Target Market Strategy

My target market is the white, male baby boomer professional with a stable job, weekend adventurer. "A market segment is (1) people or organizations with (2) needs or wants and with (3) the ability and (4) the willingness to buy." Within a market, a market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs." (MKTG, Lamb Hair McDaniel, pg 97, chapt. 7)

The Boomer is the largest generation, with a population nearly doubles that of Gen X. Boomers are seated at the very top of the world's largest, most powerful companies and as established career professionals, they have tremendous buying power. At more than 100 million strong, baby boomer and senior customers (born before 1965) are the single largest consumer group in America, and they are the wealthiest, best educated and most sophisticated of purchasers. With more disposable income than any population in America, they are, in fact, the New Customer Majority.

"Any market segment that is targeted must be fully described. Demographics, psychographics, and buyer behavior should be assessed." (MKTG, Lamb Hair McDaniel, pg 24, chapt. 2)

"To be useful, a segmentation scheme must produce segment that meet four basic criteria:

1. Substantiality: a segment must be large enough to warrant developing and maintaining a special marketing mix." (MKTG, Lamb Hair McDaniel, pg 98, chapt. 7) Baby Boomers are turning 50 at an astonishing rate of 1 every 10 seconds. That's more than 12,000 each day and over 4 million a year for each year of the next decade! Baby Boomers have charged social and cultural revolutions and built vast, far-reaching corporate empires. They have helped weave the social, political and economic fabric of our country today. Their many achievements have made them one of the greatest generations of all time. Their wealth and influence is greater than any other generation today. (Examining Baby Boomers: Stats, Demographics, Segments, Predictions, Ethan Lyon, Mar 02, 2010, http://sparxoo.com/2010/03/02/examining-baby-boomers-stats-demographics-segments-predictions/)

For many organizations, baby boomers and mature consumers are an important audience. People 40 and older compose 42 percent of the U.S. population, and will grow to almost half (47 percent) by 2010. This immense demographic group is responsible for 66 percent of all expenditures tracked by the Consumer Expenditure Survey (CXS); enjoys 64 percent of all pretax income and controls 65 percent of all discretionary spending; and, according to the U.S. Bureau of Labor Statistics, comprises 47 percent of all employees. (ALLBUSINESS A D&B Company, www.allbusiness.com/marketing/direct-marketing/395828-1.html )

2. Identifiability and measurability: Segments must be identifiable and their size measurable. (MKTG, Lamb Hair McDaniel, pg 98, chapt. 7) There are 223,965,009 white people in the United States. Of this number 15% are 45 to 54 years old and 11.9% are between 55 to 64 years old. 43% of those people are male.30% have a bachelor's degree or higher and 34% are working in management, professional, and related occupations, and 80% earn at least $55,229 and 29% earn over $75,995.

3. Accessibility: The firm must be able to reach members of targeted segment with customized marketing mixes.(MKTG, Lamb Hair McDaniel, pg 98, chapt. 7) Of the 223,965,009, 86.5% speak only English, of this number, 152,690,957 have a bachelor's degree or higher and 30.1% are white males.
(U.S. Census Bureau, United States, S0201. Selected Population Profile in the United States, Population Group: White alone Data Set: 2006-2008 American Community Survey 3-Year Estimates Survey: American Community Survey http://factfinder.census.gov/servlet/IPTable?)

4. Responsiveness: Markets can be segmented using any criteria that seem logical. Unless one market segment responds to a marketing mix differently from other segments. (MKTG, Lamb Hair McDaniel, pg 98, chapt. 7) The baby boomer is more likely to be an innovator. "Innovators: the first 2.5 percent of all those who adopt the product. Innovators are eager to try new ideas and products, almost as an obsession. In addition to having higher incomes, they are more worldly and more active outside their community than non-innovators. They rely less on group norms and are more self-confident. Because they are well educated, they are more likely to get their information from scientific sources and experts. Innovators are characterized as being venturesome." (MKTG, Lamb Hair McDaniel, pg 152, chapt.10)

Baby boomers today are between 35 and 53 years of age. They are in their peak earning years, and the oldest of them have reached the prime age. Boomers, however, are significantly different consumers than their parents, and they are different than any other generation and experts expect them to maintain those differences as they age. Industry organizations that fail to identify and heed the boomers' unique qualities could soon find themselves in serious trouble.

Baby boomers are interested in bettering themselves, physically and intellectually. Their behavior is less dependent on life stage or the economy. Having experience, boomers seek out the exotic or in-depth ways of experiencing familiar places. Been-there-done-that is one reason adventure appeals to them. Physically-challenging outdoor activity or off-the-beaten-path activities are what the boomer seeks. Boomers see themselves as forever young. "Adult teenagers" Boomers will always try to act much younger than their chronological age." As a result, boomers still want to fulfill the dreams they had at 25 - even if their bodies aren't always willing or able. Boomers want to have fun.

Boomers demand immediate gratification. Unlike their Depression-era parents, boomers grew up in times of plenty. Easy gratification bred a desire for still more and quicker rewards. If they don't have the money, they just use plastic. Boomers' instant-gratification lifestyle means they don't plan far in advance as their predecessors. But when they are ready to buy something, they want to do it NOW. Finally, it's important to remember boomers invented the question, "Are we there yet?" They have little patience for long, uninterrupted stretches of time.

Boomers are not passive. They want a measure of control in designing their experience, and, they want to choose their activities. The challenge for marketers is to make it clear their product offers plenty of options. Boomers also want more interactivity in their experience; they don't want to hear about it, they want to do it. Boomers also crave "local human touch." They like to do things with other people.

Boomers think they are special. Always been a force to be reckoned with, they are very demanding consumers. Boomers like things that reinforce their feelings of specialness, so they are attracted to credit cards that offer preferred theater seats or tours that give them after-hours access to a museum. They also want products designed to fit their individual needs, so customization, or the illusion of it, is important. What boomers definitely do not want is herding. They don't want to feel like they are just another face in a crowd.

Boomers like creature comforts. Boomers don't want generic-style; they demand the amenities they are accustomed to. Boomers are time deprived. To get relief from their stressful schedules, boomers want to do absolutely nothing but be pampered. Or they may go to the opposite extreme, choosing adventures that are physically or mentally challenging - or both. Letting somebody else deal with all the details is very appealing, but the hang-up for boomers is trust. They wonder whether they can rely on somebody else. Boomers also need time-saving devices. They like 800 numbers, the Internet, videos and virtual reality because they offer convenience and interactivity. Their predilection for technology can reduce suppliers' costs and printing and mailing brochures. However, it also means call centers must be staffed to meet whenever boomers call. Internet use is so common the baby boomer Boomers use the Internet more for information gathering than buying. Having information makes them feel more connected to what they are purchasing. Boomers also like the freedom of not involving other people when they are exploring a subject. Their attitude is, "When I've decided, I'll initiate the next move."

Boomers will pay for luxury, expertise and convenience. ATM fees, nannies and bottled water prove boomers are willing to pay for what they want. "Boomers are willing to do things for themselves, if it's a hobby or if they think it won't require too much effort, but they really like to hire others to do it for them because it implies status."

Boomers want to do it right. They still look for a bargain, but a bargain to them means getting a good price on something of great value. To attract boomers emphasize must be put on expertise. They must add value boomers can't get on their own. The company must demonstrate the skill and knowledge boomers will respect and pay for.

Boomers are skeptical of institutions and individuals. With Viet Nam and Watergate as touchstones, who can blame this generation for lacking trust? As a function of their distrust, boomers are not joiners. They are less involved with alumni groups, civic organizations and museum societies than their predecessors, so these traditional sources of group business may be less viable in the future. Because they are skeptical, boomers actively research their options, so suppliers must expect a lot of information gathering before the buy decision. Public relations efforts that impart third-party or expert endorsement help break through boomers' skepticism. NTA focus groups in 1997 and 1998 said ads in local newspapers and word of mouth were the best sources of information and persuasion for products.

In marketing materials, patting oneself on the back too vigorously is sure to raise boomers' suspicions and hackles. Companies hoping to build long-term relationships must not promise more than they can deliver because failure to perform undermines boomers' trust.

Boomers like to associate with people like themselves. As noted earlier, boomers do not identify with people older than themselves. One of the questions uppermost in their minds when they purchase is, "Who is buying the same product? Is it people like me or a bunch of stodgy, gray-haired people?" They look for people who share their values, so they are very selective about who they'll use.

The industry can respond to these needs by not mixing age groups and using younger images and words in their marketing materials. They should stress the flexibility and participative nature of the experience as well as hype the expertise of their staff. Environmental and social awareness will strike a responsive note in some boomers, so they should be highlighted.

Boomers are not homogenous. While boomers identify themselves as boomers, they are not a single group. In terms of life stages, boomers may be the least homogenous generation to date. There are childless-by-choice boomers, others with new babies, others with grandchildren and some with both. Fifty year olds who are retiring and others starting new careers or returning to college. There are empty nesters downsizing their lives, parents who can't get their Gen Xers out of the house and others raising their grandchildren. These variations affect spending habits, the amount of time available for vacations and with whom boomers spend their time with

There is also a dichotomy between older and younger boomers. For those born between 1946 and 1955, Viet Nam was the defining event of their lives. For those who came later, it was Watergate. When older boomers finished college, jobs were plentiful and interest rates low. Younger boomers faced recession and 21% interest. The older group, the first to benefit from women's movement, tends to be more career-oriented. The younger ones experienced the down side of women's lib - the higher divorce rate.

They also felt they never got as much attention as their older siblings, so they are more family-oriented. Younger boomers, who watched Donna Reed and Ozzie and Harriet reruns on TV, have unleashed this whole wave of nostalgia.

All these factors impact the baby boomers buying behavior.(Kim Ross, BOOMING MARKETPLACE: http://www.atme.org/pubs/archives/77_253_1108.cfm)