The Critical Success Factors for Successful Multicultural Marketing

1. The Critical Success Factors for Successful Multicultural Marketing  . . . with an emphasis on the Hispanic market.

2. Outline • A Few Quick 2010 numbers • Product Life cycle • Acculturation or Lifestyle Stage • Right versus Left Brain thinking • Communication Style • Examples

5. Latest Numbers • Hispanics, Asians and African Americans represent more than 80 percent of American population growth. • Hispanics contributed 52 percent of population growth since the year 2000. • Hispanics form 16 percent of the population but nearly 50 percent of consumer spending growth in 2010. • Hispanics plus Asians contributed two-thirds of annual spending growth in 2010. • There are 326 counties where ethnic minorities form the majority of the population—many of the largest counties in the nation, such as Los Angeles, New York, Chicago (Cook), and Santa Clara (Silicon Valley). • 80 percent of Hispanics are bilingual and about 20 percent are dependent on either English or Spanish.

6. Latest Numbers • 92% of retirees are non-Hispanic and America increasingly depends on Latino taxpayers. • Increasing levels of naturalization and second or more generation Hispanics along with trends in voter registration will result in an increasingly important electorate - politicians will cater more and more to Latino interests. • Due to their younger age, longer life expectancy and robust spending, acquiring a customer today means that Latinos and Asians are worth far more than non-Hispanic whites—Asians are worth over $3 million in consumer spending, Latinos over $2.5 million and Non-Hispanic whites less than $2.2 million over their life span when acquired today.

7. Latest Online Numbers • The 2010 Latina Shopper Study indicates that 72% of all Latinas have a high-speed internet connection at home. • 31% are hard-core “Digitalistas” who prefer to shop online versus in-store and/or use the internet to plan their shopping trips and research products online. • These women tend to decide what brands to buy before they go to the store and seek recommendations from family and friends. • Online usage is more prevalent (85%) among more acculturated Latina shoppers. • But nearly 60% of the less acculturated also have high-speed internet at home. • Interestingly, 61% of Digitalistas preferred responding to the survey in Spanish language. This contrasts greatly to overall availability of relevant Spanish-language content online and is a call-to-action for brands, publishers and the online media community at large.

8. Birth Rates Hispanic Black Asian White, non Hispanic

9. Without white immigration this is a (negative) number Population Growth 2000 - 2050

12. What Do The Numbers Say?

13. Where Is Your Customer in the Product Life Cycle? NEW

14. Where Is Your Customer in the Life Stage and Acculturation Range?

15. Product Life Cycle Acculturation Range Life Stage

16. Privacy (maybe) AD&D or Burial Insurance with casket repatriation

17. Left vs. Right Brain Right brain Left brain • Intellectual • Sequential • Analytical • Logical • Accuracy-Driven • Emotional • Intuitive • Creative • Big Picture • Visionary It is important to understand that, in general, Latinos are culturally “hard wired” differently. There is more focus on right brain thinking.

18. Left vs. Right Brain • To reason in English is not the same thing as to reason in Spanish • To put it simply, language has an ideological agenda that is likely to be hidden from view • We incorrectly believe it to be a direct, unedited, unbiased expression of how the world really is. • But English and all languages are biased! • Spanish is a right brain language, so…. • The Spanish language has not favored intellect over emotion. It’s bias, or thought process, has not favored the left brain over the right brain. This Is a Very Real Cultural Difference

19. Left vs. Right Brain He's on top of the situation, in highcommand, and at the heightof power in having so many people under him. His influence started to decline, until he fell from power and became the low man on the totem pole, at the bottomof the pile.

20. Language Preference in 20 Situations • When writing my own notes I prefer to write in • I prefer to thinkin • I prefer to pray in • At church/temple I prefer to speak • When speaking at home, I prefer to speak • When speaking to children in my family, I prefer to speak • When speaking to my spouse/partner, I prefer to speak • When speaking to my brothers/sisters, I prefer to speak • When speaking to myparents, I prefer to speak • When speaking to my grandparents, I prefer to speak • When speaking to answeringservices over the phone, I select • While ordering over the phone from catalogs, I prefer to speak • When using an ATM I prefer to use • I prefer to shop at stores where I can speak • When speaking atwork, I prefer to speak • When speaking at school, I prefer to speak • When speaking to my friends, I prefer speak • I prefer to listen to the radio in • I prefer to watch TV in • When reading newspapers/ magazines I prefer Cecilia Alvarez, FIU, 2004

21. English and Spanishequally Englishmost of the time English all the time Spanish most of the time Spanish all the time Spanish language use declines as the generation increases Cecilia Alvarez, FIU, 2004

22. A person should always support his uncles or aunts if they are in need Relatives are more important than friends No matter what the cost , dealing with my relatives’ problems comes first Children should always have the respect for their parents Children should always have respect for elderly people Adult children should make sacrifices to care for their parents Adult children should often seek their parents’ advice Parents should sacrifice themselves in order to provide their children with the best Daughters should live with their parents until they get married Married children should live close to their parents to help each other Aging parents should live at home with their children I will be fulfilled as my family succeeds I value my children’s health above my own I work hard to give my children the best education they can get One of the most important goals in life is to have children Some equality in marriage is good, but by and large the father ought to have the main say in family matters Parents should feel responsible for their children’s happiness In an unhappy marriage, parents should stay together for their children’s sake People should consult close relatives concerning important decisions Keeping old family recipes is important Children should be taught about their family history Familism

23. Disagree Neutral Agree Strongly agree Cultural values are maintained even as the generation increases Cecilia Alvarez, FIU, 2004

24. Disagree Neutral Agree Strongly agree 2 3 4 5 There are significant differences between the Hispanic and general market White Hispanic (Average of generations) Cecilia Alvarez, FIU, 2004

25. Mainpoint/conclusion Supporting Arguments Hispanic General Market Supporting Arguments Mainpoint/conclusion Cultural Communication Style Neither is right nor wrong - they’re just different. Americans expect an answer upfront followed by supporting arguments. Latin Americans first give the supporting arguments that lead down to the answer. This is not a language issue, it’s actually an issue that is strongly influenced by what is considered a persuasive argument in each region.

26. Culture and DM • The family is always important. • it’s protecting your family, not financial security, but don’t be patronizing • Free or Gratis is a very powerful word. • Be Careful • Avoid blatant overuse of numbers. • You want to reach the heart, not the left brain • Fear is not a good motivator. • It is too emotional and relies on left brain thinking. Watch the cultural no no’s • Clear product explanation • But don’t be afraid of proven DM techniques

27. Culture and DM • Emphasize the 800 number. • Many Hispanics prefer this order method • Outbound TM may be a very viable option. • Hispanics are cynical and skeptical. • Word of Mouth is very powerful. • Hispanics love to be courted. • Build Trust

30. Awkward, perhaps incorrect, language, takes away from the most important message, valued customer Direct Translations Why lead with a premium? Explain product first, persuade Very small type Should be bilingual Basic DM rules apply, emphasize offer

31. Good Creative

34. AMEX “dogs” Magazine Ad (very “in culture”)

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37. Four Critical Factors For Successful Hispanic Marketing • Product Life cycle • Acculturation or Lifestyle Stage • Right versus Left Brain thinking • Communication Style

38. ¡Gracias y Thank You! Michael Saray Hispanic Marketing, Inc. 2211 Broadway New York NY 10024 917 533 7195 Michael@michaelsaray.com