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Cultural Differences In Marketing


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Cultural Differences In Marketing

  1. 1. Cultural Differences in Marketing Presented by: Pamela L. Schneider Senior VP, Client Services Director Rick Johnson & Company, Inc.
  2. 2. Topic <ul><li>The topic for this presentation was written up as me presenting four campaigns on one product emphasizing the differences based on ethnicity: Anglo, Native American, African American and Hispanic. </li></ul><ul><li>The new topic for today is me presenting a number of different campaigns (most of them healthcare industry related) along with some words about the Hispanic Consumer market (germane to New Mexico) </li></ul>
  3. 3. Topic <ul><li>Topic Changed for a number of reasons: </li></ul><ul><li>The HCM is an important and viable market in New Mexico – the train left the station </li></ul><ul><li>Market in which you can make great inroads if you want to spend the time, dollars and research </li></ul><ul><li>The Native American market is also important and viable – harder to reach </li></ul><ul><li>The agency includes Native American marketing for Giant Gas and Convenience Stores as well as PNM </li></ul><ul><ul><li>Radio for both clients (Navajo) </li></ul></ul>
  4. 4. It’s About Understanding When <ul><li>Some decisions are based on budget </li></ul><ul><ul><li>Do you have enough dollars to reach the general market audience while also spending to reach the Hispanic, Native American or other audiences </li></ul></ul><ul><ul><li>Should you spend the dollars to reach a narrower audience; when attacking the problem from a more global perspective is warranted </li></ul></ul>
  5. 5. Understanding When <ul><li>Some decisions are based on who you are trying to reach and what the message is – will it translate </li></ul><ul><ul><li>- Are you trying to reach older Hispanic females in need of mammograms? </li></ul></ul><ul><ul><li>- Are you trying to get out a message on immunization to a broad based audience or a specific audience? </li></ul></ul><ul><ul><li>- Are you selling a product or service only to Spanish language dominant persons? </li></ul></ul><ul><ul><li>- Are you attempting to promote a service on diabetes to Native Americans? </li></ul></ul>
  6. 6. Understand Your Audience <ul><li>Research Upfront </li></ul><ul><li>Research Some More </li></ul><ul><li>Know your target audience inside and out </li></ul><ul><li>Know what they want </li></ul><ul><li>Deliver a message with relevance and authenticity </li></ul><ul><li>Deliver in the medium they want and expect </li></ul><ul><li>Deliver in a language they identify with and relate to </li></ul>
  7. 7. Understand Your Audience <ul><li>Can you reach the target audience through other avenues (Public Relations or Internet) or by sending the message to a broader target? </li></ul><ul><li>Do you have to split your marketing dollars in order to reach the Spanish language, Native American or African American audiences? </li></ul><ul><ul><li>Can you reach these audiences by running General Market ads and spots? </li></ul></ul><ul><ul><li>Should you reach these audiences by running General Market ads and spots? </li></ul></ul>
  8. 8. Sample Campaigns <ul><li>Show Television Reel </li></ul><ul><li>English and Spanish spots </li></ul><ul><li>Traffic Safety Bureau </li></ul><ul><li>United Way </li></ul><ul><li>United Blood Services </li></ul><ul><li>St. Joseph Healthcare </li></ul><ul><li>ARCA </li></ul><ul><li>United Way </li></ul><ul><li>San Felipe Casino Hollywood </li></ul>
  9. 9. Broadcast Reel Explanation <ul><li>Traffic Safety Bureau – Same spot, direct lift of English </li></ul><ul><li>United Way – Translation of English Script </li></ul><ul><li>United Blood Services – English TV, Spanish Radio </li></ul><ul><li>St. Joseph Healthcare – English TV only </li></ul><ul><li>ARCA – Spanish Translation of English Script </li></ul><ul><li>United Way – Translation of English Script </li></ul><ul><li>San Felipe Casino Hollywood – English :60 </li></ul><ul><ul><li>- NOTE: Spanish :30 not complete yet </li></ul></ul>
  10. 10. Sample Campaigns – Let’s Begin With… United Blood Services – Phase 1 Let’s begin with an English driven campaign that reaches many ethnicities with a relevant message driven by photography - Campaign is English driven but has a Spanish language component - Be a Hero Campaign
  11. 11. Sample Campaigns – Let’s Begin With… United Blood Services – Phase 1 - Diversity and ethnic touch stones shown through photograph (crowd of people) - Woman on tree stump arms outstretched represents “every person” - Guy on skateboard – younger audience, less corporate looking
  12. 12. Sample Campaigns <ul><li>United Blood Services – Phase 2 </li></ul><ul><li>Campaign depth broadened to encapsulate more people – English only for the U.S. – Spanish language in New Mexico </li></ul><ul><li>Cultural Diversity shown in the photographs </li></ul><ul><li>- Asian waiter, African American at airport, Native American on escalator, </li></ul><ul><li>All age demographics represented in the photographs </li></ul><ul><li>- Mature woman on bench, older man on tractor, kid on vespa, college age students eating </li></ul>
  13. 13. Sample Campaigns <ul><li>United Way – 2002/2003 </li></ul><ul><li>Campaign produced in English and Spanish </li></ul><ul><li>- Television/Radio </li></ul><ul><li>- Print </li></ul><ul><li>- Outdoor </li></ul><ul><li>- Collateral </li></ul><ul><li>All media outlets banded together to promote United Way of Central New Mexico </li></ul><ul><li>#1 UWA in the United States per capita growth for all metropolitan chapters </li></ul>
  14. 14. Sample Campaigns <ul><li>United Way – 2002/2003 </li></ul><ul><li>Reasons for using Spanish language media </li></ul><ul><li>Reach the largest consumer audience possible (business owners, employees, everyday, garden variety consumers) </li></ul><ul><li>Share stories of New Mexican’s with New Mexican’s in order to make a consumer connection </li></ul><ul><li>Raise the funds needed for United Way - Millions </li></ul>
  15. 15. Sample Campaigns United Way of Central New Mexico Print and Outdoor Examples El Hispano – Newspaper Albuquerque Journal/Tribune – English and Spanish Clear Channel Outdoor – English/Spanish
  16. 16. Sample Campaigns <ul><li>United Way of Central New Mexico </li></ul><ul><li>Reasons for using Spanish Language Media </li></ul><ul><li>Leave no audience out of the mix </li></ul><ul><li>Build awareness for the Community Fund with all people </li></ul><ul><li>Let minority audiences know that they can be helped and that they can help – put them in a position of empowerment </li></ul>
  17. 17. Sample Campaigns <ul><li>New Mexico State Tourism </li></ul><ul><li>Print Examples </li></ul><ul><li>gerencia de viajes – Ad (The Spanish Language Travel Management Magazine) </li></ul><ul><li>- Advertorial was New Mexico art and culture so the ad is a museum/culture based ad </li></ul><ul><li>NOTE: The cover of the magazine is the Balloon Fiesta </li></ul><ul><li>gerencia de viajes – Ad </li></ul><ul><li>- Golf is big for group planning – matching advertorial on golf in New Mexico </li></ul>
  18. 18. Sample Campaigns New Mexico State Tourism Print Examples turistampa – Ad (Tourism Industry Magazine for Mexico City) - Ad is about art and culture discussing the natural arts and inspiration that can be found in many forms in our state – local artist
  19. 19. Sample Campaigns <ul><li>New Mexico State Tourism </li></ul><ul><li>Reasons for Using Spanish Language Media </li></ul><ul><li>Targeted audience of Meeting and Convention Planners </li></ul><ul><li>Targeted media – Mexico City Industry Travel Publication </li></ul>
  20. 20. Sample Campaigns Inn of the Mountain Gods Print Examples Campestre Juarez – Ad - Championship Golf Course NORTE de Ciudad Juarez – Ad - Casino Tournament Ad
  21. 21. Sample Campaigns <ul><li>Inn of the Mountain Gods </li></ul><ul><li>Reasons for using Spanish language media: </li></ul><ul><ul><li>- A large portion of the audience base is Spanish speaking </li></ul></ul><ul><ul><li>- Target wealthy, upper class Spanish- enjoy luxuries in life (golf, resorts, shopping and casino gaming) </li></ul></ul><ul><ul><li>- El Paso and Juarez markets reached through print and radio as complimentary media </li></ul></ul>
  22. 22. Sample Campaigns <ul><li>Inn of the Mountain Gods </li></ul><ul><li>Reaching the Target Audience </li></ul><ul><ul><ul><li>- Retail campaign for the casino and golf has already begun with Spanish language only print ads </li></ul></ul></ul><ul><ul><ul><li>- Unusual, normally launch with English first or English and Spanish simultaneously not Spanish first </li></ul></ul></ul>
  23. 23. Sample Campaigns PNM Print/Collateral Examples El Hispano – Call Before you Dig Ad Collateral – PNM Service Brochure Collateral – Budget Billing Brochure
  24. 24. Sample Campaigns <ul><li>PNM </li></ul><ul><li>Reasons for using Spanish Language Media </li></ul><ul><li>Important to touch all segments of the utility audience with these messages </li></ul><ul><li>Messages are relevant to the target (HCM) </li></ul><ul><li>Imparts information that will be used by all segments of the utility audience </li></ul>
  25. 25. Sample Campaigns <ul><li>New Mexico Traffic Safety Bureau </li></ul><ul><li>Print/Collateral Examples </li></ul><ul><li>School Posters – English and Spanish </li></ul><ul><li>Print Ads – Spanish and English </li></ul><ul><li>*Broadcast television and radio produced in Spanish and English for DWI, Underage Drinking and Driving as well as Seat Belt Use </li></ul>
  26. 26. Sample Campaigns <ul><li>New Mexico Traffic Safety Bureau </li></ul><ul><li>Reasons for using Spanish Language Media </li></ul><ul><li>Message is relevant to all consumers in New Mexico </li></ul><ul><li>Localized for use in predominantly Spanish neighborhood papers and schools </li></ul><ul><li>These ads are about family, kids, safety and education which all resonate in the HCM </li></ul>
  27. 27. <ul><li>Let’s Discuss </li></ul><ul><li>The Hispanic Consumer Market </li></ul>
  28. 28. First Things First: Latino or Hispanic? <ul><li>Both are acceptable and most people use them interchangeably </li></ul><ul><li>There are a few differences: </li></ul><ul><ul><li>Latino is more current terminology, more in fashion </li></ul></ul><ul><ul><li>Latino is more inclusive </li></ul></ul><ul><ul><ul><li>Includes Brazilians, who are not Hispanic </li></ul></ul></ul><ul><ul><li>Most Latinos use the term to describe themselves </li></ul></ul>
  29. 29. Why Market to Latinos? The Face of America is Changing!
  30. 30. Hispanic population is growing at 3x the National rate.
  31. 31. Hispanic buying power has increased 30% in last five years. $700 Billion Projected $1 Trillion by 2010 $$
  32. 32. <ul><li>The 3 L’s: </li></ul><ul><ul><li>Large </li></ul></ul><ul><ul><li>Lucrative </li></ul></ul><ul><ul><li>Loyal </li></ul></ul>U.S. Latinos: A Marketer’s Dream
  33. 33. A Large and Growing Population 2000 Census Reveals… <ul><li>Hispanics are the largest and fastest-growing ethnic group in the U.S. Since 1990: </li></ul><ul><ul><li>population grew 58% vs. 13% for non-Latinos </li></ul></ul><ul><li>37 million Latinos now live in the U.S. </li></ul>
  34. 34. U.S. Latino Population is Exploding… Source: Strategy Research Corp. 2002 Latino Population in Millions
  35. 35. By the Year 2020… Source: 2000 U.S. Census One in five U.S. residents will be Latino One in five U.S. residents will be Latino
  36. 36. In Albuquerque…one of every 2.5 Source: 2000 U.S. Census
  37. 37. Top 15 U.S. Latino Markets by Population Source: U.S. Census 2000
  38. 38. Lucrative Potential of the Latino Market
  39. 39. U.S. Latino Buying Power ($ Billions) $208 $289 $452 Source: Selig Center for Economic Growth, Terry College of Business, The University of Georgia, August 2000; July 2002 $630 $926 (proj.)
  40. 40. Fountain of Youth? <ul><li>Latino population is the youngest of all ethnic groups </li></ul><ul><ul><li>Their prime income-earning years are ahead of them </li></ul></ul><ul><ul><li>Opportunity to establish brand preferences now </li></ul></ul><ul><li>Mean age by ethnicity: </li></ul><ul><ul><li>Latino 27.9 </li></ul></ul><ul><ul><li>African American 32.0 </li></ul></ul><ul><ul><li>Asian 32.6 </li></ul></ul><ul><ul><li>White 38.6 </li></ul></ul>Source: U.S. Census 2000
  41. 41. Fountain of Youth? Source: Strategy Resource Corp. 2002
  42. 42. The “Latinization” of America <ul><li>As of 2001, tortillas outsell bagels 2:1 </li></ul><ul><li>Jos é was the number one name for baby boys born in Texas last year, and nationally, José hit #30 </li></ul><ul><li>The hottest food trend is “Latin fusion” </li></ul><ul><li>Salsa sales eclipse ketchup sales by 40% </li></ul><ul><li>The top three surnames for new home buyers in California in 2001 were Hernandez, Fernandez and Gonzalez </li></ul>
  43. 43. Latinos Influence USA <ul><ul><li>The Hispanic presence has enriched USA with food, media, entertainment and culture </li></ul></ul>Source: Yankelovich Hispanic Monitor 2000
  44. 44. Latin Entertainment is ¡ Caliente! (Hot!) <ul><li>Latin music is enjoyed by the masses </li></ul><ul><ul><li>Shakira, Enrique Iglesias, Mark Anthony and Ricky Martin record in both English and Spanish </li></ul></ul><ul><li>Latin award shows are emerging: </li></ul><ul><ul><li>Latin Grammy’s </li></ul></ul><ul><ul><li>Latin Emmy’s </li></ul></ul>
  45. 45. Reaching Latinos Effectively
  46. 46. Language Use and Preferences Source: Strategic Research Corp. 2002 Language most comfortable speaking Language spoken at home Source: Strategy Research Corp. 2002
  47. 47. Reaching Consumers in Spanish Works! <ul><li>Awareness </li></ul><ul><ul><li>Communication in Spanish is 61% more effective at increasing awareness than communication in English </li></ul></ul><ul><li>Recall </li></ul><ul><ul><li>57% more Hispanics will recall a product/service message when they receive it in Spanish </li></ul></ul>Source: Roslow Research 2000
  48. 48. But It’s More than Just Spanish… ñ
  49. 49. It’s About Reaching Them with Relevance <ul><li>It’s necessary to connect with target consumers </li></ul><ul><ul><li>Emotionally </li></ul></ul><ul><ul><li>Rationally </li></ul></ul><ul><ul><li>Intellectually </li></ul></ul><ul><ul><li>Culturally </li></ul></ul><ul><li>To connect in these ways, you must know about their level of acculturation </li></ul>
  50. 50. Acculturation, Not Assimilation <ul><li>Assimilation: </li></ul><ul><ul><li>A group leaves culture and customs behind and adopts culture and customs of another group </li></ul></ul><ul><li>Acculturation: </li></ul><ul><ul><li>A group adopts or borrows customs and traits from another culture </li></ul></ul>
  51. 51. Acculturation is Defined as… <ul><li>“ Change resulting from contact between cultures” </li></ul><ul><li>“ The process by which people adopt or borrow customs and traits from another culture” </li></ul><ul><li>“ A merging of cultures as a result of prolonged contact” </li></ul><ul><li>“ Mutual influence of different cultures in close contact” </li></ul>Source: “Acculturation” Microsoft Encarta Online Encyclopedia 2000 Strategy Research Corp. Webster New World Dictionary, Third College Edition
  52. 52. Key Indicators of Acculturation <ul><li>Language </li></ul><ul><li>Values </li></ul>
  53. 53. UNACCULTURATED ACCULTURATED Collectivism Success: Family/group satisfaction Obedience/ attached to traditions Cooperation/ respect Fatalism Avoidance of direct confrontation Class distinction/ authority Individualism Success; Personal Achievement Freedom/ open to change Competition Control over destiny Assertiveness/ aggressiveness Equality Latino Acculturation Values (L.A.V.s.)™ UNACCULTURATED ACCULTURATED
  54. 54. Acculturation Among Hispanic Adults 18+ Source: Strategic Research Corp. 2002 Source: Strategy Research Corp.
  55. 55. Albuquerque is Highly Acculturated Market <ul><li>Top 3 Most Acculturated Markets in U.S.: </li></ul><ul><ul><li>San Antonio </li></ul></ul><ul><ul><li>Albuquerque </li></ul></ul><ul><ul><li>San Francisco </li></ul></ul>
  56. 56. Acculturation Among HA 18+ -Albuquerque Source: Strategic Research Corp. 2002 Source: Strategy Research Corp.
  57. 57. Factors Influencing Acculturation <ul><li>Employment </li></ul><ul><li>Length of Residency in U.S. </li></ul><ul><li>Language Use/Preference (home and work) </li></ul><ul><li>Birthplace of Parents </li></ul><ul><li>Education </li></ul><ul><li>Generation U.S. Born (1 st , 2 nd , 3 rd , etc) </li></ul><ul><li>Media Preferences (Spanish or English) </li></ul><ul><li>Values and Attitudes </li></ul>
  58. 58. <ul><li>Thank You </li></ul>