Making It in Multicultural Marketing

By Barbara Weltman May 20, 2004
Barbara Weltman Ethnic customers can be your next niche market – if you properly identify whom you are targeting and understand how to approach them. Why do so? The numbers tell it all…

  • The ethnic market as a whole is estimated at $1.2 trillion plus and growing.

  • Asian American households have the highest median incomes – 30% above the rest of the U.S. population. They also have the highest levels of education, with 65% college graduates.

  • Hispanics will be the largest minority in the country by next year. More than one million Hispanics here have an annual income over $75,000.

  • The buying power of African Americans is expected to increase by 30% within the next five years.

    • What market to target

    Depending on your product or service, you may wish to go after a particular ethnic group. Do your market research to know the makeup of your target group. For example, the Hispanic population’s median age is only 25.9, compared with 35.3 for the entire U.S. population, and Hispanic teens outspend non-Hispanic teens by 4%. Even though Hispanics as a whole account for 13% of the U.S. population, advertisers allot only 2.4% of their resources to this group.

    Forget your false assumptions

    Don’t make false assumptions about the market you are trying to reach. Here are some myths that can undermine your efforts…

  • There is one U.S. Hispanic market or one Asian American market. Reality: Culture and even language within each market (one-third of Hispanics in the U.S. speak only English!) must be recognized to be properly addressed – Puerto Ricans are as different from Cubans as Cubans are from Mexicans; Koreans here are as different from Chinese as they are from Vietnamese living here.

  • Ethnic marketing is merely a question of translation. Reality: You can’t simply translate your existing ads into a foreign language and expect them to work. You need to understand both the language and the culture to get your message through.

    • You may need to bring on bilingual staff to service the business you hope to attract.

  • The cost of ethnic marketing is too high. Reality: You can afford this target marketing – and should find the money if you want to grow your business. Certain markets (e.g., Miami for Cubans and Seattle for Asians) virtually demand this attention if you want to stay competitive.

    • How to get started

    Start your ethnic marketing by targeting one group – perhaps one that is well represented in your area.

    Decide how much of your marketing money you want to devote to this activity. Your budget will control the extent of your activities.

    If your dollars are extremely limited, your ethnic marketing may consist solely of a Spanish ad in the Hispanic telephone directory in your area.

    If you have a sizable advertising budget, work with an ad agency proficient in the market you are targeting. For example, use a multi-cultural agency that understands and caters to your target. Your money can be used for campaigns in ethnic newspapers, magazines, radio and television.

    Category: Marketing, Branding, Advertising
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