Elderly Segmentation Paper

Demographic Segmentation fragments the market into categories according to different demographic factors, usually with regards to the wants and needs of multiple consumer groups. The

The recent growth in the number of older adults in the United States is unusual in the history of America. The anticipation of the elderly population (65+) by the year 2050 will be almost 89million people, or greater than the population of the elderly in the year 2010 (CDC 2013).

Specialized products, being marketed to a specific sector, also have a unique opportunity to market directly to a target audience. Being aware of the differences in marketing to mass audiences and the targeting of specific groups, is a valuable arrow in the quiver of a marketer. Comparing the differences in the older generations gives the marketer an insight into how to mass market, while targeting the groups as a whole. There is also an interesting opportunity for the marketer to target a very specific group for specialized products. While the job of the marketer remains the same, the methodology must be different to reach the intended audiences.

Fifty and older consumers represent the market with the largest potential for growth. Currently comprising close to 100 million people in the United States, their population is expected to grow

International market segmentation is the dividing of market into segments, this allow marketers to effectively determine whether business can thrive in a particular area. Segmentation is based on four factor namely geographical, psychographic, demographic and lastly behavioral segmentation. Geographical segmentation refers to grouping markets geographically such as nations, states or cities. Psychographic segmentation is the dividing of buyers into groups based on lifestyle or social class/status. Demographic segmentation uses factors like age, gender, occupation and etc to separate markets into groups. Last but not least, behavioral segmentation, this kind of segmentation divides buyer into groups by their knowledge about particular

Age Structure: The age structure of a population also influence the demand for certain products and the marketing strategies must appropriate for those products.

The market size we are dealing with is currently large, and only growing. According to J. Davis: “The elderly population is the fastest growing niche market in the world- and its only getting bigger! By year 2030, the US elderly population will have doubled, reaching in excess of 70 million!”

Consumers are segmented according to age group in the following sectors; Baby and Toddler, Child, Adult, and Pensioners.

The division of a market into various subdivision determined by lifestyle, social class, personality and characteristics is psychographic segmentation. Behavioural segmentation separates a market under classifications depending on consumer knowledge, attitudes, use or responses to a good or services. For example, life style and attitudes plays one of the important parts of consumer purchasing a drink from Boost Juice. The reason is consumer can occasionally purchase it anytime during the day because they like to live in a healthy life style and also drink what is good for them. Furthermore these segmentation helps Boost Juice to identify their specific target consumers for their

(1)Geographic segmentation is based on geographic location, such as region, state, or city. (2)Demographic segmentation are statistics that describe the population such as age, gender, race, ethnicity, income, education, occupation, social class, life cycle state, and house hold size. (3)Psychographic segmentation are linked closely with demographic includes lifestyles, values, attitudes, interests, and opinions. (4)Behavioral segmentation used to identify clusters of consumers who seek the same product benefits or who use or consume the product in similar fashion (Lascu & Clow, 2012).

This targets and accommodates a specific age and an emerging group with plenty of disposable income, the baby-boomers. More and more baby-boomers are joining the “elderly” population by retiring and collecting social security, and by mid 21st century 27% will be 60 and older. Retirees do not just sit on their money, they spend are consumers! We will see in increase of consumerism simply from a numerical standpoint since there are so many of them. Age-related design works if there is an adequate market for it, so pretty much the larger the market, the larger chance of making money. Therefore the baby-boomers would be the superlative target for age-related design. However, age-related design demands attention to detail and requires understanding the individual needs of the targeted consumers. A foundation that would help would be empathetic modeling. This method places the designer in the shoes of the consumer, allowing him or her to understand the feelings, aspirations and fears of said target. Thoroughly examining the individual’s needs, will lead to superior real world performance. Another vital aspect of designing for the older population is to know the demographic. Knowing the consumer’s status, such as if they are independent, dependent, wealthy or healthy helps in deciding quality, functionality and price of the product. However, an area to avoid would be labeling products as “for the elderly” because your targeted group may not see themselves as elderly or

With psychographic segmentation, we use psychology and demographics to better understand consumers. Buyers are divided into different groups on the basis of psychological/personality traits, lifestyle

Successful marketing requires identifying, analysing, and understanding individuals of a target market, and then catering to them through specialized advertising and promotion methods. Fayemelle’s target audience are people aspiring to live a healthier lifestyle, without depriving themselves of delicious indulgences such as cupcakes. These people are very health cautious, however, they are not afraid to have cheat days, or find ways to make the foods they love more healthy and enjoyable. While ‘health-cautious’ people may be a broad choice for a target audience, it is also a market that can easily be segmented for more effective marketing efforts. For example, while as a company, Fayemelle’s would prefer to profit from all demographics groups, they have have chosen one group that it feels will benefit most from the services offered through Fayemelle’s products. The ideal age for an individual Fayemelle’s markets towards is around 25-50 years old, as this age group is typically more concerned with the condition of their health as they age. In addition, one is able to stretch the criteria of a health-cautious even more by establishing the types of foods they like to eat. Common choices are fat-free, organic, gluten-free, or low carbs. Fayemelle’s is able to incorporate the needs and wants of this demographic through its Ditch the Sweets Cupcakes. In addition to the cupcakes’ low sugar, Fayemelle’s also offers a flour-free variety to appeal to those wishing to eat

Market segmentation is the process of dividing the market into various segments which maybe on the basis of demographics, psychographics, behavioural or geographic factors (Philip Kotler, 2012). For instance, Britvic may break down its market into groups based on age such as children (those who are under 18) and older consumers (those who are over 50). People in one segment share similar characteristics, attitudes. In this example, the ones in the children segment may prefer flavours like strawberry, may like nice, attractive packaging than other segments like older consumers.

Market segmentation, where the market is divided into different groups of consumers with based on their needs and wants. The market segmentation helps to concentrate the marketing energy in order to identify the demand and target of segment and increase competitive advantage within the segment. Market segmentation allow companies to differentiate their customers and behaviours in order to adjust their marketing mix strategy to cater the need of different market segments. There are four segmentation bases, which are geographic, demographic, psychographic and behavioral segmentation (Sulekha, 2013).