Carol M. Morgan is president of Strategic Directions Group Inc., Minneapolis. Further information on the research discussed in this article can be found in the book "Segmenting the Mature Market," by Carol Morgan and Doran J. Levy, Ph.D., published by Probus Publishing, Chicago.


Some 92-year-olds run marathons, while some 52-year-olds reside permanently on their couches. Such drastic differences help to explain why marketers who have decided that the mature market is truly golden are still having problems targeting their best prospects.

Realizing the mature market's incredible diversity, cutting-edge marketers have struggled to find a way of dealing with this most heterogeneous group. Using a demographic characteristic such as age or income to segment those over 50 has proven to be too simplistic.

While the importance of measuring and segmenting mature consumers by motivations, attitudes, and core beliefs has been recognized, the overwhelming majority of studies continue to be based on a demographic characteristic.

My firm, Minneapolis-based Strategic Directions Group, Inc., agrees that segmentation is a fundamental first step in reaching the mature market. In addition, we advocate taking into account attitudes and motivations which differ not only by segment, but by specific products and services.

In pursuing the elusive mature market, we first completed a national motivational segmentation study on those over 50 in 1989. In 1992, we expanded our original study, surveying an additional 3,000 persons over 50.

Our study differs radically from others on the mature market because it segmented this population on its attitudes, not on demographics or lifestyles. The attitudinal information was then combined with over 1,000 pieces of additional data which we collected on a wide range of topics, including investments, physiology and health, grandchildren, lifestyle, travel, purchasing patterns, residence, demographics, media usage, and activities.

The 50+® study is also significantly different because it segmented the same 3,000 respondents using three separate segmentation strategies. As far as we have been able to determine, a simultaneous, three-way segmentation of one market has never before been completed.

Our three distinct segmentation strategies include the Self segments, focused on attitudes toward growing older, retirement and financial planning; the Food segments developed on attitudes toward food; and the Health segments based on attitudes toward wellness and health.

By understanding the psychological dynamics of the 50+ segments, marketers can create products which appeal to the needs of specific segments. In addition, advertising can be created to reflect a segment's attitudes and preferred activities.

Media buys reaching those who not only read a publication, but have also revealed an intense interest in the product are more efficient. Finally, direct marketing efforts can use correlations between attitudes, behaviors, and demographics to reach a target segment through improved mail list selection.

Exploring only a few of the hundreds of different products our study considered yields differences among the Self, Health, and Food segments in their consumption of a variety of products.

The Self segments

Using our Marketer® proprietary segmentation system to analyze the data from our 50+® study, four Self segments developed: the Upbeat Enjoyers (22 percent), the Insecure (29 percent), the Threatened Actives (21 percent), and the Financial Positives (28 percent).

In identifying the attitudes of those over 50 toward themselves and social and financial issues, we asked our respondents to sort 60 attitude statements on such topics as finances, retirement, appearance, activities, and housing.

The statements included: 'I wish I could move to a safer neighborhood' and 'Plastic surgery is something I would consider to keep looking younger.' 'I have to admit most of my investments are conservative,' 'Being financially secure is a major concern for me,' and 'I feel really secure about my financial future,' were some of the statements related to finances.

The Upbeat Enjoyers

The Upbeat Enjoyers, who feel they have become more attractive with age, are optimistic about their futures. This active segment always wants to 'work at something.' The Upbeat Enjoyers have a median annual pre-tax household income of $37,112; a third of them have incomes of $50,000 or more.

The Insecure

The Insecure, for whom being financially secure is a major concern, are most interested in receiving special travel discounts for people over 50. This segment feels that the best years of their lives are over and that they have become less attractive with age. The Insecure have a median of $11,001. Only 10 percent of them have incomes of $50,000 or more.

The Threatened Actives

The Threatened Actives accept themselves as they are and have a generally positive outlook on life, although they are concerned about being crime victims. Only the Threatened Actives prefer to shop where they can get age-related discounts. The Threatened Actives agree at a low level that they are secure about their financial future. The Threatened Actives have a median income of $19,491; one in five has an income of $50,000 or more.

The Financial Positives

The financially secure Financial Positives consider themselves to be very successful people who are ready to enjoy life. Only this segment is positive toward the idea of living in a retirement community. When shopping, the Financial Positives look for value. This segment believes it is important to look as young as possible. Feeling less sexy than before, the Financial Positives are the segment most likely to be open to plastic surgery as a way to look younger.

The wealthiest of the four Self segments, the Financial Positives have a median annual pre-tax household income of $37,222. Of those in this segment, 32 percent have annual incomes of $50,000 or more.

Financial Positives seek youth through cosmetics

An example which illustrates the attitudinal differences between the Upbeat Enjoyers and Financial Positives and the danger of relying solely on demographics lies in their use of cosmetics.

The Upbeat Enjoyers and Financial Positives are both affluent segments, but they differ significantly in their consumption of these products. When asked about their use of 16 skin and hair products and cosmetics, the Financial Positives consistently revealed themselves to be overconsumers in these categories.

Although their incomes would allow them to purchase such products, the affluent Upbeat Enjoyers believe that they have become more attractive with age and are 'sexier than ever.' Changing their appearance through the use of rejuvenating creams is of far less interest to them than to the Financial Positives. The Financial Positives, in contrast, want to look younger.

When it comes to rejuvenating products, half of the Financial Positives (50 percent) use a moisturizer regularly. In contrast, 38 percent of the Upbeat Enjoyers, slightly less than the mature population (39 percent), use a moisturizer regularly.

Our study shows that compared to those over 50 (22 percent) more Financial Positives (27 percent) spend 11 hours or more a week reading newspapers.

In contrast, fewer Insecure (17 percent) and Upbeat Enjoyers (21 percent) spend that much time each week reading newspapers. For optimum reach, these ads should be placed near a personal advice column, a newspaper feature which is read by more Financial Positives than the other segments. More Financial Positives (35 percent), as compared to the over-50 population (32 percent), are also reading newspaper advertising.

Advertisements in newspapers, this segment's preferred medium, will bring them to department stores to purchase cosmetics. And these products could very well be new ones; the Financial Positives display a low-level of brand loyalty toward this category.

Far more Financial Positives (53 percent) make five or more visits to a department store in a four-week time span as compared to the population over 50 (32 percent). A more telling comparison is that only 36 percent of the Upbeat Enjoyers, the other affluent segment, make this number of department store visits.

The Health segments

Our study found four Health segments: the Proactives (40 percent), the Faithful Patients (22 percent), the Optimists (20 percent), and the Disillusioned (18 percent).

In identifying the needs and attitudes of those over 50 toward health-related trends and issues, we asked our respondents to sort 50 attitude statements regarding drug use, illness, doctors and hospitals, and healthy eating and exercise. The statements included: 'At this time of my life, I don't think I can do any more than I am doing to stay healthy' and 'I think it is important for older people to have their hearing checked occasionally.'

The Proactives

Committed to exercise and good nutrition, the Proactives, who trust their doctors, are also careful to take an entire prescription. The Proactives seek out 'a great deal of information about how to stay in good health.' Those in this segment believe they currently have adequate medical insurance.
With a median annual pre-tax household income of $27,404, the Proactives have the second lowest income of the four Health segments. One-quarter of the Proactives have annual incomes of $50,000 or more.

The Faithful Patients

Although the Faithful Patients are aware that they should eat well and exercise to stay healthy, they do not believe they are doing so. Instead, they rely on doctors and medications.
The Faithful Patients have a median annual pre-tax income of $32,333, only about $100 less than that of the Optimists. Among the Health segments, more Faithful Patients (29 percent) have incomes of $50,000 or more.

The Optimists

The Optimists, who feel that they almost never get sick, take medicine only when it is absolutely necessary. The Optimists feel quite strongly that the U.S. does not need guaranteed health care, and only they don't believe that HMOs are a good idea.

The wealthiest of the four Health segments, the Optimists have a median annual pre-tax household income of $32,430. Twenty-six percent of those in this segment have incomes of $50,000 or more.

The Disillusioned

The Disillusioned, who strongly believe that their insurance is inadequate, are adamant that the U.S. should have guaranteed health care. The Disillusioned are the least trusting of doctors. They actively seek out information about how to stay healthy and are careful to eat a balanced diet. The Disillusioned are the poorest of the Health segments with a median annual pre-tax household income of under $10,000. Only 11 percent have median incomes of $50,000 or more.

Reaching Faithful Patients through direct mail

The Faithful Patients are by far overconsumers of both pharmaceutical and over-the-counter (OTC) drugs, as well as physician visits. Although the same percentage of Faithful Patients, Optimists, and Proactives had made a purchase through direct mail over the last three months, the amount spent by the Faithful Patients ($100.67) is far above average. Those over 50 had spent a median of $59.83 in purchases over the past three months through direct mail. The Proactives ($57.60) and Optimists ($55.20) had spent below this average.

Faithful Patients (32 percent) who take three or more prescription drugs daily as compared to the population over 50 (24 percent) are prime targets for sellers of pharmaceuticals through mail order.
If these companies offer the value-added services desired by Faithful Patients, they could move beyond competing solely on price, successfully differentiate their offerings, and have a profitable, high-volume customer for life.

According to our study, greater numbers of Faithful Patients will be reached by placing advertisements for direct mail pharmaceuticals on network or cable television as opposed to magazines. And Faithful Patients can clearly afford to pay for the pharmaceuticals they rely on.

The Food segments

Our Marketer® proprietary segmentation system discovered three food segments: the Nutrition Concerned (46 percent), the Fast & Healthy (38 percent), and the Traditional Couponers (16 percent).
In identifying the needs and attitudes of those over 50 toward food trends and issues, we asked our respondents to sort 50 attitude statements regarding food and eating. The statements included: 'I'm willing to pay more for easy-to-prepare foods,' 'I am trying to cut down on the amount of salt I consume,' and 'Eating at restaurants is too expensive.'

The Nutrition Concerned

Eating regular meals and not skipping meals is of great importance to only the Nutrition Concerned, who believe that how you feel is influenced by what you eat. More than the other two Food segments, they admit that they are swayed by advertising.

The Nutrition Concerned have a median annual pre-tax household income of $34,308, the highest of the three Food segments. Almost a third of the Nutrition Concerned have incomes of $50,000 or more.

The Fast & Healthy

Only the Fast & Healthy are interested in foods packaged for the microwave and in individual or smaller servings. The Fast & Healthy are trying to eat foods that are good for them. Only they prefer meeting friends at a restaurant rather than at home. The Fast & Healthy's median annual pre-tax household income of $30,759 is the lowest of the three Food segments. Still, 26 percent have incomes of $50,000 or more.

The Traditional Couponer

Only the Traditional Couponers are using more coupons for discounts and increasing their reliance on favorite brands. With little interest in healthy eating, the Traditional Couponers are using more convenience foods and cooking fewer meals. They favor restaurants which offer special discounts to people over a certain age.

The Traditional Couponers have a median annual pre-tax household income of $34,119, only about $200 less than the Nutrition Concerned. In this segment, 24 percent have annual incomes of $50,000 or more.
Companies which produce, distribute, and market foodstuffs should consider how each of the 50+ Food segments represents both a current trend and a future opportunity.

For example, restaurant chains in the casual dining category should look to the Fast & Healthy as a prime target. While only 57 percent of the Nutrition Concerned have eaten at such a restaurant once or more over the past month, 69 percent of the Fast & Healthy have done so. Over a year's time, the Fast & Healthy eat 19 meals at such restaurants.

While the Fast & Healthy favor meals which make some concessions to healthful eating, they would gravitate to a particular restaurant if it fosters socializing. The Fast & Healthy, after all, prefer to meet friends at a restaurant rather than cook at home.

The examples that I've presented from our 50+ study illustrate the possibilities offered by a segmentation based on attitudes, needs, and beliefs. Fusing demographics, behaviors, and media usage to such a segmentation creates the direction necessary for integrated marketing to a difficult-to-reach consumer group. This approach to the mature market, or to any market, unifies product development, marketing and advertising efforts, sales, and customer satisfaction.