Cultural Differences in Marketing

Presented by:Pamela L. Schneider

Senior VP, Client Services DirectorRick 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 CampaignsUnited 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 CampaignsUnited 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 CampaignsNew 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 CampaignsNew 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 CampaignsInn 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 DiscussThe 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

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

14%

21%

0%

5%

10%

15%

20%

25%

2004 2020

% of Total Population

Hispanic population is growing at 3x the National rate.

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

$700 Billion

Projected$1 Trillionby 2010

$$

• The 3 L’s:– Large – Lucrative– Loyal

U.S. Latinos: A Marketer’s Dream

A Large and Growing Population 2000 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…

14.622.4

37.0

56.0

80.4

1980 1990 2000 2010 2020

Source: Strategy Research Corp. 2002

Latino Population in Millions

By the Year 2020…

Source: 2000 U.S. Census

One in five U.S. residents will be Latino

One in five U.S. residents will be Latino

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

Lucrative Potential of the Latino Market

1990 1995 2001 2002 2007

U.S. Latino Buying Power ($ Billions)

$208$289

$452

Source: Selig Center for Economic Growth, Terry College of Business,The University of Georgia, August 2000; July 2002

$630

$926

(proj.)

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?34.2

21.6Latinos18-34

Whites18-34

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

Reaching Latinos Effectively

Language Use and Preferences

Source: Strategic Research Corp. 2002

64%

14%

22%

Spanish

English

Both

10%

74%

16%

Language most comfortable speaking

Language spoken at home

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

But It’s More than Just Spanish…

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

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 2000Strategy Research Corp.

Webster New World Dictionary, Third College Edition

Key Indicators of Acculturation

• Language• Values

UNACCULTURATED ACCULTURATED

Collectivism

Success:Family/groupsatisfaction

Obedience/attached to traditions

Cooperation/respect

Fatalism

Avoidanceof direct

confrontation

Class distinction/authority

Individualism

Success;

Personal

Achievement

Freedom/open to change

Competition

Control over

destiny

Assertiveness/aggressiveness

Equality

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

UNACCULTURATED ACCULTURATED

Acculturation Among Hispanic Adults 18+

Source: Strategic Research Corp. 2002

66%

9%

25%

Partially

Unacculturated

Acculturated

Source: Strategy Research Corp.

Albuquerque is Highly Acculturated Market

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

– San Antonio– Albuquerque– San Francisco

Acculturation Among HA 18+ -Albuquerque

Source: Strategic Research Corp. 2002

64%

15%

21%

Partially

Unacculturated

Acculturated

Source: Strategy Research Corp.

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

Thank You