A new research project has recently been published by the ILC-UK (International Longevity Centre). The report - ‘The Golden Economy - The Consumer Marketplace in an Ageing Society’ - assesses the market potential of the older consumer and suggests how companies could make more of this population.
The report provides a useful introduction to the subject and is based upon a thorough study of the available sources. For anyone who is familiar with the subject, there is some ‘new news’ – additional sources to support a particular point, for example – but no revelations. And for people new to the subject, it is of course a useful introduction.
However, what is most significant about the report is what it does not, and cannot, say. As the report itself says, ‘There are significant research gaps in relation to the older consumer.’
One of these gaps concerns business and marketing activity relative to older consumers. Many of us are keen to state, for example, that despite the size and value of the ‘older’ market, “some 90% of marketing spend is directed at younger people” (as one commentator recently did). However, the evidence base for this assertion is weak, to say the least (I think it comes from an old Datamonitor report). And to be honest, I am not even sure what methodology one might employ to produce this statistic.
The ‘Golden Economy’ report contains much that is admirable. However, in the key area of marketing activity and spend directed at older people it remains delightfully vague. For example, consider the statement (from the report) that: ‘there remains a strong view that across a wide range of industries, the older consumer continues to be ignored or patronised, despite the size and value of the market’. I agree, but that’s just my opinion, not a research finding. In fact, this statement does not stand up to much analysis at all. What does a ’strong view’ mean? Across which industries? How do you measure concepts such as ‘ignored’ and ‘patronised’? Are these subjective or objective measures? This statement is an informed opinion, but it is a long way from being a definitive research-based ‘fact’.
This is not intended as a criticism of the report, but to highlight a gap in the available research literature. It is up to those of us concerned with providing older people with a better deal to provide much more powerful evidence to support our case. Rhetoric and unsupported assertions are not good enough.
You can find out more about our own comprehensive research report, ‘Marketing and Mature Audiences’ at www.rhcadvantage.co.uk/insight This was written by marketers for marketers, and we are happy to present topline findings to interested parties.
The ‘Golden Economy’ report is written from more of a third sector and public affairs standpoint – not surprising as it was produced in association with Age UK – and is available on the ILC-UK website at: http://www.ilcuk.org.uk/record.jsp?type=publication&ID=80.
Friday 10 December 2010
Monday 29 November 2010
The economic challenges of an ageing population: McKinsey join the debate.
McKinsey have just released a report which stresses the importance to the UK of taking radical action to address the challenges of an ageing population.
The report, ‘From Austerity to Prosperity: Seven Priorities for the Long Term in the United Kingdom’, was published on November 22nd. It states that there are good prospects for UK economic growth, provided that there is a step change in action on seven fronts, including innovation, productivity – and generational imbalances.
The report adds further weight to our own position, which is that population ageing is one of the most significant issues for business and society, and requires new thinking and new approaches as a matter of some urgency. With support from the consultancy described as a ‘breeding ground for gurus’ and ‘the world’s most prestigious consulting firm’, we feel we now have powerful allies!
The McKinsey report focuses on two challenges faced by major developed economies like the UK. The first of these is the issue of how to maintain growth in the face of a declining working population; the second is rising health care costs and the funding of long-term care (where demand is estimated to increase by 70% over the next 20 years). While pointing out that the UK is leading the way in Europe with regard to addressing the implications of changing demographic and retirement patterns, further progress is required, says the report.
McKinsey make recommendations in two main areas. First, ‘a radical increase in older working’ is required, which builds on the practices of innovative firms in this area. Second, they recommend that the £1 trillion of unmortgaged housing wealth must be unlocked, via improved policies, practices and products, to enable older people to fund their care and health needs.
The report states that it is ‘intended to challenge existing orthodoxies’, something we support fully. Marketing is – or should be – the leader of change in this area. Too often, however, it is constrained by short-term business thinking and outmoded ageist assumptions. There are some great case histories – but too many businesses fail to recognise and address this inescapable and unprecedented demographic trend.
Here’s three ways we can help you move forwards. As a starting point, our unique research report provides a comprehensive overview on most aspects of Marketing and the Ageing Population. Produced with the input of two University Professors, it draws upon more than 200 sources. To arrange a presentation, or to find out more, visit our website (www.rhcadvantage.co.uk) or contact me (mark (at) rhcadvantage.co.uk).
Secondly, why not book one of our ‘Age Advantage’ workshops? These are intended to kick-start the thinking of your team on how your organisation should address the issue of population ageing. And finally, perhaps you’d just like to have a mature conversation about a specific problem or project.
To move out of an economic downturn requires innovation – and re-aligning your business or brand against demographic change is a very good place to start.
You can contact me, Mark Beasley, at mark (at) rhcadvantage.co.uk
To find out more about rhc advantage, our research report and our marketing services, visit www.rhcadvantage.co.uk
To download the McKinsey report, visit www.mckinsey.com/mgi/publications
The report, ‘From Austerity to Prosperity: Seven Priorities for the Long Term in the United Kingdom’, was published on November 22nd. It states that there are good prospects for UK economic growth, provided that there is a step change in action on seven fronts, including innovation, productivity – and generational imbalances.
The report adds further weight to our own position, which is that population ageing is one of the most significant issues for business and society, and requires new thinking and new approaches as a matter of some urgency. With support from the consultancy described as a ‘breeding ground for gurus’ and ‘the world’s most prestigious consulting firm’, we feel we now have powerful allies!
The McKinsey report focuses on two challenges faced by major developed economies like the UK. The first of these is the issue of how to maintain growth in the face of a declining working population; the second is rising health care costs and the funding of long-term care (where demand is estimated to increase by 70% over the next 20 years). While pointing out that the UK is leading the way in Europe with regard to addressing the implications of changing demographic and retirement patterns, further progress is required, says the report.
McKinsey make recommendations in two main areas. First, ‘a radical increase in older working’ is required, which builds on the practices of innovative firms in this area. Second, they recommend that the £1 trillion of unmortgaged housing wealth must be unlocked, via improved policies, practices and products, to enable older people to fund their care and health needs.
The report states that it is ‘intended to challenge existing orthodoxies’, something we support fully. Marketing is – or should be – the leader of change in this area. Too often, however, it is constrained by short-term business thinking and outmoded ageist assumptions. There are some great case histories – but too many businesses fail to recognise and address this inescapable and unprecedented demographic trend.
Here’s three ways we can help you move forwards. As a starting point, our unique research report provides a comprehensive overview on most aspects of Marketing and the Ageing Population. Produced with the input of two University Professors, it draws upon more than 200 sources. To arrange a presentation, or to find out more, visit our website (www.rhcadvantage.co.uk) or contact me (mark (at) rhcadvantage.co.uk).
Secondly, why not book one of our ‘Age Advantage’ workshops? These are intended to kick-start the thinking of your team on how your organisation should address the issue of population ageing. And finally, perhaps you’d just like to have a mature conversation about a specific problem or project.
To move out of an economic downturn requires innovation – and re-aligning your business or brand against demographic change is a very good place to start.
You can contact me, Mark Beasley, at mark (at) rhcadvantage.co.uk
To find out more about rhc advantage, our research report and our marketing services, visit www.rhcadvantage.co.uk
To download the McKinsey report, visit www.mckinsey.com/mgi/publications
Sunday 3 October 2010
Press Release, 28th September 2010. rhc advantage highlight the Fact and Fiction of marketing to mature audiences
Press Release
28 September 2010
For immediate release
Research Report Highlights the Facts and Fiction of Marketing To Mature Audiences
A new research report promises to offer an invaluable one-stop source of vital information for marketers targeting today’s older, more mature, audiences. The impact of the UK’s ageing population is increasingly recognised by marketers, yet many lack a consistent and planned approach to targeting this diverse group, concludes the research by specialist agency, rhc advantage.
The agency, which claims to be the UK’s only creative marketing agency to specialise in consultancy and integrated marketing communications for mature audiences, has been strengthened with the appointment of Tom Wright CBE, Chief Executive of Age UK, as non-executive Chairman.
The research report, ‘Marketing and Mature Audiences’, is released on Friday (1 October 2010) and has been produced by rhc advantage. It is based upon the analysis and interpretation of over 200 data and research sources. It provides an authoritative and comprehensive introduction to the UK’s ageing population and its consequences for marketers, and in the process separates fact from fiction. It was produced in collaboration with two University Professors. According to the agency, there is no definitive UK-based text on the subject.
Mark Beasley, managing director of rhc advantage, said: “The UK population is ageing at an unprecedented rate. Traditional concepts of age and ageing are increasingly outmoded and ineffective as a basis for marketing planning. Our report will help marketers by providing information, insight and understanding of this complex and diverse audience, which will in turn drive more informed marketing planning and communications.”
The changes in the UK population structure are dramatic. There are already more adults aged over 45 than there are aged under 45, and the over-65s is the fastest-growing demographic group of all. Despite this, according to the report, only global brands like Coca Cola, Procter & Gamble and Unilever and specialists in older consumers such as Saga and Stannah, appear to have a clear strategy for addressing the realities of the UK’s ageing population.
Commented Wright: “To meet the current and future needs of the UK’s ageing population, it is important that the issues and opportunities associated with older people are communicated on the broadest possible platform. It is particularly important that this is done from a marketing perspective and I believe that many businesses, brands and organisations will benefit from the insight and expertise that rhc advantage brings to the mature market.”
The agency provides both consultancy and marketing communications services. Creative Director Richard Collyer commented: “It is absolutely crucial that not only are we able to help organisations to gain insight and to plan, but that we also able to help them execute. We believe that our creative expertise enable us to deliver exceptional branding, design and integrated marketing communications solutions.”
-Ends-
For more information please contact:
Lindsay Complin or Beccy Whittles at Pilotmax
T: 0208 334 0200
E: pr@pilotmax.co.uk or beccy@pilotmax.co.uk
NOTE TO EDITORS
1. For further information, please visit http://www.rhcadvantage.co.uk or contact Mark Beasley on 020 7193 2361 (direct) or via mark@rhcadvantage.co.uk. Beasley is also available for comment and interview.
2. ‘Marketing and Mature Audiences’ is a comprehensive review of relevant data and research, which draws upon over 200 sources. It is intended as a single-source introduction to the subject of older, more mature, audiences and marketing in the UK - something which does not otherwise exist. It was produced by rhc advantage with direction from Professor David Gilbert, Professor of Marketing at the University of Surrey, and was reviewed by Professor Paul Sweeting, Professor of Actuarial Science at the University of Kent. A
presentation of the main findings, together with a copy of the full report document, is currently being offered to interested client companies on a complimentary basis. .
3. rhc advantage is an independent creative marketing agency that provides marketing consultancy (research and planning) and integrated marketing communications services (branding, design, digital, direct and promotion). www.rhcadvantage.co.uk
4. Biographies of Directors:
Mark Beasley - Managing Director
Mark was co-founder of one of the UK’s leading marketing communications agencies, Perspectives, which was acquired by Sir Martin Sorrell’s WPP group in 1999. Post-acquisition, he worked for WPP as part of a global communications planning team for a number of years. More recently, he has worked as a consultant for organisations in the UK and abroad.
He has 30 years experience of planning and managing successful marketing and communications programmes, working with more than 100 client companies, in most markets and sectors. His experience covers all types of marketing and communications including advertising, brand & corporate planning, direct marketing, integrated marketing communications, marketing research and planning, new product launch and sales promotion.
He has an MBA (Master of Business Administration) and is a social science graduate. He was admitted to the Marketing Society in 1989, is a member of the Chartered Institute of Marketing (MCIM), and was elected a fellow of the MCCA in 2000.
________________________________________
Richard Collyer - Creative Director
Richard has over 25 years experience in the creative design, brand marketing and communications business, as a creative consultant and creative director. He has worked with numerous private and public sector organisations in both consumer and B2B markets.
His strategic thinking and inherent ability to translate a creative brief quickly are unique attributes for a creative. Richard has the skills and expertise to consistently apply original thinking to develop concepts that engage audiences and deliver tangible commercial results. He combines a passion for detail with an uncanny ability to find simple solutions to previously complex communication issues.
Richard is the founder and creative director of rhc visual strategy, a full service creative agency with a blue chip client list that includes Alamo and National, Fiorano Ferrari, Chelsea Football Club, Carlsberg Tetley, Diageo, Starwood Hotels, InterContinental Hotels Group, Rothschilds, SEGRO, WSP Group and Citibank.
________________________________________
Tom Wright CBE - Chairman
Tom Wright is Group Chief Executive of Age UK and is non-executive director and unpaid Chairman of rhc advantage Limited. In January 2009, he was appointed by Age Concern and Help the Aged to lead the two organisations through a successful merger into Age UK – a charity and social enterprise.
Tom was previously Chief Executive of VisitBritain. Prior to this, he was a Board Director of the Saga Group and Managing Director of Saga Holidays. Tom is a marketer by training, who has worked in marketing roles with organisations including Anchor Foods, Carlsberg-Tetley, United Biscuits and Center Parcs, where he was European Sales and Marketing director.
He is a Trustee of the Imperial War Museum and Chair of their Trading Company. He is also Chair of STAR, the self regulation body for the ticketing industry, and Chair of the British Gas Energy Trust. He also sits on the board of the DEC (Disaster Emergency Committee).
He was awarded his CBE in January 2007 for services to the British tourism industry.
28 September 2010
For immediate release
Research Report Highlights the Facts and Fiction of Marketing To Mature Audiences
A new research report promises to offer an invaluable one-stop source of vital information for marketers targeting today’s older, more mature, audiences. The impact of the UK’s ageing population is increasingly recognised by marketers, yet many lack a consistent and planned approach to targeting this diverse group, concludes the research by specialist agency, rhc advantage.
The agency, which claims to be the UK’s only creative marketing agency to specialise in consultancy and integrated marketing communications for mature audiences, has been strengthened with the appointment of Tom Wright CBE, Chief Executive of Age UK, as non-executive Chairman.
The research report, ‘Marketing and Mature Audiences’, is released on Friday (1 October 2010) and has been produced by rhc advantage. It is based upon the analysis and interpretation of over 200 data and research sources. It provides an authoritative and comprehensive introduction to the UK’s ageing population and its consequences for marketers, and in the process separates fact from fiction. It was produced in collaboration with two University Professors. According to the agency, there is no definitive UK-based text on the subject.
Mark Beasley, managing director of rhc advantage, said: “The UK population is ageing at an unprecedented rate. Traditional concepts of age and ageing are increasingly outmoded and ineffective as a basis for marketing planning. Our report will help marketers by providing information, insight and understanding of this complex and diverse audience, which will in turn drive more informed marketing planning and communications.”
The changes in the UK population structure are dramatic. There are already more adults aged over 45 than there are aged under 45, and the over-65s is the fastest-growing demographic group of all. Despite this, according to the report, only global brands like Coca Cola, Procter & Gamble and Unilever and specialists in older consumers such as Saga and Stannah, appear to have a clear strategy for addressing the realities of the UK’s ageing population.
Commented Wright: “To meet the current and future needs of the UK’s ageing population, it is important that the issues and opportunities associated with older people are communicated on the broadest possible platform. It is particularly important that this is done from a marketing perspective and I believe that many businesses, brands and organisations will benefit from the insight and expertise that rhc advantage brings to the mature market.”
The agency provides both consultancy and marketing communications services. Creative Director Richard Collyer commented: “It is absolutely crucial that not only are we able to help organisations to gain insight and to plan, but that we also able to help them execute. We believe that our creative expertise enable us to deliver exceptional branding, design and integrated marketing communications solutions.”
-Ends-
For more information please contact:
Lindsay Complin or Beccy Whittles at Pilotmax
T: 0208 334 0200
E: pr@pilotmax.co.uk or beccy@pilotmax.co.uk
NOTE TO EDITORS
1. For further information, please visit http://www.rhcadvantage.co.uk or contact Mark Beasley on 020 7193 2361 (direct) or via mark@rhcadvantage.co.uk. Beasley is also available for comment and interview.
2. ‘Marketing and Mature Audiences’ is a comprehensive review of relevant data and research, which draws upon over 200 sources. It is intended as a single-source introduction to the subject of older, more mature, audiences and marketing in the UK - something which does not otherwise exist. It was produced by rhc advantage with direction from Professor David Gilbert, Professor of Marketing at the University of Surrey, and was reviewed by Professor Paul Sweeting, Professor of Actuarial Science at the University of Kent. A
presentation of the main findings, together with a copy of the full report document, is currently being offered to interested client companies on a complimentary basis. .
3. rhc advantage is an independent creative marketing agency that provides marketing consultancy (research and planning) and integrated marketing communications services (branding, design, digital, direct and promotion). www.rhcadvantage.co.uk
4. Biographies of Directors:
Mark Beasley - Managing Director
Mark was co-founder of one of the UK’s leading marketing communications agencies, Perspectives, which was acquired by Sir Martin Sorrell’s WPP group in 1999. Post-acquisition, he worked for WPP as part of a global communications planning team for a number of years. More recently, he has worked as a consultant for organisations in the UK and abroad.
He has 30 years experience of planning and managing successful marketing and communications programmes, working with more than 100 client companies, in most markets and sectors. His experience covers all types of marketing and communications including advertising, brand & corporate planning, direct marketing, integrated marketing communications, marketing research and planning, new product launch and sales promotion.
He has an MBA (Master of Business Administration) and is a social science graduate. He was admitted to the Marketing Society in 1989, is a member of the Chartered Institute of Marketing (MCIM), and was elected a fellow of the MCCA in 2000.
________________________________________
Richard Collyer - Creative Director
Richard has over 25 years experience in the creative design, brand marketing and communications business, as a creative consultant and creative director. He has worked with numerous private and public sector organisations in both consumer and B2B markets.
His strategic thinking and inherent ability to translate a creative brief quickly are unique attributes for a creative. Richard has the skills and expertise to consistently apply original thinking to develop concepts that engage audiences and deliver tangible commercial results. He combines a passion for detail with an uncanny ability to find simple solutions to previously complex communication issues.
Richard is the founder and creative director of rhc visual strategy, a full service creative agency with a blue chip client list that includes Alamo and National, Fiorano Ferrari, Chelsea Football Club, Carlsberg Tetley, Diageo, Starwood Hotels, InterContinental Hotels Group, Rothschilds, SEGRO, WSP Group and Citibank.
________________________________________
Tom Wright CBE - Chairman
Tom Wright is Group Chief Executive of Age UK and is non-executive director and unpaid Chairman of rhc advantage Limited. In January 2009, he was appointed by Age Concern and Help the Aged to lead the two organisations through a successful merger into Age UK – a charity and social enterprise.
Tom was previously Chief Executive of VisitBritain. Prior to this, he was a Board Director of the Saga Group and Managing Director of Saga Holidays. Tom is a marketer by training, who has worked in marketing roles with organisations including Anchor Foods, Carlsberg-Tetley, United Biscuits and Center Parcs, where he was European Sales and Marketing director.
He is a Trustee of the Imperial War Museum and Chair of their Trading Company. He is also Chair of STAR, the self regulation body for the ticketing industry, and Chair of the British Gas Energy Trust. He also sits on the board of the DEC (Disaster Emergency Committee).
He was awarded his CBE in January 2007 for services to the British tourism industry.
Tuesday 14 September 2010
Baby Boomers. No-one likes us, we don’t care!
2010 has seen the publication of number of books blaming the so-called ‘Baby Boomer’ generation for a multitude of sins. The general argument is summarised by Robert Colville, writing in the Telegraph (September 1st): “Via demographic accident and bloody-minded selfishness, the Baby Boomers have come to monopolise the country’s wealth, politics and culture…leaving their children nothing but debt.”
This debate started earlier in the year, with launch of ‘The Pinch – How the Baby Boomers Stole their Children’s Future’ by David Willetts – now a Government Minister. This is, overall, a well-argued and interesting economic and social discourse (as you'd expect from someone with the nickname 'Two Brains'). However, the argument gets taken into the realms of inter-generational warfare with a new book called ‘Jilted Generation’, by Ed Howker and Shiv Malik. And it sounds like other books on the subject out around now share a similar theme - ‘What did the Baby Boomers Ever Do For Us’ by Francis Becket, and ‘It’s all their Fault’ by Neil Boorman.
On the face of it, there is a very good case to be made. The facts are, apparently, undeniable. A large number of people (how many, it’s not clear) within a certain age group (i.e. those currently aged 46 – 65) have benefited from educational and social mobility, generous pension schemes, and property inflation. However, these conditions do not now exist to anything like the same extent, meaning that those younger than 46 will not benefit in anything like the same way as we 'Baby Boomers'. Furthermore, the Government has created unprecedented levels of debt which it will take the State many years to pay off. And all the time, like a ticking bomb, the population continues to age, meaning a smaller proportion of the population working away to pay for it all.
And who or what is responsible for all this? The so-called Baby Boomers themselves, according to these writers, that’s who. And that’s where I disagree. It is an undeniable fact that there was a peak in birth rates between 1945 and 1964, creating a so-called ‘baby boom’. It is also the case that, overall, fings ain’t what they used to be for people younger than this. But I disagree with just about everything else. Here is my case:
1. There is no such group as ‘Baby Boomers’ in the UK. Everyone currently aged between 46 and 65 shares a period of time. Period. This group does not share a common set of attitudes, behaviours and lifestyle characteristics. Importantly, it does not have a shared identity: I have never heard anyone in the UK call themselves a ‘Baby Boomer’. People of this age group are as complex and diverse as any other age group, by any criteria you care to apply. The concept of ‘Baby Boomers’ originated in the USA, with a very different economic and social history - and as far as I'm concerned, it stays there.
2. It is undeniable that many people of this age group have benefited disproportionately from an extremely fortunate set of economic and social circumstances. However, to label an entire age group as having done so is to deal in averages, a weak statistical basis for any argument. For example, more than 30% of people aged 50-65 are unemployed. More than 50% of people in this age group are worried about how they will support themselves in retirement. Many are disabled, disadvantaged and poor – as in other age groups. It is true that some people are very wealthy – but so are people in other age groups. There are just more of them aged 46-65.
3. Because there is no such self-defined group as ‘Baby Boomers’, it is illogical to suggest that this ‘group’ acting together against an explicit or implicit agenda was somehow responsible for the set of circumstances we now find ourselves in. Some of the people responsible may fit within this age group (Tony Blair, say) but many others do not – the whole of the massively influential Thatcher Government, for example. And in any case, is the situation we now find ourselves in mainly attributable to UK-based individuals or groups of people? What about globalisation and the massive changes it has exerted on so many of our old assumptions and certainties? And isn’t this as much about attitudes to education, family and social mobility – which are not defined by age.
And if there were any truth in the idea that a whole group of people born at the same time had deliberately disadvantaged the next generation, would I care? Well I’ll tell you – but first, let me change out of my yellow polyester golf slacks, go jogging and cycling along the seafront with my still-very-attractive wife, both smiling inanely and displaying immaculate white teeth. then drive my sports car back home to my gated community, put on some smart leisure clothing, and chuckle genially with my extended family. Then I'll tell you....
This debate started earlier in the year, with launch of ‘The Pinch – How the Baby Boomers Stole their Children’s Future’ by David Willetts – now a Government Minister. This is, overall, a well-argued and interesting economic and social discourse (as you'd expect from someone with the nickname 'Two Brains'). However, the argument gets taken into the realms of inter-generational warfare with a new book called ‘Jilted Generation’, by Ed Howker and Shiv Malik. And it sounds like other books on the subject out around now share a similar theme - ‘What did the Baby Boomers Ever Do For Us’ by Francis Becket, and ‘It’s all their Fault’ by Neil Boorman.
On the face of it, there is a very good case to be made. The facts are, apparently, undeniable. A large number of people (how many, it’s not clear) within a certain age group (i.e. those currently aged 46 – 65) have benefited from educational and social mobility, generous pension schemes, and property inflation. However, these conditions do not now exist to anything like the same extent, meaning that those younger than 46 will not benefit in anything like the same way as we 'Baby Boomers'. Furthermore, the Government has created unprecedented levels of debt which it will take the State many years to pay off. And all the time, like a ticking bomb, the population continues to age, meaning a smaller proportion of the population working away to pay for it all.
And who or what is responsible for all this? The so-called Baby Boomers themselves, according to these writers, that’s who. And that’s where I disagree. It is an undeniable fact that there was a peak in birth rates between 1945 and 1964, creating a so-called ‘baby boom’. It is also the case that, overall, fings ain’t what they used to be for people younger than this. But I disagree with just about everything else. Here is my case:
1. There is no such group as ‘Baby Boomers’ in the UK. Everyone currently aged between 46 and 65 shares a period of time. Period. This group does not share a common set of attitudes, behaviours and lifestyle characteristics. Importantly, it does not have a shared identity: I have never heard anyone in the UK call themselves a ‘Baby Boomer’. People of this age group are as complex and diverse as any other age group, by any criteria you care to apply. The concept of ‘Baby Boomers’ originated in the USA, with a very different economic and social history - and as far as I'm concerned, it stays there.
2. It is undeniable that many people of this age group have benefited disproportionately from an extremely fortunate set of economic and social circumstances. However, to label an entire age group as having done so is to deal in averages, a weak statistical basis for any argument. For example, more than 30% of people aged 50-65 are unemployed. More than 50% of people in this age group are worried about how they will support themselves in retirement. Many are disabled, disadvantaged and poor – as in other age groups. It is true that some people are very wealthy – but so are people in other age groups. There are just more of them aged 46-65.
3. Because there is no such self-defined group as ‘Baby Boomers’, it is illogical to suggest that this ‘group’ acting together against an explicit or implicit agenda was somehow responsible for the set of circumstances we now find ourselves in. Some of the people responsible may fit within this age group (Tony Blair, say) but many others do not – the whole of the massively influential Thatcher Government, for example. And in any case, is the situation we now find ourselves in mainly attributable to UK-based individuals or groups of people? What about globalisation and the massive changes it has exerted on so many of our old assumptions and certainties? And isn’t this as much about attitudes to education, family and social mobility – which are not defined by age.
And if there were any truth in the idea that a whole group of people born at the same time had deliberately disadvantaged the next generation, would I care? Well I’ll tell you – but first, let me change out of my yellow polyester golf slacks, go jogging and cycling along the seafront with my still-very-attractive wife, both smiling inanely and displaying immaculate white teeth. then drive my sports car back home to my gated community, put on some smart leisure clothing, and chuckle genially with my extended family. Then I'll tell you....
Wednesday 8 September 2010
Some great advertising from Coca-Cola
Avid readers of this blog will recall that last November – before we launched this business – we posted a piece about Coca-Cola’s plans to target older consumers (reproduced below).
Here’s an example of what they did in the USA.
http://www.youtube.com/watch?v=9j9KWEGmq9Y
Watching is highly recommended! Forget analysis - on an emotional level, this just works. (In fact, on what other level could a TV commercial for Coca-Cola work?).
As our research report notes (see our website to get your copy), global marketing-led businesses such as P&G and Unilever – and Coca-Cola – are way ahead of the curve on the subject of marketing and older consumers.
To discuss how we could help you improve your relationship with the UK’s fastest-growing demographic segment, visit www.rhcadvantage.co.uk
And here’s what we reported back in November…..
Coca-Cola to target older audiences
Coca-Cola is to target older consumers as part of a bid to double its revenue by 2020, according to a report in Marketing Week today.
Coca-Cola chairman and chief executive, Muhtar Kent, is reported as saying that the company was “laser-focused” on targeting the right consumers with fully integrated global marketing campaigns that work on many levels.
By 2020, the company says that the world will look very different, so targeting the “right consumers” will include a renewed focus on older, wealthier consumers.
As our report on Marketing and Older Audiences (available upon request) found, the marketing planning processes of most companies do not take the long-term, gradual nature of population change into account. Only the most marketing-led businesses, such as Procter & Gamble and Unilever, have done this – leading to successful global brands like Olay and Dove.
We will watch this space with interest….
Here’s an example of what they did in the USA.
http://www.youtube.com/watch?v=9j9KWEGmq9Y
Watching is highly recommended! Forget analysis - on an emotional level, this just works. (In fact, on what other level could a TV commercial for Coca-Cola work?).
As our research report notes (see our website to get your copy), global marketing-led businesses such as P&G and Unilever – and Coca-Cola – are way ahead of the curve on the subject of marketing and older consumers.
To discuss how we could help you improve your relationship with the UK’s fastest-growing demographic segment, visit www.rhcadvantage.co.uk
And here’s what we reported back in November…..
Coca-Cola to target older audiences
Coca-Cola is to target older consumers as part of a bid to double its revenue by 2020, according to a report in Marketing Week today.
Coca-Cola chairman and chief executive, Muhtar Kent, is reported as saying that the company was “laser-focused” on targeting the right consumers with fully integrated global marketing campaigns that work on many levels.
By 2020, the company says that the world will look very different, so targeting the “right consumers” will include a renewed focus on older, wealthier consumers.
As our report on Marketing and Older Audiences (available upon request) found, the marketing planning processes of most companies do not take the long-term, gradual nature of population change into account. Only the most marketing-led businesses, such as Procter & Gamble and Unilever, have done this – leading to successful global brands like Olay and Dove.
We will watch this space with interest….
Wednesday 28 July 2010
rhc advantage joins Race Online 2012
rhc advantage is now an Official Partner of Race Online 2012, the campaign to increase internet usage in the UK. Led by Martha Lane Fox, who was appointed UK Digital Champion by David Cameron in June, Race Online 2012 aims to get as many people as possible online by the end of the Olympic Year, and everyone of working age by 2014.
Martha launched the ‘Manifesto for a Networked Nation’ on July 12th. This can be downloaded at www.raceonline2010.org. and the key points are summarised below:
• Internet use declines with age – which is why we’re involved. However, it’s not as simple as that - “the links between social disadvantage and internet non-use are strong” and the key factors are age, health, employment and income.
• Non-users of internet include: 45% of people aged 65-74; 48% of people with disabilities; 50% of people where household income falls below £11,500; and 75% of people aged over 75.
• The 10 million people in the UK who have never been online are said to be missing out in a number of ways. They will become increasingly isolated and disadvantaged as ‘digital’ becomes the main channel for access to private and public sector services.
• An ‘overwhelming’ economic and social case for a ‘networked nation’ is made (by PWC).
Digital exclusion is not simply about age. For example, other studies have found that 88% of ABs aged 55-64 (but only 29% of DEs) use the internet, and that 93% of people aged over 70 with a degree use the internet
And encouragingly, it is now older people who are driving the growth in internet usage. UKOM (Nielsen) found that 1 million of the 2 million new users (y/e May 2010) were people aged 50-64, an age group which now accounts for 25% of all internet users (but only 15% of the population).
Once again with marketing and older people, it comes down to that old marketing mantra, STP (segmentation, targeting and positioning).
To read more articles about marketing and older people, visit www.rhcadvantage.co.uk/news.
To request a copy of our recently updated 100-page research report on marketing and older people, please complete the form at www.rhcadvantage.co.uk/contact
Martha launched the ‘Manifesto for a Networked Nation’ on July 12th. This can be downloaded at www.raceonline2010.org. and the key points are summarised below:
• Internet use declines with age – which is why we’re involved. However, it’s not as simple as that - “the links between social disadvantage and internet non-use are strong” and the key factors are age, health, employment and income.
• Non-users of internet include: 45% of people aged 65-74; 48% of people with disabilities; 50% of people where household income falls below £11,500; and 75% of people aged over 75.
• The 10 million people in the UK who have never been online are said to be missing out in a number of ways. They will become increasingly isolated and disadvantaged as ‘digital’ becomes the main channel for access to private and public sector services.
• An ‘overwhelming’ economic and social case for a ‘networked nation’ is made (by PWC).
Digital exclusion is not simply about age. For example, other studies have found that 88% of ABs aged 55-64 (but only 29% of DEs) use the internet, and that 93% of people aged over 70 with a degree use the internet
And encouragingly, it is now older people who are driving the growth in internet usage. UKOM (Nielsen) found that 1 million of the 2 million new users (y/e May 2010) were people aged 50-64, an age group which now accounts for 25% of all internet users (but only 15% of the population).
Once again with marketing and older people, it comes down to that old marketing mantra, STP (segmentation, targeting and positioning).
To read more articles about marketing and older people, visit www.rhcadvantage.co.uk/news.
To request a copy of our recently updated 100-page research report on marketing and older people, please complete the form at www.rhcadvantage.co.uk/contact
Tuesday 20 July 2010
Is the advertising industry ignoring older people?
Campaign - the main advertising industry magazine - recently published two articles about advertising and older people. In essence, these said that the advertising industry did not communicate well with the 'over-50s' - the verdict being: 'could do better'.
Our letter in response to these articles is below:
The two articles in Campaign regarding advertising and older people by Paul Kitcatt (02 July) and John Tylee (09 July) make a number of interesting and important points. Yes, advertising (and marketing) has yet to align itself fully with the ageing population. Yes, it is the case that, overall, people aged over 50 have a disproportionate amount of wealth (and more importantly, of expenditure). And as Hamish Pringle, the Director General of the IPA has said, ‘adland is way out of line in terms of age’.
However, much as I enjoyed the articles, they also highlight the lack of clarity that surrounds this subject. First, what market are we talking about, exactly? The articles use a variety of terms, including: ‘baby boomers’, ‘the grey market’, ‘mature consumers’, ‘the mature market’’, ‘old people’, ‘older consumers’, and the ‘over -50s’. Confused? Well, at least ‘the over-50s’ makes an arbitrary line in the sand. This imprecision aside, is it helpful to perpetuate the idea that this vast number of people should be regarded as a single segment or market, a massive ghetto defined by age?
And perhaps it is misleading to suggest that advertisers are missing out on a group which - Paul seems to suggest - is not only older, but also richer, smarter and wiser than younger people. Some older people are indeed fabulously wealthy, others (over 2 million, according to Age UK) live in poverty. Many others (more than 50%, according to some studies) have inadequate pension provision, while more than 30% of people between 50 and retirement age are unemployed (not all of them advertising executives).
For most people, cognitive (and physical) decline are still inevitable facts of ageing (despite the book Paul refers to), so any intellectual superiority is unfortunately not necessarily sustainable long-term. The fastest-growing population segment is now the over-65s, as the ‘baby boom’ cohort ages. Many of this age group will not be richer, smarter or wiser – but will still be large enough in volume and value terms to be of interest to advertisers. This suggests that we need to move on from generalised (and unrealistic) views of a wealthy baby-boom generation to a more realistic understanding of the UK’s ageing population.
Our business – rhc advantage – is a new marketing communications agency for clients interested in adult and older audiences. We have produced, with the aid of two University Professors, a comprehensive review of the many different issues related to marketing and older people. This is available at no charge via our website (www.rhcadvantage.co.uk). Hurry, before we join the graveyard of such agencies referred to in John’s article!
Thank you for raising the subject, John and Paul. I am willing to take part in forming an industry group to move forward some of these issues, if you or anyone reading this is interested.
Mark Beasley
Director
rhc advantage
www.rhcadvantage.co.uk
Our letter in response to these articles is below:
The two articles in Campaign regarding advertising and older people by Paul Kitcatt (02 July) and John Tylee (09 July) make a number of interesting and important points. Yes, advertising (and marketing) has yet to align itself fully with the ageing population. Yes, it is the case that, overall, people aged over 50 have a disproportionate amount of wealth (and more importantly, of expenditure). And as Hamish Pringle, the Director General of the IPA has said, ‘adland is way out of line in terms of age’.
However, much as I enjoyed the articles, they also highlight the lack of clarity that surrounds this subject. First, what market are we talking about, exactly? The articles use a variety of terms, including: ‘baby boomers’, ‘the grey market’, ‘mature consumers’, ‘the mature market’’, ‘old people’, ‘older consumers’, and the ‘over -50s’. Confused? Well, at least ‘the over-50s’ makes an arbitrary line in the sand. This imprecision aside, is it helpful to perpetuate the idea that this vast number of people should be regarded as a single segment or market, a massive ghetto defined by age?
And perhaps it is misleading to suggest that advertisers are missing out on a group which - Paul seems to suggest - is not only older, but also richer, smarter and wiser than younger people. Some older people are indeed fabulously wealthy, others (over 2 million, according to Age UK) live in poverty. Many others (more than 50%, according to some studies) have inadequate pension provision, while more than 30% of people between 50 and retirement age are unemployed (not all of them advertising executives).
For most people, cognitive (and physical) decline are still inevitable facts of ageing (despite the book Paul refers to), so any intellectual superiority is unfortunately not necessarily sustainable long-term. The fastest-growing population segment is now the over-65s, as the ‘baby boom’ cohort ages. Many of this age group will not be richer, smarter or wiser – but will still be large enough in volume and value terms to be of interest to advertisers. This suggests that we need to move on from generalised (and unrealistic) views of a wealthy baby-boom generation to a more realistic understanding of the UK’s ageing population.
Our business – rhc advantage – is a new marketing communications agency for clients interested in adult and older audiences. We have produced, with the aid of two University Professors, a comprehensive review of the many different issues related to marketing and older people. This is available at no charge via our website (www.rhcadvantage.co.uk). Hurry, before we join the graveyard of such agencies referred to in John’s article!
Thank you for raising the subject, John and Paul. I am willing to take part in forming an industry group to move forward some of these issues, if you or anyone reading this is interested.
Mark Beasley
Director
rhc advantage
www.rhcadvantage.co.uk
Thursday 15 July 2010
rhc advantage brings maths alive for Texas Instruments
rhc advantage have launched a direct and digital marketing campaign for Texas Instruments Education Technology division.
The campaign launches the new TI-Nspire product to maths and science teachers in secondary schools across the UK.
TI-Nspire is a flexible ICT platform with the potential to transform the way students explore and learn maths. It does this via fully compatible handheld and software versions, to suit different teaching and learning needs.
Sounds complicated? ‘Once you’ve seen TI-Nspire in the classroom, you soon realise that it is an absolutely fantastic product which really does inspire students and teachers’, explains Richard Collyer, creative director of rhc advantage. ‘The problem is that it is extremely difficult to explain in a few words.’
For this reason, rhc advantage carried out research with teachers before devising a communications strategy, leading to the core creative concept that ‘TI-Nspire brings maths to life'.
The campaign had three main elements, all created by rhc advantage: a mailing, a website and a video. First, a mailer was sent to maths and science teachers and department heads. This aimed to direct them to a website, www.nspiringlearning.org.uk, which prominently features an introductory video showing TI-Nspire in classroom action. The website also explains the features and benefits of the product in detail, features other videos showing different aspects of the product, and has a number of calls to action, including a trial offer of the product.
Collyer points out that in this case, the rhc advantage proposition of 'marketing for older audiences' relates to teachers. 'We are keen to work with clients targeting adult audiences - and this need not just mean people of retirement age. Adults tend to prefer communications which focus on understanding and meeting needs, delivering benefits and providing information - which is exactly what this TI campaign does. It's worth noting that many marketing messages are inter-generational - in this case it's about helping teachers to inspire students, in other cases it might mean middle-aged people helping their parents to choose a retirement home.'
Concludes Collyer, ‘There’s no doubt that if you’re a maths or science teacher, you will be impressed by what you see. That’s why the video plays such a central role in making the benefits of a relatively complex product seem so immediate and obvious – TI-Nspire really does bring maths to life.’
For further information, please contact Mark Beasley or Richard Collyer at rhc advantage - 01256 704070, www.rhcadvantage.co.uk
The campaign launches the new TI-Nspire product to maths and science teachers in secondary schools across the UK.
TI-Nspire is a flexible ICT platform with the potential to transform the way students explore and learn maths. It does this via fully compatible handheld and software versions, to suit different teaching and learning needs.
Sounds complicated? ‘Once you’ve seen TI-Nspire in the classroom, you soon realise that it is an absolutely fantastic product which really does inspire students and teachers’, explains Richard Collyer, creative director of rhc advantage. ‘The problem is that it is extremely difficult to explain in a few words.’
For this reason, rhc advantage carried out research with teachers before devising a communications strategy, leading to the core creative concept that ‘TI-Nspire brings maths to life'.
The campaign had three main elements, all created by rhc advantage: a mailing, a website and a video. First, a mailer was sent to maths and science teachers and department heads. This aimed to direct them to a website, www.nspiringlearning.org.uk, which prominently features an introductory video showing TI-Nspire in classroom action. The website also explains the features and benefits of the product in detail, features other videos showing different aspects of the product, and has a number of calls to action, including a trial offer of the product.
Collyer points out that in this case, the rhc advantage proposition of 'marketing for older audiences' relates to teachers. 'We are keen to work with clients targeting adult audiences - and this need not just mean people of retirement age. Adults tend to prefer communications which focus on understanding and meeting needs, delivering benefits and providing information - which is exactly what this TI campaign does. It's worth noting that many marketing messages are inter-generational - in this case it's about helping teachers to inspire students, in other cases it might mean middle-aged people helping their parents to choose a retirement home.'
Concludes Collyer, ‘There’s no doubt that if you’re a maths or science teacher, you will be impressed by what you see. That’s why the video plays such a central role in making the benefits of a relatively complex product seem so immediate and obvious – TI-Nspire really does bring maths to life.’
For further information, please contact Mark Beasley or Richard Collyer at rhc advantage - 01256 704070, www.rhcadvantage.co.uk
Thursday 8 July 2010
Older, Smarter.....and French
This blog has been off the air for a few weeks and apologises to our many readers around the world. One of the reasons for this – apart from pressure of work, of course – is that information about matters related to older people is becoming increasingly prevalent. There is no point in simply re-circulating what is already in the public domain, so we haven’t.
Having said that, here’s a quick summary of a few things from the past few weeks that we think are worthy of comment.
• Lower taxes. The threatened increase in Capital Gains Tax to 40% did not take place, for whatever reasons (a compromise between appeasing the LibDems and the City, one imagines). An increase to 40% would have affected the many older people depending upon investments to support themselves. 28% seems generous by comparison.
• More work. The state retirement age is due to increase to 66 for men – but not until 2016 – and to 68 in 2040. For women, it will increase to 66 in 2018. Not too surprising when one considers that the number of people aged over 65 will increase by 50% between 2008 and 2033. For many poorer people this will mean another year or more of low paid work if they are lucky enough to have a job, and another year of unemployment for the many people aged 50-65 who do not have a job. When the retirement age was set at 65 in 1940, the average life expectancy was 60 – not over 80 as it is now.
• What does ‘old’ really look like? Stereotypes of what it really means to be ‘old’ continue to be eroded – slowly. Ringo Starr and Tom Jones have just celebrated their 70th birthdays. And Myrrha Stanford-Smith, 82, has signed a three-book publishing deal. Her first novel, ‘The Great Lie’ was published last week.
• ‘Silver surfers’ live! Research by Nielsen has been announced, showing that increased usage of the internet has been driven by people over 50. In fact, people aged 50-64 account for 25% of all internet users – but less than 15% of the total population. And yes, the newspapers reporting this cannot wait to use the hackneyed phrase ‘silver surfer’ – a redundant stereotype, surely. I know many people over 50 who use the internet – but few if any have grey or silver hair.
• Grumpy old men are no more. Several pieces of psychological research have been publicised, suggesting that people get nicer as they get older. Research by Professor Karen Fingerman found that younger people are more aggressive and confrontational than older people, who in turn are more forgiving and friendly. Perhaps grumpy old men are an endangered species (although I still know a few).
• Our research presentation is on the road. Our presentation – Marketing and Older People – has now been presented to a number of the UK’s leading organisations. Based upon our comprehensive research report, drawing on more than 150 sources, this presentation is now a tour de force of slickly presented information, generously interspersed with finely-honed ad libs and bon mots. Book your presentation now, while we’re still on tour.
• Older, Smarter…and French. And while we’re talking French, McKinsey have published a report on what population ageing means for France. Their research found three inter-related major trends reaching a tipping point and fundamentally transforming the country: an ageing population, changing household types and economic factors slowing the expansion of wealth. All of this means that the average French household in 2030 will be older, better educated and less wealthy than the average household today. This mirrors the findings of our own research in the UK – to book your presentation or read the report, visit www.rhcadvantage.co.uk .
Having said that, here’s a quick summary of a few things from the past few weeks that we think are worthy of comment.
• Lower taxes. The threatened increase in Capital Gains Tax to 40% did not take place, for whatever reasons (a compromise between appeasing the LibDems and the City, one imagines). An increase to 40% would have affected the many older people depending upon investments to support themselves. 28% seems generous by comparison.
• More work. The state retirement age is due to increase to 66 for men – but not until 2016 – and to 68 in 2040. For women, it will increase to 66 in 2018. Not too surprising when one considers that the number of people aged over 65 will increase by 50% between 2008 and 2033. For many poorer people this will mean another year or more of low paid work if they are lucky enough to have a job, and another year of unemployment for the many people aged 50-65 who do not have a job. When the retirement age was set at 65 in 1940, the average life expectancy was 60 – not over 80 as it is now.
• What does ‘old’ really look like? Stereotypes of what it really means to be ‘old’ continue to be eroded – slowly. Ringo Starr and Tom Jones have just celebrated their 70th birthdays. And Myrrha Stanford-Smith, 82, has signed a three-book publishing deal. Her first novel, ‘The Great Lie’ was published last week.
• ‘Silver surfers’ live! Research by Nielsen has been announced, showing that increased usage of the internet has been driven by people over 50. In fact, people aged 50-64 account for 25% of all internet users – but less than 15% of the total population. And yes, the newspapers reporting this cannot wait to use the hackneyed phrase ‘silver surfer’ – a redundant stereotype, surely. I know many people over 50 who use the internet – but few if any have grey or silver hair.
• Grumpy old men are no more. Several pieces of psychological research have been publicised, suggesting that people get nicer as they get older. Research by Professor Karen Fingerman found that younger people are more aggressive and confrontational than older people, who in turn are more forgiving and friendly. Perhaps grumpy old men are an endangered species (although I still know a few).
• Our research presentation is on the road. Our presentation – Marketing and Older People – has now been presented to a number of the UK’s leading organisations. Based upon our comprehensive research report, drawing on more than 150 sources, this presentation is now a tour de force of slickly presented information, generously interspersed with finely-honed ad libs and bon mots. Book your presentation now, while we’re still on tour.
• Older, Smarter…and French. And while we’re talking French, McKinsey have published a report on what population ageing means for France. Their research found three inter-related major trends reaching a tipping point and fundamentally transforming the country: an ageing population, changing household types and economic factors slowing the expansion of wealth. All of this means that the average French household in 2030 will be older, better educated and less wealthy than the average household today. This mirrors the findings of our own research in the UK – to book your presentation or read the report, visit www.rhcadvantage.co.uk .
Thursday 3 June 2010
Meet the new boss…why older people are finding the new Government too taxing
Part of my job involves talking to a lot of older people. This isn’t too taxing and many of them are my friends in any case. A number have commented on my last piece headed ‘we won’t get fooled again’ which looked at what the new Government might mean for older people.
They are telling me that they are unhappy with the Government’s stated enthusiasm to increase the rate of capital gains tax for personal assets. One person suggested that I might select as the theme for my next article another line from the same song - ‘meet the new boss, same as the old boss’. So I have.
For many pre-retirees and retired people, this proposed increase feels like a reversal of what might have been expected from a conservative majority. To conservative voters, it is seen a betrayal of basic principles. In fact, the plans are those of the LibDem minority, adopted by the coalition for reasons of political expediency. Meet the new boss, indeed.
There are a number of reasons why an increase in capital gains tax - from the current level of 18% to a straight 40%, with no taper relief, no indexation - would be very bad news indeed for many pre-retirees and retired people. The main reason is quite simple: their retirement plans depend upon the sale of property and financial assets they have accumulated during their working life. If the tax increase goes ahead, the tax to be paid on the sale of these assets would more than double, meaning that the net sum they would realise would decline by more than 25%.
If this is to be the case, then the Daily Telegraph and others may have a point in describing it as ‘daylight robbery’.
One explanation for this is that the politicians and public sector employees who devised it are insulated from the real world. We will not discuss here the scandalous abuse of taxpayers funds by politicians, although we should give a special mention to the Environment Minister (of all people) who only this week was apparently using a Government limousine to take her to her game of tennis. And we will not annoy ourselves by dwelling on the salaries, job security and protected pensions of the public sector.
For all of the people I have spoken to, capital gains are not the result of short-term speculation or tax avoidance schemes. They are the result of prudent long-term saving in order to fund retirement – much as the Government is likely to be encouraging us to do. The facts are these:
• The state cannot afford the burden of supporting the increasing number of people of retirement age. Initiatives by individuals to provide for themselves should be encouraged.
• Private pension schemes with a guaranteed salary-related pension are no longer the norm in the private sector.
• Working until retirement age is no longer the norm.
• Many people work for themselves and do not have private pension schemes.
Given all of this, it is not surprising that many people have chosen to save for their retirement through the purchase of shares and property. As has been repeatedly pointed out, the people affected are not a small minority of wealthy people, but a large proportion of the working population.
This agency does not have political affiliations, but we feel obliged to report the views expressed to us so forcibly by so many people. We are not alone. Dissent has included a sustained newspaper campaign, rumblings by backbench conservatives, and expert opinion that a tax increase would be counter-productive in economic terms.
All of this suggests that the Government’s plans are likely to be watered down. Let us hope so.
For further information about how we can help your business address the challenges and opportunities of the ageing UK population, visit www.rhcadvantage.co.uk or email info@rhcadvantage.co.uk for our free research report.
They are telling me that they are unhappy with the Government’s stated enthusiasm to increase the rate of capital gains tax for personal assets. One person suggested that I might select as the theme for my next article another line from the same song - ‘meet the new boss, same as the old boss’. So I have.
For many pre-retirees and retired people, this proposed increase feels like a reversal of what might have been expected from a conservative majority. To conservative voters, it is seen a betrayal of basic principles. In fact, the plans are those of the LibDem minority, adopted by the coalition for reasons of political expediency. Meet the new boss, indeed.
There are a number of reasons why an increase in capital gains tax - from the current level of 18% to a straight 40%, with no taper relief, no indexation - would be very bad news indeed for many pre-retirees and retired people. The main reason is quite simple: their retirement plans depend upon the sale of property and financial assets they have accumulated during their working life. If the tax increase goes ahead, the tax to be paid on the sale of these assets would more than double, meaning that the net sum they would realise would decline by more than 25%.
If this is to be the case, then the Daily Telegraph and others may have a point in describing it as ‘daylight robbery’.
One explanation for this is that the politicians and public sector employees who devised it are insulated from the real world. We will not discuss here the scandalous abuse of taxpayers funds by politicians, although we should give a special mention to the Environment Minister (of all people) who only this week was apparently using a Government limousine to take her to her game of tennis. And we will not annoy ourselves by dwelling on the salaries, job security and protected pensions of the public sector.
For all of the people I have spoken to, capital gains are not the result of short-term speculation or tax avoidance schemes. They are the result of prudent long-term saving in order to fund retirement – much as the Government is likely to be encouraging us to do. The facts are these:
• The state cannot afford the burden of supporting the increasing number of people of retirement age. Initiatives by individuals to provide for themselves should be encouraged.
• Private pension schemes with a guaranteed salary-related pension are no longer the norm in the private sector.
• Working until retirement age is no longer the norm.
• Many people work for themselves and do not have private pension schemes.
Given all of this, it is not surprising that many people have chosen to save for their retirement through the purchase of shares and property. As has been repeatedly pointed out, the people affected are not a small minority of wealthy people, but a large proportion of the working population.
This agency does not have political affiliations, but we feel obliged to report the views expressed to us so forcibly by so many people. We are not alone. Dissent has included a sustained newspaper campaign, rumblings by backbench conservatives, and expert opinion that a tax increase would be counter-productive in economic terms.
All of this suggests that the Government’s plans are likely to be watered down. Let us hope so.
For further information about how we can help your business address the challenges and opportunities of the ageing UK population, visit www.rhcadvantage.co.uk or email info@rhcadvantage.co.uk for our free research report.
Tuesday 18 May 2010
We won't get fooled again. What does the new Government mean for older people?
As the dust settles after the General Election, it is interesting to speculate as to what difference, if any, the ‘older vote’ has made.
Using the theme ‘Our Power is our Number’, the charity Age UK pointed out the size and importance of the votes of older people, and set out a ‘manifesto’ for older people. This was based upon five key issues, including social care, pensions, forced retirement and the NHS. The underlying themes were increased expenditure on matters affecting older people, a reduction in ageism and a greater role in society for older people.
It is too early to know whether the new coalition Government will be good news for older people. But given a probable double-whammy of reduced public expenditure and increased taxation, there is some cause for concern.
However, we can see for sure whether the make-up of the new Government itself has delivered on a ‘greater role in society for older people’. David Cameron and Nick Clegg are both aged 43, and have used their boyish charm and youthful energy to the max. Baroness Warsi (conservative party co-chair and cabinet member) is aged 39, the same age as the Chancellor, George Osborne. So far, this reinforces the perception that in politics, youth may be valued over experience. One is a little reassured to see the age and experience of Ken Clarke (69) and Vince Cable (67) looming in the background. In total, 13 of the 21 cabinet members are aged over 50, although only Clarke and Cable are over 60.
On the face of it, this seems to reflect and perhaps even out-perform the UK workforce. In the private sector, few people aged over 60 are in management positions and unemployment levels for people over 50 are running at 30%. In the advertising industry, just 5% of employees are aged over 50 (although Sir Martin Sorrell, who owns a good chunk of it, is 65).
However, the overall perception – and one which has been carefully stage-managed - is of a youthful new coalition cabinet, with the implicit associations of youth with dynamism, energy and leadership. The idea of powerful younger people making the decisions that affect older people can only reinforce unwanted stereotypes. We have a part-time Minister for Equality – why not a full-time Minister for Old Age?
Using the theme ‘Our Power is our Number’, the charity Age UK pointed out the size and importance of the votes of older people, and set out a ‘manifesto’ for older people. This was based upon five key issues, including social care, pensions, forced retirement and the NHS. The underlying themes were increased expenditure on matters affecting older people, a reduction in ageism and a greater role in society for older people.
It is too early to know whether the new coalition Government will be good news for older people. But given a probable double-whammy of reduced public expenditure and increased taxation, there is some cause for concern.
However, we can see for sure whether the make-up of the new Government itself has delivered on a ‘greater role in society for older people’. David Cameron and Nick Clegg are both aged 43, and have used their boyish charm and youthful energy to the max. Baroness Warsi (conservative party co-chair and cabinet member) is aged 39, the same age as the Chancellor, George Osborne. So far, this reinforces the perception that in politics, youth may be valued over experience. One is a little reassured to see the age and experience of Ken Clarke (69) and Vince Cable (67) looming in the background. In total, 13 of the 21 cabinet members are aged over 50, although only Clarke and Cable are over 60.
On the face of it, this seems to reflect and perhaps even out-perform the UK workforce. In the private sector, few people aged over 60 are in management positions and unemployment levels for people over 50 are running at 30%. In the advertising industry, just 5% of employees are aged over 50 (although Sir Martin Sorrell, who owns a good chunk of it, is 65).
However, the overall perception – and one which has been carefully stage-managed - is of a youthful new coalition cabinet, with the implicit associations of youth with dynamism, energy and leadership. The idea of powerful younger people making the decisions that affect older people can only reinforce unwanted stereotypes. We have a part-time Minister for Equality – why not a full-time Minister for Old Age?
Monday 26 April 2010
The Century-Old Consumer
An innovation agency owned by M & C Saatchi has apparently carried out a study with people aged between 20 and 70 in the UK, China, Netherlands and USA (which is where their offices are located). This study examined people’s attitudes and behaviour regarding the fact that they may live to be 100 years old.
In what has to be seen as a publicity coup worthy of the eponymous M & C themselves, the research study has been shown exclusively to Marketing Week and forms the basis of an extensive piece by Lucy Handley (22nd April 2010). However, this exclusivity makes any sort of review or critique of the research somewhat difficult, not to say impossible!
The starting point for the study seems to have been an article in the Lancet which predicted that 50% of all children born since 2000 in the developed world will live to be 100. It is predicted elsewhere that people currently aged 50 have something like a 1 in 8 chance of reaching their century. From this, according to Marketing Week, it is concluded that businesses need to understand what this means for product, services and communications, and should start planning for this now - but that very few businesses seem to be doing so.
This final conclusion is probably not too surprising. Many businesses are still adapting to the most basic realities of an ageing population. Our own research established that not only are there more adults aged over 45 than under 45, but that this older group accounts for disproportionately higher expenditure. Despite this, it seems that many businesses are still struggling to find a way of segmenting, targeting and positioning against this long-term but inexorable change. Looking into the future, the population continues to age. However, to plan for a future dominated by centurions is probably a step too far, although I’ll bet P&G are working on it…
But well done to the consultancy for thinking about the issue and to Marketing Week for covering it. I only wish our own publicity efforts were as successful! For exclusive access to our own research report – Marketing and Older Audiences – please visit www.rhcadvantage.co.uk
In what has to be seen as a publicity coup worthy of the eponymous M & C themselves, the research study has been shown exclusively to Marketing Week and forms the basis of an extensive piece by Lucy Handley (22nd April 2010). However, this exclusivity makes any sort of review or critique of the research somewhat difficult, not to say impossible!
The starting point for the study seems to have been an article in the Lancet which predicted that 50% of all children born since 2000 in the developed world will live to be 100. It is predicted elsewhere that people currently aged 50 have something like a 1 in 8 chance of reaching their century. From this, according to Marketing Week, it is concluded that businesses need to understand what this means for product, services and communications, and should start planning for this now - but that very few businesses seem to be doing so.
This final conclusion is probably not too surprising. Many businesses are still adapting to the most basic realities of an ageing population. Our own research established that not only are there more adults aged over 45 than under 45, but that this older group accounts for disproportionately higher expenditure. Despite this, it seems that many businesses are still struggling to find a way of segmenting, targeting and positioning against this long-term but inexorable change. Looking into the future, the population continues to age. However, to plan for a future dominated by centurions is probably a step too far, although I’ll bet P&G are working on it…
But well done to the consultancy for thinking about the issue and to Marketing Week for covering it. I only wish our own publicity efforts were as successful! For exclusive access to our own research report – Marketing and Older Audiences – please visit www.rhcadvantage.co.uk
Wednesday 14 April 2010
Marketing to older people: fact and fiction
This article was published today in BT re:sourcesretail, which is produced by BT Global Banking and Financial Markets and distributed to BT customers.
Top stories
Marketing to older people: fact and fiction
Are they a generation of go-getters leading a ‘portfolio existence’, or forcibly retired baby boomers eking out their meagre savings? Mark Beasley considers the realities of marketing to the over fifties ...Read More
Marketing to older people: fact and fiction
The population of the UK is now older than ever before. According to the Office for National Statistics, there are now more adults aged over 45 than there are under 45. The UK population will continue to age for the foreseeable future.
For the financial services industry in particular, an ageing population provides many opportunities. However, there are also challenges – not least, cutting though the many false assumptions, stereotypes and myths surrounding this important group. If these are not identified and avoided, customer relationships will inevitably suffer. To demonstrate this, let’s examine three areas of relevance to anyone working in the financial services sector: customer wealth, retirement and imagery.
According to The Economist (26 June 09), this is a “Slow-moving but relentless development that in time will have vast economic, social and political consequences”.
Customer wealth
Just about every time you read an article about marketing and the over-50s, you will inevitably be told that this group accounts for 80% of the UK’s wealth. Coupled with the size of this group, this ‘fact’ suggests a large, relatively untapped and lucrative target market. However, the relationship between wealth, income and expenditure may not be straightforward. And it is important to be aware that wealth in this age group is extremely unevenly distributed: so make sure that where possible, you target individuals and not an entire age group!
Retirement should now be seen as a process, not an event
The reality is that this is an extremely diverse and complex group of more than 20 million people. Some people are extremely wealthy, while it is also the case that – according to Age Concern – more than two million older people live in poverty. The message here is that the basics of marketing – segmentation, targeting and positioning – are crucial. Do not rush into mass marketing on the assumption that most older people are extremely wealthy.
Retirement
In her role as Minister for Women and Equality, Harriet Harman recently pledged to end compulsory retirement, hence giving people the right to work beyond the state pension age (SPA) of 65 for men and 60 for women. The fact that older people are able to enjoy equality in the labour market is of course to be welcomed.
However, this is not just about personal freedom, human rights and social justice.
For many people, continuing to work after the SPA is not a matter of choice but of necessity. As Andrew Harrop of Age Concern/Help the Aged recently commented: “Millions of old workers need to carry on working past state pension age to boost their savings and pension pots”. Many such jobs are likely to be low-paid and part-time – only the minority will be engaging in a ‘portfolio existence’ of consultancy projects, non-executive directorships, and golf.
And of course, continuing to work after the SPA assumes that one has a job in the first place. In fact, 30% of people aged between 50 and the SPA are unemployed, mostly involuntarily. As a result, this age group now exhibits the highest rate of entrepreneurial activity, with many people starting second careers in their fifties.
For these reasons, retirement should now be seen as a process, not an event, says Paul Sweeting, Professor of Actuarial Science at the University of Kent. In fact, just 17% of men and 10% of women retire at the SPA, according to the Older Workers Employment Network.
Imagery
According to press releases and publicity materials issued by many financial services companies (I will name no names), life has never been better for people entering retirement. A vivid picture is painted of a ‘generation’ which ‘according to new research’ is invariably enjoying life more than ever before. This healthy, active generation is busily riding bikes, travelling the world, bungee-jumping and generally enjoying a carefree life of freedom, unencumbered by financial concerns.
The research of one company found that people aged 52-60 are apparently living a dream life that is the envy of the younger generation and have found ‘a form of perfect work/life balance’. Another found a ‘new generation’ of ‘GoAPs – Go-getting Active Pensioners’ which ‘rips up the rule book on retirement’ and can claim that ‘we’ve never had it do good’. And one otherwise highly-respected organisation recently described people over 50 as ‘Gap Year Grannies’ – I’ll leave you to fill in the gaps here.
This group of shiny, happy people is sometimes described as the ‘baby boomer generation’ – that demographic bulge of people born between 1946 and 1965. This age group is said to confound societal expectations in terms of activities, aspirations, attitudes, behaviour and lifestyle. In reality, it is implausible that millions of people will share anything very much simply because they are the same age. Unless a range of other segmentation variables are also applied, targeting by age alone is unlikely to be effective. Above all, it is important to note a number of studies have found that most people approaching retirement are extremely concerned about their future finances. And with good reason – a major research study published in December 2009 by Janus Capital confirmed ‘alarming deficits’ in personal savings and retirement provision that bedevil the pensions industry. What’s more, the increasing number of people having to care for both their adult children and their ageing parents – the so-called ‘sandwich generation’ – are finding their savings being eroded before retirement.
Avoid the stereotypes
The imagery used in advertising and communications materials is also often at variance with reality. There is a solid body of research which demonstrates that images of older people are either excluded altogether from advertising and communications materials, or are demeaning, patronising or stereotypical. According to academic researchers Carrigan and Szmigin: “Despite all the evidence, advertisers continue to pursue youth”. And not surprisingly, older people resent this – all the research tells us that older people wish to be recognised, treated as serious consumers, and depicted in a realistic manner.
This is a large, complex and diverse age group. They are not a ‘generation’, they are not a homogenous group, and they do not wish to be defined by age. Most importantly, they do not conform to a set of pre-defined rules. I wish you well in your efforts to work with your older customers to formulate your own shared rules.
________________________________________
Mark Beasley is a partner in rhc advantage, the creative marketing agency specialising in older audiences. For further information, or for a free copy of their research report Marketing and Older Audiences, visit www.rhcadvantage.co.uk
Top stories
Marketing to older people: fact and fiction
Are they a generation of go-getters leading a ‘portfolio existence’, or forcibly retired baby boomers eking out their meagre savings? Mark Beasley considers the realities of marketing to the over fifties ...Read More
Marketing to older people: fact and fiction
The population of the UK is now older than ever before. According to the Office for National Statistics, there are now more adults aged over 45 than there are under 45. The UK population will continue to age for the foreseeable future.
For the financial services industry in particular, an ageing population provides many opportunities. However, there are also challenges – not least, cutting though the many false assumptions, stereotypes and myths surrounding this important group. If these are not identified and avoided, customer relationships will inevitably suffer. To demonstrate this, let’s examine three areas of relevance to anyone working in the financial services sector: customer wealth, retirement and imagery.
According to The Economist (26 June 09), this is a “Slow-moving but relentless development that in time will have vast economic, social and political consequences”.
Customer wealth
Just about every time you read an article about marketing and the over-50s, you will inevitably be told that this group accounts for 80% of the UK’s wealth. Coupled with the size of this group, this ‘fact’ suggests a large, relatively untapped and lucrative target market. However, the relationship between wealth, income and expenditure may not be straightforward. And it is important to be aware that wealth in this age group is extremely unevenly distributed: so make sure that where possible, you target individuals and not an entire age group!
Retirement should now be seen as a process, not an event
The reality is that this is an extremely diverse and complex group of more than 20 million people. Some people are extremely wealthy, while it is also the case that – according to Age Concern – more than two million older people live in poverty. The message here is that the basics of marketing – segmentation, targeting and positioning – are crucial. Do not rush into mass marketing on the assumption that most older people are extremely wealthy.
Retirement
In her role as Minister for Women and Equality, Harriet Harman recently pledged to end compulsory retirement, hence giving people the right to work beyond the state pension age (SPA) of 65 for men and 60 for women. The fact that older people are able to enjoy equality in the labour market is of course to be welcomed.
However, this is not just about personal freedom, human rights and social justice.
For many people, continuing to work after the SPA is not a matter of choice but of necessity. As Andrew Harrop of Age Concern/Help the Aged recently commented: “Millions of old workers need to carry on working past state pension age to boost their savings and pension pots”. Many such jobs are likely to be low-paid and part-time – only the minority will be engaging in a ‘portfolio existence’ of consultancy projects, non-executive directorships, and golf.
And of course, continuing to work after the SPA assumes that one has a job in the first place. In fact, 30% of people aged between 50 and the SPA are unemployed, mostly involuntarily. As a result, this age group now exhibits the highest rate of entrepreneurial activity, with many people starting second careers in their fifties.
For these reasons, retirement should now be seen as a process, not an event, says Paul Sweeting, Professor of Actuarial Science at the University of Kent. In fact, just 17% of men and 10% of women retire at the SPA, according to the Older Workers Employment Network.
Imagery
According to press releases and publicity materials issued by many financial services companies (I will name no names), life has never been better for people entering retirement. A vivid picture is painted of a ‘generation’ which ‘according to new research’ is invariably enjoying life more than ever before. This healthy, active generation is busily riding bikes, travelling the world, bungee-jumping and generally enjoying a carefree life of freedom, unencumbered by financial concerns.
The research of one company found that people aged 52-60 are apparently living a dream life that is the envy of the younger generation and have found ‘a form of perfect work/life balance’. Another found a ‘new generation’ of ‘GoAPs – Go-getting Active Pensioners’ which ‘rips up the rule book on retirement’ and can claim that ‘we’ve never had it do good’. And one otherwise highly-respected organisation recently described people over 50 as ‘Gap Year Grannies’ – I’ll leave you to fill in the gaps here.
This group of shiny, happy people is sometimes described as the ‘baby boomer generation’ – that demographic bulge of people born between 1946 and 1965. This age group is said to confound societal expectations in terms of activities, aspirations, attitudes, behaviour and lifestyle. In reality, it is implausible that millions of people will share anything very much simply because they are the same age. Unless a range of other segmentation variables are also applied, targeting by age alone is unlikely to be effective. Above all, it is important to note a number of studies have found that most people approaching retirement are extremely concerned about their future finances. And with good reason – a major research study published in December 2009 by Janus Capital confirmed ‘alarming deficits’ in personal savings and retirement provision that bedevil the pensions industry. What’s more, the increasing number of people having to care for both their adult children and their ageing parents – the so-called ‘sandwich generation’ – are finding their savings being eroded before retirement.
Avoid the stereotypes
The imagery used in advertising and communications materials is also often at variance with reality. There is a solid body of research which demonstrates that images of older people are either excluded altogether from advertising and communications materials, or are demeaning, patronising or stereotypical. According to academic researchers Carrigan and Szmigin: “Despite all the evidence, advertisers continue to pursue youth”. And not surprisingly, older people resent this – all the research tells us that older people wish to be recognised, treated as serious consumers, and depicted in a realistic manner.
This is a large, complex and diverse age group. They are not a ‘generation’, they are not a homogenous group, and they do not wish to be defined by age. Most importantly, they do not conform to a set of pre-defined rules. I wish you well in your efforts to work with your older customers to formulate your own shared rules.
________________________________________
Mark Beasley is a partner in rhc advantage, the creative marketing agency specialising in older audiences. For further information, or for a free copy of their research report Marketing and Older Audiences, visit www.rhcadvantage.co.uk
Monday 12 April 2010
Older People are Cool....
In my last piece, I developed the erudite argument that 'older people rock'. Not only are most of the influential figures in rock music in their 50s, 60s and even 70s, but the audiences for their music include people of all ages. In other words, rock music is inclusive: the key variables are the talent of the artist and the interest (and expenditure) of the audience: not age.
This applies to many other consumer markets: automotive, fashion, leisure and travel are obvious examples. The interest and behaviour of consumers is not related to their own age, nor is it related to the age of the actors, models and personalities associated with particular brands and businesses. Richard Branson will be 60 this year, yet Virgin is seen as a ‘youthful’ brand. Twiggy is also 60, yet turns heads in Marks and Spencer advertising. Steve Jobs is 65, yet Apple is one of the coolest brands on the planet.
So why do so many brands and businesses continue either to focus on youth, avoiding older people altogether, or to treat older people as unimaginative and outdated? The assumption that older people – who account for at least 50% of many consumer markets – are motivated only by youth as the cipher for all that is new and interesting is simply not the case. Older people demonstrably exhibit greater creativity, individualism and originality than younger people, and this is acknowledged by people of all ages.
Ari Seth Cohen is a 28year old New York blogger who questions why we look towards younger people as our fashion icons. He believes that older people know a lot more about fashion and style than younger people and his blog (http://advancedstyle.blogspot.com ) celebrates trend-setting older people, from the chic, hip and well-dressed to the eccentric and bizarre. In his own words: “I roam the streets looking for New York's most stylish and creative older folks. Respect your elders and let these ladies and gents teach you a thing or two about living life to the fullest.”
At rhc advantage, we believe that older people deserve a better deal from business, marketing and communications. To find out how our unique blend of expertise, experience and creativity can help your business, visit our website www.rhcadvantage.co.uk. And to find out more about the realities of marketing and older audiences, request our comprehensive research report.
This applies to many other consumer markets: automotive, fashion, leisure and travel are obvious examples. The interest and behaviour of consumers is not related to their own age, nor is it related to the age of the actors, models and personalities associated with particular brands and businesses. Richard Branson will be 60 this year, yet Virgin is seen as a ‘youthful’ brand. Twiggy is also 60, yet turns heads in Marks and Spencer advertising. Steve Jobs is 65, yet Apple is one of the coolest brands on the planet.
So why do so many brands and businesses continue either to focus on youth, avoiding older people altogether, or to treat older people as unimaginative and outdated? The assumption that older people – who account for at least 50% of many consumer markets – are motivated only by youth as the cipher for all that is new and interesting is simply not the case. Older people demonstrably exhibit greater creativity, individualism and originality than younger people, and this is acknowledged by people of all ages.
Ari Seth Cohen is a 28year old New York blogger who questions why we look towards younger people as our fashion icons. He believes that older people know a lot more about fashion and style than younger people and his blog (http://advancedstyle.blogspot.com ) celebrates trend-setting older people, from the chic, hip and well-dressed to the eccentric and bizarre. In his own words: “I roam the streets looking for New York's most stylish and creative older folks. Respect your elders and let these ladies and gents teach you a thing or two about living life to the fullest.”
At rhc advantage, we believe that older people deserve a better deal from business, marketing and communications. To find out how our unique blend of expertise, experience and creativity can help your business, visit our website www.rhcadvantage.co.uk. And to find out more about the realities of marketing and older audiences, request our comprehensive research report.
Thursday 25 March 2010
Older Audiences Rock!
Happy Birthday, Sir Elton John – 63 today. And thank you, because your birthday has reminded me to get this particular rant off my chest.
Sir Elton is one of many rock musicians now in their sixties. Beck, Bowie, Clapton, Jagger, Springsteen – the list could go on, ad infinitum. The really big bands of this vintage can still pack the largest venues whenever they want – think of Led Zeppelin, Pink Floyd, Rolling Stones, the Who. They command huge audiences, many of whom are the same age as they are.
And my rant is this: older audiences rock, but most of the marketing communications directed at them do not. In fact, if advertising and communications are directed at older people at all, they are almost always directed at some sort of mythical minority group, made up of caricatures, grotesques and stereotypes, instead of the incredibly diverse group most of us know. The best we over-50s can hope for is to be portrayed with white teeth, coiffeured grey hair and Blue Harbour leisure clothing.
To continue. Jimi Hendrix is currently topping the charts with a ‘new’ album, despite having died 40 years ago. And perhaps the biggest name of them all, Sir Paul McCartney, 67, has already sold out his June performance in Hyde Park. With a full-time staff of 150 for his world tour, and a ‘Platinum Package’ ticket priced at £938.83, Sir Paul is certainly doing his bit for the economy. And yes, he is continuing to work beyond the state retirement age, presumably out of choice.
And it’s not just the performers. If you’re not sure what the term ‘older audience’ really means, then just go to a rock concert. People who used to shake their mane of hair in front of the PA speakers can now be found nodding their grizzled heads politely. None conform to any stereotype of what an ‘older audience’ might look like. At a recent rock music event I attended* nearly all of the audience, like the band, were over fifty. But the diversity was there to be seen – from bespectacled chaps in sensible pullovers, tapping their feet politely, to ageing tattooed bikers, wearing faded band T-shirts. We all shared an interest in a particular band, but little else.
This older rock audience consumes many different types of music heavily, and in many different ways – from gigs to downloads. It is a diverse audience, which does not conform to the stereotypes of how older people are expected to look or behave. In fact, like any other ‘older audience’, neither does it conform to the way in which older people are perceived and portrayed by many businesses, their advertising and their marketing communications.
So, if you’re talking 'bout my generation, please try to talk to us in a language we understand.
To improve your marketing to older audiences, visit www.rhcadvantage.co.uk
* ‘Down at the Doctors: a weekend in Canvey Island with Dr Feelgood’ – http://markbeasley.blog.co.uk
Sir Elton is one of many rock musicians now in their sixties. Beck, Bowie, Clapton, Jagger, Springsteen – the list could go on, ad infinitum. The really big bands of this vintage can still pack the largest venues whenever they want – think of Led Zeppelin, Pink Floyd, Rolling Stones, the Who. They command huge audiences, many of whom are the same age as they are.
And my rant is this: older audiences rock, but most of the marketing communications directed at them do not. In fact, if advertising and communications are directed at older people at all, they are almost always directed at some sort of mythical minority group, made up of caricatures, grotesques and stereotypes, instead of the incredibly diverse group most of us know. The best we over-50s can hope for is to be portrayed with white teeth, coiffeured grey hair and Blue Harbour leisure clothing.
To continue. Jimi Hendrix is currently topping the charts with a ‘new’ album, despite having died 40 years ago. And perhaps the biggest name of them all, Sir Paul McCartney, 67, has already sold out his June performance in Hyde Park. With a full-time staff of 150 for his world tour, and a ‘Platinum Package’ ticket priced at £938.83, Sir Paul is certainly doing his bit for the economy. And yes, he is continuing to work beyond the state retirement age, presumably out of choice.
And it’s not just the performers. If you’re not sure what the term ‘older audience’ really means, then just go to a rock concert. People who used to shake their mane of hair in front of the PA speakers can now be found nodding their grizzled heads politely. None conform to any stereotype of what an ‘older audience’ might look like. At a recent rock music event I attended* nearly all of the audience, like the band, were over fifty. But the diversity was there to be seen – from bespectacled chaps in sensible pullovers, tapping their feet politely, to ageing tattooed bikers, wearing faded band T-shirts. We all shared an interest in a particular band, but little else.
This older rock audience consumes many different types of music heavily, and in many different ways – from gigs to downloads. It is a diverse audience, which does not conform to the stereotypes of how older people are expected to look or behave. In fact, like any other ‘older audience’, neither does it conform to the way in which older people are perceived and portrayed by many businesses, their advertising and their marketing communications.
So, if you’re talking 'bout my generation, please try to talk to us in a language we understand.
To improve your marketing to older audiences, visit www.rhcadvantage.co.uk
* ‘Down at the Doctors: a weekend in Canvey Island with Dr Feelgood’ – http://markbeasley.blog.co.uk
Thursday 25 February 2010
‘Marketing and Older People’ - updated version of research report now available from rhc advantage
rhc advantage, the marketing and communications agency, has released an updated version of its research report, Marketing and Older Audiences. This is available at no charge via the agency’s website, www.rhcadvantage.co.uk
The UK population continues to age, with vast economic, social and political consequences. However, most people do not have the time to study the subject in detail, or to evaluate the associated marketing issues. That’s where this report comes in.
‘Marketing and Older Audiences’ reviews an extensive and diverse range of data and research literature, drawing upon academic, commercial and Government sources. The result is an authoritative, comprehensive and highly readable report document. The 100-page report provides an overview of the following areas:
• Demographic analysis
• Economic issues and trends
• Social and political issues and trends
• Market segmentation
• The purchasing behaviour of older people
• Attitudes of older people to age and ageing, employment, business, brands
and communications
• Advertising and Marketing in practice
• Marketing communications planning and creative guidelines
The research was directed by Dr David Gilbert, Professor of Marketing at the University of Surrey, and reviewed by Dr Paul Sweeting, Professor of Actuarial Science at the University of Kent.
The updated version has been revised, improved and updated with additional content. For a free pdf copy of the report, visit www.rhcadvantage.co.uk.
rhc advantage are also available to present the main findings of the report to audiences large and small.
The UK population continues to age, with vast economic, social and political consequences. However, most people do not have the time to study the subject in detail, or to evaluate the associated marketing issues. That’s where this report comes in.
‘Marketing and Older Audiences’ reviews an extensive and diverse range of data and research literature, drawing upon academic, commercial and Government sources. The result is an authoritative, comprehensive and highly readable report document. The 100-page report provides an overview of the following areas:
• Demographic analysis
• Economic issues and trends
• Social and political issues and trends
• Market segmentation
• The purchasing behaviour of older people
• Attitudes of older people to age and ageing, employment, business, brands
and communications
• Advertising and Marketing in practice
• Marketing communications planning and creative guidelines
The research was directed by Dr David Gilbert, Professor of Marketing at the University of Surrey, and reviewed by Dr Paul Sweeting, Professor of Actuarial Science at the University of Kent.
The updated version has been revised, improved and updated with additional content. For a free pdf copy of the report, visit www.rhcadvantage.co.uk.
rhc advantage are also available to present the main findings of the report to audiences large and small.
Monday 15 February 2010
Older people and HSBC business customers
The following article is to be published in the next edition of Small Business Update, which goes out to the entire SME customer base of HSBC, going live on the last day of the month. It contains various quotes from me - and while I love publicity, I'm less keen on reducing complex issues to soundbites. However, I think the journalist, Emma Allen, did a good job, given the limited wordcount she had to work within.
The over 50s are a growing socio-economic group – and one with a large disposable income. How can small firms market their business so they appeal to this audience?
With someone in the UK turning 50 every 40 seconds, it’s little wonder that so-called baby boomers are a powerful consumer force. Yet many older people say they feel patronised by marketing campaigns - or worse, invisible - as businesses fail to cater to their needs.
A quick glance at the statistics, however, shows that firms cannot afford to overlook this age group. Not only does the UK have an ageing population - over 40 per cent of us will be 50 years plus by 2035 – but many older people possess serious spending power, holding the purse strings to 80 per cent of the nation’s wealth.
Recognise diversity
So how can businesses make their marketing strategy more appealing to mature shoppers? First, firms need to recognise that the over 50’s are a highly diverse group with different pockets of consumers, and that defining customers by age alone can be misleading, advises Mark Beasley, partner at marketing agency rhc advantage, which specialises in communications for older audiences.
“Unless you’re selling health or financial products with special age related clauses, you shouldn’t lump everybody together in a one size fits all approach – after all, a 50 year old will have very different attitudes and needs to an 80 year old. Equally, Mick Jagger is the same age as John Major but you wouldn’t necessarily group them together,” he points out.
Instead, he says that businesses need to take a more strategic approach, taking into account different factors such as lifestyle, income, education and occupation. This will give you a much more useful insight into your customers, as well as how they want to receive information and ultimately, how you can best reach them.
Don’t stereotype
Stereotyping older people also paints a false picture. “Not every person over 50 is driven by price, or is into gardening, cruising or sensible shoes. The biggest spenders on fashion are actually women aged 50 to 64, while men over 45 are heavy buyers of music,” Beasley explains.
“Most well-known brands simply don’t cater to these markets though, so there are real opportunities for forward-thinking firms. Think about things like product design, retail environment and staffing – hiring mature employees for example – to make sure you’re meeting the needs of older audiences.”
When it comes to marketing techniques, baby-boomers are fairly sophisticated having grown up with advertising since the 1950s, Beasley says, explaining that the over 50s tend to prefer print media to tv advertising or radio, with direct mail usually the least influential method.
Explain the facts
“Older people tend to be motivated by facts, rather than meaningless creativity,” Beasley explains. “Messages should include clear information on why the product would benefit them and how it works not rely solely on glossy images, as research shows this doesn’t tend to motivate buyers.”
Businesses shouldn’t assume that the over 50s are less technologically savvy, either, as studies show that online influence is growing. In a study by Millennium, emails and website advertising came second to word of mouth as the most important factor when making a purchasing decision for older people. Again, thinking about your customers is key – many of the over 50s will have used computers in their career and will be highly IT literate, and while the over 70s are much less likely to use the internet overall, there are many groups of active internet users in this age group as well. The mistake yet again, says Beasley, is to think only in terms of age - there are other, better, ways of segmenting customers.
Lastly, Beasley advises making sure your website is inclusive to older audiences, by making it easy to read and navigate. He advises using a clear font, a reasonable size type and clean and simple designs, as well as avoiding labels such as ‘elderly’ or ‘old’ or offering discounts to ‘seniors' - this will alienate the younger over 50s and patronises all older people.
For further information: www.rhcadvantage.co.uk
The over 50s are a growing socio-economic group – and one with a large disposable income. How can small firms market their business so they appeal to this audience?
With someone in the UK turning 50 every 40 seconds, it’s little wonder that so-called baby boomers are a powerful consumer force. Yet many older people say they feel patronised by marketing campaigns - or worse, invisible - as businesses fail to cater to their needs.
A quick glance at the statistics, however, shows that firms cannot afford to overlook this age group. Not only does the UK have an ageing population - over 40 per cent of us will be 50 years plus by 2035 – but many older people possess serious spending power, holding the purse strings to 80 per cent of the nation’s wealth.
Recognise diversity
So how can businesses make their marketing strategy more appealing to mature shoppers? First, firms need to recognise that the over 50’s are a highly diverse group with different pockets of consumers, and that defining customers by age alone can be misleading, advises Mark Beasley, partner at marketing agency rhc advantage, which specialises in communications for older audiences.
“Unless you’re selling health or financial products with special age related clauses, you shouldn’t lump everybody together in a one size fits all approach – after all, a 50 year old will have very different attitudes and needs to an 80 year old. Equally, Mick Jagger is the same age as John Major but you wouldn’t necessarily group them together,” he points out.
Instead, he says that businesses need to take a more strategic approach, taking into account different factors such as lifestyle, income, education and occupation. This will give you a much more useful insight into your customers, as well as how they want to receive information and ultimately, how you can best reach them.
Don’t stereotype
Stereotyping older people also paints a false picture. “Not every person over 50 is driven by price, or is into gardening, cruising or sensible shoes. The biggest spenders on fashion are actually women aged 50 to 64, while men over 45 are heavy buyers of music,” Beasley explains.
“Most well-known brands simply don’t cater to these markets though, so there are real opportunities for forward-thinking firms. Think about things like product design, retail environment and staffing – hiring mature employees for example – to make sure you’re meeting the needs of older audiences.”
When it comes to marketing techniques, baby-boomers are fairly sophisticated having grown up with advertising since the 1950s, Beasley says, explaining that the over 50s tend to prefer print media to tv advertising or radio, with direct mail usually the least influential method.
Explain the facts
“Older people tend to be motivated by facts, rather than meaningless creativity,” Beasley explains. “Messages should include clear information on why the product would benefit them and how it works not rely solely on glossy images, as research shows this doesn’t tend to motivate buyers.”
Businesses shouldn’t assume that the over 50s are less technologically savvy, either, as studies show that online influence is growing. In a study by Millennium, emails and website advertising came second to word of mouth as the most important factor when making a purchasing decision for older people. Again, thinking about your customers is key – many of the over 50s will have used computers in their career and will be highly IT literate, and while the over 70s are much less likely to use the internet overall, there are many groups of active internet users in this age group as well. The mistake yet again, says Beasley, is to think only in terms of age - there are other, better, ways of segmenting customers.
Lastly, Beasley advises making sure your website is inclusive to older audiences, by making it easy to read and navigate. He advises using a clear font, a reasonable size type and clean and simple designs, as well as avoiding labels such as ‘elderly’ or ‘old’ or offering discounts to ‘seniors' - this will alienate the younger over 50s and patronises all older people.
For further information: www.rhcadvantage.co.uk
Thursday 4 February 2010
Where next for Inclusive Design?
Inclusive design was championed by BT at a seminar this week. So far, the principles have been applied mainly to products. Could the principles be extended to apply to inclusive branding, communications, marketing and services?
On Tuesday, Richard and I attended a BT seminar: ‘Designs on a Bigger Market: The business case for inclusive design’.
This set out to make the business case for ‘inclusive design’ and to provide hands on advice practical workshops. The event was well-paced, well-organised and seemed to engage the audience to an impressively high level. And the setting – the BT Tower – did not exactly detract from the event either.
The event started with filmed interviews with such luminaries as Stephen Timms MP (Minister for Digital Britain) and Tom Wright CBE (Chief Executive of Age UK). Presenters included Andrew Harrop of Age UK, Professor John Clarkson of Cambridge University, and Gillian Gibson-Piggot of BT. All made their points succinctly and well.
So what is ‘inclusive design’? According to the BSI, it is ‘The design of mainstream products and/or services that are accessible to, and usable by, as many people as reasonably possible…without the need for special adaptation or specialised design.” For further information, visit www.bt.com/inclusivedesign or www.inclusivedesigntoolkit.com
The business case for inclusive design is based upon population ageing, the physical impairments associated with age, and the size, growth and economic power of this group. Something close to our own hearts, of course. The type of ‘inclusive design’ discussed was almost entirely product design, providing functional benefits related to impairment.
So far, so good. But what’s next? Here are a few thoughts:
1. Inclusive branding and marketing. The emotional needs of older people must be addressed, as well as their physical and functional needs. This takes us into the realm of branding and communications (again, close to our hearts at rhc advantage). To make a gross generalisation, the current choice for older people seems to be polarised between dull, utilitarian products meeting their physical needs, and products which, although meeting their needs as mainstream consumers, are apparently targeted and positioned for much younger and unnecessarily groovy people. Take the IPad or IPhone, for example. For an older person to own these invites humorous comment, yet it is well established that many older people are likely to purchase technology products – for example, 50% of Kindle purchasers were aged over 50 (and 27% over 60).
And why can’t functional products for older people also be attractive? For an example of how this can be achieved, visit www.thefutureperfectcompany.com
2. Inclusive communications. The principles of inclusive design have been applied mainly to products. These principles must be developed and applied to the route to market of those products, and beyond. This includes the extended service offering around products (information, after-sales, and so on), packaging design, communications to intermediaries, in-store merchandising and point-of-sale materials, and of course, marketing communications.
3. Inclusive Service. The principles of inclusive design must also be applied to all aspects of the customer experience in retail and service organisations. Consider just one example. Many older people we have spoken to dislike banks (OK, who doesn’t?) because they have to stand in queues. However, the much-maligned Post Office has a numbered ticketing system (in larger branches) which allows you to sit in a comfortable chair until your number comes up. There is not space here to consider all the many aspects of the service experience which could be improved, probably to the benefit of everybody.
Thanks to BT for stimulating the discussion, and to the Age UK ‘engage’ team for facilitating our attendance at the event. It’s all very close to our hearts and the very reason we launched rhc advantage in December 2009.
On Tuesday, Richard and I attended a BT seminar: ‘Designs on a Bigger Market: The business case for inclusive design’.
This set out to make the business case for ‘inclusive design’ and to provide hands on advice practical workshops. The event was well-paced, well-organised and seemed to engage the audience to an impressively high level. And the setting – the BT Tower – did not exactly detract from the event either.
The event started with filmed interviews with such luminaries as Stephen Timms MP (Minister for Digital Britain) and Tom Wright CBE (Chief Executive of Age UK). Presenters included Andrew Harrop of Age UK, Professor John Clarkson of Cambridge University, and Gillian Gibson-Piggot of BT. All made their points succinctly and well.
So what is ‘inclusive design’? According to the BSI, it is ‘The design of mainstream products and/or services that are accessible to, and usable by, as many people as reasonably possible…without the need for special adaptation or specialised design.” For further information, visit www.bt.com/inclusivedesign or www.inclusivedesigntoolkit.com
The business case for inclusive design is based upon population ageing, the physical impairments associated with age, and the size, growth and economic power of this group. Something close to our own hearts, of course. The type of ‘inclusive design’ discussed was almost entirely product design, providing functional benefits related to impairment.
So far, so good. But what’s next? Here are a few thoughts:
1. Inclusive branding and marketing. The emotional needs of older people must be addressed, as well as their physical and functional needs. This takes us into the realm of branding and communications (again, close to our hearts at rhc advantage). To make a gross generalisation, the current choice for older people seems to be polarised between dull, utilitarian products meeting their physical needs, and products which, although meeting their needs as mainstream consumers, are apparently targeted and positioned for much younger and unnecessarily groovy people. Take the IPad or IPhone, for example. For an older person to own these invites humorous comment, yet it is well established that many older people are likely to purchase technology products – for example, 50% of Kindle purchasers were aged over 50 (and 27% over 60).
And why can’t functional products for older people also be attractive? For an example of how this can be achieved, visit www.thefutureperfectcompany.com
2. Inclusive communications. The principles of inclusive design have been applied mainly to products. These principles must be developed and applied to the route to market of those products, and beyond. This includes the extended service offering around products (information, after-sales, and so on), packaging design, communications to intermediaries, in-store merchandising and point-of-sale materials, and of course, marketing communications.
3. Inclusive Service. The principles of inclusive design must also be applied to all aspects of the customer experience in retail and service organisations. Consider just one example. Many older people we have spoken to dislike banks (OK, who doesn’t?) because they have to stand in queues. However, the much-maligned Post Office has a numbered ticketing system (in larger branches) which allows you to sit in a comfortable chair until your number comes up. There is not space here to consider all the many aspects of the service experience which could be improved, probably to the benefit of everybody.
Thanks to BT for stimulating the discussion, and to the Age UK ‘engage’ team for facilitating our attendance at the event. It’s all very close to our hearts and the very reason we launched rhc advantage in December 2009.
Tuesday 26 January 2010
Marketing to Older People: Fact and Fiction
The following article is to appear next month in BT Resources, a newsletter sent by BT to its financial services customers.
Marketing to Older People: Fact and Fiction
The population of the UK is now older than ever before. According to the Office for National Statistics, there are now more adults aged over 45 than there are under 45. This was described by a Government report last year as a ‘tipping point’ and the UK population will continue to age for the foreseeable future. According to the Economist (26.06.09), this is a ‘slow-moving but relentless development that in time will have vast economic, social and political consequences’.
For the financial services industry in particular, an ageing population provides many opportunities. However, there also challenges – not least, cutting though the many false assumptions, stereotypes and myths surrounding this important group. If these are not identified and avoided, customer relationships will inevitably suffer. To demonstrate this, let’s examine three areas of relevance to anyone working in the financial services sector: customer wealth, retirement and imagery.
Customer wealth
Just about every time you read an article about marketing and the over-50s, you will inevitably be told that this group accounts for 80% of the UK’s wealth. Coupled with the size of this group, this ‘fact’ suggests a large, relatively untapped and lucrative target market. However, the most extensive, thorough and impressive research programme ever conducted into older people - the COI 'Common Good' research project (2006) - concluded that: 'there is insufficient data available to support this apparent fact and we have been unable to find support for it."
The reality is that this is an extremely diverse and complex group of more than 20 million people. Some people are extremely wealthy, while it is also the case that – according to Age Concern – more than 2 million older people live in poverty. The message here is that the basics of marketing – segmentation, targeting and positioning – are crucial. Do not rush into mass marketing on the assumption that most older people are extremely wealthy.
Retirement
Harriet Harman - in her role as Minister for Women and Equality – recently pledged to end compulsory retirement, hence giving people the right to work beyond the state pension age (SPA) of 65 for men and 60 for women. The fact that older people are able to enjoy equality in the labour market is of course to be welcomed.
However, this is not just about personal freedom, human rights and social justice. For many people, continuing to work after the SPA is not a matter of choice but of necessity. As Andrew Harrop of Age Concern/Help the Aged recently commented (11.01.10), ‘Millions of old workers need to carry on working past state pension age to boost their savings and pension pots’. What’s more, many such jobs are likely to be low-paid and part-time – only the minority will be engaging in a ‘portfolio existence’ of consultancy projects, non-executive directorships, and golfing holidays in the Algarve.
And of course, continuing to work after the SPA assumes that one has a job in the first place. In fact, 30% of people aged between 50 and the SPA are unemployed, mostly involuntarily. As a result, this age group now exhibits the highest rate of entrepreneurial activity, with many people starting second careers in their fifties.
For these reasons, retirement should now be seen as a process, not an event, says Paul Sweeting, Professor of Actuarial Science at the University of Kent. In fact, just 17% of men and 10% of women now retire at the SPA, according to the Older Workers Employment Network.
Imagery
According to press releases and publicity materials issued by many financial services companies (I will name no names), life has never been better for people entering retirement. A vivid picture is painted of a ‘generation’ which ‘according to new research’ is invariably enjoying life more than ever before. This healthy, active generation is busily riding bikes, travelling the world, bungee-jumping and generally enjoying a carefree life of freedom, unencumbered by financial concerns.
The research of one company found that people aged 52-60 are apparently ‘living a dream life that is the envy of the younger generation’ and have found ‘a form of perfect work/life balance’. Another found a ‘new generation’ of ‘GoAPs – ‘Go-getting Active Pensioners’ which ‘rips up the rule book on retirement’ and can claim that ‘we’ve never had it do good’. And one otherwise highly-respected organisation recently described people over 50 as ‘Gap Year Grannies’ – I’ll leave you to fill in the gaps here.
This group of shiny, happy people is sometimes described as the ‘baby boomer generation’ – that demographic bulge of people born between 1946 and 1965. This age group is said to confound societal expectations in terms of activities, aspirations, attitudes, behaviour and lifestyle. In reality, it is implausible that millions of people will share anything very much simply because they are the same age. Unless a range of other segmentation variables are also applied, targeting by age alone is unlikely to be effective.
Above all, it is important to note a number of studies which have found that most people approaching retirement are extremely concerned about their future finances. And with good reason – a major research study published in December 2009 by Janus Capital again confirmed the ‘alarming deficits’ in personal savings and retirement provision that bedevil the pensions industry. What’s more, the increasing number of people having to care for both their adult children and their ageing parents – the so-called ‘sandwich generation’ – are finding their savings being eroded before retirement.
The imagery used in advertising and communications materials is also often at variance with reality. There is a solid body of research which demonstrates that images of older people are either excluded altogether from advertising and communications materials, or are demeaning, patronising or stereotypical when used. According to academic researchers Carrigan and Szmigin, ‘despite all the evidence, advertisers continue to pursue youth’. And not surprisingly, older people resent this – all the research tells us that older people wish to be recognised, treated as serious consumers, and depicted in a realistic manner.
This is a large, complex and diverse age group. They are not a ‘generation’, they are not a homogenous group, and they do not wish to be defined by age. Most importantly, they do not conform to a set of pre-defined rules. I wish you well in your efforts to work with your older customers to formulate your own shared rules.
------------------------------------------------------
Mark Beasley is a partner in rhc advantage, the creative marketing agency specialising in older audiences. For further information, or for a free copy of their research report ‘Marketing and Older Audiences’, visit www.rhcadvantage.co.uk
Marketing to Older People: Fact and Fiction
The population of the UK is now older than ever before. According to the Office for National Statistics, there are now more adults aged over 45 than there are under 45. This was described by a Government report last year as a ‘tipping point’ and the UK population will continue to age for the foreseeable future. According to the Economist (26.06.09), this is a ‘slow-moving but relentless development that in time will have vast economic, social and political consequences’.
For the financial services industry in particular, an ageing population provides many opportunities. However, there also challenges – not least, cutting though the many false assumptions, stereotypes and myths surrounding this important group. If these are not identified and avoided, customer relationships will inevitably suffer. To demonstrate this, let’s examine three areas of relevance to anyone working in the financial services sector: customer wealth, retirement and imagery.
Customer wealth
Just about every time you read an article about marketing and the over-50s, you will inevitably be told that this group accounts for 80% of the UK’s wealth. Coupled with the size of this group, this ‘fact’ suggests a large, relatively untapped and lucrative target market. However, the most extensive, thorough and impressive research programme ever conducted into older people - the COI 'Common Good' research project (2006) - concluded that: 'there is insufficient data available to support this apparent fact and we have been unable to find support for it."
The reality is that this is an extremely diverse and complex group of more than 20 million people. Some people are extremely wealthy, while it is also the case that – according to Age Concern – more than 2 million older people live in poverty. The message here is that the basics of marketing – segmentation, targeting and positioning – are crucial. Do not rush into mass marketing on the assumption that most older people are extremely wealthy.
Retirement
Harriet Harman - in her role as Minister for Women and Equality – recently pledged to end compulsory retirement, hence giving people the right to work beyond the state pension age (SPA) of 65 for men and 60 for women. The fact that older people are able to enjoy equality in the labour market is of course to be welcomed.
However, this is not just about personal freedom, human rights and social justice. For many people, continuing to work after the SPA is not a matter of choice but of necessity. As Andrew Harrop of Age Concern/Help the Aged recently commented (11.01.10), ‘Millions of old workers need to carry on working past state pension age to boost their savings and pension pots’. What’s more, many such jobs are likely to be low-paid and part-time – only the minority will be engaging in a ‘portfolio existence’ of consultancy projects, non-executive directorships, and golfing holidays in the Algarve.
And of course, continuing to work after the SPA assumes that one has a job in the first place. In fact, 30% of people aged between 50 and the SPA are unemployed, mostly involuntarily. As a result, this age group now exhibits the highest rate of entrepreneurial activity, with many people starting second careers in their fifties.
For these reasons, retirement should now be seen as a process, not an event, says Paul Sweeting, Professor of Actuarial Science at the University of Kent. In fact, just 17% of men and 10% of women now retire at the SPA, according to the Older Workers Employment Network.
Imagery
According to press releases and publicity materials issued by many financial services companies (I will name no names), life has never been better for people entering retirement. A vivid picture is painted of a ‘generation’ which ‘according to new research’ is invariably enjoying life more than ever before. This healthy, active generation is busily riding bikes, travelling the world, bungee-jumping and generally enjoying a carefree life of freedom, unencumbered by financial concerns.
The research of one company found that people aged 52-60 are apparently ‘living a dream life that is the envy of the younger generation’ and have found ‘a form of perfect work/life balance’. Another found a ‘new generation’ of ‘GoAPs – ‘Go-getting Active Pensioners’ which ‘rips up the rule book on retirement’ and can claim that ‘we’ve never had it do good’. And one otherwise highly-respected organisation recently described people over 50 as ‘Gap Year Grannies’ – I’ll leave you to fill in the gaps here.
This group of shiny, happy people is sometimes described as the ‘baby boomer generation’ – that demographic bulge of people born between 1946 and 1965. This age group is said to confound societal expectations in terms of activities, aspirations, attitudes, behaviour and lifestyle. In reality, it is implausible that millions of people will share anything very much simply because they are the same age. Unless a range of other segmentation variables are also applied, targeting by age alone is unlikely to be effective.
Above all, it is important to note a number of studies which have found that most people approaching retirement are extremely concerned about their future finances. And with good reason – a major research study published in December 2009 by Janus Capital again confirmed the ‘alarming deficits’ in personal savings and retirement provision that bedevil the pensions industry. What’s more, the increasing number of people having to care for both their adult children and their ageing parents – the so-called ‘sandwich generation’ – are finding their savings being eroded before retirement.
The imagery used in advertising and communications materials is also often at variance with reality. There is a solid body of research which demonstrates that images of older people are either excluded altogether from advertising and communications materials, or are demeaning, patronising or stereotypical when used. According to academic researchers Carrigan and Szmigin, ‘despite all the evidence, advertisers continue to pursue youth’. And not surprisingly, older people resent this – all the research tells us that older people wish to be recognised, treated as serious consumers, and depicted in a realistic manner.
This is a large, complex and diverse age group. They are not a ‘generation’, they are not a homogenous group, and they do not wish to be defined by age. Most importantly, they do not conform to a set of pre-defined rules. I wish you well in your efforts to work with your older customers to formulate your own shared rules.
------------------------------------------------------
Mark Beasley is a partner in rhc advantage, the creative marketing agency specialising in older audiences. For further information, or for a free copy of their research report ‘Marketing and Older Audiences’, visit www.rhcadvantage.co.uk
Thursday 21 January 2010
Good news - or is it? IPA Agency Census reveals that agency staff are getting younger
The IPA (Institute of Practitioners in Advertising) has today published the main findings of its 2009 Agency Census (www.ipa.co.uk). This annual survey is described (by the IPA) as ‘the definitive annual agency survey of employment trends in media, advertising and marketing communications agencies.’.
And the good news is that year-on-year the average age of agency employees has increased, as has the percentage of employees aged over 50. Or perhaps it isn’t such good news after all. Let’s look at the figures:
• 45.2% of agency employees are aged under 30 (2008 – 47.6%)
• 5.2% of agency employees are aged over 50 (2008 – 5%)
• The average age of employees is 33.7 (2008 – 33.3)
• The employed base has declined by 7.4%, driven mainly by a decline in
employees aged under 25 and first-year trainees
As Hamish Pringle, the Director General of the IPA comments, this has been ‘the toughest period for agencies in living memory.’. It is hardly surprising that the recruitment of graduates and younger people has declined and of course this is the reason for the extremely small increases in employee age. Certainly, there is no evidence of a drive by agencies to recruit on the basis of age and experience! In fact, I suspect that there has actually been a decline in the number of older employees.
The comparative youth of people working in agencies is often given as the reason behind ageism in advertising and marketing communications, whereby according to some researchers 'despite all the evidence, advertisers continue to pursue youth.'
The average age of adults in the UK is now 45 – not 33. The mainstream has been ageing for the past 30 years and will continue to do so. How you can have any interest, empathy or insight into older consumers, when you live in a ghetto of youth, fashion and cool? As the census itself acknowledges, agencies have some way to go in terms of diversity - so full marks for honesty.
For many years, the required attributes for agency staff have included creativity, energy, enthusiasm and vibrancy, not to mention a direct connection with the zeitgeist. These attributes have become associated with youthfulness.
That’s why we formed rhc advantage: to offer high levels of expertise, based upon understanding and insight of older audiences, delivered by talented people who are themselves older (but are not yet disconnected from the zeitgeist).
www.rhcadvantage.co.uk
And the good news is that year-on-year the average age of agency employees has increased, as has the percentage of employees aged over 50. Or perhaps it isn’t such good news after all. Let’s look at the figures:
• 45.2% of agency employees are aged under 30 (2008 – 47.6%)
• 5.2% of agency employees are aged over 50 (2008 – 5%)
• The average age of employees is 33.7 (2008 – 33.3)
• The employed base has declined by 7.4%, driven mainly by a decline in
employees aged under 25 and first-year trainees
As Hamish Pringle, the Director General of the IPA comments, this has been ‘the toughest period for agencies in living memory.’. It is hardly surprising that the recruitment of graduates and younger people has declined and of course this is the reason for the extremely small increases in employee age. Certainly, there is no evidence of a drive by agencies to recruit on the basis of age and experience! In fact, I suspect that there has actually been a decline in the number of older employees.
The comparative youth of people working in agencies is often given as the reason behind ageism in advertising and marketing communications, whereby according to some researchers 'despite all the evidence, advertisers continue to pursue youth.'
The average age of adults in the UK is now 45 – not 33. The mainstream has been ageing for the past 30 years and will continue to do so. How you can have any interest, empathy or insight into older consumers, when you live in a ghetto of youth, fashion and cool? As the census itself acknowledges, agencies have some way to go in terms of diversity - so full marks for honesty.
For many years, the required attributes for agency staff have included creativity, energy, enthusiasm and vibrancy, not to mention a direct connection with the zeitgeist. These attributes have become associated with youthfulness.
That’s why we formed rhc advantage: to offer high levels of expertise, based upon understanding and insight of older audiences, delivered by talented people who are themselves older (but are not yet disconnected from the zeitgeist).
www.rhcadvantage.co.uk
Tuesday 19 January 2010
Marketing to older audiences. Myths and Legends - Part One
Just how wealthy are 'older people' ?
The statement that 'older people hold 80% of the UK's wealth' is repeatedly quoted as though it were an incontrovertible fact requiring no substantiation or support. In fact, it seems to have become an accepted myth: if you read an article on the subject of marketing and older people, there is a very good chance you will read this 'fact'.
The most recent example of this is in the current 'engage' newsletter, issued by Age Concern and Help the Aged. This introduces recent research conducted by 20plus30 and Mature Marketing into older consumers and the recession. Both newsletter and research report boldly assert (without referencing a source) that: 'Despite older people holding 80% of savings and investment assets...'
Our own extensive review of data and research relating to older people (available at no charge via www.rhcadvantage.co.uk) could find no support for this assertion. There is some evidence that older people hold a disproportionate amount of wealth - however, it is also claimed (by Age Concern / Help the Aged) that over 2 million older people live in poverty. Where a source is given, it is often either vague ('according to a report from the Henley Centre') or attributed to a secondary source (for example, the only publicly-available data from Age Concern/Help the Aged on this subject references a book - 'Older, Richer, Fitter' - published in 2005).
Probably the most extensive, thorough and impressive research programme ever conducted in this area was the COI 'Common Good' research project (2006). This commented on the "statistic" of older people holding 80% of the UK's wealth as follows: 'there is insufficient data available to support this apparent fact and we have been unable to find support for it."
Can anyone provide a definitive - by which I mean primary, and reputable - source for this alleged 'fact', please? Or, may I suggest that it is no longer used, and we find some more accurate, meaningful and properly sourced facts to put into the public domain? If we are to overcome the inherent ageism of UK society and business, and the many incorrect assumptions held about older people, we must not fall into the same trap (by propagating allowing our own inaccurae information to be propagated). And in any case, why should 'wealth' be allowed to become the most important 'fact'? Wealth is relevant only if one can establish a direct relationship between wealth and expenditure.
The statement that 'older people hold 80% of the UK's wealth' is repeatedly quoted as though it were an incontrovertible fact requiring no substantiation or support. In fact, it seems to have become an accepted myth: if you read an article on the subject of marketing and older people, there is a very good chance you will read this 'fact'.
The most recent example of this is in the current 'engage' newsletter, issued by Age Concern and Help the Aged. This introduces recent research conducted by 20plus30 and Mature Marketing into older consumers and the recession. Both newsletter and research report boldly assert (without referencing a source) that: 'Despite older people holding 80% of savings and investment assets...'
Our own extensive review of data and research relating to older people (available at no charge via www.rhcadvantage.co.uk) could find no support for this assertion. There is some evidence that older people hold a disproportionate amount of wealth - however, it is also claimed (by Age Concern / Help the Aged) that over 2 million older people live in poverty. Where a source is given, it is often either vague ('according to a report from the Henley Centre') or attributed to a secondary source (for example, the only publicly-available data from Age Concern/Help the Aged on this subject references a book - 'Older, Richer, Fitter' - published in 2005).
Probably the most extensive, thorough and impressive research programme ever conducted in this area was the COI 'Common Good' research project (2006). This commented on the "statistic" of older people holding 80% of the UK's wealth as follows: 'there is insufficient data available to support this apparent fact and we have been unable to find support for it."
Can anyone provide a definitive - by which I mean primary, and reputable - source for this alleged 'fact', please? Or, may I suggest that it is no longer used, and we find some more accurate, meaningful and properly sourced facts to put into the public domain? If we are to overcome the inherent ageism of UK society and business, and the many incorrect assumptions held about older people, we must not fall into the same trap (by propagating allowing our own inaccurae information to be propagated). And in any case, why should 'wealth' be allowed to become the most important 'fact'? Wealth is relevant only if one can establish a direct relationship between wealth and expenditure.
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