- Enough Hype - ¿What is the Real Direct Marketing Opportunity for the Hispanic Market?

1. - Enough Hype - ¿What is the Real Direct Marketing Opportunity for the Hispanic Market?

2. Ripped From the Headlines

3. One third of all housing purchases in the next ten years will be Hispanic

4. Hispanic new business growth 3X general market

5. In our 2004 survey, 49% of Hispanics received Credit Card offers by mail. In the 2006 survey the number climbed to 77%

6. In our 2004 survey, 41% of Hispanics had more than 1 credit card. In the 2006 survey the number climbed to 56%

7. 2004 2006 2004 2006 • Fewer Hispanic families have a bank account than families in the General market.But that is quickly changing.

8. Hispanic African-American Asian-American Non-Hispanic Whites Non-Hispanic Whites continue to have lower birth rates than Hispanics, African-Americans and Asian-Americans

9. By 2050 the Hispanic population will reach 110 million

10. And in Your Neck of the Woods 282,000 Hispanics in Utah, about 15% of the total population

11. And in Your Neck of the Woods

12. And in Your Neck of the Woods

13. Segmentation

14. Age

15. Country of Origin 108,000 Utah Hispanics, or 38%, are foreign born

16. Acculturation HISPANIC ORIENTATION + Monocultural Hispanic Bicultural to different degrees + ANGLO ORIENTATION Culturally Unique Assimilated

17. Hispanic Bicultural Hispanic Dominant Anglo Assimilated Culturally Unique Yankelovich/ /Cheskin Hispanic Monitor 2002

18. Classifications Hispanic Orientation Culturally Unique Hispanic Dominant 56% Assimilated Bicultural 20% Hispanic Dominant Bicultural Anglo Orientation Culturally Unique 2% Assimilated 23% People En Español HOT Study 2002

19. Yankelovich/ /Cheskin Hispanic Monitor 2002

20. Synovate Cultural tension

21. Synovate

22. The Five Steps

23. Step 1 - Market Assessment • An obvious step….. but execution is key. • The Hispanic market is not homogeneous, just like the general market. • Clearly define the target segments in psychographic and demographic terms. Append or enhance where possible. • How large are segments? • Where is the target in terms of product lifecycle? • All Hispanic segments can be marketed to but not all products can be marketed to all segments. • Define the real opportunity because it is very important for Step 2.

24. Acculturation: Hispanicity™ Segments • HA4: Hispano. • Spanish Preferred (some English). • Immigrant as adult, in U.S. 10+ years. • Pre-dominant Hispanic cultural practices. • HA5: Latinoamericana. • Spanish Dominant (nearly no English). • Recent Immigrant as adult. • Primarily Hispanic cultural practices. • Identify with home country more so than U.S. Hispanic. HA1: Asimilado. – English Dominant (nearly no Spanish). – Born in US; 3rd+ generation. – Few Hispanic cultural practices. • HA2: Pochita. – English Preferred (some Spanish). – Born in U.S. 2nd generation. – Some Hispanic cultural practices; often “retro-acculturate”. • HA3: Bi-cultural. – Bi-Lingual (equal or nearly). – Immigrant as child or young adult. – Many Hispanic cultural practices.

25. Language Use in 2006: Hispanic

26. Step 2 - Commitment • A motherhood statement….yes! However, it is absolutely essential for success. • It is easier to make the case if a clearly defined opportunity is presented. • You must have adequate budget, personnel or outside resources. • Entering the Hispanic market is not a test, it is a launch. It is essential for any companies future survival. However….. • You will make mistakes, tests may not work and initial numbers may be disappointing. That’s why a serious commitment is required.

27. Step 2 - Commitment • If you hear things like: • Just translate the stuff we have • Make the tests as cheap as possible • If the test doesn’t work, that’s it • We don’t have budget for this • We will use Maria Gonzales from accounting to translate • We cannot afford to adapt backend infrastructure right now • We tried that before….. • Real ignorance or insensitivity to cultural differences • There has to be a market • Either push harder, ask for a transfer or quit.

28. Step 3 - Put It All In Perspective • In other words, don’t sweat the little stuff. Don’t be overwhelmed. • Assess the anecdotes. The NOVA story is an urban legend. Hershey’s “Cajeta” is not, nor is “turbo cajones” • All Hispanics use the same dictionary. There is no Mexican-Colombian version just as there is no New York-Alabama version. • There are more commonalities than differences in the Hispanic market. Hispanics consider themselves de la primera. Gringos are de la segundo. • There is always a way to receive payment. In other words there are challenges, not obstacles.

29. Step 4 - Effective Creative Latinos are culturally “hard wired” differently Right brain Left brain • Emotional • Intuitive • Creative • Big Picture • Visionary • Intellectual • Sequential • Analytical • Logical • Accuracy-Driven Hispanics

30. Step 4 - Effective Creative • 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

31. Step 4 - Effective Creative 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.

32. Step 4 - Effective Creative High-quality work made this a peakyear and put us over the top. Things were looking upwhen the market bottomed outand hit an all-time low. It's been downhill ever since.

33. Language Preference in 20 Situations • 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 • 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 Cecilia Alvarez, FIU, 2004

34. English and Spanishequally Englishmost of the time English all the time Spanish most of the time Spanish all the time Cecilia Alvarez, FIU, 2004

35. 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

36. Disagree Neutral Agree Strongly agree Cecilia Alvarez, FIU, 2004

37. Disagree Neutral Agree Strongly agree 2 3 4 5 White Hispanic Cecilia Alvarez, FIU, 2004

38. Culture and DM • The family is always important. • it’s protecting your family, not financial security • 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 • Emphasize the 800 number • Many Hispanics prefer this order method

39. DMA/Directo Research Multiple responses given by some respondents No other reason was mentioned by more than 7% of respondents

41. You Get All This Free: Binder for Cards Dividers to organize 2 packets, 24 Cards Bongo Premium *And pay only $5.95 for your fist packet You Get All This for $5.95 Binder for Cards Dividers to organize 3 packets, 36 Cards Bongo Premium Here’s how it works Questions? Call 800 xxx Culture and DM Offers

42. Step 4 - Effective Creative

48. Step 5 - Media Selection • Media selection is dependent upon the target segment and the type of message needed to reach the audience. • DRTV is good for reaching the less acculturated segments. Using the right creative allows prospects to self identify or “raise their hand”. However compared to general market, inventory and selection are not as good. • Direct mail allows for a more expanded message, especially useful for educational components. Also excellent when a bilingual approach, as in financial services, is required. In some cases targeting is excellent although the list universe is not as large as general market.

49. Step 5 - Media Selection • Internet is a good tool to reach more acculturated segments but is also rapidly reaching to less acculturated groups. Hispanic SEM has no established best practices at present but has real potential. Of course, website conversion is required. • Telemarketing seems to be under the radar but is an excellent tool to reach all segments. Hispanics are not registered on the DNC list like general market and prefer the personal approach. Call times will be higher. • Alternative media should also be considered.

50. ¡Gracias y Thank You! Michael Saray Hispanic Marketing, Inc. 419 Lafayette New York NY 10003 212 277 8027 Michael@michaelsaray.com