• by Karlene Lukovitz  @KLmarketdaily, March 3, 2009

Marketing effectively to baby boomers now requires understanding how distinct segments have been affected by the drop in retirement fund and housing values and other economic fallout, and what messages resonate with each.

Boomers fall into three basic attitudinal camps, according to Focalyst, a Millward Brown specialty division supported by AARP Services Inc. Focalyst followed up on its comprehensive 2006 "View" study of boomers and older adults with a representative online survey of 324 boomers (half from the original study) last August and September, designed to gauge the impact of the recession.

One-quarter of boomers surveyed fall into the "yesterday" attitudinal bucket, summed up by the statement, "Life was better in the '50s." These individuals have been most affected by the economic downturn, and are concerned about an uncertain future. They tend to long for a simpler life, feel that they have not accomplished much, and are relatively detached and "disconnected from the grid." Few express aspirational goals. Many (about 40%) report a decline in health.

"As many of these individuals have had to make adjustments due to 'shocks to the system,' marketers can work toward creating comfort and validation in what is being described as 'the new normal'," suggest Focalyst's analysts. Messages that reassure these individuals that they are not alone--that many others are also struggling to make ends meet--and acknowledge and validate their long years of hard work may resonate with this group, Focalyst concludes.

About 30% of boomers are categorized as having a "today" outlook, represented by the statement: "We live in exciting times." These individuals are confident, healthy, and satisfied with their lives and accomplishments. They have higher income levels, have planned well, and feel they have earned the right to an indulgent retirement.

Messages for this group should appeal to their sense of success and a degree of vanity, according to Focalyst. Resonating themes include living the good life, embracing the moment, celebration of self and deserved indulgence.

The "tomorrow" segment (45%) lives by the philosophy "tomorrow will be better than today." These individuals are "spirited and spiritual," and remain extremely optimistic despite recent financial or health setbacks. (About one in three has experienced a decline in health, but is "managing through it proactively.") They have strong values and are highly connected to the community and to information. They feel young for their age, and eight in 10 are pursuing a life of challenge, novelty and change.

Messages that resonate emphasize hopefulness/optimism, the promise of tomorrow, connection, giving back, religious themes/tie-ins, buying locally, and generally aspiring to a stable future, as opposed to "retiring rich."

Despite the differences in life outlook and other behaviors, the three segments' total monthly spending on day-to-day items--including personal care products, drugs, gas, food and groceries--are very similar. Per-capita monthly spending for such day-to-day items exceeds $300 for all of the groups. The spending habits of "todays" and "tomorrows" are virtually identical, although the former segment is more likely to invest in big-ticket items. "Yesterdays" spend slightly less per month, on average, and spend somewhat higher portions of their income on drugs and vitamins and somewhat lower portions on food and groceries.

All of the segments are cutting back on non-necessities, but their criteria for doing so differ.

"Yesterdays" are focused on saving money through low prices and products/services from companies that "give back," and 69% report cutting back on clothing/apparel, dining out and travel by car for personal reasons.

"Tomorrows" are focused on value and healthier products, and are the most likely to buy products that are environmentally friendly or support a charity or the community. However, 60% have also cut back on the three non-necessity categories of apparel, restaurant dining and extra car trips.

"Todays" are looking for better value but are not very concerned about changing their purchasing habits. However, nearly 40% report some reduction in car travel, dining out and apparel purchases.

Boomers across all segments show little willingness to cut back on at-home entertainment such as cable TV subscriptions or on their personal care/beauty expenditures. Three-quarters of "todays" report they have not cut back on either of these expenses, and the percentages that report the same within the other two segments are only slightly lower.

Focalyst is planning to repeat this "Yesterday, Today, Tomorrow" survey in March and September to track ongoing effects of the changing economic, social and political scenario on boomers.