘The idea that you can come up with a template standard for older people is nonsense’ - Jeremy Myerson, Professor of Design, Royal College of Art
‘A diverse audience which needs different creative approaches’ - COI ‘Common Good’ report
Insight Concept Imagery Format Copy Digital
Promotion Marketing communications guidelines
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Avoid stereotypes, caricatures & negative portrayals
Visual Colour & contrast
clarity
Realism Font size &
& relevance choice
Imagery
Creative - imagery
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Imagery
“When older people are featured in advertising or other marketing communications, it is likely to be in a stereotypical, patronising or negative way.”
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IMAGES REMOVED FOR COPYRIGHT REASONS. SORRY!
Copy
Tone
of voice
Functional Benefits Plain, well-written, English
Rationality
& logic
Information
and facts
Avoid jargon and
slang
Empathy
& honesty
Inform, then
entertain
Communications
objectives
Creative - copy
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Digital usage by age. Ofcom
The Digital Divide - A social divide not an age divide - Closing with time – and closing fast
Cultural and language issues
-The internet is run by the young tech-savvy - Unnecessary assumptions & jargon
Usage
-Family - Social media - Search - Information - Like reassurance of multi-channel for commerce
Digital
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Economic imperative – size, growth, value
Change. Historic assumptions & stereotypes no longer apply
Diversity and complexity. Segment with car
Economically active, discerning, experienced consumers. Relatively high expenditure on food / poverty line
Physical ageing – key factor. BUT - Younger and physically active for longer - And older for longer - Health conscious
Psychological barriers. Older people do not want to be treated as ‘old’
Positioning options - Greater inclusivity & removal of age barriers, or - Age Silo & greater consumer insight
Marketing barriers - Marketers & agencies must address ‘age myopia’ - Plan long-term - Consider entire marketing process and mix
Conclusions (c) www.rhcadvantage.co.uk
Changing your mind about the
ageing consumer
For creative and strategic marketing consultancy regarding the ageing consumer
www.rhcadvantage.co.uk