Wednesday, December 14, 2011 | Edited by Daniel Moores
||Marketers Advised to Target Ethnic Preferences
At the risk of stereotyping, new research is emerging to help brands make the most of their multicultural marketing efforts.
Online content preferences for each ethnicity are closely tied to the major drivers of their ethnic identity, according to a new report from Yahoo and Mindshare in participation with Added Value.
Indeed, seven in 10 ethnic minorities say that ethnicity remains a significant part of their identity, the study found.
Among the most important drivers are music for African-Americans; political beliefs for Hispanics; and eating habits for Asians. For some categories, ethnicity does not seem to factor as prominently. Automotive, pharmaceuticals, and travel were three prime examples.
However, there are other categories where it's critical for brands to speak directly to specific ethnic groups.
Sixty-two percent of African-Americans want health and beauty products marketed specifically to them; Hispanics -- 53% -- feel ethnicity matters when it comes to CPG, entertainment and clothing, while 50% of Asian respondents said that ethnicity was important in entertainment marketing.
Ethnic minorities now represent $2.5 trillion in buying power, while that continues to grow on pace with rising populations. In particular, domestic Hispanic and Asian populations have experienced a 43% increase since 2000. The researchers focused on four key major ethnic groups, including Caucasians, African-Americans, Asian/Pacific Islanders and Hispanics.
For those brands that are still uncertain of their multicultural approaches, Yahoo and Mindshare suggest gaining a "true understanding" of the ethnic groups they want to connect with. "Understand what defines them; be in the content they visit; think about the categories that matter to them ethnically," they propose.
In addition, they advise two ways for marketers to speak to ethnicity in their advertising: "Feature diversity in your ads," and "Target specific ethnicities in the categories that matter to them. Avoid stereotypes...Be authentic."
(Source: Online Media Daily, 11/30/11)
||Car Campaigns for All Consumers
By 2016, the multicultural consumer segment will contribute $14 billion to the auto industry. The companies that will win the market are those that understand diverse consumers' beliefs, practices, intentions, consumption patterns and spending capabilities. Multicultural Marketing Resources Inc. asked experts in marketing to African-American, Hispanic, Asian-American, American Muslim and LGBT consumers to share market insights that automakers should consider when targeting these groups.
African-American: Anyone in marketing knows how important relationships are. That's why black and Hispanic urban networks such as churches, beauty salons and barbershops can play a key role.
Custom publications coupled with community events reach multicultural audiences. "Feet on the street" understand the fabric of the community. Hosting beauty salon operators at a luncheon sponsored by a car company or other enterprise and highlighting the multicultural management in the company resonates with that target audience.
Black community newspapers, radio and the Internet are also key vehicles. Affluent black households have grown; there are 2.4 million households with incomes of $75,000 or more.
These account for 45 percent of total black buying power. Companies that offer luxury items, including cars, should know that African-Americans have a propensity for buying high-ticket and high-margin items.
There are nearly 40 million black consumers, approaching 14 percent of the U.S. population. By 2014, this population segment will have more than a trillion dollars in buying power.
As the percentage of black Americans who have college degrees has risen, so has their income. Like the general market, the number of black baby boomers is growing. According to author Aaron W. Smith ("In the Black: Live Faithfully, Prosper Financially") 9 million black boomers are set to retire by 2029. The takeaway is that even in target marketing to African-Americans, there are markets within markets, and one size does not fit all.
-- Lafayette Jones, president, Segmented Marketing Services Inc./Urban Call, SMSi
Cultural Connections Matter
Hispanic: Car companies must understand the role culture plays in how multicultural consumers interact with a brand and shouldn't be afraid of co-creating brand value with their customers.
But they must identify key dominant cultural attributes and influencing factors, which enable them to engage and connect.
This way, it's possible to weave the brand into the cultural fiber of each diverse community in a manner that effectively resonates.
According to Polk, for the first nine months of 2010, Hispanic purchases accounted for 8.7 percent of total U.S. car sales, outpacing the overall U.S. auto market, which grew just 4 percent in the same time period.
An enticing value proposition for Hispanic consumers has been Hyundai's offerings. It adopted a marketing campaign built around protecting consumers financially by allowing them to return their vehicles, without penalties, if they lost their jobs or faced economic hardship.
This marketing message resonates with Hispanics who have larger families and have been faced with a similar circumstance in this down economy.
Other successful messages center on fuel efficiency, comfort, quality and affordability. Companies paying attention to these segments' specific needs have experienced growth.
-- Jose Velez-Silva, partner, director of client services, GlobalWorks Group LLC
Easy Target Marketing
Asian-American: Asian consumers in the U.S. are uniquely attractive for automotive marketers because of a long list of demographic superlatives.
Comprising 5 percent of the U.S. population and both easily and efficiently reachable because of their geographic concentration in just a handful of states and cities, Asians are the fastest-growing racial group in the U.S.; they have the highest level of educational attainment; and they boast the highest median household incomes of all consumers.
In the late 1990s, the automotive industry woke up to such demographic benchmarks, as well as research from a variety of sources that highlighted that Asian-Americans are the most likely of all groups to buy new (versus used) cars, the most likely to spend more on a car, and the most likely to buy luxury brands.
This knowledge has propelled a wide range of Japanese, U.S.-domestic and European car brands to develop Asian-targeted marketing and media programs to compete for share-of-garage. But the market is by no mean oversaturated, and there is plenty of room for new players. Clearly, the sweet spot for the automotive industry lies with the five largest Asian ethnic populations in the U.S. In rank order by national population size, these are the Chinese, Asian Indian, Filipino, Vietnamese, and Korean segments.
-- Saul Gitlin, EVP, strategic services, Kang & Lee Advertising
Motivations in Religion
American Muslim: When zero-financing car promotions began popping up, my American Muslim friends jumped on those offers. Why? For Muslims, there is a religious prohibition on interest. So inadvertently, auto retailers were catering to a unique need of a growing and affluent American Muslim market.
In the U.S., the size and affluence of the local American Muslim market had a purchasing power of $105-plus billion in 2010, and automotive and auto services was the second-highest spending category. This niche market has an above-national-average education level and a very appealing young demographic.
At varying degrees, American Muslims have needs, motivations and behaviors that are faith-driven. In the U.S., companies have just begun targeting this audience, with food, finance and retail sectors taking the lead. Successful American Muslim market strategies range from low-risk targeted Muslim media marketing campaigns, to custom messaging and communication to this audience, to product customizations.
Some key considerations include understanding the diversity (African-American, South Asian, Arab) of the immigrant and native American Muslim dynamic, as well as their geographic fragmentation.
-- Rafi-uddin Shikoh, managing director, DinarStandard
A Welcoming Environment
Gay and Lesbian: Lesbian, gay, bisexual and transgendered consumers, estimated at 5 percent to 10 percent of the total population, have long been a prized target population for marketers, not just because they have higher discretionary income, but more discretionary time.
This bodes well for leisure time products and services such as entertainment and travel, including travel by car, and often translates to a demand for more performance features and luxury comforts from cars. Nearly half of LGBT adults are more likely to consider buying a company's product or service when they receive ads tailored to them. Consistently higher auto sales have been achieved by makes and models known for advertising with LGBT-specific campaigns: Subaru is probably the best example.
But one size doesn't fit all in the marketing scheme. The 2010 census reported more than 900,000 same-sex couples. Sixty percent of these are female couples. Twenty-two percent are raising children.
Seek a deeper connection to the community. LGBT consumers are more likely to consider brands that support values and causes that are important to them. Strategic alliances or sponsorships that support anti-bullying, the environment or gay marriage can help build credibility for a brand among LGBT consumers.
Welcome your LGBT customers. Car dealerships can be seen as fairly macho environments. Gay and lesbian couples need specific messaging that tells them they are welcome and can comfortably shop for a car as a couple.
-- Howard Buford, president and CEO, Prime Access
(Source: The Detroit News, 12/08/11)
||Who Uses Tablets and eReaders the Most?
Asian-Americans Join Hispanics in Early Adoption of Emerging Devices
Asian-Americans are avid users of new devices and are among the first to buy tablets and eReaders. They join U.S. Hispanics on the top rungs of the technology early-adoption ladder.
eMarketer's estimate of U.S. tablet users shows that 14.4% of Asians have used tablets monthly this year, vs. 12.6% of Hispanics and just over 10% of blacks and whites. The gap will narrow as the years pass, but it will take until 2014 for whites in the U.S. to reach the same tablets penetration level as Asian-Americans.
Another study, by the Center for Hispanic Marketing Communication at Florida State University, also found that Asian-Americans have among the highest penetration for both tablets and eReaders. With 14% eReader penetration rate, Asians are about even with Spanish-speaking Hispanics (15%), and a few points behind Hispanics who are primarily English-speaking (20%).
But Asians are on par with Hispanics in possession of tablets, with 17% of both groups reporting ownership.
"U.S. Hispanics and Asian-Americans are very eager to bridge the technological gap and they are proportionately more likely to adopt these devices than non-Hispanic whites," said Felipe Korzenny, Ph.D., who led the Florida University study.
Asians' aspirational intentions for these devices are also high, with 35% saying they plan to have tablets within the next year. Spanish-speaking Hispanics have the highest intention to purchase tablets, at 41%. Non-Hispanic whites have the lowest intention to acquire tablets (22%).
Referring to Asians' high intention to purchase, Korzenny said Asians should be "more interesting targets to marketers because they are much more interested in these products."
Reasons for early adoption among Asian-Americans, who comprise about 6% of the U.S. population, include that they are more educated than average and have higher annual incomes than other minorities. "And those two factors make them more technologically innovative types of people," said Korzenny.
And while it's true this demographic skews young, when Korzenny broke down the data by age, he found out that age makes no difference in emerging-device adoption among Asian-Americans.
(Source: eMarketer, 12/09/11)
Daily Sales Tip: Five Key Attributes of Salespeople
A recent survey of some 5,000 executives, conducted by a joint team at the Sales Executive Council and Marketing Leadership Council, asked the respondents to list 50 key attributes of salespeople in order of importance. Here are the top five:
1. Offers unique and valuable perspectives on the market.
2. Helps me navigate alternatives.
3. Provides ongoing advice or consultation.
4. Helps me avoid potential land mines.
5. Educates me on new issues and outcomes.
Each of these attributes speaks directly to an urgent need of the customer not to buy something, but to learn something. They're looking for salespeople to help them identify new opportunities to cut costs, increase revenue, penetrate new markets and mitigate risks in ways they may not recognize.
The message from the customer is clear: "Challenge me. Teach me something new."
Source: Adapted from The Challenger Sale, by Matthew Dixon and Brent Adamson