Many fortunes have been made by following the "baby boomer" generation - the post-war avalanche of Americans born between 1946 and 1964 - as it matures. After all, it was this 76 million-strong segment that bought hula hoops and Frisbees in the 1950s, crowded colleges in the 1960s and sent the price of housing soaring in the 1970s and 1980s. And now, as the year 2000 approaches and the oldest baby boomers hit 50, companies across the country are faced with a massive demographic shift forced by the relentless march of time.

To quantify this new reality, the number of adults 35 years old or less will decline a total of 8.3 million between 1990 and 2000, while the number of adults older than 50 will grow by 12.2 million. Fully one-third of the U.S. population will be age 50 or older by 2010, up from one-quarter in 1991, presenting abundant opportunities for alert businesses in every sector that can successfully meet the needs, tastes and concerns of this influential and affluent niche.

According to Rick Adler, founder of The Senior Network, a marketing and research company geared to older consumers: "Simply based on population growth trends, if a product is marketed to the 50-plus audience and maintains its market share, it should increase in sales by 35 to 50 percent in the next 20 years. Conversely, a brand targeted at the zero to 50 age groups will be flat in sales."

"Middle age is where the action is for the next 15 years," confirms Ken Dychtwald Ph.D., chairman and chief executive officer of Age Wave, Inc., a marketing services company focused exclusively on the maturing market. Not only are 76 million baby boomers beginning to move into their 50s, but they have money to spend. According to an Age Wave analysis, by the year 2000, heads of households ages 45-54 will increase their annual expenditures by 36 percent. At the same time, the 65-plus population will probably be close to 40 or 45 million in size.

However, as the mechanics of the aging population pick up steam, "there is a huge peril at viewing this segment as one gray mass," Adler cautions, "and not recognizing the diverse habits of 50-plus consumers." People in their 50s could have young children or grandchildren, for example. They may be in their prime earning years, or have interrupted a career to go back to school or start a business. And they are as likely to be dating as their younger counterparts, perhaps for the first time in decades. As Dychtwald points out, "the traditional linear plan, from birth through adolescence and marriage to death" is no longer accurate.

At the same time, as boomers begin turning 50, there's no indication that they'll expect or accept physical deterioration. This is, after all, the generation of aerobic exercise and "natural" foods ­ a term that will continue to carry weight for this consumer bloc as it matures. "They're not going to sink gracefully into fat old age. They've worked all their lives to improve their appearance," says an executive with the research firm of Yankelovich Clancy Shulman in New York City.

What this means is that companies desirous of courting the growing 50-plus audience must not define it by age or income alone, but instead should segment this diverse market based on a combination of physical, social and psychological factors.

Opportunity Abounds

There is definitely money to be made by paying attention to the needs and concerns of the various segments of the 50-plus audience. Although it is erroneous to assume that baby boomers are homogeneous in their buying patterns, common sense suggests that offering products or services aligned with some basic marketing principles will go a long way to attracting this complex segment:

- Make sure what you offer is perceived as good value for the money. As baby boomers get older, they are making sure that what they buy is priced reasonably. And the existing retired population is faced with getting the most from their fixed incomes. Witness the recent growth in discount stores such as Ross Dress for Less, Home Depot and Wal-Mart.

- Products should be well designed with broad applicability. "The key to success," claims industrial designer Jim Mueller, "is to produce products flexible enough to be useful for older people and those with disabilities as well as the general population, resulting in products with wide appeal."

- Don't assume that 50-plus customers are recalcitrant and brand loyal. According to Rick Adler, "All the studies indicate that mature consumers are as likely, if not more likely, to switch for value."

- Get 50-plus consumers involved in your sales and marketing. Have them sell, do customer service, and provide insights on how best to appeal to this diverse group. Keep in mind that the generation that said "don't trust anyone over 30" is now saying "don't trust anyone under 30" and may very well soon be saying "don't trust anyone under 50."

It's Not Just What You Sell, It's How You Present It

Sell experience, not age. Talk about experiences, not getting older, to attract this audience of individuals who are used to getting what they want and are not interested in growing old gracefully. If your ad touts your product as being specifically designed for older people, it will probably not be well-received. Instead, emphasize that the people who will most benefit from your product are those with "experience in..."

Choose your words carefully. Don't address the 50-plus group by calling it "older" or "senior;" the words "mature" or "prime" are viewed in a much more positive light. Inspire people to buy, rather than trying to scare them into doing so. For example, smart insurance marketers position themselves as selling investments, not just protecting loved ones in case of the death of the main provider.

Use positive role models. "Seniors already know what's wrong with them and don't appreciate being reminded of their limitations," according to Frank Conaway, president of Primelife, a marketing consultancy specializing in the senior market. At the same time, as baby boomers age, they are not buying into the old stereotypes. They want to enjoy their mature years, and live actively and positively while dealing with the challenges of growing older. For this reason, using healthy, active, age-appropriate role models in advertising will help attract both seniors and baby boomers.

Pay attention to the needs of aging customers. Make certain your signs, packaging, marketing materials and nametags are easy to read. Select larger type sizes (12 to 13 points) and simpler type styles, and avoid all uppercase lettering. Make good use of "white" space; copy that is too dense is harder to read. Avoid using subtle color combinations ­ the strongest color contrast is the easiest to see, and that's black and white.

Have your place of business well lighted, inside and out, and keep it adequately heated, with background music toned down. Watch out for shiny surfaces, and minimize outside glare as much as possible. And, if space permits, place a couple of chairs in strategic locations so customers can sit down and rest.

Communicating with the mature niche. Make sure your employees keep in mind the following strategies:

- Be prepared to spend more time with this segment, and don't rush or pressure them, as mature customers are more inclined to put a priority on the atmosphere of the business establishment and the relationships formed there.

- Unless you know your older customers well, show respect by addressing them as Mr. or Mrs., not by their first names.

- If a younger person accompanies an older customer, don't converse with the younger person as if the older customer is not there or is not capable of understanding what you're saying. Above all, do not refer to the older customer in the third person as in "what kind of sandwich would your mother like?"

Choose your media carefully. When targeting any specific market, choose media that reach this audience. The challenge with the 50-plus segment is finding media that speaks to distinctions in lifestyle, stage in life and health status, as opposed to age ranges alone. And don't ignore the Internet. Despite being a new medium marked by constant change and a certain degree of chaos, experts agree that the Internet is here to stay, and the familiarity of baby boomers with computers makes it an increasingly plausible marketing tool.

At each stage of their lives, the needs and desires of the baby boomer generation - likened by demographers to "a pig moving through a python" - have become the predominant concerns of both American business and popular culture. As the nation's dominant age group begins turning 50, companies that understand of the vast implications of this demographic shift and prepare for the new needs of a maturing population are destined to profit.

Treat Them Like Family

Due to the downsizing of local industries and a declining population, Dr. James Cuglewski, a dentist in Parma, Ohio and president of Cuglewski, Timko, Harding and Associates, D.D.S., Inc., found himself competing with other local practitioners for a shrinking - and aging - patient base. His answer? "Treat them like family."

As he explains, "We try to build personal relationships with our clients, and create a feeling of warmth throughout the practice. This includes sending post-appointment cards with the words Œthanks for making our day,' to phoning patients that same night to see if their entire dental experience was a positive one. Those follow-up calls are often made by one of the doctors or our ŒContinuous Care Coordinator,' a senior citizen herself, who people consider to be as much of a confidant as their own grandmother."

Dr. Cuglewski and his staff praise patient cooperation during dental care. The practice schedules appointments three nights a week, has a 24-hour paging service, and makes house calls and nursing-home visits. Dr. Barbara Timko, the newest associate, feels the extra care and attention set this practice apart from others. "And people, especially our seniors, are delighted to talk about their dental care with friends, which has proved a wonderful source of referrals," she adds.

"I was always taught to respect the elderly," says Cuglewski, "who can be lonely and just want someone to talk to. I might spend the majority of a visit simply doing that." In recognition of an aging clientele, his practice is located on the first floor with good wheelchair access and enlarged restrooms, while patient comfort is ensured by having a supply of pillows, blankets, headphones and even sunglasses and teddy bears on hand.

"We try to give everyone a little TLC (tender loving care)," Cuglewski emphasizes. "And all our staff members genuinely like people, so the warmth is never forced or insincere. After all, you can't fool people where that's concerned."

To improve the practice's visibility, a Yellow Pages ad highlights recognition it has received from Cleveland's Better Business Bureau - the first ever given to a dental office. The ad, which features the words "Customer Service Award Winner," has resulted in a 25 percent increase in patients since it began running.

Cuglewski, Timko, Harding and Associates, D.D.S., Inc. has also been nominated for the prestigious Torch Award for Marketplace Ethics, sponsored by the national organization - the Council of Better Business Bureaus.

A final clue to the practice's success is a sign in the staff meeting area: "The answer is YES...What's Your Question?"

Midnite Express
Adept at Carving Out Underserved Niches

Transporting movie props and equipment daily to Mexico City while Harrison Ford is filming "Clear and Present Danger," transferring urgently needed audio and video tapes via satellite from the U.S. to Europe in a matter of hours, shipping 400 pounds of suntan lotion overnight to the Cannes Film Festival for a promotional giveaway, or rushing personal items such as a jogging suit and pizza to movie celebrities in locations around the world are routine jobs for Los Angeles-based Midnite Express.

Starting as an on-board courier service with a small office, a pickup truck and a $10,000 loan in 1983, the company founders quickly narrowed their sights on the entertainment business. As Chief Executive Officer Keith Storey explains, "At that time, the only option to send something to Europe was by air freight - and that took two to four days.

"We recognized that movie studios and record companies, with their tight deadlines and unusual shipping requirements, were being underserviced," he continues. "So we decided to target this niche by offering customized, round-the-clock deliveries - anytime, anywhere." Adds his wife and company president Christine Jerry-Storey, "We never say never; we never say no."

With this aggressive marketing plan, Midnite Express systematically developed from its modest beginnings into an international express company with offices in New York, London, Paris, Hong Kong, San Francisco and Sydney, Australia. With 350 employees and current annual revenues of more than $30 million, its present scope of operations encompasses courier activities, freight forwarding, distribution and fulfillment, and a local messenger service.

One reason for this dramatic growth is that - unlike its larger rivals Federal Express and Airborne Express that use their own planes - Midnite Express relies on agreements with domestic and international airlines that give the company preferential treatment in placing cargo aboard aircraft. As a result, Midnite Express has access to flights every 15 minutes on average, and can make pick-ups after the larger transportation companies have stopped.

Therefore, as long as a plane is flying and there is space on board, Midnite Express packages are on their way any time of the day or night.

On the local side, ground deliveries and pick-ups in Los Angeles can be accomplished within 20 minutes by a fleet of 50 drivers dispersed between areas of the city populated by the entertainment industry.

While the entertainment business currently accounts for 80 percent of the firm's client base, Storey estimates that the split will change to 70/30 during the coming years. This is partially due to the firm tapping new segments such as law firms and high-technology companies. In addition, Midnite Express has its sights on another as-yet-underserviced niche.

According to Storey, "As we look down the road at America's aging population, the demand for medicine and medical services will grow exponentially. We intend to be the number one express service provider to the medical industry by the year 2000, moving everything from nuclear medicine to organs for transplant and urgently needed blood."

It's obvious that Storey is laying careful groundwork for serving this new niche. The firm is establishing a presence at medical trade shows and with physician groups and drug manufacturers, and has already acquired a ground services firm, Medical Express. And, with the same vision and commitment that has made Midnite Express such a phenomenal success with entertainment clients, he concludes by saying "when lives are on the line, you can't afford to make mistakes."

A Profile of Baby Boomers at Mid-Decade

- They are more likely than either younger or older adults to have dependent children at home.

- Despite delayed marriage and high divorce rates, nearly two-thirds are currently married.

- Baby boomers are already in their peak labor force participation years, and in some cases in their top earning years (which are from ages 45 to 54) as well.

- They are less likely than younger adults to change their marital status through divorce or remarriage, and are less likely to change jobs or move.

- More than six million baby boomers are already grandparents, and that number will probably quadruple during the next 10 years.

- Baby boomers, born after World War II, tend to be much more individualistic.

- They are less happy than other adults with the status quo, and are marked by their skepticism and rejection of authority.

- They are notorious for their willingness to buy on credit and forego saving money.

- Baby boomers have less leisure time than other adults, and claim to feel stressed more often.

- When listing their priorities, baby boomers are more likely than others to focus on education.

- They also are more likely than older or younger adults to own a computer.

Utilizing the Mature Talents of Employees

On the employee side of the picture, current research indicates that a sizable number of older workers strongly prefer some type of continued employment under the right conditions. Those conditions include more flexible work arrangements such as part-time positions, consulting, job sharing and working at home.

Fully utilizing older workers' talents may also mean assigning them to jobs that require seasoned judgment and reason as opposed to speed and innovation. Older workers are ideal for the role of mentor or trainer for new employees. They are also good at counseling, long-range planning, arbitration and other work that emphasizes knowledge, a well-developed sense of responsibility and maturity. Older workers can provide a major source of productivity, as well as harmony and stability to the work force. At the same time, they gain a sense of worthiness for themselves.

Businesses are also going to need more older workers to help communicate with a customer base that is becoming older as well, and increasingly demanding of quality service (generally valuing it over price). For example, a home improvement chain located in Florida tries to hire sales workers who are at least 50 years old. They've found that their retiree customers want to talk to someone with a common frame of reference. In the same vein, Home Depot makes a point of hiring older employees who can better relate to mature customers.

Creating a mature-friendly atmosphere and being sensitive to the needs of older customers is bound to pay off in the long term. The mature niche, which today has decades more of life expectancy and is less likely to move out of the area than younger people, represents a solid customer base for many years to come.

Excerpted with permission from Small Business Success magazine, Volume X, produced by Pacific Bell Directory in partnership with the U.S. Small Business Administration and the Partners for Small Business Excellence.