Words On Words
DotSpacer
spacer
spacer
spacer

Join
The Miami Herald's Business Monday Book Club.
Click here for information.

Music Reviews and Features
Dion Dimucci

Lester Bangs in Buffalo

Lester Bangs in "Almost Famous"

The Cure In Concert

Pearl Jam In Concert

History of Warner Brothers Music

Food & Dining
Creolina's Cajun/Creole

People's Bar-B-Que and Soul Food

Penn Dutch Food Center

 
 

Authors offer timely marketing advice; David B. Wolfe and Robert Snyder's provocative work provides insight into recent demographic trends.

BY RICHARD PACHTER
rpachter@wordsonwords.com


Book
Ageless Marketing: Strategies for Reaching the Hearts and Minds of the New Customer Majority. David B. Wolfe and Robert Snyder. Dearborn Trade Publishing. 359 pages

Dude, where're my dudes?

Recently, television executives were jolted by the mysterious disappearance of a large chunk of their target audience -- young males -- based on ratings research from A.C. Nielsen. It's serious stuff. This demographic group is cherished by broadcasters, because they are, in turn, cherished by their clients -- advertisers. Most big media buyers fixate on this younger demo. Billions are spent, not just in advertising dollars but on writing, developing, producing and marketing programs and products for young men -- and women. We generally accept that this demographic is, indeed, the most important one. It seemingly dominates and drives popular culture. A panoply of potions, lotions, devices and vehicles are created for this free-spending market segment. But marketing consultants Wolfe and Snyder contend that it's not deserving of the majority of advertisers' attention, and this imbalance has impaired the efficacy of most of what passes for marketing these days.

Wolfe and Snyder write: 'Adults under 40 once were the majority, and they ruled the marketplace. Adults 40 and older are now the majority, and they now rule the marketplace -- in numbers, in spending and in determining the rules for successful marketplaceengagement. The New Customer Majority is the only adult market with realistic prospects for significant sales growth in dozens of product lines for thousands of companies. Overall, the population growth among young adults is barely moving the needle. The traditionally all-important 25- to 44-year-old age group, which in the past contributed more to the gross domestic product than any other 20-year age group, is shrinking. It will be smaller by 4.3 million people in 2010 than it was in 2001. This follows population shrinkage in the 18-34-year-old age group that took place during the 1990s, when the number of 18- to 34-year-olds fell by more than eight million. That triggered the end of sales growth in many youth-oriented industries including music CDs, youth apparel and athletic footwear. People in the 25- to 44-year-old age group have been crucial to a healthy consumer economy because they tend to highly leverage the purchasing power of their incomes through loans and revolving charge accounts to buy `stuff' -- lots of 'stuff.' All told, spending in this age group is projected to decline by $115 billion between 2001 and 2010. In sharp contrast, the 20-year cohort of 45- to 64-year-olds will grow by 16 million people during this decade. Sales are projected to grow by $329 billion. By 2010, spending by people 45 and older will be a trillion dollars greater than spending by people between the ages of 18 and 39 -- $2.6 trillion.'' engagement. The New Customer Majority is the only adult market with realistic prospects for significant sales growth in dozens of product lines for thousands of companies. Overall, the population growth among young adults is barely moving the needle. The traditionally all-important 25- to 44-year-old age group, which in the past contributed more to the gross domestic product than any other 20-year age group, is shrinking. It will be smaller by 4.3 million people in 2010 than it was in 2001. This follows population shrinkage in the 18-34-year-old age group that took place during the 1990s, when the number of 18- to 34-year-olds fell by more than eight million. That triggered the end of sales growth in many youth-oriented industries including music CDs, youth apparel and athletic footwear. People in the 25- to 44-year-old age group have been crucial to a healthy consumer economy because they tend to highly leverage the purchasing power of their incomes through loans and revolving charge accounts to buy `stuff' -- lots of 'stuff.' All told, spending in this age group is projected to decline by $115 billion between 2001 and 2010. In sharp contrast, the 20-year cohort of 45- to 64-year-olds will grow by 16 million people during this decade. Sales are projected to grow by $329 billion. By 2010, spending by people 45 and older will be a trillion dollars greater than spending by people between the ages of 18 and 39 -- $2.6 trillion.''

MATURING BOOMERS

Wolfe and Snyder also talk about the motivations of each demographics group based on their own research, as well as psychologist Abraham Maslow's hierarchy of basic human needs. Their work is important and provocative, and underscores what many of us have already observed: that the boomer generation hasn't necessarily abandoned its core interests and savvy marketers would do well to deal with them accordingly. This doesn't mean that they should abandon their quest for youthful consumers, but, instead, ought to inject their marketing efforts with a large dose of reality -- and maturity.

Like business books? Join the club.

 


 

 

 

 

 

 

 

 


©2004 Words on Words, All rights reserved.