The Target Market—An Aging Population
The composition of the American marketplace is being forevermore
redefined by three key forces (Age Wave Inc., 1989). First, there is the
senior boom. Americans are living longer than ever before. In the year
1900, life expectancy was 47 years; today it has rocketed to 75 years.
There are now 30 million people in the 65-plus age bracket, a full 12%
of the American population. This will continue to grow; by 2050 it is
expected that there will be 67 million people in this segment.
A second factor shaping America is the parallel phenomenon called
the birth dearth. The fertility rate is declining, shrinking the younger
segments of the marketplace. It is estimated that 20% of the baby
boomers have no children at all, and still another 25% will have only
one child. There are presently more people over age 65 than there are
teenagers!
The third factor is the aging of the baby boomers, those 76 million
persons born between 1946 and 1964. In the next 10 years, the number
of middle-aged (35-54 years) will swell by 28% to 81 million. This group
earns and spends 30% more than people of other ages. As this group
enters its 50s, many will have children already gone from or soon leaving
the home, debts incurred for children's schooling paid off, and higher
per capita disposable income than any younger market segment. As the
20th century ends, these baby boomers will move into the ranks of those
aged 65 plus. Marketers must not only be aware of these demographic
changes, but must also strive to understand the behavioral underpinnings
that shape the desires of this burgeoning aged marketplace. Understanding
roles that accompany aging can increase marketing
effectiveness.