Aging Population Is Golden Opportunity for Business

By Seigel, Joel | THE JOURNAL RECORD, August 17, 1989 | Go to article overview

Aging Population Is Golden Opportunity for Business


Seigel, Joel, THE JOURNAL RECORD


EDITOR'S NOTE: Joel Seigel is a partner specializing in bank and financial consulting with the national accounting firm of Laventhol & Horwath.

Americans over 50 already control more than 75 percent of the nation's wealth and half the discretionary income - a huge market that many of us either ignore or totally misunderstand.

By the year 2000, almost 15 percent of Americans will be over 65 - one third higher than the 1970s - increasing to 25 percent by the year 2050.

For American business, this is both a challenge and opportunity. Knowledgeable companies recognizing this are changing the way they do business - from product development and design to marketing and advertising.

John Barrymore once said, "A man is not old until regrets take the place of dreams." In this philosophical observation lies the gold in the silver market. If you want to develop the senior market, you must understand that a larger, healthier, wiser and wealthier "new senior" population is now emerging.

The full impact of the new senior market won't be felt for several years, when the first baby boomers will be reaching 50. Even now, 55 to 64 year olds account for the highest net worth - a median of $73,664 - of any age group.

"Our overriding philosophy is that a certain segment of the seniors market represents a tremendous opportunity for those marketers who understand how to approach them," says Art Gramer, senior vice president of TBWA Advertising Inc. in St. Louis. "Not all persons over 55 represent the same potential for marketers; that is too broad a slice of the population. Rather, we've identified the college educated segment of seniors that represents far more buying power; calling them ACES, Active College Educated Seniors."

Gramer points out that these seniors consume five times more durable goods and three times more package goods than their non-ACES coherts.

But these statistics can be hypnotic. They contain treasures of business, but also much fool's gold. Statistics don't buy - people do. The real gold lies behind an understanding of senior consumer behavior.

Commenting in Marketing Communications, Hal Norvell, manager of travel programs for the 30 million member American Association of Retired Persons (AARP), says that senior citizens really aren't "that difficult to figure out," citing three fundamental prerequisites for success in senior markets:

- Be honest in promotional messages.

- State values very clearly, recognizing that value to seniors means more than price.

- Present benefits in realistic terms.

To better understand this market, Dr. Robert J. Forbes, a gerontologist and director of the AARP's special services department points out the "four faces" (characteristics) of the new senior:

- Creativity and intellectual involvement. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Aging Population Is Golden Opportunity for Business
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.