Identifying Marketing Oportuniities

¶ … Marketing Opportunities

Women live longer than men (Cromie, 1998). Sorry guys, but it is a statistical fact. Some researchers have attributed this statistic to the greater stress the previous generation of men subjected themselves to in the workplace, other theorists believe it is because older women have more social connections and take better care of their health. Regardless, older women represent a major marketing segment that has been ignored by retailers. Our culture for too long has blindly regarded women over the age of 50 merely as 'little old ladies,' as grandmothers rather than as individuals seeking to maximize their increasingly long lifespan. However, this untapped demographic has tremendous potential as a marketing segment for retailers in a variety of industries.

As observed by Ad Age: "80% of household spending. It all adds up. More people, more money, more spending and, as time passes, more women. The U.S. Census Bureau predicts a 72% increase in adults 50+ between 2000-2020 and a slight decrease in adults under 50. Adults 50+ control 77% of the country's assets"(Barletta, 2005) Furthermore, women are responsible for 80% of household spending in all households, and women are often more willing to spend their income on others -- including grandchildren. Women also spend more on health and beauty products than older men

As women often outlive their husbands, many older women are seeking to expand their social circles. Travel is a venue for individuals seeking to make their golden years full of golden opportunities. Travel agents, now facing competition from the Internet, could generate revenue by appealing to older female travelers who do not feel comfortable with the Internet or who wish to embark upon packaged tours to meet others in their age group, or simply want to explore exotic parts of the world. Hotels and other hospitality arenas could also capitalize upon this market, by offering discounted rates to older travelers during the off-season. Older travelers could fit into key periods of slow seasons after the holidays, when children have returned to school and younger adults are back at work and cannot travel.

Older women traditionally enjoy spending money on grandchildren and small animals. Marketing to older women is an ideal way for the toy industry to generate revenue, as it has been sorely lacking in public confidence since the recent safety scandals have been emblazoned across the headlines. Focusing on 'grandma approved' products could also have a trickle-down effect, and remind all toy consumers of the wholesome potential of playthings. Pets are another expanding interest area for all consumers, and older people, especially women, find comfort in the care and tending of a four-legged friend. Portraying older women in ads for pet products, rather than the stereotypical Golden Retriever bouncing around with small children, could draw critical revenue to companies that showed that they cared about older pet owners.

Even women in their 60s and 70s do not necessarily 'see' themselves as older, in the same way their grandmothers did. They still desire fashionable clothing and beauty products. Particularly as this demographic has been so ignored or misunderstood by the beauty industry, a company that portrayed older women in a positive, sexy light, and showcased fashions that flattered older complexions and figures would likely generate revenue. Showing older models rather than stressing that the product is for the elderly is important, because today's older generation does not like to think of itself as old: "Marketers commonly err by emphasizing the biological age of their consumers. A few years ago, a major personal-products company introduced a shampoo aimed at older women. The advertising explicitly mentioned that the product was designed especially for women over 40. There may be perfectly good reasons to switch to a different shampoo as you age, but the emphasis on age ensured that the product would be unpalatable to any self-respecting 40-plus-year-old" (Smith 1997:1).

Again, because women tend to outlive their husbands, many of these women are looking, if not for a second mate, then for companionship of the opposite sex, and wish to appear attractive. They do not necessarily want to look younger, but appearing attractive and desirable, is important to women. For older women who are comfortable online, dating services and online communities specifically targeted to the social as well as physical, emotional, and health needs of older women, particularly widows, is yet another untapped opportunity to address concerns about 'attractiveness' and maintaining a healthy social life.

A further unexplored marketing opportunity is that of banks. The sad fact is, as their husbands die, women often become solely responsible for managing their finances, and they are seeking assistance from financial institutions that cater to their needs.