Benefit segmentation

Abstract

The UK currently has about 20 million people who are 50 years old or over. This number is expected to grow to 25 million by 2021. Older people offer new market opportunities, and companies that choose to ignore them will do so at their own peril. Literature indicates that marketers’ existing understanding of older consumers revolves around their personal characteristics, in terms of socioeconomic, demographical and psychographical data. Marketers tend to use personal characteristics as independent variables for segmenting older consumers. For simplicity, marketers also tend to treat older consumers in a similar way to which they treat the rest of the consumer market and differentiate older consumers only in terms of their chronological age. In this article, the author discusses the potential application of benefit segmentation technique for segmenting and targeting older consumers in the UK.