LASER MARKETING THE NEW BUZZWORD

The shotgun approach is out – the laser system is in. The latest buzzword in the housing industry is Laser Marketing – the process of very specifically targeting your prospective consumer.

Historically, merchandizing was directed to a very broad range of consumers – almost a “Build it and they will come” philosophy. But a very competitive marketplace and a very discerning consumer has transformed the process to become buyer specific – a laser approach to marketing.

The Adult Lifestyle market is representative of this laser approach. As the consumer became more fragmented in demand for product, design and specification so too has the marketing approach.

The Adult Lifestyle market was often simply defined as pre-retirement and retirement. But today it is several sub markets each defining their needs very specifically and demanding appropriate product response.

The common linkage to this consumer is that they are not just buying a piece of real estate but an entire lifestyle environment. An environment that fits their habits, attitudes and feelings with direct benefits that satisfy a change in living style.
These sub markets have been labeled by the marketing gurus into four distinct age cohorts. The “Go/Go”, “Slow Go”, No Go” and “Out You Go” crowd.

Satisfy Me Now Crowd!
The “Go/Go” crowd, age 45 to 55, is a leading edge baby boomer born in the late 1940’s and grew up during the revolutionary change of the 1950’s and 60’s. This group is at the peak of their earning potential, may have teenage children still at home and is often driven by ego and status. They are into self-actualization (a hang over from the 60’s) and demand immediate gratification. They are just now thinking of moving down and cashing out from that big box in North Toronto or suburbia. Their product demand is somewhat eclectic and they are linked by a common theme – it may be smaller space but it must have all the bells and whistles. This segment has shown up strongly in new waterfront condos or in city loft product. They have also created a new suburban product – the attached bungalow.

No Decision Maker Crowd
The “Slow Go’s” are 55 to 70 years of age and born in the mid 1930’s. They grew up during the Second World War and are very cautious and skeptical. This is a show me, don’t push me consumer. They are still very active adults with the majority still working. “Retirement Communities” are often the antithesis of their housing need – “don’t lock me away in that old age ghetto!” They are also absorbed by an inability to make a decision to move. Often many years in the same home, there is little urgency to move unless self-imposed.
This group is motivated by financial security ahead of asset appreciation. However, they are more likely to spend the “inheritance now” than leave it to the kids.

Their product needs will vary across a broad spectrum – high-rise condo, small suburban bungalow, or townhouse. The common theme seems to be a sense of community or familiar neighbourhood associated with like-minded individuals. Small town Ontario is a direct beneficiary of this market.

Save – Don’t Spend Crowd
The “No Go’s” are the 70 plus crowd, born in the 1920’s or earlier. They grew up during the Great Depression and don’t trust anybody – particularly the Banks! This group are big savers and not just of money. They save everything! My wonderful Mother falls into this sub market. She has six of those self-storage places throughout Southern Ontario. Why? - Because you never know when that old ringer washer may be needed someday. I’m sure there’s a fortune in antiquities buried in U-Store It!

This consumer is driven by financial and personal security. Health issues are becoming more important although the “No Go’s” label is an offensive moniker – as most are more active and lead a healthier lifestyle than my 17-year-old son.
Their product demands are often simplified by the carrying costs per month. Not unlike the first time buyer, basic shelter is essential combined with manageable monthly costs. This is the “stealth wealth” generation whose often hidden mattress money will be transferred over the next decade to their children and grandchildren.

So laser marketing to an Adult Lifestyle consumer has to be very precise. The housing form, price, mix and type must be clearly defined or the developer/builder risks joining that last cohort – “out you go”!

Keep Positive!
PMA Brethour Group
Andrew Brethour
Marketing & Sales Consultant to the New Home Industry
andrewb@pmabrethour.com