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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Its 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 Lets Begin With
United Blood Services Phase 1 Lets 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 Lets 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 Mexicans with New
  Mexicans 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 Albuquerqu
e 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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• Lets 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 Marketers Dream

• The 3 Ls
• Large
• Lucrative
• Loyal

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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.

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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 Albuquerqueone 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
• Latino 27.9
• African American 32.0
• Asian 32.6
• White 38.6

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 21
• 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 Grammys
• Latin Emmys

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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 Its More than Just Spanish
ñ
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Its About Reaching Them with Relevance

• Its 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.)
UNACCULTURATED
ACCULTURATED
UNACCULTURATED
ACCULTURATED
Success Family/group satisfaction
Success Personal Achievement
Obedience/ attached to traditions
Class distinction/ authority
Freedom/ open to change
Equality
Collectivism
Individualism
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