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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 Presented by: Pamela L. Schneider Senior VP, Client Services Director Rick Johnson & Company, Inc.
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)
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)
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
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?
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
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?
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
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
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
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
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
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
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
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
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
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
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
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
Sample Campaigns • Inn of the Mountain Gods • Print Examples • Campestre Juarez – Ad • - Championship Golf Course • NORTE de Ciudad Juarez – Ad • - Casino Tournament Ad
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
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
Sample Campaigns PNM Print/Collateral Examples El Hispano – Call Before you Dig Ad Collateral – PNM Service Brochure Collateral – Budget Billing Brochure
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
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
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
Let’s Discuss The Hispanic Consumer Market
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
Hispanic buying power has increased 30% in last five years. Projected $1 Trillion by 2010 $$ $700 Billion
U.S. Latinos: A Marketer’s Dream • The 3 L’s: • Large • Lucrative • Loyal
A Large and Growing Population2000 Census Reveals… • Hispanics are the largest and fastest-growing ethnic group in the U.S. Since 1990: • population grew 58% vs. 13% for non-Latinos • 37 million Latinos now live in the U.S.
U.S. Latino Population is Exploding… Latino Population in Millions Source: Strategy Research Corp. 2002
By the Year 2020… One in five U.S. residents will be Latino • One in five U.S. residents will be Latino Source: 2000 U.S. Census
In Albuquerque…one of every 2.5 Source: 2000 U.S. Census
Top 15 U.S. Latino Markets by Population Source: U.S. Census 2000
U.S. Latino Buying Power ($ 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
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: • Latino 27.9 • African American 32.0 • Asian 32.6 • White 38.6 Source: U.S. Census 2000
Fountain of Youth? Source: Strategy Resource Corp.2002
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
Latinos Influence USA The Hispanic presence has enriched USA with food, media, entertainment and culture Source: Yankelovich Hispanic Monitor 2000
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
Language Use and Preferences Language spoken at home Language most comfortable speaking Source: Strategic Research Corp. 2002 Source: Strategy Research Corp. 2002
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
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
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