Multicultural Marketing and the Super Bowl 2012

Marketers seem to be missing the ball. Madison Avenue and its chronic lack of cultural awareness and representation are evident in the 2012 Super Bowl ads. Blacks and Hispanics can only be seen in the background and as factory or service workers of some type. An online car seller shows a Black buyer a a main character, and a car ad shows a couple of Inuits as main characters, other than that it looks like non-Hispanic Whites own the show along with multiple dogs and polar bears.

Listen, I love non-Hispanic Whites, dogs, polar bears, and most other interesting and cute characters.  That is not the issue.  The issue is that minorities are about 40% of the total population in the US and they are almost invisible and stereotyped in the most prominent ad event in the United States. And I am not asking for fair representation. That is not the issue either.  I am advocating for business sense. How can emerging minorities identify with brands if they are not seen associated with them? And, how can they be compelled if the cultural values of these minorities are not represented?

As I was enjoying the Super Bowl ads it came to mind how our industry is still incredibly naive about what is driving the economy and innovation in this great Country. Emerging minorities are driving technology adoption and have larger families. I am mystified as to how can advertising firms miss the changing cultural environment of the US.  I thought I would share my surprise.

Multicultural Consumer Spending on Entertainment

With our national online data collected in 2011, students in the graduate Multicultural Marketing Communication course and I measured some key indicators of entertainment spending in the multicultural marketplace. We have known that Hispanics and other emerging minorities tend to watch more movies in theaters and also rent more to watch at home than non-Hispanic Whites[1] . We have not known much about overall entertainment spending, videogame and music spending, however. Below I explore some of the trends available as reflected in our data.

Overall spending on entertainment on a typical month is lead by Hispanics who prefer to communicate in Spanish followed by Asians and by Hispanics who prefer English.  African Americans and non-Hispanic Whites, while also spending substantially on entertainment, are less likely to spend $50 or more per month. The following graph shows the percentage of people in each cultural group that indicate spending $50 or more on entertainment in a typical month.

These tendencies tell marketers some of the story of where entertainment spending is likely to come from in the future. Looking at average expenditures instead of percentages of people spending more than $50 changes the picture a bit as seen in the following chart.

Here the reader can see that in the average Hispanics in general spend between $10 and $20 dollars more on entertainment in a typical month. This chart also highlights how sensitive the data is to different representations since in the average African Americans are closer to Hispanics in their spending than when looking at percentages of individuals. Still the consistent trend is that there are cultural groups leading with their wallets and they need to be taken seriously in future planning.

We also looked at expenditures in music purchases, and here the trend is for Latinos to lead even more dramatically as seen in the chart below:

To further substantiate these trends we asked consumers to tell us about the number of concerts they attend during a year:

Concert going follows a similar pattern to that of entertainment in general.  Given the popularity of video games these days we also asked about video game expenditures:

Not surprisingly emerging minorities overindex in comparison with non-Hispanic Whites in regards to video game expenditures in the average. This may not be too surprising because of the inherent youth of emerging minorities in the US.

The data we have collected since 2006, every year, has shown similar patterns. The consistency is quite impressive and it is hard to dismiss. Despite economic adversity Latinos, and in some cases, others continue to spend on what is important to them. Music, events, and the enjoyment of everyday life is precisely part of what is important to survive in the good and the bad times. There are cultural tendencies that marketers need to better understand. It is not just the superficial apparent differences among ethnic groups but the deep beliefs they hold dear and on which they are willing to spend their hard earned money. I suggest that marketing executives should take a serious look at where their budget priorities are in order to enhance the bottom line of their companies. That is by prioritizing their merchandizing and communications to address the preferences of those who lead in the multicultural marketplace.

The data for this study was collected during March 2011. The online sample was comprised of 500 respondents per segment, for a total of 2,500, based on quotas by gender, age, and geographic location. DMS Insights, a uSamp Company, managed and graciously contributed the sample and data collection. This study was conducted by the faculty and students of the graduate Multicultural Marketing Communication course offered by FSU.

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[1] See “Hispanic Marketing: Connecting with the New Latino Consumer” by Felipe and Betty Ann Korzenny, published by Routledge, 2011, page 314.

Dialogue: Uniqueness of Marketing to Latinos in the US

I would like to have this post be a dialogue to build knowledge on what is unique about marketing to US Hispanics.

Please post comments in response to the following question:

In your opinion, what are unique factors about marketing to Latinos in the US?

Music: MP3s and CDs in the Multicultural Marketplace

Are ethnic groups in the US society equally acquiring MP3s and physical CDs, or are there differences in their rate of adoption? That was a question we asked in the FSU’s Multicultural Marketing Study conducted in collaboration with DMS Insights the Spring of 2011.

We phrased the survey questions “How often do you do each of the following?” and the response options were “Never,” “Sometimes,” and “Very Often,” for each of purchasing MP3s online and purchasing physical CDs.

 At first I aggregated “Sometimes” and “Very Often” for both products and the results show an increasing tendency of the use of MP3s purchased online for African Americans, Asians, Hispanics who prefer English, and Hispanics who prefer Spanish, with the latter 3 groups showing a stronger tendency for MP3s to catch up to CD’s.

The differences in the purchase of physical CDs among these groups are not as dramatic as the differences for MP3s. Clearly, CDs are an established and declining category while MP3s are a growing innovation. Then I compared the differences for only the “Very Often” category.

This analysis is more striking because it shows that Hispanics who prefer English appear to be the most aggressive ethnic group replacing CDs. This seems like a historical innovation breakthrough. Non-Hispanic Whites are also more actively replacing CDs but their overall levels of purchase are lower. Hispanics who prefer Spanish are at parity in their “Very Often” purchase of MP3s and CDs, and given the trend they may soon follow the pattern of their English preferred counterparts.

 What these findings point to is a continuous trend on the part of emerging minorities to innovate to a larger extent than the established non-Hispanic White majority. This musical category, however is quite interesting since music is so central to the lives of minorities in reinforcing their ethnic ties.

These trends lead me to ponder why companies like Apple and Amazon do not pay more attention to the tastes and interests of these minorities since they are the ones innovating precisely at the core of their business. Why are they not advertising more with an emphasis on ethnic music and with messages directly related to the cultures of central to their selves? Perhaps, as usual, change comes very slowly, and I wonder, when will they realize who their core customers are?

The data for this study was collected during March 2011. This online sample was comprised of 500 respondents per segment, for a total of 2,500, based on quotas by gender, age, and geographic location. DMS Insights managed the sample and data collection and they graciously contributed their effort to the academic program of the Center for Hispanic Marketing Communication at Florida State University. This study was conducted by the faculty and students of the graduate Multicultural Marketing Communication course offered by FSU.

The Multicultural Opportunity of Internet Radio

We have known for a long time that listening to radio is a favorite activity of Hispanics and African Americans. In particular, listening to the radio has a long tradition in Latin America where radio is the town crier and the central point of communities where people find lost items, find jobs, get announcements, news, etc. Clearly also, music is a great part of the tradition of listening to the radio. I have been curious as to whether or not Internet radio has continued that tradition or not.

In our Spring 2011 Multicultural Marketing study at Florida State University with the support of DMS Insights, we asked consumers of different cultural backgrounds to tell us “In an average week about how many hours do you spend listening to Internet radio like Pandora or Last.fm in English” and also “in another language.” At first we recoded the data so we could simply know who listens and who doesn't in either English or another language.

We found that those consumers who are online are listening to Internet radio to a surprising extent, and the groups most likely to listen are those that I suspected would. In English, African Americans and Hispanics who prefer to communicate in English are the most avid listeners. But when it comes to listening in another language the picture is interesting if not surprising.

Those who are more likely to use a language besides English seem to have some attachment to Internet radio in their native language. Hispanics who prefer Spanish are particularly keener on listening to Internet radio in Spanish. And remember, that besides Pandora, Last.fm, and others, there are radio outlets like Batanga.com that specialize in Spanish language and Latin music.
While we cannot directly add those who listen in Spanish with those who listen in another language because there is an overlap, it is interesting to notice that there is a noticeable predilection for Internet Radio among emerging minorities. I then added up the average number of hours per week of radio listened over the Internet for English and other languages. The results of actual time spent are remarkable.

Online Latinos who prefer Spanish spend almost six hours per week listening to Internet radio, compared with about four hours for Hispanics who prefer English and African Americans. Asians spend about two and a half hours, and non-Hispanic Whites spend the least amount of time in this endeavor.

To me the implications for marketers are clear.

Internet radio as an emerging medium and a promising advertising vehicle, is being favored by Hispanics and emerging minorities to a larger extent than by the shrinking non-Hispanic White population. Using this medium to promote both music and commercial messages seems like a no-brainer, particularly when attempting to get the favor of the consumer groups that are leading the new digital era.

The data for this study was collected during March 2011. This online sample was comprised of 500 respondents per segment, for a total of 2,500, based on quotas by gender, age, and geographic location. DMS Insights managed the sample and data collection and they graciously contributed their effort to the academic program of the Center for Hispanic Marketing Communication at Florida State University. This study was conducted by the faculty and students of the graduate Multicultural Marketing Communication course offered by FSU.

CDTV.net Interview about "Hispanic Marketing: Connecting with the New Latino Consumer"

On August 26 CDTV.net Financial News interviewed me about our new book "Hispanic Marketing: Connecting with the New Latino Consumer." Click here to listen to the interview.

For a special offer from the publisher click here

Online Courses on Multicultural and Hispanic Marketing Communication

Starting the last week in August The Florida State University will offer for the first time, online, a course on Multicultural Marketing Communication. It is available to anyone interested in continuing education or just for the sake of learning. Students in academic programs can get academic credit and those not in academic programs get a certificate of completion. The course is asynchronous, so students can participate when they have the time. Click here for more details.

Also starting the last week in August is our well known online course on Hispanic Marketing Communication now using our new book "Hispanic Marketing: Connecting with the New Latino Consumer." This course is also available to anyone interested. Click here for further details.

We have also added to our online course rotation Account Planning in the Summer. For inquiries about any of our courses and to register please contact: Inquiries@campus.fsu.edu

Older Latinos: An Underestimated Marketing Opportunity

I have been thinking that for the last 20 years the marketing industry keeps talking about Hispanic youth as the promised land of opportunity. No question that Latinos are fundamentally characterized by their youth because their median age is 10 years younger than that of the overall US population. Still, there are older Latinos, and surprisingly they are a fast growing subpopulation of people 50 and over in the United States. That is not hard to understand since everyone ages and Hispanics are the fastest growing cultural group in the United States.

The cult of youth among marketers is understandable, but looking at some data from the Florida State University DMS Insights Multicultural Marketing Research Project of 2011 suggests that there is ample opportunity to capitalize on 50+ Latinos because their aspirations are high.

For example, among those who are online who do not currently have a blog, one can see that those who prefer to communicate in Spanish are more likely than anyone else to say they are planning to have a blog within the next year, and those 50+ are the most ambitious in this respect than anyone else in their age group.

% Plan to have a blog within the next year

Another example is the aspiration to have a smart phone. 50+ Latinos who prefer to communicate in Spanish are more likely than anyone else to say they are planning to have a smart phone within the next year.

% Plan to have a Smart-Phone within next year

Marketers should listen to these aspirations. While they may be overly optimistic, they are worthy of closer examination. These older Hispanics are likely to be very interested in furthering their communication with others and marketers should facilitate this aspiration. Now, the reason why Hispanics who prefer English are less aspirational according to these charts is because they already have these technologies (see prior blog postings). Now it is the turn of their Spanish speaking counterparts.

It seems to me that the idea of concentrating only on Latino youth may be obscuring the important opportunity of listening to the needs and aspirations of more mature Hispanics. They can be a gold mine for those who understand their views, opinions, and product interests.
The interesting thing about the explosion of Latino growth in the US is that youth always results in older age. This is something worth remembering.

The data for this study was collected during March 2011. This online sample was comprised of 500 respondents per segment, for a total of 2,500, based on quotas by gender, age, and geographic location. DMS Insights managed the sample and data collection and they graciously contributed their effort to the academic program of the Center for Hispanic Marketing Communication at Florida State University. This study was conducted by the faculty and students of the graduate Multicultural Marketing Communication course offered by FSU.

Social Networking Sites is Where the Action is for Hispanics and Emerging Minorities

The new town center and “plaza” is online and it is very relevant to today’s marketers in the new global village. In March 2011 we asked consumers to “please tell us how important to you the following reasons are for using social networking sites like Facebook or Twitter?” Respondents answered on a 5 point scale from “not at all important” to “extremely important.”

The two reasons for using social networking sites that stood up most significantly were: “Keeping up with new trends,” and “asking friends and relatives about their opinions on products to buy.” The graphs below summarize the aggregated percentages for the top two points of the 5 point scale.

Keeping up with New Trends

NHW stands for non-Hispanic White, AA for African American, A for Asian, HE for Hispanics who responded in English, and HS for Hispanics who responded in Spanish to the survey.

Asking Friends and Relatives about Their Opinions on Products to Buy

NHW stands for non-Hispanic White, AA for African American, A for Asian, HE for Hispanics who responded in English, and HS for Hispanics who responded in Spanish to the survey.

Minorities in general are more likely than non-Hispanic Whites to say they use social networking sites for keeping up with new trends and for interacting with friends and relatives about their opinions on products to buy. Latinos who answered in Spanish to the survey are more likely than anyone else to endorse these reasons.

There are several important implications of these findings. First, as we have seen in other results from similar surveys, emerging minorities are more engaged with the new media and are likely to use it as a source of information for their lifestyle and consumer behavior. This speaks strongly to the importance that marketers need to place in being where these consumers are, i.e., social media. Brands that facilitate interaction seem likely to have an advantage as that plays directly to what is important to these consumers.

Further, Latinos who prefer Spanish are even more engaged with social networking sites for obtaining guidance and knowing about things like fashion. While Spanish dominant Hispanics have lagged in the adoption of online technologies, they are now fast adopting them and once they adopt these technologies they seem to strongly depend on them. The synergies of social media and traditional electronic and print media are likely to be important and should be capitalized upon to create conversations and discussions. The virtual social world is opening enormous possibilities to people, and it is creating a new system of influence. Growing minorities appear to be eager to break traditional barriers.

Opinion leaders among these emergent minority groups are very likely to have an impact on their followers who share their background, but also on others who frequent social media sites. Thus, these minorities are not only finding a town center or “plaza” online but are likely to also be affecting a larger social milieu because of the very public nature of social media.
Figuring out the role of social media is still an ongoing challenge for marketers. They should start paying close attention to what is happening in the virtual marketplace. Understanding flows of influence in online networks can be crucial for the marketing of the future.

The data for this study was collected during March 2011. This online sample was comprised of 500 respondents per segment, for a total of 2,500, based on quotas by gender, age, and geographic location. DMS Insights managed the sample and data collection and they graciously contributed their effort to the academic program of the Center for Hispanic Marketing Communication at Florida State University. This study was conducted by the faculty and students of the graduate Multicultural Marketing Communication course offered by FSU.

Hispanic Marketing: Connecting with the New Latino Consumer

By Felipe and Betty Ann Korzenny
Forthcoming August 1, 2011


This book is about using cultural insights to connect with Latino consumers. It's about marketing strategies that tap into the passion of Hispanic consumers so that marketers and service providers can establish the deep connections they need for a successful campaign. This book provides an understanding of the Latino consumer that goes beyond simplistic recipes.
This highly revised and expanded edition comes on the heels of new US Census figures: Hispanics now account for 53% of the US population growth since 2000, soaring to over 16% of the total population. Corporations are now realizing that they must incorporate Hispanic cultural values into their products, services, and communications.

This edition reflects and responds to the profound changes the Latino market has experienced since the first edition. It considers the way in which changes in cultural identity, immigration, economics, and market synergies need to be addressed in a new relationship with Hispanic consumers.

Twenty-five new industry case studies illustrate the chapters. These case studies show how brands from diverse categories have developed a cultural understanding of their Latino target and created campaigns that established strong bonds.

Selected endorsements:

“Felipe and Betty Ann have evolved their earlier work on Hispanic Marketing into
a new and even stronger work that pushes the reader to become more strategic
and thoughtful when developing marketing platforms for Latinos. The conceptual
framework of Hispanic Marketing: Connecting with the New Latino Consumer
is a thoughtful approach around creating marketing actions that are based on a deep
understanding of Latino culture. The reader is provided the tools to be able to better
interpret the cultural nuances of being Hispanic and how to make more informed
and empathic marketing decisions.”
J. Alexander M. Douglas, Jr., President Coca-Cola North America

“Drs. Korzenny have produced another masterful work that takes us on a historic
Hispanic cultural journey that allows us to understand the heterogeneity of Hispanics
while applying this information to contemporary marketing strategies.”
Richard Carmona, MD, MPH, FACS, 17th Surgeon General of the United States

“My life just got easier. Excellent marketing begins, but doesn’t end with excellent
market research. Excellent market research begins with a clear understanding of
how to ask and interpret meaningful questions. Bravo to Felipe and Betty Ann for
making this abundantly clear in their new book. Reading this helped me clear my
head of some of the old notions I was clinging to. I feel like I’m dating the Hispanic
Market all over again!”
Michael Halberstam, Interviewing Service of America

“As this seminal book notes, smart, good business requires rephrasing the question
from “How can we translate our ad so it reaches Hispanics?” to “What will
be the right motivational appeal to emotionally reach Hispanics?” Fortunately for
us all, Felipe and Betty Ann provide solid, well-researched answers. Everything
starts with the heart. To cite but one powerful example from this book, to Anglos,
Captain Morgan and his rum works fine, but to Hispanics exploitative pirates mean
something else altogether.”
Dan Hill, President, Sensory Logic

“If you’re a marketer looking to better understand the lucrative Hispanic segment, then
this book is for you. Felipe and Betty Ann Korzenny take you on a journey inside
the mind of the Latino consumer and provide you with the perspective and facts you
needed to design more effective and efficient Hispanic marketing strategies.”
Gian Fulgoni, Chairman, comScore

“Noting that there are over 50,000,000 Hispanics in America is one thing.
Understanding how to connect your brand with them is quite another. This book is
filled with marketing competitive-advantage built on cultural connection.”
R. Barocci, Advertising Research Foundation President/CEO

“This essential manual for the field demonstrates how to navigate and leverage
one of the single most impactful demographic and cultural shifts affecting
the US marketplace. The Korzennys' perspective as true veteran practitioners
in the Hispanic marketplace and accomplished academics beautifully sheds
unique light in this updated edition on a comprehensive array of issues including
the most relevant topics discussed in the industry today—from shifting language
and acculturation issues to the digital world of Hispanics. Having spent
the past twenty years researching cross-cultural consumer differences, I found
this a refreshing read. It is equally valuable to the novice and experienced multicultural
marketer as the book strikes a strong balance of demystifying the
complex Hispanic market and offering guidance on honing skills to think differently
and identify culturally driven consumer insights.”
Adrien Lanusse, Director of Global Consumer Insights, Netflix

“This is the most complete book I have read to date on the cultural and economic
reality of the Hispanic market. It is truly a “must-read” book for anyone in the field
of education or marketing communications targeting Latinos. I congratulate Felipe
and Betty Ann for making this edition such an excellent resource for those of us
involved in the research and analysis of this important market.”
Fernando Figueredo, Chair of the Advertising and
Public Relations Faculty at Florida International University

“This book is a must read for anyone wanting to gain a deep and nuanced understanding
of the new Latino consumer. It is an apt tribute to Felipe and Betty Ann's many years
of experience, both as scholars and practitioners in the field of Hispanic marketing. It
is, without question, the best book out there on the subject of marketing to Latinos.”
David Morse, President and CEO, New American Dimensions

 
“Well beyond the statistics in 2010 Census, this new book leverages the Korzennys’
deep understanding of the Hispanic culture and market and provides both novice
and expert alike with valuable nuggets, practical case studies, and core consumer
insights that underpin the tremendous opportunity of the Hispanic market and
clearly highlight overall impact on the “now” generation of growth markets.”
Cynthia Nelson, President, Todo Bebe

“In their lively conversational style, Felipe and Betty Ann Korzenny provide real live
case studies packed with practical advice that show you how to develop winning
strategies to beat your competitors. Hispanic Marketing: Connecting with the
New Latino Consumer , Second Edition is your one-stop source for everything you
need to boost sales, launch new products, and increase your Hispanic market share.”
Charles Patrick Garcia, President, Garcia Trujillo

“Felipe and Betty Ann Korzenny are the preeminent experts on Hispanic marketing.
There is research and there is real world experience – nowhere will you find a more
practical and salient distillation of what it takes to be successful in the Hispanic
market place than in this book.”
Michael Durance, CEO, Call Genie

Click here for Felipe Korzenny’s author profile
Click here for Betty Ann Korzenny’s author profile