Marketing to Minorities

1. Marketing to Minorities Portrayals of Minorities in Advertising

2. “It is understanding that gives us an ability to have peace. When we understand the other fellow’s viewpoint, and he understand ours, then we can sit down and work out our differences”—Harry Truman

3. Growth of minorities • Influence of minorities is growing • Growth rates • US population: 9% per year • Caucasians: 3% • African Americans: 14%

4. African American Consumers • 34.7 million • 12.3% of U.S. population • Average age younger that white population • >40% consider themselves middle class • 75% of black couples own homes • Average income growing at 9%/year • Compared to 4% for whites • Purchasing power of $572 billion

5. Efforts to market to blacks relatively recent • Began in 1960’s • Began in earnest in 1980’s • By 1992 half of Fortune 1000 companies had ethnic-marketing campaigns • $1 billion in advertising is spent targeting the market • Often treated as a monolithic group, but there are significant differences based on age, economic status and region

6. Reaching the Audience • Marketers have followed one of two distinct marketing strategies: • All advertising in general mass media in belief that African Americans have same media habits as whites • Running advertising in selected media directed exclusively to African Americans

7. Hispanic/Latino American Consumers • 35.3 million • 12.5% of U.S. population • Growing 6.5 times faster than general market • Largest minority in US • Buying power of ~$500 billion in 2001 • Median age ~10 years younger than white population • Larger, extended families (more children) • Not monolithic group • separate subcultural markets based on countries of origin

8. Reaching the Audience • Less than half speak fluent English • 83% speak Spanish in their homes (where they receive their advertising messages) • Some businesses sponsor major promotional campaigns around Latino holidays • Others have adopted major Spanish-language campaigns

9. Fact or urban legend? • Chevrolet Nova sold poorly in spanish-speaking countries • No va • “Doesn’t go” • No funciona

10. Mitsubishi renamed Pajero model because it means masturbating man • Marketed in Latin America as Montero

11. American Airlines translated its slogan “fly in leather”as vuela en cuero • Vuela en cuero means “fly buck naked” • en cueros

12. “It won’t stain your pocket and embarrass you” • No manchara tu bolsillo, ni te embarazara • Embarazar means “to be pregnant” • “It won’t stain your pocket and get you pregnant”

13. Tienes leche? • “Are you lactating?

14. “It takes a strong man to make a tender chicken” • Tierno can mean “tender” • also “soft” or “affectionate” • Un tipo duro can mean “a strong man” • literally “a hard chap” • coloquially “sexually aroused” • “It takes a sexually aroused man to make a chicken affectionate”

15. Asian American consumers • 10.2 million • Represent 17 nations of origin • Fastest-growing minority? • 50% increase last decade • Predominantly urban • Strongly driven to achieve middle class lifestyle • Median income exceeds US average by 20%

16. Reaching the audience • Many don’t speak English well • No major Asian cable TV networks

17. Native American consumers • 2.5 million • Least affluent of all ethnic groups • Median income $10,000 lower than average • Unemployment rate 35% • Marketers do not target them due to • Geographic isolation • Small numbers • One exception: alcohol advertising

18. Advertising spending • 2001: $280 billion spent on advertising • 1.3% spent in targeted ethnic media • $2.1 billion in Hispanic media • $1.5 billion in black-targeted media • $500 million in media targeted to Asians

19. 1. Images of Minorities in Advertising: African Americans • Prior to the civil rights movement, few images of blacks in advertising • Exception: “Aunt Jemima” caricature • Subservient, dark, heavy, asexual, inarticulate • Stereotyped black women as belonging only in the kitchen • Complaints about use of the stereotype heard as late as mid-80’s

20. As late as 1990, 3% of people featured in national advertising were black • GQ, Vogue, Esquire--fewest black models • Sports Illustrated--most black models • Blacks appearing in ads: • Athletes • Entertainers • Laborers • children • <than 20% of ads with blacks used women • Ethnic minority models often selected based on how they conform to standards of white beauty

21. Blacks used in 17% of 904 commercials • 31% of ads with blacks put them in major roles • Tend to appear in groups in ads • 6.9 persons on average • Most likely to cast in ads for • Beer or malt liquor • Cigarettes • Hair care products

22. 2000 study of television commercials that showed only one race • 105 commercials for autos or trucks • percentage of Caucasians: 100% • 74 commercials for perfumes • percentage of Caucasians: 98% • 47 commercials for jewelry or cosmetics • percentage of Caucasians: 100%

23. Hispanics • Virtually unused in ads prior to 1980 • In late 1980’s • 5.8% of television commercials • Speaking roles in 1.5% of network television ads • 1999 study by Magazine Publishers of America found Hispanics appeared in only 2% of ads • Tend to appear in background roles as part of group • Generally not seen in mainstream roles • Exception: stereotyped Latina sex object

24. 2. Impact of Advertising on Children:1999 Report by Children Now • Children who watch positive multiracial interactions on shows such as Sesame Street show more positive attitudes towards people of color and other cultures • Kids who watch shows that routinely stereotype people of color have less favorable attitudes towards those who may be different • Advertising has the same ability as television programming to impact children’s perceptions

25. Often cast white kids as leaders and go-getters • Minority children play passive or ignorant roles • White kids outnumber children of color • Minorities children generally appear in group shots

26. Stereotyping • Some of the worst stereotypes were disappearing: • Lively Latins • Pigtailed Chinese • Subservient blacks • Mexican bandits

27. Some stereotypes remain: • Asians are computer geeks • African American boys play ball • African American girls dance • All African American kids rap

28. 3. No Urban/Spanish Dictates and Minority Discounts • 1999 FCC asked to investigate practices in advertising industry that created barriers to competition in broadcasting • Studied data from 3,745 radio stations • Confirmed existence of practices

29. No Urban/Spanish dictates • Practice of not advertising on radio stations that target programming to ethnic/racial minorities • Minority discounts • Paying minority-formatted radio stations less than what is paid to general market stations with comparable audience size

30. Study also found that in some cases media buying process is guided by • Ethnic/racial stereotyping • Underestimations of disposable income • Desire to control product image

31. Study concluded that practice • Adversely affects minority-owned radio stations • Defeats interest of all Americans in having broad and diverse range of informational and entertainment programming • Should be outlawed