Marketing to Hispanic Renters Online

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Toti Cadavid of Xcelente Marketing presented to the Apartment Internet Marketing Conference 2009 (www.aimconf.com) on the topic "Marketing to Hispanic Renters Online." Session was moderated by …

Toti Cadavid of Xcelente Marketing presented to the Apartment Internet Marketing Conference 2009 (www.aimconf.com) on the topic "Marketing to Hispanic Renters Online." Session was moderated by Dennis Smillie of Multifamily Solutions, Inc.

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  • Thank you Dennis. It is so exciting to be here today and welcome you to our great city. I hope many of you get a chance to stay through the weekend and experience all the wonders this city and state has to offer, I promise you will fall in love with it like I and several other millions of people have. Before we begin with today’s presentation allow me to thank our moderator Dennis Smiley as well as Myriam Quinones, one of our team members from Xcelente, for their guidance and insights, and help with the development of what we think is a great presentation we have prepared for you today. We have a lot to cover, in a short period of time, but we really did not want to take any of this information off, so I will go a little fast , but will provide you with 15 minutes at the end for questions.

Transcript

  • 1. Marketing to Hispanic Renters Online Where good is not enough! April, 30 th 2009
  • 2.
    • Why is the Hispanic market important?
    • Characteristics of your Latino renter?
    • How do you market to online Latinos?
    • How to retain Latinos and avoid mistakes?
    Marketing to Hispanic Renters Online “ Hispanics will account for 55 percent of the growth in minority renter households between 2005 and 2015, increasing by 1.9 million and more than offsetting the 1.6 million drop in white renters.” George S. Masnick and Eric S. Belsky Joint Center for Housing Studies of Harvard University
  • 3. Why is the Hispanic market important? Because of the Latino Demographics in the U.S.: "There are between 45 and 55 million Latinos in the U.S. When you think about that, that's the size of the population of Spain. It's a big market!“ Brad Alford, Chairman and CEO of Nestle USA
  • 4. Because the Latino Population is growing at higher rates: Why is the Hispanic market important?
  • 5. Sources: U.S. Census Bureau, 1970, 1980, 1990, and 2000 Decennial Censuses; Population Projections, July 1, 2010 to July 1, 2050 Population in millions Why is the Hispanic market important? Because it is going to keep growing: Projections Census Hispanics have accounted for more than half (50.5%) of the overall population growth in the United States in this decade, a significant new demographic milestone for the nation's largest minority group. Hispanic Population Forecast in US: 1980- 2020
  • 6. Why is the Hispanic market important? Because we know where they prefer to live: Source: Arbitron Universe Estimates / PEW: The New Latino South
  • 7. Why is the Hispanic market important? Because Latinos face Homeownership barriers Income Distribution Sources: U.S. Census Bureau, 2006 American Community Survey
    • Most single family housing developments are out of reach to low income families
    • Many have problems getting their homeownership applications approved , one-in-ten Latino renters say a home loan application has been denied
    • Latino Families often work two or three jobs in order to pay rent, feed their children, as these are their priorities
    • Undocumented Latinos are unable to qualify for bank loans
  • 8. Why is the Hispanic market important? Because the Hispanic market’s buying power keeps increasing: Median White Household Income $38,679 Median Hispanic Household Income Sources: The Hispanic Market in the U.S: A Generational View/ USA Census Bureau Income Poverty in the USA 2007, Economic and Statistics Administration $980 Billion $54,920 Hispanic Income Buying Power Hispanic income as % of the U.S. income Average
  • 9. Because the foreclosure rate is higher on main Hispanic markets: Why is the Hispanic market important? Percent of housing units under foreclosure 2008 Source: Foreclousure.com; US Census Bureau 2000, map by Jeff Herlitz NV CO NM CA FL IL UT ID
  • 10. Why is the Hispanic market important? Because Latinos are a younger and growing population:
    • Over 80 percent of all households aged 25 or under are renters , along with two thirds of those aged 25 to 29.
    • Hispanic Teen population in 2005 grew by 30%, Non-Hispanic Teen population grew by only 8%
    • In USA 6 out of 10 children under the age of 5 are Hispanic
    • Examples:
      • In Los Angeles 60% of births are Latinos
      • In El Paso 85% of births are Latinos
    Sources: U.S. Census Bureau, 2006 American Community Survey / The Joint Center For Housing Studies of Harvard University 2005 / PEW: Latinos Online 2007 Hispanics Age Distribution
  • 11. Why is the Hispanic market important? Because Latinos are Ideal Renters: (Cont) Hispanics exhibit a high degree of brand loyalty . They stick with familiar products and need compelling reasons to justify making a change . Sources: CasaLatino.com Brand Loyalty Among Consumer Groups
  • 12.
    • Why is the Hispanic market important?
    • Characteristics of your Latino renters?
    • How do you market to online Latinos?
    • How to retain Latinos and avoid mistakes?
    Marketing to Hispanic Renters Online “ One of the biggest mistakes that companies make is assuming that these consumers are one monolith." Jennifer Tescher, Director of the Center for Financial Services Innovations
  • 13. Misconceptions and Stereotypes
    • Misconceptions and stereotypes
    • All Hispanics speak Spanish
    • All Hispanics are not well educated
    • All forms of communication in Spanish are the same
    • All Hispanic foods are the same
    • Hispanics are poor
  • 14.
      • Acquire a second culture in addition to 1 st culture
      • Closely tied to cultural identities
      • Highly individual and unique experience
      • Enlarged “Cultural Inventory”
    Characteristics of your Latino Renters: What influences Latinos decision making process? Hispanics: A people in Motion, evolution, and constant change
      • Process of abandoning 1 st culture for 2 nd
      • Stronger ties and identification to new culture
      • “ Cultural Inventory” remains static
    “ The very presence of new immigrant populations means the existence of new social and cultural boundaries.” Professor Nestor Rodriguez, University of Houston Sociology Level of Acculturation:
      • Level of Assimilation:
  • 15. Characteristics of your Latino Renters: Segmentation Proposed Approach Traditional Acculturated / Bicultural Assimilated Culturally Unique 25% of Population 66% of Population 9% of Population Part of B & C 0-10 years in U.S. 10+ years in U.S, or born in USA 2 nd and 3 rd generation 2 nd , 3 rd , 4 th , generations Spanish Spanish / English English/Spanish English Full Latinos Bi-cultural Anglo culture stronger, emotional attachment to Latin culture Anglo with strong Latin roots Blue Collar Blue Collar / Grey Collar/White Collar Grey Collar / White Collar Neuyoricans
  • 16. Characteristics of your Latino Renters: Marketing to New Hispanic Tier Renters Target Segment A Target Segment B Target Segment C Low Income Spanish Speaking - Foreign Latinos Low Income English Speaking US Latinos Medium Income Fully Bilingual US/Foreign Latinos Income 50K or less 50K or less 50K or plus Age 22- 57 17-27 27 - 37 Country of Origin Mostly Mexicans, Salvadorians, Guatemalans, Dominicans, Hondurans, Ecuadorians and Peruvians Mostly descendants of Mexicans, Dominicans, Puerto Ricans, Guatemalans, Nicaraguans, Colombians Mostly Cubans, Puerto Ricans Venezuelans, Colombians, Argentineans, Panamanians Language Spanish Spanish / English English / Spanish Education Less Educated Some Education Young Professionals Acculturation Not fully Acculturated Fully Acculturated Not Fully Acculturated Assimilation Low Fully Medium to High Internet Not Internet Savvy Internet Basics Very Internet Savvy
  • 17. = Tier 1 = Tier 2 = Tier 3 Characteristics of your Latino Renters: Tier Distribution
  • 18. Characteristics of your Latino Renters: Center for Housing Studies of Harvard University found that: Sources: The Joint Center For Housing Studies of Harvard University 2005
  • 19. Characteristics of your Latino Renters: Find out what is the background of your Latino renter? Nationality/Descendants Language Proficiency Language of Preference Segmentation Acculturation Level Income Level
  • 20.
    • Hispanics have larger families on average, with 3.5 children, compared to 2.5 in the general population
    • They like social gatherings , the clubhouse can also be heavily used by them
    • Culturally, they are excellent communicators , and need to keep in touch with one another
    Characteristics of your Latino Renters: Latino Renters Profile:
  • 21. Marketing to Hispanic Renters Online “ To reach Hispanic Consumers online, marketers must take a more nuanced approach, going beyond language preference to target niches within this demographic." Mike Shields from Mediaweek
    • Why is the Hispanic market important?
    • Characteristics of your Latino renters?
    • How do you market to online Latinos?
    • How to retain Latinos and avoid mistakes?
  • 22. How do you market to Latinos online? Online Marketing Process
      • Market Research
      • Competitors Analysis
      • Online Market Awareness
  • 23. How do you market to Latinos online? Sources: PEW Latinos Online 2007 56% of US Hispanics are Online Online Hispanics Age Distribution Online Hispanics Income Discover the profile of the Hispanic segments that are online:
  • 24.
    • 89% of Latinos who have a college degree , 70% of Latinos who completed high school , and 31% of Latinos who did not complete high school go online.
    • 78% of Latinos are English-dominant and 76% are bilingual , compared with 32% of Spanish-dominant Hispanic adults.
    • 76% of U.S.-born Latinos go online, compared with 43% of those born outside the U.S .
    • 52% of Latinos of Mexican descent use the internet .
    • 80% of second-generation Latinos (the sons and daughters of immigrants), and 71% of third-generation Latinos go online
    How do you market to Latinos online? Sources: Forrester Research, 2007 Discover the profile of the Hispanic segments that are online:
  • 25. How do you market to Latinos online? Online Hispanics by Country of Origin Sources: PEW Latinos Online 2007 Discover the profile of the Hispanic segments that are online:
  • 26. How do you market to Latinos online? Sources: Engage Hispanics: Social Media Marketing Is A Multicultural World Discover the profile of the Hispanic segments that are online:
  • 27. How do you market to Latinos online? Online Marketing Process
      • Market Research
      • Competitors Analysis
      • Online Market Awareness
      • Planning content/design
      • Messaging Development
      • Web Design
      • Quality Assurance
  • 28. How do you market to Latinos online?
    • In-Language
    • In-culture look and feel
    • In-culture messaging
    • Access to Spanish site
    • Hispanic URL strategy
    • Comparability to general market site
    • Interactive features and functionality
    • Integrated Hispanic operations
    • 9. Marketing
    Planning for content and design:
  • 29. How do you market to Latinos online? Website design: Think of a vibrant culture
    • Hispanics respond better to:
    • Warmer colors (favoritism for orange+blue or red+orange combinations that will stand out)
    • Simple fonts (fonts like Arial, Verdana and Helvetica are the most common)
    • Clean, organized, fun and interactive (reflecting an in-motion and vivid culture)
  • 30. How do you market to Latinos online?
    • Emphasis on family values associated with family ties and the well-being of the family
    • Family members generally prefer to live in close proximity to one another
    • Larger families include children and a grandparents
    • Hispanics enjoy entertainment as a multi-generational extended family
    • Make it culturally relevant – Messages written for Mexican Hispanics will not resonate well in the Cuban community
    • Security and safety of family members is important
    Messaging development: Keeping culture in mind Fundamental to an understanding of the Hispanic rental market is an awareness of the ingrained cultural values, attitudes, and motivations
  • 31. How do you market to Latinos online? Online Marketing Process
      • Market Research
      • Competitors Analysis
      • Online Market Awareness
      • Planning
      • Messaging Development
      • Web Design
      • Quality Assurance
      • Search Engine Marketing
      • Social Marketing
      • Video Marketing
  • 32. How do you market to Latinos online? Where to advertise online:
  • 33. How do you market to Latinos online? Popular Social Online Networking Sites:
  • 34.
    • Advertisements i n Spanish language are five times more effective in attracting this market segment
    • Availability of fully Spanish website where Hispanics can search for apartments are very limited: www.pezgrande.com
      • Consider modifying your standard apartment guide copy to include a few brief sentences or a short paragraph in Spanish
    • If having a website in Spanish, go beyond the usual information to mention facts of importance to Latino renters :
      • Culturally relevant information: Advantages to living in the specific area, addressing Hispanics needs
      • Provide the support necessary for financing
      • Contracts in Spanish
      • Service guarantee
    How do you market to Latinos online? Finding effective online resources:
  • 35. How do you market to Latinos online? Online Marketing Process
      • Market Research
      • Competitors Analysis
      • Online Market Awareness
      • Planning
      • Messaging Development
      • Web Design
      • Quality Assurance
      • Search Engine Marketing
      • Social Marketing
      • Video Marketing
      • Traffic Analysis
      • Customer Behavior
      • Usability & Accessibility Testing
      • Conversion Reports
  • 36. How do you market to Latinos online? Website Optimization and Positioning
    • Key questions to ask yourself:
    • How do you know your Web site is performing correctly?
    • Is it meeting customer expectations?
    • Is it meeting your sales targets?
    • Is it presenting your product and services in the best possible light?
    • What is the major source of complaints for online customers?
    • Recent researches show that currently 99.9% of the websites are obsolete.
  • 37. Marketing to Hispanic Renters Online "Any opportunity to improve customer service and resident relations, whether doing bilingual fliers for resident events or by sending a resident manager to survival Spanish classes, is worthwhile." Lesley Brice, Asset Manager of MC Management
    • Why is the Hispanic market important?
    • Characteristics of your Latino renters?
    • How do you market to online Latinos?
    • How to retain Latinos and avoid mistakes?
  • 38.
    • By ingraining Latino cultural values, attitudes, and motivations into the everyday design of your property and celebrations
      • By making sure that your Latino renters have established a network of friends, so that he/she is not inclined to consider moving elsewhere.
      • Offer 24-hour maintenance service, giving great customer services is key
    How to retain Latinos and avoid mistakes?
      • Design way to make property residents feel they have a strong sense of community
      • Entice current residents to bring new ones via a an effective word-of-mouth reward system
      • Incorporate A ppealing features in your apartment communities, such as: light interior colors, balconies large enough to hold a number of planters, ceramic tile flooring, ceiling fans, and views of landscaped green areas
    By creating a culturally appropriate environment:
  • 39.
    • Why culturally relevant?
    How to retain Latinos and avoid mistakes? Find specialized support to avoid expensive mistakes: Tecate’s “Cold Latina” Campaign: This example illustrates the importance of truly understanding Hispanic culture before advertising to reach this demographic. Critics felt “the ad propagates negative stereotypes of Hispanic women as being loose and overly sexual” Burger King’s “ Texican Whopper” Campaign: Mexico has strict laws prohibiting the defamation of the flag and this advertisement denigrates the image of their country.
  • 40.
    • Is trans-creation really needed?
    • Hershey’s “Hispanic Milk Candy” Campaign:
    • There wouldn’t be an issue if the product was being marketed in Mexico, where the word “cajeta” has the G-rated meaning of milk candy (loosely translated). Unfortunately for Hershey’s, in parts of Latin America “cajeta” is also a derogatory slang term for a part of the female anatomy.
    How to retain Latinos and avoid mistakes? Find specialized support to avoid expensive mistakes:
    • VW “Turbo-Cojones” Campaign:
      • Billboards for the 2006 GTI with the text “Turbo-Cojones” received objections, and VW went ahead and pulled it out.
  • 41. іі Gracias!! QUESTIONS?