This document discusses ethnic marketing and its importance in today's diverse global environment. It provides an analysis of ethnic marketing strategies, including understanding target cultures and incorporating their values into campaigns. The document also notes some challenges, such as potential backlash from inappropriate cultural references. It highlights the growing economic power of minority groups in diverse nations like the U.S. and encourages businesses to utilize ethnic marketing to tap into lucrative minority markets.

1. Ethnic Marketing is Alive
By: Neville Greening
Date: 24/02/2012
University of Liverpool
Table Of Contents Page

2. 1.0 Executive Summary…………………………………………1
2.0 Situation Analysis…………………………………………….2
3.0 Market Summary……………………………………………..2
4.0 Multicultural Marketing “SWOT”Analysis……………….2
5.0 Global marketingand Multicultural Corporations………3/4
6.0 Ethnic Diversity…………………………………………………4
7.0 Conclusion………………………………………………………4/5
1.0 Executive Summary
Globalization has brought ethnic groups together through various
types of marketing. Campaigning to a multicultural audience has

3. become an important part of global business. Individuals from
many ethnic backgrounds participate in social, political, and
religious affairs. The U.S. is a typical example of this melting pot,
an assimilation of immigrants who have built a niche in this
diverse environment. Minorities in America account for 34% of
the population. Hispanic at 15%, African American at 13.5%,
Asian at 5%, and others at 2% (EPMG, 2010). Marketing to
multicultural America was once a luxury; it has now become a
necessity to meet the demands of this diverse nation. Marketing
to a specific culture makes good business sense, but it takes more
than words, slogans, or colours to get the message through. “To
reach a culture with effective advertising that has impact, one
must understand the culture that you are targeting and combine
your products concept into their belief and value systems” (Mcrill,
2011). By assuming the culture’s values, this may degrade a
specific culture and lead to serious repercussions. New research
co-developed by Wharton explains how multicultural marketing
can backfire and cause negativity towards a product or service
(Wharton,2010)
The scope of this report identifies key information towards
multicultural marketing and open issues manager’s face
marketing to multicultural audiences. From a ‘“SWOT Analysis”
we assess potential benefits and solutions to the problems which
they may encounter. Advantages and disadvantages are looked at
and how managers may overcome these hurdles.
In conclusion, we analyse ethical problems and solutions towards
marketingin this diverse environment.
2.0 Situation Analysis
Ethnic marketing uses cultural touch points that are attractive
for the target audience. Touch points include social values,
language, slogans, traditions, and a variety of concepts that may
hypnotize a particular cultural group. Ethnic marketing in the

4. U.S. has become a massive source of business revenue for most
major companies. African, Hispanic, and Asian customers are the
prime target. By applying core values in areas where cultural
tastes are different, this can be an important tool for effective
marketingcommunication (Oosthuizen,2006)
3.0 Market Summary
According to the Selig Centre for Economic Growth, the combined
buying power of these ethnic groups will rise from $1.6 trillion in
2010 to 2.1 trillion in 2015 (Fahmy, 2010) Keeping this in mind, it
would seem logical that cross-cultural marketers and businesses
use this information as a valuable tool.
4.0 Multicultural Marketing “SWOT “Analysis
-Strengths: Knowledge of the target audience. Understanding
political, social, and cultural issues. Core values (religion, trends,
fashion) Empathy (feelings, motives, and behaviours) Effective
communication (the correct language systems for the target
audience) applying the right tools for ethnic marketing is
essential (Oosthuizen, 2006). Innovative ideas and service,
competitive price, and business location.
-Weaknesses: Operating in unfamiliar territory, cultural
misunderstanding, communication barriers, and fear of making a
mistake, little or no experience in ethnic marketing, not applying
the right tools. Jumping into the deep end of multicultural
marketing requires a wealth of experience and cultural
understanding. There is no room for error as the consequences
can be overwhelming (Song, 2012) Poor quality service and bad
reputation can also spoil the party.
-Opportunities: According to recent demographics the ethnic
minority population is increasing by the day and getting richer
(U.S. Commerce, 2010). Many potential organizations have yet to

5. penetrate this lucrative market. It is estimated that minorities
will spend over $2.1 trillion U.S. dollars in 2015 (Fahmy, 2010).
With this future estimate, it gives good reason for businesses to
target this powerful sector. Driving points for ethnic marketing
include potential profit, increase company recognition, business
and network expansion, better knowledge of the local market, and
cultural awareness. Opportunities may lead to mergers or
joint-ventures.
-Threats: The threat of competition, discrimination, economy
crisis, market change, inflation, cross-cultural breakdown,
religious and cultural restrictions, political and legal issues are
all part of the package. “Changes in the marketing environment
can cause markets to shrink, expand, or even create new ones.
Often, short-term threats may create opportunities in the long
run for shrewd marketers” (Julia, 1997)
5.0 Global marketingand Multinational Corporations
Developing nation such as Brazil uses diversity as its advantage
to create conceptual communications. “Being a new contender in
global marketing, this emerging nation has created waves at two
Cannes Advertisingfestivals”(Oosthuizen,2006).
The number one car maker, Toyota Motors uses an
environmentally friendly approach as its global marketing
strategy. The introduction of Hybrid and Electric powered
vehicles has helped reduce fuel emissions (Toyota, 2011). Saatchi
& Saatchi Los Angeles has helped produce a string of innovative
marketing campaigns for Toyota Motor Corporation while it was
going through a major recall crisis. The Toyota Venza MPV
campaign was a lifesaver, “We love the line” I’m the only child,
apart from my sister.” Says it all really (Dean, 2011). “Marketing
professionals all say that, as car companies go, Toyota is the best
when it comes to marketing to minorities”(Glinton 2011)
As market trends shift rapidly, without innovative ideas and
innovative products it will become extremely difficult to survive

6. in today’s diverse market.
6.0 Ethnic Diversity
Ethnicity is a multidimensional expression of someone’s identity
that includes race, religion, culture, and core values usually
influenced by variables: immigration, intermarriage, and mixing,
often create strength of ethnic identification (Batz, 2011)
Marketers have often been criticised for their selection of ethnic
markets. Fast food outlets in predominately ethnic locations have
used their campaigning skills to sell a variety of unhealthy
products. Parents and local citizens have become physically and
mentally aware of the implications that junk food has on the
younger generation. McDonalds the world’s largest fast food
retailer has kicked off a number of health campaigns to prove
their burgers are much healthier and nutritious (McDonalds,
2011)
7.0 Conclusion
The importance of multicultural marketing in today’s diverse
society has happened because of globalization. Ethnic groups
living and working together bring change to our environment.
Utilizing the correct tools for the target market will produce
results that will satisfy the intended audience. The benefits of
ethnic marketing can bring a variety of rewards to the
organization, both extrinsically and intrinsically. A new language,
a new culture, and understanding core beliefs are effective ways
to communicate through advertising (Oosthuizen, 2006).
Marketing executives from McDonalds encourage their managers
and staff to lead with ethnic insights (Song, 2012). Managers
must use the very best of their skills and talents in order to make
a decent level of profit for their respective companies. There are
excellent tools at our disposal; by applying those tools managers
will accomplish this.

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