Final answer:
Using age as a basis for segmentation is inaccurate because buying behavior varies widely within age groups. This method overlooks the individual income levels and life stages, which are important factors for marketing. Also, there are indeed promotional strategies targetting older people, countering the stereotype that marketing is exclusively for the young.
Step-by-step explanation:
The problem with using age as a basis for segmentation is that it can lead to inaccurate marketing strategies. This is because buying behavior varies greatly even within the same age demographic. Saying that wealthy people are always older is a stereotype and not accurate. Also, young people may indeed have disposable income, especially in today's diverse economy where individuals of various ages can have significant income levels. Furthermore, while income can be a useful segmentation variable, it is not always better than age, because different products and services are targeted at different life stages.
Lastly, there are many successful promotional strategies for older people, debunking the myth that marketing is only for the young. Considering demographic changes, such as the growing elderly population in low-income countries by about 2050 and the differences in economic institutions and industry structure, it is clear that segmentation based solely on age can be problematic for businesses seeking to effectively reach their target audience.