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Slide 1: Cultural Differences in Marketing Presented by: Pamela L. Schneider Senior VP, Client Services Director Rick Johnson & Company, Inc.
Slide 2: 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)
Slide 3: 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)
Slide 4: 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
Slide 5: 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?
Slide 6: 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
Slide 7: 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?
Slide 8: 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
Slide 9: 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
Slide 10: 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
Slide 11: 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
Slide 12: 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
Slide 13: 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
Slide 14: 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
Slide 15: 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
Slide 16: 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
Slide 17: 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
Slide 18: 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
Slide 19: 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
Slide 20: Sample Campaigns Inn of the Mountain Gods Print Examples Campestre Juarez – Ad - Championship Golf Course NORTE de Ciudad Juarez – Ad - Casino Tournament Ad
Slide 21: 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 Spanishenjoy luxuries in life (golf, resorts, shopping and casino gaming) - El Paso and Juarez markets reached through print and radio as complimentary media
Slide 22: 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
Slide 23: Sample Campaigns PNM Print/Collateral Examples El Hispano – Call Before you Dig Ad Collateral – PNM Service Brochure Collateral – Budget Billing Brochure
Slide 24: 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
Slide 25: 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
Slide 26: 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
Slide 27: Let’s Discuss The Hispanic Consumer Market
Slide 28: 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
Slide 29: The Face of America is Changing! Why Market to Latinos?
Slide 30: Hispanic population is growing at 3x the National rate. % of Total Population 25% 20% 15% 10% 5% 0% 21% 14% 2004 2020
Slide 31: Hispanic buying power has increased 30% in last five years. Projected $1 Trillion by 2010 $$ $700 Billion
Slide 32: U.S. Latinos: A Marketer’s Dream • The 3 L’s: – Large – Lucrative – Loyal
Slide 33: A Large and Growing Population 2000 Census Reveals… • Hispanics are the largest and fastest-growing ethnic group in the U.S. Since 1990: – population grew 58% vs. 13% for nonLatinos • 37 million Latinos now live in the U.S.
Slide 34: U.S. Latino Population is Exploding… Latino Population in Millions 56.0 37.0 22.4 14.6 80.4 1980 1990 2000 2010 2020 Source: Strategy Research Corp. 2002
Slide 35: By the Year 2020… One in five U.S. residents will be Latino One in five U.S. residents will be Latino Source: 2000 U.S. Census
Slide 36: In Albuquerque…one of every 2.5 Source: 2000 U.S. Census
Slide 37: Top 15 U.S. Latino Markets by Population Source: U.S. Census 2000
Slide 38: Lucrative Potential of the Latino Market
Slide 39: U.S. Latino Buying Power ($ Billions) $926 $630 $452 $289 $208 1990 1995 2001 2002 2007 (proj.) Source: Selig Center for Economic Growth, Terry College of Business, The University of Georgia, August 2000; July 2002
Slide 40: 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 – African American – Asian – White 27.9 32.0 32.6 38.6 Source: U.S. Census 2000
Slide 41: Fountain of Youth? 34.2 21.6 Latinos 18-34 Whites 18-34 Source: Strategy Resource Corp. 2002
Slide 42: 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
Slide 43: Latinos Influence USA The Hispanic presence has enriched USA with food, media, entertainme nt and culture Source: Yankelovich Hispanic Monitor 2000
Slide 44: 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
Slide 45: Reaching Latinos Effectively
Slide 46: Language Use and Preferences Language most comfortable speaking Language spoken at home 14% 22% 64% Spanish English Both 10% 16% 74% Source: Strategic Research Corp. 2002 Source: Strategy Research Corp. 2002
Slide 47: 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
Slide 48: But It’s More than Just Spanish…
Slide 49: 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
Slide 50: 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
Slide 51: 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
Slide 52: Key Indicators of Acculturation • Language • Values
Slide 53: Latino Acculturation Values (L.A.V.s.)™ UNACCULTURATED UNACCULTURATED Success: Family/group satisfaction Class distinction/ authority Obedience/ attached to traditions Equality ACCULTURATED ACCULTURATED Success; Personal Achievement Freedom/ open to change Collectivism Avoidance of direct confrontation Fatalism Cooperation/ respect Assertiveness/ aggressiveness Individualism Competition Control over destiny
Slide 54: Acculturation Among Hispanic Adults 18+ 9% 25% Partially Unacculturated 66% Acculturated Source: Strategy Research Corp. Source: Strategic Research Corp. 2002
Slide 55: Albuquerque is Highly Acculturated Market • Top 3 Most Acculturated Markets in U.S.: – San Antonio – Albuquerque – San Francisco
Slide 56: Acculturation Among HA 18+ -Albuquerque 15% Partially 21% 64% Unacculturated Acculturated Source: Strategic Research Corp. 2002 Source: Strategy Research Corp.
Slide 57: 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
Slide 58: Thank You