branding in culture
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“To Sell me is to Know me”The In-culture Approach
Multi-Cultural Equity Conference
Overview
Exponential Market Growth
Un-even Growth and In-culture
How to ….?
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“America is a growing dynamic country whose
population will increase 50% over the next 50
years. Almost 90% of that increase will be in the
minority community, and this is where the
emerging markets will take place in America. It
is clear that both Fortune 1000 companies and
minority business need to pay attention to this
growing population.” William M. DaleyU.S. Secretary of Commerce, 2000
Exponential Market Growth
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Estimated income, over 665 Billion!!!
Projected growth in 12 months ?
2.1 Million new Hispanic consumers!
65 billion more in income!
Half a million new Hispanic households!
“True size” of Hispanic Market in 2003?
44.1 million*
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Presentation Overview
Exponential Market Growth
Un-even Growth and In-culture
How to ….?
omoreno@hotmail.com 5408.656.2498
Historic “un-even” Population Growth Impacts Marketing Profoundly
0
10
20
30
40
50
60
70
1995 2000 2005 2010 2015 2020 2025
3rd+ Generation
2nd Generation
Foreign Born
Source:The Urban Institute, Washington DC, 1998, in
Valdes, I., Marketing to American Latinos, Part 1, 2000
Millions
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Why does it matter?
Historic “un-even” Population Growth Impacts Marketing Profoundly
US born
• First, second, third generation
• Mostly English Dominant –some Bilingual
• Marketing savvy
Foreign born
• Recent arrivals vs. Long-term
• Mostly Spanish Dominant - many Bilingual
• Advertising, information “hungry”omoreno@hotmail.com 8408.656.2498
Historic “un-even” Population Growth Impacts Marketing Profoundly
US born
• Brand, category “mature”
• Have emotional connection with brands
• Retail and shopping savvy
Foreign born
• Brand heritage with emotional connection
– brand known in country of origin
• No brand heritage - “unknown brands”
– lack of emotional connectionomoreno@hotmail.com 9408.656.2498
Historic “un-even” Population Growth Impacts Marketing Profoundly
US born
• Culturally closer to “American” culture
• Varies by degree of acculturation
• Some (exception) do not identify as Hispanic
Foreign born
• Many “Hispanic Traditional”
• Younger generation closer to mainstream
• Critical mass of Hispanics influences process
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A different Latin Youth!
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Presentation Overview
Exponential Market Growth
Un-even Growth
and In-culture
How to ….? Use culture In-Culture ….
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In-culture “LatinUSA”
Not an American nor a Mexican, nor
Caribbean nor ….
A unique - and large - market
that can be easily segmented based on
cultural parameters!
In-culture market segmentation strategies
are a tested road to success!!
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The “New” Latina/o
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What Is Culture?
“Culture may be defined as the system
of social institutions (the family),
traditions, values and beliefs that
characterize a particular social group
(country or community) and which are
systematically transmitted to
succeeding generations.”
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Acculturation“Process of integration of native values
with those of host country”
A process that involves many generations
Not achieved by all individuals at the same speed
Certain values are held for many generations (e.g.: Familismo - “Share of Heart”)
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Part of family
Family, friendscommunity
Differences,“respect”
Hispanics
Individuals
Ourselves,
institutions
Everyone the
same
Anglos
Hispanic vs. Anglo ValueOrientation Differences
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Use Latino Cultural Imperatives
Machismo(Man‟s role)
Leads
Provides
Marianismo(Woman‟s role)
Keeps family together
Chicoismo(Children‟s role)
Family legacy
Familismo(Family Centered)
Family Unity is Imperative
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Familismo Pillar of the Hispanic culture Includes extended family Emphasis on group and relatives Family’s (group) well being take precedence over
individual Must provide and sacrifice for All
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MachismoA complex belief, value system Defines self and social image (“macho”) and role
Protector of family, provider, honor, virility, manly, courageous
Protector and respectful of women
Can have extreme and negative “expressions”
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Marianismo
Flip side of Machismo Defines traditional role of Hispanic
woman How she “must” think and behave She must “sacrifice,” (the more the better)
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Chicoismo“Child is King” Emphasizes dependency Over protection Parental role is “all
powerful” Not expected to think nor
provide for him/her self
“Reparatory” behavior
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Message Relevance
“A message must convey the
emotional significance of the
sentence, in addition to the
phonetic message, in order to
convey the “full” message”
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Presentation Overview
Exponential Market Growth
Un-even Growth
and In-culture
How to Manage?
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How to Manage?
Learn what is different about the Hispanic consumer
Determine how to capture ”Share of Heart” in your line of business
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Influencers?
Latino Youth „unique
culture‟ is next wave to
infiltrate GM culture,
the same way rap
became huge with
suburban kids
omoreno@hotmail.com26
408.656.2498
Segment your Hispanic Market
For example, use language segmentation
Spanish-Only
Spanish-Preferred
No preference/Bilingual
English-Preferred/Only
How to Manage?
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Use In-culture Age Segments 2000
Los Bebés/Los Niños (0-9) 18 %
Generation Ñ (10-19) 17 %
Latinos/Latinas (20-39) 38 %
Latin Boomers (40-59) 24 %
Los Grandes (60 +) 9 %
How to Manage?
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Hispanic Boomers
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Segment by country of birth and descent (and age upon arrival)
Mexican 58 % (20.6 M)
Puerto Rican (continent) 10 % ( 3.4 M)
Cuban 4 % ( 1.2 M)
Other Hispanic 28% (10 M)
Puerto Rican (Island) 3.8 million
How to Manage?
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How to Manage?
Promotions
- Communicate location of stores clearly
via mass media (print);
- Train staff on how different the
shopping experience is for foreign-born
Hispanics
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Use culture in Communications
Babies: birth, christening
Children: birthday, First Communion
Teens: Quinceaňera, birthday
Romance: anniversaries
Religion: Holydays
How to Manage?
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How to Manage?
Use models/talent that look/feel Latino
Talk to “Hispanic emotional buttons”
Take advantage of the emotional power of Spanish language across acculturation segments
Add Latino and/or “Latino friendly” employees
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How to Manage?
Product Selection
- Find out nationality of Latinos in your stores’ zip-code and merchandize accordingly
- E.g: Use the 3 to 5 mile radius geo-demographic reports provided
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How to Manage?
- Use culture to select products
- If Mexicans, (or Cubans, or other) are dominant, merchandize accordingly vendors from these countries, - select their colors, styles, accessories, gift items, (more than language!)
- Work with buyers sensitive cultural “likes and dislikes”
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How to Manage?At point of interaction …
Use “in-language” signage (imagine you are in foreign country!)
Highlight new products, services
- Assume many are new to a large % of adult Hispanics
- “Show Me”, versus “Tell Me”
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How to Manage?
“Entertain” the children (or the husband?)
A small candy will go a long way!
Always show/express “respect”
E.g., Mr. Mrs.
Create simple floor plans/maps to help locate the products in the store
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Presentation Overview
In Sum….
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“Use culture In-Culture”!
Culture is the “programming”
that sets up our values, beliefs,
expectations, etc.
Use culture “In-culture” at every
point of interaction with
customers, vendors, employees
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“Culture is our Programming”
In-culture segmentation strategies
consider:
Country of origin (Dominant, other)
Generation and age upon arrival
Language/s
Age cohorts, In-culture
Hispanic population density, etc.
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How to go about?
Study your branch, or store’s 20-30 mile radius
for “cultural insights”
Consider new market segments
(e.g.: Spanish-Only, Bilingual segments)
Acculturation level (Language usage,
country of birth, years in US, generational
segment, etc.)
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How to go about?
Use free on-line marketing data
US Census 2000 data and others
Annual CPS reports and many others
Identify syndicated research, “get to know your target” and benchmark before major ad campaigns
Plan and execute your marketing strategy with state of the art Geo-segmentation tools
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How to go about?
Hire Hispanic marketing and advertising
“X- perts” as you would for your non-
Hispanic programs!
Do not cut corners and “forget” to conduct target consumer research
Dedicate a healthy budget “if you want to see results”!
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