This document discusses strategies for capitalizing on opportunities in the multicultural consumer market. It begins by providing census data showing the growing populations of Hispanic, Asian, and African American individuals in the U.S. and Pennsylvania. It then emphasizes the importance of understanding local demographics, such as populations, incomes, countries of origin, and languages spoken for various racial groups. Finally, it recommends four strategies for tapping into multicultural markets: 1) Understanding local demographics 2) Developing appropriate products and services 3) Implementing the right infrastructure and 4) Effectively marketing to these communities. Understanding consumer segments is key to economic success.

1. The New Economic Power Source:
Exploring the Opportunity in the Multicultural Markets

2. Expanding Opportunities
Customer segmentation is about economics and profitability.
The customer segment we traditionally left to the small local
brokerage shops that required more guidance might now be
our economic lifeboat.
That economic lifeboat is the
“Multicultural consumer”

3. Being Offensive
Organizations often take a defensive approach and adopt a “preserve
and sustain” mindset that ignores or discounts the opportunities that
present themselves.
Pinpointing external change and detecting customer patterns allows
you to make sound judgment about where the world is going and
putting your business on the offensive to capitalize on changes.

4. Expanding Opportunities

5. U.S. Population: 305,697,961
• Hispanic-American:
– 47,201,716 (15.44%)
• African-American:
– 36,934,442 (12.08%)
• Asian-American:
- 14,015,166 (4.58%)
Source: U.S. Bureau of the Census, August 2008

6. U.S. Population by Race
Year U.S. White Black Asian Hispanic Other
2008 305,697,961 201,324,095 36,934,442 14,015,166 47,201,716 3,853,824
2013 320,825,182 204,497,069 39,934,982 15,805,231 53,255,730 4,744,220
% Change 4.95% 1.58% 8.12% 12.77% 12.83% 23.10%
U.S. Census 2008 Copyright 2008 Gonzales Group, LLC

7. U.S. Median Income by Race
Year U.S. White Black Asian Hispanic
2008 51,485 52,902 34,093 55,162 37,565
2013 58,537 60,901 35,730 61,303 40,582
% Change 13.70% 15.10% 4.80% 11.13% 8.03%
U.S. Census 2008 Copyright 2008 Gonzales Group, LLC

8. Multicultural Buying Power
Source: University of Georgia Selig Center

9. Multicultural Home Loan Activity
Source: - 2005 Mortgage Bankers Association
- 2006 HMDA

10. New Arrivals Finding New Homes
12 States with Largest
Number of Immigrant Arrivals
350,000
Annual
300,000
average
250,000
post-2000
200,000
150,000
100,000
50,000
0 Source: 2006 American
Community Survey, average
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11. Immigrants and Boomers
In his book, Immigrants and Boomers, author and noted demographer Dowell Myers describes
how each of these two powerful demographic influencers may hold the keys to resolving the
problems presented by the other.
Myers and other demographers
Myers argues that during the
Myers argues that during the Myers and other demographers
believe that immigration can help to
demographic transition, the new
demographic transition, the new believe that immigration can help to
supply some of the workers needed to
prospect of diminished skills in the
prospect of diminished skills in the supply some of the workers needed to
support the rising number of seniors
future workforce and aareduced
future workforce and reduced support the rising number of seniors
and to replace them in the labor force
middle class could undermine the
middle class could undermine the and to replace them in the labor force
as they retire and can help
continued growth in home prices. as they retire and can help
continued growth in home prices.
compensate for the smaller number of
compensate for the smaller number of
younger adults who are likely to buy
Retirees will transition from being net younger adults who are likely to buy
Retirees will transition from being net
taxpayers to net recipients of health homes from the increasing number of
taxpayers to net recipients of health homes from the increasing number of
and pension benefits, and they will be older Americans.
and pension benefits, and they will be older Americans.
supported by aasmaller workforce that
supported by smaller workforce that
is struggling to meet its own needs. New arrivals alone can offset about
is struggling to meet its own needs. New arrivals alone can offset about
one-quarter of the increase in the
one-quarter of the increase in the
Seniors are also net home sellers and senior ratio.
Seniors are also net home sellers and senior ratio.
Myers believes there will be 67%
Myers believes there will be 67%
more people in the selling age relative
more people in the selling age relative
to the younger adults who are likely to
to the younger adults who are likely to
be buyers.
be buyers.

12. Successful Strategies and Solutions

13. Consumer Stereotyping
1. What is a stereotype?
2. What can happen when you stereotype homebuyers?
3. What are some examples of when you’ve been misled by
relying on a stereotype?
4. What are some examples of how you have been
stereotyped?

14. Successful Strategies and Solutions
In our experience, those organizations that have been successful in
tapping into this consumer base have utilized four (4) fundamental
strategies:
1) Understand and evaluate the demographics of the local market
1) Understand and evaluate the demographics of the local market
2) Develop appropriate products and modify service delivery
2) Develop appropriate products and modify service delivery
3) Get the right infrastructure in place
3) Get the right infrastructure in place
4) Market the message
4) Market the message

15. Strategy 1- Understand and evaluate the
demographics of the local market

16. Strategy 1: Understand and evaluate the
demographics of your local market
In the past, the process for servicing Multicultural markets was often limited to
one dimensional efforts such as the literal translations of materials.
Successful organizations understand the consumer. They begin by examining
their country’s of origin, age segments, median household income and develop a
sound marketing plan with measurable metrics.

17. Researching a Market Area

18. Examining Pennsylvania

19. Pennsylvania - Population by Race
2008-2013
2008 Total White Black Asian Hispanic Other
12,505,763 10,214,852 1,275,249 313,980 574,878 106,425
Pennsylvania
Total White Black Asian Hispanic Other
2013
12,694,924 10,146,365 1,361,614 357,460 667,175 137,997
Pennsylvania
Percentage Change Total White Black Asian Hispanic Other
1.51% -0.67% 6.77% 13.85% 16.06% 29.67%
Pennsylvania

20. Pennsylvania - Median Income by Race
2008-2013
2008 Median White Black Asian Hispanic
Pennsylvania 49,819 52,682 29,962 54,673 31,368
2013 Median White Black Asian Hispanic
Pennsylvania
56,171 59,511 31,804 60,914 33,479
Percentage Change Median White Black Asian Hispanic
Pennsylvania 12.75% 12.96% 6.15% 11.42% 6.73%

21. Pennsylvania - 2008
Hispanic Population by County

22. Pennsylvania - 2008
Hispanic Median Income by County

23. Pennsylvania - 2008
Hispanic Country of Origin
Hispanic by Country of Origin
299,300
300,000
250,000
200,000
138,773
150,000
100,000
24,820 23,150 23,093
50,000 8,304 7,527 6,502
0
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24. Pennsylvania - 2008
Spanish Language Segment
Spanish Language Usage
156,239
160,000
126,773
140,000
120,000
86,874
100,000
70,086
69,117
80,000
60,000
40,000
20,000
0
English Bilingual Bilingual Bilingual Spanish
Dependent English Spanish Dominant

25. Pennsylvania - 2008
Hispanic Acculturation Segment
AMERICANIZADO
English-dominant

Hispanic Acculturation Segments
Born in the US, 3rd+ generation

Few Hispanic cultural practices

188,092
NUEVA LATINA
200,000
English-preferred (some Spanish)
 163,571
180,000
Born in the US, 2nd generation

160,000
Some Hispanic cultural practices

111,147
BI-CULTURAL 140,000
Bi-lingual (equal or nearly)
 120,000
Immigrant as a child or young adult
 100,000 65,542
Many Hispanic cultural practices

80,000 46,502
HISPANO
60,000
Spanish-preferred (some English)

40,000
Immigrant as adult; in US 10+ years

20,000
Predominant Hispanic cultural practices

0
LATINOAMERICANO
Americanizado Nueva Latina Bi-Cultural Hispanic Latinoamericano
Spanish-dominant (nearly no English)

Hispanic
Recent immigrant as adult (less than 10

years ago)
Primarily Hispanic cultural practices

Identify with home country more than US.

Hispanic

26. Pennsylvania - 2008
Asian Population by County

27. Pennsylvania - 2008
Asian Median Income by County

28. Pennsylvania - 2008
Asian Languages Spoken at Home
Asian Languages Spoken At Home
2008
60,000
50,000
40,000
30,000
20,000
10,000
0
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29. Pennsylvania - 2008
African-American Population by County

30. Pennsylvania - 2008
African-American
Median Income by County

31. Examining Harrisburg, PA

32. Harrisburg, PA
Population by Race 2008-2013
Year Harrisburg White Black Asian Hispanic Other
2008 531,834 441,441 51,051 13,074 19,246 6,147
2013 546,119 444,524 55,430 15,044 21,984 8,012
% Change 2.69% 0.70% 8.58% 15.07% 14.23% 30.34%
U.S. Census 2008 Copyright 2008 Gonzales Group, LLC

33. Harrisburg, PA
Median Income by Race 2008-2013
Year Median White Black Asian Hispanic
2008 57,342 59,487 34,620 60,095 28,646
2013 64,829 67,440 40,972 67,886 29,867
% Change 13.06% 13.37% 18.35% 12.96% 4.26%
U.S. Census 2008 Copyright 2008 Gonzales Group, LLC

34. Harrisburg, PA - 2008
Hispanic Population by Zip Code

35. Harrisburg, PA - 2008
Hispanic Median Income by Zip Code

36. Harrisburg, PA - 2008
Asian Population by Zip Code

37. Harrisburg, PA - 2008
Asian Median Income by Zip Code

38. Harrisburg, PA - 2008
Asian and Hispanic Age Trends
Asian and Hispanic Age Trends 2008
2,500
2,000
1,500
Asian
Hispanic
1,000
500
White Age Trends 2008
0
0-4
05-09
10-14
15-17
18-20
21-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80-84
85+
40,000
35,000
30,000
25,000
White
20,000
15,000
10,000
5,000
0
+
4
9
4
7
0
4
9
4
9
4
9
4
9
4
9
4
9
4
85
0-
-0
-1
-1
-2
-2
-2
-3
-3
-4
-4
-5
-5
-6
-6
-7
-7
-8
05
10
15
18
21
25
30
35
40
45
50
55
60
65
70
75
80

39. Strategy 2 - Develop appropriate products and
modify service delivery

40. Develop appropriate products and
modify service delivery
Develop products and services that are relevant and
appropriate.
Take into account the nuances of the Multicultural
consumer such as multigenerational households,
religious practices, or language proficiency.
Trying to apply mainstream marketing and advertising
practices means nothing if the Multicultural homebuyer
has no point of reference for U.S. real estate practices.

41. Product and Service has a different
meaning and interpretation:
For example, take into account that:
Hispanics:
– Females, extended family and trusted friends often play a role in the home buying
decision (home selection, financing, closing, open-house, etc.)
– The female, albeit often behind the scenes, plays the important role of home
administrator.
– Since fulfilling their children’s needs is very important to Hispanics, understand that
kids are also your clients.
Asians:
– Great emphasis is placed on strong family relationships.
– It is common for parents to make a generous down payment or purchase a house for
their children.
– It is also not uncommon to find women in charge of household finances.
African Americans:
– Tightly extended family units.
– Matrilineal organization of family.
– Family as clan organization can be seen as the predecessor to the extended family
structure of modern African-American communities.

42. Comida Kraft

44. Strategy 3 - Get the Right Infrastructure in Place

45. Is Your Baby Ugly?
What do your offices look like and what is its
personality among Multicultural home buyers?
What does it look like to the prospective
Multicultural recruit?

46. Strategy 3: Get the right infrastructure
in place (Internally and
Externally)
Without the right infrastructure, you cannot accommodate
Multicultural customers or recruit the right sales professionals.
The Multicultural consumer and real estate professional
requires language, religious, and philosophical considerations
if you are going to win them both as customers or team
members.
Being respectful of their religion, philosophical beliefs such as
Feng Shui, and their English language proficiency are a few
things to consider.

47. Cultural Connectivity!
Cultural Connectivity is the ability to reach a customer through their cultural
context. A few cultural connectors to consider include:
– Values
– Community
– Religion
– Lifestyles
– Ethnicity
– Race
– Sexual orientation
– Country of origin
– Degree of acculturation
– Language

48. Train Your Recruiters!
• Train your recruiters to screen Multicultural candidates.
• It is a fact that untrained recruiters will give highest marks to
people most like themselves in appearance and background.

49. Train for Success!
•Any Multicultural agent’s success hinges on proper
orientation and training.
•Be sure all such programs are accessible and culturally
friendly to your new recruit.
•Make sure training programs that lead to upward
mobility and career advancement are available and
accessible.

50. Evaluate and Reward!
• Many companies have beautifully articulated, well-funded
Multicultural programs—but they are mostly comprised of
brochures and lip service.
• In order to be successful, your company must make
Multicultural consumer outreach and recruiting a focal point for
evaluation for all Multicultural real estate professionals, not just
managers.

51. Recruiting Correctly!

52. Strategy 4 – Market Your Message

53. Strategy 4: Market your message
The one-size fits all approach to marketing worked great
20 years ago but the world has changed.
Understanding and addressing your target audience
through the communication vehicles they prefer is
critical.
Researching and understanding the literacy rates, media
distributions, and identifying community influencers are
the first steps to getting your in-culture marketing and
recruiting message out.

54. Ethnic Specific Franchises???

55. Perception is Reality!
How a community sees a company is how an individual will see the company.
This basic concept is critically important when interacting with the Multicultural
customer.
Many successful companies launch cause related PR strategies that put the
Multicultural community and its needs at the center of its communications.

56. “COLORING
“COLORING
OUTSIDE THE
OUTSIDE THE
LINES”
LINES”

57. What does it mean to
“Color Outside the Lines?”
 It means moving beyond and outside the doldrums of the
norm.
 It doesn’t mean being defiant and anti-institutional.
 It means finding the strength of
an organization and leveraging
it, even if it means you color
outside the bounds of your
defined goals and objectives.

58. What does it mean to
“Color Outside the Lines?”
 What do these companies have in common?
Levis Strauss U.S. Steel
Kodak Polaroid
Zenith Sears
Firestone IBM
Timex Nestlé
They all “used” to lead in their fields but their
They all “used” to lead in their fields but their
culture hardened and they “colored within the confines of the
culture hardened and they “colored within the confines of the
lines” to keep things the same
lines” to keep things the same

59. What does it mean to
“Color Outside the Lines?”

60. If you sense that you face new customer
demands and competition:
Any sense that customer demand patterns are changing should
be a call to action.
Look especially for shifts in the makeup of your total sales and
in growth segments, which can often be related to new and
non-traditional competition.
Ask not if your growth rate is the same but if the causes of
growth are the same.
Ask not just if new competition is better but whether it offers a
“good enough” alternative.

61. Partner With Experts!
Don’t try and go it alone. When planning a campaign, identify
the appropriate resources.
Lastly, Identify a multilingual spokesperson who can champion
and be the voice for your initiative.

62. Focus on key aspects of successful
Multicultural marketing that include:
• Exploring the role of marketing research in the successful
development of strategy and tactics for use in the Multicultural market
Building your economic as well
• Understanding the importance of the quality of person-to-person
as your relational equity with
interaction.
Multicultural home buyers!!
• Examine the role of language in advertising.
• Understand the need for culturally relevant copy and accurate
translations.
• Exploring the impact of grassroots marketing.
• Appreciating the client’s image of real estate agents and their perceptions about the
home buying process.

63. Contact Us:
Houston - Los Angeles - San Diego
Phone: 888-267-1160
Fax: 281-277-8167
www.thegonzalesgroup.com