how to market to people who are not like you - aaf lake charles

© 2003 McDonald Marketing ALL RIGHTS RESERVED

How To Market To People How To Market To People Who Are Not Like YouWho Are Not Like You

AAF Lake CharlesAugust 12, 2008


Is Focusing on Diversity Counter-Intuitive?

• American society and culture has its foundations in equality

• We’ve been trained all our lives to minimize differences among ourselves, and maximize sameness

• Isn’t focusing on our differences a bad thing?


Why? What’s Changed?

TechnologyCultural Values


Technology Has Changed Us…

• More of what we already had – More products in every

category • Cars, coffee, beer, clubs,

toothpaste

• More that is new• Internet, wireless capabilities for

everything• ‘zines, chat rooms, blogs, speed

dating


And Our Culture Has Changed Too…

• People are busier than ever– We’re never “off the clock”

– No downtime, always reachable

– “stressed and pressed”

• People are more savvy, empowered than ever– Ability to edit, compile and

customize media• Spam filters, pop-up blockers,

TiVo/DVR’s, caller ID


Marketers Respond with Stealth Efforts

• The latest: new jobs as “everyday people using cool new products” to build buzz, while using deceptive ploys to gain attention– Tech gadgets– Liquor and cigarettes

• How to break through? Recognize me as the individual I am – diversity marketing


What Does Diversity Look Like?


Diversity Comes in Many Forms• Gender

• Religion

• Age/Generation– Matures (seniors)– Boomers– Gen X– Gen Y– Generation Ñ– ‘Tweens/Gen Z

• Gay/Lesbian

• Physical abilities


Diversity Comes in Many Forms• Racial

– White, African-American, Asian, Native American

• Ethnic/Linguistic– Hispanic, Indian, etc.

• Nativity– Foreign-born or U.S. born

• Lifestage– New moms/dads, retirees, college students, empty-nesters

• Lifestyle/Affluence– Working poor, middle class, wealthy, filthy rich

• Core values– Environmentalists, vegetarians, home schoolers


And there is diversity within diversity…


U.S. Asian Composition

10%

8%

15%

11%

22%

16%

18%

Chinese

Filipino

Asian Indian

Vietnamese

Korean

Japanese

Other

Source: U.S. Census 2000


Country of Origin for U.S. Hispanics

11%9%

67%

4%

9%

Mexico

Puerto Rico

Cuba

Central America

Other

Source: Synovate US Hispanic Report


The Hottest Market Segments Now

4. The Millennials (Gen Y)They’re powerful and elusive

3. The African-American MarketThey’re loyal and lucrative

2. Hispanic MarketThey’re new and growing

1. The BoomersThey’re big and affluent


Feeling the Boomers’ Influence • Dockers now the best-selling brand of men’s

pants, not Levi’s jeans

• Eyeglasses as fashion statement– Frames became more stylish

• Yoga explosion

• Popularity of “adventure vacation”, experiences– Safaris, bike tours through Italy, mountain climbing


Feeling the Hispanic Influence…


Feeling the Gen Y Influence

• U hgry 4 za? (Are you hungry for pizza?)• Emoticons : )

• LOL, BTW, CUL8R• GGP (Gotta go – parents!)

• Blending promotions and media– Using AT&T Wireless cell-phone text messages to

vote in American Idol


Understanding Your Target Means Understanding Your Target Means Understanding Their Understanding Their LifeLife

Their prioritiesTheir values

The experiences that define them


Matures, Boomers, Gen X, Gen Y

Key emotional drivers and icons


Matures (age 63 and older)

• Iconic entertainer: Frank Sinatra• HHI: $40,400• Defining Idea: Duty• Style: Team player• Work is: an inevitable obligation• Education is: a dream• Reward because: you’ve earned it• Home stuff: Timex, milk & cookies• Technology: slide rules and rotary phones


Boomers (age 44-62)

• Iconic entertainer: Mick Jagger• HHI: $59,800• Defining Idea: Individuality• Style: Self-absorbed• Work is: an exciting adventure• Education is: a birthright• Reward because: you deserve it• Home stuff: Casio, milk & Oreos• Technology: calculators, touchtone phones


Generation X (age 32-43)

• Iconic entertainer: Kurt Cobain• HHI: $49,500• Defining Idea: Diversity• Style: entrepreneur• Work is: a difficult challenge• Education is: a way to get there• Reward because: you need it• Home stuff: Swatch, milk & Snackwells• Technology: spreadsheets and cell phones


Generation Y (age 18-31)

• Iconic entertainer: Black-Eyed Peas• HHI: control $160 B

in spending• Defining Idea: Authenticity• Style: Worldly• Work is: a chance to do some good• Education is: something to enrich yourself• Reward because: you can share it• Home stuff: Ipods, Xbox, PS3, organic • Technology: all access, text messaging


Strategies for Diversity Initiatives


Diversity initiatives are most effective Diversity initiatives are most effective when you target when you target valuesvalues, not , not

demographicsdemographics

EmotionallyRationallyCulturally

StylisticallyLinguistically


Strategy #1: Be Relevant

• Identify what people want, then give it to them

• Example: Target vs. K-Mart– Relevance: “Style on a budget”

• Benefit: value with dignity



Strategy #2: Be Authentic

• Get to know your customer, get involved in their life

• Good example: – Chico’s clothing stores

• Bad example:– Bridal image of Indian

woman without henna– Verbatim:

• “She looks naked to me”


Strategy #3: Build Your Infrastructure• Diversity efforts require examination of

infrastructure

• Principal Financial Group– Spanish call center - significant difference in length of

calls

• Angelica theatre in Dallas: – Offers “Cry-baby” film showings at 11:00 on

weekdays, complete with baby changing area• No men allowed, so women can breast feed comfortably


Strategy #4: Know Thy Target

• Bad example: Wireless company: – Cinco de Mayo themed ads in Miami

• Good example: San Francisco: Bank of America partnered with AT&T to tap into huge Asian population– Open a new checking account, get AT&T prepaid

calling card good for calls to Asia – AT&T customers received free checking at B of A

• Goal: 1,500 new accounts• Actual: 22,000 new accounts


Strategy #5: Tap into Values

• G&L Tourism– Priority for G&L couplesis to feel comfortableon vacation


Strategy #6: Be True to Your Values

• Chick-fil-A: closed on Sundays


Strategy #7: Be Fearless• It may feel weird and unconventional to you, but

if it’s what the customer wants, then it’s the right thing

• Harley-Davidson: – attracting women

bikers with pole dancing lessons


Strategy #8: Create Specific Products

• Starbucks Detroit: sweet potato scones created to satisfy demand by A-A customers

• Local Dallas furniture retailer created weekly layaway plan to capture Hispanic buyers

• Moving companies now offering moving services to seniors– Rooms photographed and

replicated in new homes

• National auto company exploring “flex plan” to allow Gen Y customers option of skipping 1 payment per year


Strategy #9: Recognize Different Needs• Young vs. Old

– Online vs. face-to-face interaction• Each customer group would describe the above as a “non-

negotiable”

• Hispanic vs. Non-Hispanic– Speed & efficiency not as important as being given all the time I

need, a “live person” to answer my questions. Transactions are relationship-oriented: high touch over high tech

• Men vs. Women– Upscale salad restaurant (Greenz) created salad with men in

mind• Sliced steak instead of chicken, served in an edible pretzel bowl.

Verbatim: “Feels like bar food, but it’s good for me”


Strategy #10: Cascade Your Message

• Your employees are ambassadors– Train them for cultural sensitivity

• “Talking louder does not make me bilingual”• “The clerk called me sister. I am NOT her sister!”

• Every consumer interaction counts and means more than marketing– Continental Airlines story

• Gordon Bethune, CEO


Final Thoughts

• Pay attention to the shifting demographics and values of customers and community around you

• Meaningful marketing has growing relevancy with youth, Hispanic, Asian, AA and generational consumers as the desire for connection grows

• Good marketing is always about tapping into closely-held values


Questions?Questions?


Thank YouThank You


©2008 McDonald Marketing2909 Cole Avenue Suite 115

Dallas, TX 75204214-880-1717, Fax 214-880-7596

www.mcdonaldmarketing.comAll rights reserved.

No part of this material may be reproducedIn any form without permission by the author.

For more information aboutmulti-cultural consumers, marketing and trends, contact

Kelly McDonald at 214-880-1717 or [email protected]

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