Why the Timeshare Industry Must Change Its Frame of Reference Regarding Baby Boomers and Older Consumers --by James J. Gilmartin The Crisis of Faulty Paradigms A crisis is building in the timeshare industry, and many marketing and sales professionals do not know it. The price of their ignorance could be significant. Their inability to effectively market, sell and render quality customer services to baby boomer and older consumers (maturing consumers), may significantly affect the bottom line. The spoils will go to those who perceive the crises, understand the changing behavior of the markets, and outsell and service their competitors. Clearly, at 72 million strong, and growing at a rate of approximately 12,000 a day, the maturing consumer is today's target population, and, more so, tomorrow's. Maturing consumers are smarter than many timeshare marketers think they are, and they are willing to take their business elsewhere. Marketers seem to know that effective marketing, sales and service is essential for business, and for survival in a highly competitive industry. Nevertheless, paradoxically, timeshare marketing and sales approaches may be getting worse for the largest segment (estimated at 60 to 80 percent) of the timeshare consumer markets. There is great lip-service, as is seen in many annual reports, and the revered wisdom of consultants supports the need for quantum leaps in tried and true approaches to acquiring and retaining these populations. Yet, many rarely succeed in marketing and product sale improvement and delivering outstanding services to this significant share of their total market. And, often, rarely try. The penalty is growing for those uninformed marketers that fail to better understand these growing and affluent consumers. David Wolfe, noted author and lecturer on marketing to maturing consumers writes "Consumers as individuals have largely been passive players in the evolution of products. Companies have generally decided what consumer's want. Researchers assist companies in this task by creating statistical representations of consumers. Data on individual consumers is homogenized in profiles of "average" consumers. This dehumanizes consumers and inhibits marketers' ability to make empathetic connections with them. It makes claims of being 'customer-driven' at least marginally fraudulent because statistics rather than real consumers have driven marketing processes." (Introduction to Marketing in the Age of Unreason (unpublished) Copyright 1988, David B. Wolfe, Reston VA.) To provide marketers with some insights into changing and aging markets, we have developed a "Quiz" to test your level of knowledge of who maturing consumers are, how they think and how their purchasing behavior changes over time. The results of the quiz will provide you with some insights and perhaps motivate you to learn more about these lucrative markets. Wolfe goes on to say "The foundation of [this approach to marketing and selling to maturing consumers] is a new model of the root motivations that underlie behavior. The model draws on recent discoveries in brain science. One of those discoveries is that none of us can do any more than speculate as to our root motivations. Like engines powering a great ship, the motivations that power our behavior operate from deep within our psyches, remaining inaccessible in any direct sense from the "on deck" location of the Executive Officer, our conscious selves." (Introduction to Marketing in the Age of Unreason (unpublished) Copyright 1988, David B. Wolfe, Reston VA.) KNOWLEDGE, PERCEPTIONS MYTHS AND FACTS ON AGING QUIZ The purpose of this quiz is to help you to determine your level of knowledge, perceptions and beliefs about Maturing Consumers (baby boomer and older consumers). There is typically a direct correlation between your level of knowledge of these segments of your markets and the level of success of your marketing and sales efforts. Please consider the terms "older," "Mature," and "Aged" to mean a person 50 years of age or older unless a specific age is referred to in the question. The answers are at the bottom of this page. 1. Maturing consumers 50 and over represent approximately what number of the total U.S. population?     _____14 Million _____33 Million _____50 Million _____65 Million 2. Maturing consumers 50 and over will represent approximately what number of the total U.S. population by the year 2000?     _____30 Million _____50 Million _____80 Million _____100 Million 3. Over the next ten years the 50 and over population will grow by approximately:     _____10% _____25% _____35% _____50% 4. Over the next ten years the under 50 population will grow by approximately:     _____1% _____5% _____10% _____20% 5. People under 50 care more about others, while people over 50 care more about themselves.     _____True _____False 6. Mental confusion is an inevitable consequence of old age.     _____True _____False 7. As your body changes with age, so does your personality.     _____True _____False 8. It is difficult for the average maturing consumer to learn something new.     _____True _____False 9. In general, maturing consumers are alike.     _____True _____False 10. It is best not to look directly at older customers when you are talking to them.     _____True _____False 11. The best way to sell to a mature adult over 50 is to attempt to instill a sense of urgency in the purchase decision process.     _____True _____False 12. In the marketplace, price is generally more important than service to maturing consumers.     _____True _____False 13. In general, maturing consumers tend to buy products and services that reflect positively on how they are viewed by others.     _____True _____False 14. When marketing to maturing consumers, it is better to define the product/service in absolute terms.     _____True _____False 15. Maturing consumer satisfaction rests on:     1.     Functional expectations (Is the product/service perception greater than the expectation. Does the product/service deliver like it should?)     2.     Social reinforcement expectations (Will the purchase make me "look good"?)     3.     Consequential experiences expectations (Will the purchase help make possible the experience they desire?)     4.     All of the above     5.     None of the above 16. The older person has more self-gratifying interests, while the younger person wants to do more for others.     _____True _____False 17. Pricing strategies for discretionary purchases should be based on the mature adult's tendencies to judge the value of a product or service on its ability to fulfill the desire for experiences made possible by the purchase.     _____True _____False 18. Maturing consumers typically develop:     1.     A superior perception of reality     2.     Increased acceptance of self, others and nature     3.     Increased wisdom     4.     Higher capacity for humor     5.     Increased spontaneity     6.     A love of their Rock& Role     7.     All of the above     8.     None of the above 19. Maturing consumers typically develop:     1.     Increased resistance to hyperbole     2.     Increased appreciation for friendships     3.     Increased desire to do for others     4.     Increased sense of fair play     5.     Increased creativity     6.     All of the above     7.     None of the above 20. The physiological and behavioral changes caused by the aging process will demand significantly different marketing and sales approaches than currently practiced by most companies.     _____True _____False 21. Effective sales and service to maturing consumers requires knowledge of:     1.     The product and the business culture     2.     Consumer needs     3.     Consumer motivations     4.     How to start consumer motivations in favor of your product or service purchase     5.     How to retain the consumer     6.     All of the above     7.     None of the above 22. Maturing consumers' final purchase decision is the direct result of the reasoning process     _____True _____False 23. The best way to market or sell to maturing consumers is to appeal to the intellect.     _____True _____False 24. The brain then the preconscious mind and then the conscious mind first process marketing and sales information flows.     _____True _____False 25. What is the basic Root Motivator that drives purchase decisions?     1.     Identity values     2.     Relationship values     3.     Centering values     4.     Adaptation values     5.     Conservation and renewal values     6.     All of the above     7.     None of the above 26. As people age they tend to become more alike.     _____True _____False 27. One of the critical factors involved in different thinking styles between younger and older consumers is the level of emotional response to stimuli.     _____True _____False 28. When developing marketing and sales messages for maturing consumers it is always best to include facts, features and benefits early on in the marketing or sales process.     _____True _____False 29. To focus upon features and benefits in the early stages of a sales presentation is to place emphasis on the least important issues in the maturing consumers mind.     _____True _____False 30. Maturing consumers tend to be more motivated by the capacity of a product /service to serve as a gateway to experiences than by the intrinsic value or generic nature of a product or service.     _____True _____False 31. The more material possessions a mature adult has had the more they become important.     _____True _____False 32. Consistent with the quality desired, maturing consumers tend to place more importance on price when purchasing basics, but in more discretionary-type purchases they tend to place more importance on the potential experience resulting from the purchase.     _____True _____False 33. Discretionary purchase decisions of maturing consumers tend to originate with the more "instinctive" or concrete right brain processes, and concludes with left-brain abstract processes.     _____True _____False 34. Age is the major factor to consider when defining and predicting specific maturing consumer behavior.     _____True _____False Answers: 1 - 65 million; 2 - 80 million; 3 - 50%; 4 - 1%; 5 - False; 6 - False; 7 - False; 8 - False; 9 - False; 10 - False; 11 - False; 12 - False; 13 - True; 14 - False; 15 - 4; 16 - False; 17 - True, 18 - 7, 19 - 6; 20 - True; 21 - 6; 22 - False; 23 - False; 24 - True; 25 - 6; 26 - False; 27 - True; 28 - False; 29 - True; 30 - True; 31 - False; 32 - True; 33 - True; 34 - False

Biographical note: James J. Gilmartin is president of Illinois-based Coming of Age, Incorporated. Since 1991, the full service integrated marketing firm has specialized in helping clients to increase market share and profit in baby boomer and older consumer markets. The firm provides clients marketing communications strategy planning, advertising, public relations, customer loyalty/affinity programs, sales/service improvement training and customer satisfaction improvement programs. The firm helps companies develop and launch successful communications campaigns and sales improvement initiatives for these rapidly growing populations. Jim can be reached at jimgilmartin@comingofage.com. Back to Archive CURRENT NEWS: ALL HEADLINES Timeshare || Financial || Resorts/Casinos || Travel/Leisure NEWS ARCHIVES EMAIL SEARCH HOME To report broken links or other problems with this site please contact: webmaster@thetimesharebeat.com © The Timeshare Beat all rights reserved