The Critical Success Factors
for Successful Multicultural Marketing
. . . with an emphasis on the Hispanic market.
Outline
1. A Few Quick 2010 numbers
2. Product Life cycle
3. Acculturation or Lifestyle Stage
4. Right versus Left Brain thinking
5. Communication Style
6. Examples
Latest Numbers
•
Hispanics, Asians and African Americans represent more than 80
percent of American population growth.
•
Hispanics contributed 52 percent of population growth since the
year 2000.
•
Hispanics form 16 percent of the population but nearly 50 percent
of consumer spending growth in 2010.
•
Hispanics plus Asians contributed two-thirds of annual spending
growth in 2010.
•
There are 326 counties where ethnic minorities form the majority
of the population—many of the largest counties in the nation, such
as Los Angeles, New York, Chicago (Cook), and Santa Clara
(Silicon Valley).
•
80 percent of Hispanics are bilingual and about 20 percent are
dependent on either English or Spanish.
Latest Numbers
• 92% of retirees are non-Hispanic and America increasingly depends
on Latino taxpayers.
• Increasing levels of naturalization and second or more generation
Hispanics along with trends in voter registration will result in an
increasingly important electorate - politicians will cater more and more
to Latino interests.
• Due to their younger age, longer life expectancy and robust spending,
acquiring a customer today means that Latinos and Asians are worth
far more than non-Hispanic whites—Asians are worth over $3 million
in consumer spending, Latinos over $2.5 million and Non-Hispanic
whites less than $2.2 million over their life span when acquired today.
Latest Online Numbers
•
The 2010 Latina Shopper Study indicates that 72% of all Latinas
have a high-speed internet connection at home.
•
31% are hard-core “Digitalistas” who prefer to shop online versus instore and/or use the internet to plan their shopping trips and research
products online.
•
These women tend to decide what brands to buy before they go to
the store and seek recommendations from family and friends.
•
Online usage is more prevalent (85%) among more acculturated
Latina shoppers.
•
But nearly 60% of the less acculturated also have high-speed
internet at home.
•
Interestingly, 61% of Digitalistas preferred responding to the survey
in Spanish language. This contrasts greatly to overall availability of
relevant Spanish-language content online and is a call-to-action for
brands, publishers and the online media community at large.
Birth Rates
Birth Rates per 1000 Women, Aged 15-44
28
Hispanic
26
Black
24
22
Asian
20
18
16
White, non Hispanic
14
12
10
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
Population Growth 2000 - 2050
160.0
140.0
137.7
(millions)
120.0
100.0
80.0
Without white immigration
this is a (negative) number
66.9
60.0
40.0
25.5
22.7
20.0
15.4
14.6
Other
White
-
Total
Hispanic
Black
Asian
What Do The Numbers Say?
Where Is Your Customer in
the Product Life Cycle?
NEW
Where Is Your Customer
in the Life Stage and
Acculturation Range?
Product Life Cycle
Acculturation Range
Life Stage
Privacy
(maybe)
AD&D or Burial Insurance
with casket repatriation
Left vs. Right Brain
Left brain
• Intellectual
• Sequential
• Analytical
• Logical
• Accuracy-Driven
Right brain
• Emotional
• Intuitive
• Creative
• Big Picture
• Visionary
It is important to understand that, in general, Latinos are culturally “hard
wired” differently. There is more focus on right brain thinking.
Left vs. Right Brain
•
To reason in English is not the same thing as to reason in Spanish
•
To put it simply, language has an ideological agenda that is likely to be
hidden from view
We incorrectly believe it to be a direct, unedited, unbiased expression of
how the world really is.
But English and all languages are biased!
Spanish is a right brain language, so….
The Spanish language has not favored intellect over emotion. It’s bias,
or thought process, has not favored the left brain over the right brain.
•
•
•
•
This Is a Very Real Cultural Difference
Left vs. Right Brain
He's on top of the situation, in high command, and at
the height of power in having so many people under
him. His influence started to decline, until he fell from
power and became the low man on the totem pole,
at the bottom of the pile.
Language Preference in 20 Situations
• When speaking to answering services
over the phone, I select
• While ordering over the phone from
catalogs, I prefer to speak
• When using an ATM I prefer to use
• I prefer to shop at stores where I can
speak
• When speaking at work, I prefer to
speak
• When speaking at school, I prefer to
speak
• When speaking to my friends, I prefer
speak
• I prefer to listen to the radio in
• I prefer to watch TV in
• When reading newspapers/
magazines I prefer
• When writing my own notes I prefer to
write in
• I prefer to think in
• I prefer to pray in
• At church/temple I prefer to speak
• When speaking at home, I prefer to
speak
• When speaking to children in my
family, I prefer to speak
• When speaking to my spouse/partner,
I prefer to speak
• When speaking to my brothers/sisters,
I prefer to speak
• When speaking to my parents, I prefer
to speak
• When speaking to my grandparents, I
prefer to speak
Cecilia Alvarez, FIU, 2004
English
all the
time
English
most of
the time
English
and
Spanish
equally
Spanish
most of
the time
Spanish
all the
time
Spanish language use
declines as the generation
increases
Cecilia Alvarez, FIU, 2004
Familism
1.
I will be fulfilled as my family
succeeds
2. I value my children’s health above
my own
3. I work hard to give my children the
best education they can get
4. One of the most important goals in
life is to have children
5. Some equality in marriage is good,
but by and large the father ought to
have the main say in family matters
6. Parents should feel responsible for
their children’s happiness
7. In an unhappy marriage, parents
should stay together for their
children’s sake
8. People should consult close
relatives concerning important
decisions
9. Keeping old family recipes is
important
10. Children should be taught about
their family history
11. A person should always support his
uncles or aunts if they are in need
Relatives are more important than
friends
12. No matter what the cost , dealing
with my relatives’ problems comes
first
13. Children should always have the
respect for their parents
14. Children should always have
respect for elderly people
15. Adult children should make
sacrifices to care for their parents
16. Adult children should often seek
their parents’ advice
17. Parents should sacrifice themselves
in order to provide their children with
the best
18. Daughters should live with their
parents until they get married
19. Married children should live close to
their parents to help each other
20. Aging parents should live at home
with their children
Disagree
Neutral
Agree
Strongly
agree
Cultural values are
maintained even as the
generation increases
Cecilia Alvarez, FIU, 2004
Disagree
2
Neutral
Agree
3
4
Strongly
agree
5
There are significant
differences between the
Hispanic and general
market
White
Hispanic
(Average of generations)
Cecilia Alvarez, FIU, 2004
Cultural Communication Style
Main point/conclusion
Supporting Arguments
Hispanic
General
Market
Supporting Arguments
Main point/conclusion
Neither is right nor wrong - they’re just different. Americans expect an
answer upfront followed by supporting arguments. Latin Americans first
give the supporting arguments that lead down to the answer. This is not a
language issue, it’s actually an issue that is strongly influenced by what is
considered a persuasive argument in each region.
Culture and DM
•
The family is always important.
– it’s protecting your family, not financial security, but don’t be
patronizing
•
Free or Gratis is a very powerful word.
– Be Careful
•
Avoid blatant overuse of numbers.
– You want to reach the heart, not the left brain
•
Fear is not a good motivator.
– It is too emotional and relies on left brain thinking. Watch the cultural
no no’s
•
Clear product explanation
– But don’t be afraid of proven DM techniques
Culture and DM
•
Emphasize the 800 number.
– Many Hispanics prefer this order method
•
Outbound TM may be a very viable option.
•
Hispanics are cynical and skeptical.
•
Word of Mouth is very powerful.
•
Hispanics love to be courted.
•
Build Trust
Awkward, perhaps incorrect,
language, takes away from the most
important message, valued customer
Direct
Translations
Why lead with a premium?
Explain product first, persuade
Very small
type
Basic DM rules apply,
emphasize offer
Should be
bilingual
Good Creative
AMEX
“dogs”
Magazine Ad
(very “in culture”)
Culture and DM Offers
You Get All This Free:
• Binder for Cards
• Dividers to organize
• 2 packets, 24 Cards
• Bongo Premium
*And pay only $5.95 for your fist
packet
You Get All This for $5.95
• Binder for Cards
• Dividers to organize
• 3 packets, 36 Cards
• Bongo Premium
•
Here’s how it works
•
Questions? Call 800 xxx
Four Critical Factors For
Successful Hispanic Marketing
1. Product Life cycle
2. Acculturation or Lifestyle Stage
3. Right versus Left Brain thinking
4. Communication Style
¡Gracias y Thank You!
Michael Saray Hispanic Marketing, Inc.
2211 Broadway
New York NY 10024
917 533 7195
Michael@michaelsaray.com