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Cultural Differences in Marketing. Presented by: Pamela L. Schneider Senior VP, Client Services Director Rick Johnson & Company, Inc. Topic .

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Cultural Differences in Marketing

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Cultural Differences in Marketing

Presented by:

Pamela L. Schneider

Senior VP, Client Services Director

Rick Johnson & Company, Inc.


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Topic

  • 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.

  • 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)


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Topic

Topic Changed for a number of reasons:

  • The HCM is an important and viable market in New Mexico – the train left the station

  • Market in which you can make great inroads if you want to spend the time, dollars and research

  • The Native American market is also important and viable – harder to reach

  • The agency includes Native American marketing for Giant Gas and Convenience Stores as well as PNM

    • Radio for both clients (Navajo)


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It’s About Understanding When

  • Some decisions are based on budget

    • Do you have enough dollars to reach the general market audience while also spending to reach the Hispanic, Native American or other audiences

    • Should you spend the dollars to reach a narrower audience; when attacking the problem from a more global perspective is warranted


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Understanding When

  • Some decisions are based on who you are trying to reach and what the message is – will it translate

    -Are you trying to reach older Hispanic females in need of mammograms?

    - Are you trying to get out a message on immunization to a broad based audience or a specific audience?

    - Are you selling a product or service only to Spanish language dominant persons?

    - Are you attempting to promote a service on diabetes to Native Americans?


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Understand Your Audience

  • Research Upfront

  • Research Some More

  • Know your target audience inside and out

  • Know what they want

  • Deliver a message with relevance and authenticity

  • Deliver in the medium they want and expect

  • Deliver in a language they identify with and relate to


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Understand Your Audience

  • Can you reach the target audience through other avenues (Public Relations or Internet) or by sending the message to a broader target?

  • Do you have to split your marketing dollars in order to reach the Spanish language, Native American or African American audiences?

    • Can you reach these audiences by running General Market ads and spots?

    • Should you reach these audiences by running General Market ads and spots?


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Sample Campaigns

  • Show Television Reel

  • English and Spanish spots

  • Traffic Safety Bureau

  • United Way

  • United Blood Services

  • St. Joseph Healthcare

  • ARCA

  • United Way

  • San Felipe Casino Hollywood


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Broadcast Reel Explanation

  • Traffic Safety Bureau – Same spot, direct lift of English

  • United Way – Translation of English Script

  • United Blood Services – English TV, Spanish Radio

  • St. Joseph Healthcare – English TV only

  • ARCA – Spanish Translation of English Script

  • United Way – Translation of English Script

  • San Felipe Casino Hollywood – English :60

    • - NOTE: Spanish :30 not complete yet


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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


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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


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Sample Campaigns

  • United Blood Services – Phase 2

  • Campaign depth broadened to encapsulate more people – English only for the U.S. – Spanish language in New Mexico

  • Cultural Diversity shown in the photographs

  • - Asian waiter, African American at airport, Native American on escalator,

  • All age demographics represented in the photographs

  • - Mature woman on bench, older man on tractor, kid on vespa, college age students eating


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Sample Campaigns

  • United Way – 2002/2003

  • Campaign produced in English and Spanish

  • - Television/Radio

  • - Print

  • - Outdoor

  • - Collateral

  • All media outlets banded together to promote United Way of Central New Mexico

  • #1 UWA in the United States per capita growth for all metropolitan chapters


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Sample Campaigns

  • United Way – 2002/2003

  • Reasons for using Spanish language media

  • Reach the largest consumer audience possible (business owners, employees, everyday, garden variety consumers)

  • Share stories of New Mexican’s with New Mexican’s in order to make a consumer connection

  • Raise the funds needed for United Way - Millions


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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


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Sample Campaigns

  • United Way of Central New Mexico

  • Reasons for using Spanish Language Media

  • Leave no audience out of the mix

  • Build awareness for the Community Fund with all people

  • Let minority audiences know that they can be helped and that they can help – put them in a position of empowerment


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Sample Campaigns

  • New Mexico State Tourism

  • Print Examples

  • gerencia de viajes – Ad (The Spanish Language Travel Management Magazine)

  • - Advertorial was New Mexico art and culture so the ad is a museum/culture based ad

  • NOTE: The cover of the magazine is the Balloon Fiesta

  • gerencia de viajes – Ad

  • - Golf is big for group planning – matching advertorial on golf in New Mexico


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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


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Sample Campaigns

  • New Mexico State Tourism

  • Reasons for Using Spanish Language Media

  • Targeted audience of Meeting and Convention Planners

  • Targeted media – Mexico City Industry Travel Publication


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Sample Campaigns

  • Inn of the Mountain Gods

  • Print Examples

  • Campestre Juarez – Ad

  • - Championship Golf Course

  • NORTE de Ciudad Juarez – Ad

  • - Casino Tournament Ad


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Sample Campaigns

  • Inn of the Mountain Gods

  • Reasons for using Spanish language media:

    • - A large portion of the audience base is Spanish speaking

    • - Target wealthy, upper class Spanish- enjoy luxuries in life (golf, resorts, shopping and casino gaming)

    • - El Paso and Juarez markets reached through print and radio as complimentary media


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Sample Campaigns

  • Inn of the Mountain Gods

  • Reaching the Target Audience

    • - Retail campaign for the casino and golf has already begun with Spanish language only print ads

    • - Unusual, normally launch with English first or English and Spanish simultaneously not Spanish first


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Sample Campaigns

PNM

Print/Collateral Examples

El Hispano – Call Before you Dig Ad

Collateral – PNM Service Brochure

Collateral – Budget Billing Brochure


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Sample Campaigns

  • PNM

  • Reasons for using Spanish Language Media

  • Important to touch all segments of the utility audience with these messages

  • Messages are relevant to the target (HCM)

  • Imparts information that will be used by all segments of the utility audience


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Sample Campaigns

  • New Mexico Traffic Safety Bureau

  • Print/Collateral Examples

  • School Posters – English and Spanish

  • Print Ads – Spanish and English

  • *Broadcast television and radio produced in Spanish and English for DWI, Underage Drinking and Driving as well as Seat Belt Use


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Sample Campaigns

  • New Mexico Traffic Safety Bureau

  • Reasons for using Spanish Language Media

  • Message is relevant to all consumers in New Mexico

  • Localized for use in predominantly Spanish neighborhood papers and schools

  • These ads are about family, kids, safety and education which all resonate in the HCM


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Let’s Discuss

The Hispanic Consumer Market


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First Things First:Latino or Hispanic?

  • Both are acceptable and most people use them interchangeably

  • There are a few differences:

    • Latino is more current terminology, more in fashion

    • Latino is more inclusive

      • Includes Brazilians, who are not Hispanic

    • Most Latinos use the term to describe themselves


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Why Market to Latinos?The Face of America is Changing!


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Hispanic population is growing at 3x the National rate.


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Hispanic buying power has increased 30% in last five years.

Projected

$1 Trillion

by 2010

$$

$700 Billion


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U.S. Latinos: A Marketer’s Dream

  • The 3 L’s:

    • Large

    • Lucrative

    • Loyal


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A Large and Growing Population2000 Census Reveals…

  • Hispanics are the largest and fastest-growing ethnic group in the U.S. Since 1990:

    • population grew 58% vs. 13% for non-Latinos

  • 37 million Latinos now live in the U.S.


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U.S. Latino Population is Exploding…

Latino Population in Millions

Source: Strategy Research Corp. 2002


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By the Year 2020…

One in five U.S. residents will be Latino

  • One in five U.S. residents will be Latino

Source: 2000 U.S. Census


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In Albuquerque…one of every 2.5

Source: 2000 U.S. Census


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Top 15 U.S. Latino Markets by Population

Source: U.S. Census 2000


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Lucrative Potential of the Latino Market


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U.S. Latino Buying Power ($ Billions)

$926

$630

$452

$289

$208

(proj.)

Source: Selig Center for Economic Growth, Terry College of Business,

The University of Georgia, August 2000; July 2002


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Fountain of Youth?

  • Latino population is the youngest of all ethnic groups

    • Their prime income-earning years are ahead of them

    • Opportunity to establish brand preferences now

  • Mean age by ethnicity:

    • Latino27.9

    • African American32.0

    • Asian32.6

    • White38.6

Source: U.S. Census 2000


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Fountain of Youth?

Source: Strategy Resource Corp.2002


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The “Latinization” of America

  • As of 2001, tortillas outsell bagels 2:1

  • José was the number one name for baby boys born in Texas last year, and nationally, José hit #30

  • The hottest food trend is “Latin fusion”

  • Salsa sales eclipse ketchup sales by 40%

  • The top three surnames for new home buyers in California in 2001 were Hernandez, Fernandez and Gonzalez


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Latinos Influence USA

The Hispanic presence has enriched USA with food, media, entertainment and culture

Source: Yankelovich Hispanic Monitor 2000


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Latin Entertainment is ¡Caliente! (Hot!)

  • Latin music is enjoyed by the masses

    • Shakira, Enrique Iglesias, Mark Anthony and Ricky Martin record in both English and Spanish

  • Latin award shows are emerging:

    • Latin Grammy’s

    • Latin Emmy’s


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Reaching Latinos Effectively


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Language Use and Preferences

Language spoken at home

Language most comfortable speaking

Source: Strategic Research Corp. 2002

Source: Strategy Research Corp. 2002


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Reaching Consumers in Spanish Works!

  • Awareness

    • Communication in Spanish is 61% more effective at increasing awareness than communication in English

  • Recall

    • 57% more Hispanics will recall a product/service message when they receive it in Spanish

Source: Roslow Research 2000


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But It’s More than Just Spanish…

ñ


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It’s About Reaching Them with Relevance

  • It’s necessary to connect with target consumers

    • Emotionally

    • Rationally

    • Intellectually

    • Culturally

  • To connect in these ways, you must know about their level of acculturation


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Acculturation, Not Assimilation

  • Assimilation:

    • A group leaves culture and customs behind and adopts culture and customs of another group

  • Acculturation:

    • A group adopts or borrows customs and traits from another culture


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Acculturation is Defined as…

  • “Change resulting from contact between cultures”

  • “The process by which people adopt or borrow customs and traits from another culture”

  • “A merging of cultures as a result of prolonged contact”

  • “Mutual influence of different cultures in close contact”

Source: “Acculturation” Microsoft Encarta Online Encyclopedia 2000

Strategy Research Corp.

Webster New World Dictionary, Third College Edition


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Key Indicators of Acculturation

  • Language

  • Values


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Latino Acculturation Values (L.A.V.s.)™

UNACCULTURATEDACCULTURATED

UNACCULTURATED

ACCULTURATED

Success:

Family/group

satisfaction

Success;

Personal

Achievement

Class

distinction/

authority

Obedience/

attached to traditions

Freedom/

open to change

Equality

Individualism

Collectivism

Avoidance

of direct

confrontation

Assertiveness/

aggressiveness

Cooperation/

respect

Competition

Control

over destiny

Fatalism


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Acculturation Among Hispanic Adults 18+

Source: Strategy Research Corp.

Source: Strategic Research Corp. 2002


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Albuquerque is Highly Acculturated Market

  • Top 3 Most Acculturated Markets in U.S.:

    • San Antonio

    • Albuquerque

    • San Francisco


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Acculturation Among HA 18+ -Albuquerque

Source: Strategic Research Corp. 2002

Source: Strategy Research Corp.


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Factors Influencing Acculturation

  • Employment

  • Length of Residency in U.S.

  • Language Use/Preference (home and work)

  • Birthplace of Parents

  • Education

  • Generation U.S. Born (1st, 2nd, 3rd, etc)

  • Media Preferences (Spanish or English)

  • Values and Attitudes


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Thank You


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