Want to tap into the hot senior market? First, you have to learn the nuances of each generation.

By April Y. Pennington

When dealing with older generations, there are some major blunders to avoid: Don’t lump them into one category, and don’t call them seniors, because they certainly don’t feel like seniors. As of March 2002, there were nearly 45 million people in the United States who were 60 and older, according to the U.S. Census Bureau—those numbers are projected to swell to 70.3 million between 2011 and 2030. Combine that with an AARP study revealing people 45 and older spent $2.2 trillion in 2001, and you’ll see that getting to know and understand each segment of this vast and powerful market is essential to successfully reaching them.

Ann A. Fishman, president of market research consulting firm Generational-Targeted Marketing Corp. in New Orleans and adjunct professor at New York University’s Center for Marketing, says the 50-plus market is actually made up of three distinct generations. “What motivates these three generations to buy is very different,” says Fishman.

Every generation is “molded by the world events that occurred during their formative years,” explains Fishman. Living during the Vietnam War, baby boomers (in 2006, the oldest of 77 million baby boomers will reach age 60) are actually a split-personality group—the older ones crave the nostalgic, while the younger wave feels needy. Both feel entitled to the American Dream and, in good times or bad, are willing to spend money on items they want.

The often-overlooked 63 to 80 set—also known as the Silent Generation—mostly boasts financial stability, claims Fishman. This group started the civil rights and women’s movements and is redefining aging today. “They see themselves as younger, are getting plastic surgery and taking Viagra,” asserts Fishman. Focus on “lifestyle changes,” not “aging,” when speaking to them.

Though the GI Generation, aged 80 and up, tends to be thrifty as a result of the Dust Bowl, the Great Depression and World War II, they are living life to the fullest. “They are very brand loyal and want a friend in the business,” says Fishman, who adds that members of this generation prefer to do business face to face so they can chat. They also love to read, so providing literature about your business is a good move.

When marketing to any of these generations, give your product or service a youthful, positive slant, advises Fishman, who hears from boomers who desire not the standard senior-care facility, but to spend their golden years in something more akin to a hippie commune with in-house services like massages or medical services. Present home health care and other services as lifestyle enhancements. And take the meals-on-wheels concept up a notch by offering specialized, gourmet meals for more mature palates.

Finally, Fishman emphasizes the influence younger generations have on older generations. Whether it’s advice on high-tech devices or other products, the older generation relies significantly on younger consumers’ savvy. Discounting any of these generations is a surefire way to not generate business.

April Y. Pennington is a staff writer for Entrepreneur magazine.