Marketing Strategies
for theChanging Silver Market
byGeorge P. Moschis
Center for Mature Consumer Studies
Disclaimer
Georgia State University
This speech is based on information
contained in Baby Boomers and TheirUSA
Parents: Surprising Findings about Their
Mindsets, Lifestyles, and Well-Being,by George P. Moschis and Anil Mathur.
© 2007 Paramount Market Publishing, Inc.,
Ithaca, New York.
No part of this paper is to be used without
written permission from the publisher.

October 4, 2008

Overview• Global Aging• Evolution of the silver market• Corporate challenges• Marketing guidelines• Directions for cross-national researchGlobal Aging• Aging in developed countries

Aging Industrial Societies
About 13% of the population of the 29 leading industrial nations is
now age 65 and older. By 2030 it will be 23%.
Share of 65 and older for the six top economies:
1990

2010

2030
28%

23%
20%

13%

USA

26%

23%

22%

14%

28%

16%
14%

15%

21%

21%
17%
15%

16%
12%

FranceGermany

Italy

UnitedKingdomJapan

Global Aging• Aging in developing countries

Percent Aged 65 and Over: 2000

Percent Aged 65 and Over: 2030

Global Aging• Reasons• Consequences• The silver market• Focus: baby boomers and their elders

Birthrate in the United States:
1940 to 2005

Evolution of Marketing to theSilver Market• Prior to 1980: Total neglect• The 1980s: Trial-and-error marketing• 1990s to present: Increasing
commitment, knowledge, and caution

Corporate Responses andChallenges• Should we market to older generations?
• Should older generations be treateddifferently?
• Should older generations be treated asa homogeneous market?

Corporate Responses andChallenges• What are the most effective bases
for segmentation?
• How do we market to older generations?

Some Guidelines• Understand the needs of older consumers• Rely on research• Apply research findings• Test before implementing strategies• Seek feedback

Understand The Needs OfOlder Consumers• Aging processes• Life circumstances• Life-changing events

Changing Needs Due to Aging• Biophysical changes• Psychological changes• Social changes

Changing Needs Due toLife Circumstances• Cohort influences• Historical and environmental influences

Life-Changing Events• Unexpected• ExpectedFactors Affecting Consumption
Habits of Older Consumers

Life Circumstances. Cohort. Historical/environmental
PsychologicalStates:. Needs
Aging. Physiological. Psychological. Social

Life changing events:. Expected. Unexpected. Motives. Perceptions. Values

Responses toProductsand Services

Values of Generations
Differ• Values mostly held by baby boomers
Some examples:– Self-indulgence/instant gratification– Life satisfaction– Youthfulness– Personal fulfillment

How Changing Needs
Affect Consumption Patterns• Benefits sought in products• Criteria used in choosing products• Preferences for information sources• Shopping habits

Rely on Research- withAge, Older Consumers:• Become less price sensitive and deal prone• Choose products based on quality andbrand name• Become more convenience-oriented• Prefer “one-stop” shopping• View shopping as a social event• Complain less• Seek personal attention

Shopping Habits Of Baby
Boomer (BB) and OlderAdults (OA)
• Use free samples (OA)
• Use of information on packages (OA)
• Brand and store loyalty (OA)
• Respond to ads (OA)
• Respond to sales or deals (BB)Apply Research Findings–Some caveats:• Cannot generalize across situations• Cannot generalize across time
• Cannot generalize across generations• Cannot generalize within generations• Some strategies work in most cases

Market Segmentation• Common bases used
• Gerontographics– Aging processes– Life changing events & circumstances– Four segments

Four GerontographicSegments• Healthy Hermits (38%)• Ailing Outgoers (34%)• Frail Recluses (15%)• Healthy Indulgers (13%)

Life-stage Segments of theMature Market
Healthyindulgers

Ailingoutgoers

Healthyhermits
Frailrecluses

Note: Specific arrows indicate that people may move to the next stage
in life due to physiological, psychological and social aging. Arrows
pointing to the left denote psychosocial aging; arrows pointing tothe right denote biophysical aging.
Sources: Moschis (1996) Gerontographics. Westport, CT: Quorum

Positioning• Convenience• Functionality• Quality• Dependability• Personal Service

Product Development• Universal appeal• Minimize problems• Ease-of-use• Functionality

Promotion: Advertising• Media• Appeals• Structure• Models/Spokespersons

Promotions: Other• Samples• Coupons• Sweepstakes/contests• Loyalty programs

Distribution• Retail establishments• Personal attention• Special services• Payment methods

Pricing• Offer price reductions when products aresimilar/standardized• Make price reductions temporary promotion
offers• Use premium pricing for drastically different
products• Price products/services “a’ la carte”• Do not over-emphasize senior discounts

Implementation AndFeedback• Bases for evaluation• Overall impact• ContinuousCross-National and CrossCultural Research• Need for research• Research issues

Proposition 1:
The ratio of differences in theconsumption patterns withingenerations is higher in older
than in younger generations

Proposition 2:
The older the generation ofconsumers, the greater thedifferences in their consumption
patterns

Proposition 3:
Consumer needs driven bybiophysical aging are better
predictors of similarities in buying
and consumption patterns thanneeds driven by psychological andsocial aging

Proposition 4:
The greater the socio-politicalstability a country has experienced
during the lives of its consumers,
the smaller the difference inconsumption patterns between
generations

Proposition 5:
There are greater intra-generational
differences in consumption patternsof consumers in free, capitalistic
countries than in countries that have“closed” political systems

Closing Remarks• Changing composition of consumer markets
globally• Corporate challenges, opportunities, andresponsibilities• Emphasis on understanding the silver market• Effective strategies for reaching the silver market• Need to understand consumers in difference
cultural settings.

THANK YOU