Emerging Minorities, Concern for the Environment, and What Marketers Can Do

When I was growing up in Mexico City my father and mother always told me not to keep the faucet running because wasting water was bad. Then they told me not to throw things away because some day I can reuse them. I saved cans, jars, bottles, bags, and was very careful not to leave the faucet running while washing dishes or shaving. And, of course, you would not dream of leaving the lights on when nobody was in a room. That was such a waste of electricity.

Perhaps we were so thrifty because that was the economical thing to do at the time. But we were also frugal because resources were scarce and we did not want to waste them. For example we did not have all the water we needed. They would sometimes cut it systematically at different times during the day. Electricity was a similar problem.

I have noticed that Hispanics coming from Latin America, similar to my youth case, are also frugal with resources even if they have money to buy what they need. I have been curious to know if it is a general phenomenon that Latinos are more concerned with the environment than others.

According to our recent 2011 FSU – DMS Multicultural Marketing study we found that in fact, Hispanics that still prefer to communicate in Spanish are the most concerned with the environment compared to anyone else. Further, minorities are generally more concerned than non-Hispanic Whites after conducting statistical tests of significance. Here are the averages on a scale from 0 to 5 in terms of agreement with the statement: “Humans are severely abusing the environment.”

This belief reflects an attitude of concern for the environment that should be noticed by marketers. Products and messages directed to Latinos and other minorities are likely to have stronger resonance if they address how a company is doing something for the environment, and that their products are green.

It is not intuitive that Hispanics who prefer Spanish are most strongly concerned with the environment. Particularly not to those marketers who do not share their history of environmental chaos and deprivation. Further, Latinos who prefer English, along with African Americans and Asians, share a stronger concern for the environment than their non-Hispanic White counterparts, and that is not intuitive either. It is perhaps that those who have had to live with the consequences of environmental degradation are now turning more conscientious about it.
The lesson of the story is that emerging minorities are likely to embrace green and marketers should make that part of their agenda. Perhaps green is the new “green.”

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 this Spring.

How Can Companies Address Cultural Diversity in Marketing

There are companies that have dedicated groups to deal with Latinos, for example. And sometimes they have separate groups to handle multiple minority group. In some cases there is a multicultural marketing group as distinct from the main marketing group. Some companies have had niche marketing units for a while and then have disbanded them. Some recreate them after a while and then merge them into discrete business units. There may not be one recipe for how to organize the marketing function to account for cultural diversity among consumers but the following are important requirements:

1.      First and foremost there must be members of the cultural groups of interest within the organization at most levels of decision making. These individuals should, at least conceptually, be vigilant about issues that affect their cultural communities. Hispanic in our case.

2.      There should be cultural expertise in the organization that goes beyond objective culture to address the subjective culture of the groups in question. Ideally these would be cultural anthropologists that also have marketing expertise. As a minimum these should be practitioners that have some in-depth training about the focus culture, even if they are members of the culture itself. Being a member of a cultural group does not necessarily imply that the person understands his/her own culture. That is because culture is not evident even to its own members. In house cultural expertise used in marketing strategies and tactics can help connect effectively with culturally diverse consumers and avoid costly errors. Also, it helps organizations avoid the assumption of similarity that many marketers tend to make because “after all we are all human.” I have made the point elsewhere that using culture as a connecting mechanism becomes a shorthand for better communication with culturally diverse groups.

3.      As purposeful marketing claims increased importance in the marketplace, organizations are redefining their mission to become better citizens. As the grocery store a hundred years ago had the purpose of serving its community businesses now are coming back to that enlightened point. As a sense of purpose guides the organization the bottom line is also covered. Purposeful marketing requires now that companies act upon the multicultural reality of the United States.

4.      Integrating decision making in organizations will be an increasingly important endeavor. This is particularly true in marketing as Latinos and other emerging minorities cannot be seen as niches anymore but as driving forces of the entire economy. The Chief Marketing Officer (CMO) can no longer compartmentalize culturally diverse groups as smaller opportunities than the defunct “general market.” There is no such thing as a general market, there are segments of cultural groups compounded by subcultures and lifestyles. These need to be understood in a coherent scheme where culture is part of the segmentation scheme, and where culture is part of the strategic thinking of the company.

5.      The cultural experience of the company needs to be an ongoing effort. Companies need to keep their radar out in culturally diverse communities to understand trends and changes. Executives need to go on ethnographic interview outings to see where and how their consumers live. They need to experience firsthand consumer practices and ways of behaving. It is not just the research/insights group that needs to be in contact with consumers, it is the decision makers. To do otherwise makes the work of researchers and insight gatherers futile because they will not resonate at the decision making levels. Marketing needs to go back to the village, larger now but still a village in a psychological sense.

There does not seem to be a way to ignore the cultural transition the United States is experiencing. Marketers are at the point where they need to strategize and segment in a comprehensive way. Marketing to Hispanics, for example, is not anymore a secondary priority, because that is where the future resides. But a new approach to marketing in a diverse society should be done so that complexity and cultural overlaps are recognized.

The Hispanic Population Numbers Surprising Marketers Again!

We are all waiting for the Census numbers. According to the official schedule we will not know the official number of US Hispanics until April of 2011. Nevertheless I took the time to look at some sources of data to figure out what the growth of US Latinos is likely to be in the next few years.

First I consulted the Geoscape projections for all the US population and Hispanics in 2015. These projections are based on Census data. The projection is that the total population of the US will be close to 323 million people and that of US Hispanics will of about 56 million people then. Well, I was expecting something like that. Then I looked at the Geoscape total population projection for 2010, which I found to be very close to the current count of the US population according to the http://www.census.gov population clock. Both sources said that there are about 310 million people in the US now. I looked at the latest Census data again and found that the US Census Bureau projection for Hispanics in 2009 was 48.4 million. Geoscape projection for 2010 is of close to 50 million people.

I started doing some simple arithmetic and rounded up numbers for simplicity. Let's assume there are 50 million Hispanics in the US now, and there will be 56 million in 2015. The difference is 6 million. Then I substracted 310 million from 323 million for the entire population in 2015. That means that the total projected growth of the US population by 2015 will of about 13 million. If these numbers are anywhere close to accurate, the growth of the US Hispanic population will account for almost half of the total growth of the population of the United States.

These numbers left me thinking about how important Hispanics are to US marketers. A cultural group that accounts for half the growth of the population should make an important part of strategic planning. This is a cultural group that can be addressed by connecting via common denominators in a common culture. Numbers can have some interesting implications.

Use of Social Networking Sites Among Diverse Cultural Groups in the US

Social Media Marketing depends on the popularity of social networking sites. In the study referred to in my prior Blog we also asked our large multicultural sample of respondents to "please indicate the social networking sites you visit regularly." We listed MySpace, HI5, QuePasa, Habbo, Orkut, FaceBook, Friendster, Bebo, Classmates, WindowsLSpaces, Xanga, Flixter, Tagged, Netlog, Reunion, Broadcaster, Cyworld, MyHeritage, Friends, Reunited, Linkedin, BlackPlanet, and SecondLife. We also provided the option "none."

The chart below illustrates the preponderance of use of MySpace and FaceBook among these emerging minorities:

The first observation is that Non-Hispanic Whites, as in the prior blog, show a lower incidence in visiting these sites regularly when compared with the other cultural groups. Interestingly both popular sites fare best among Hispanics who prefere English and Asians than among anyone else. Hispanics who prefer Spanish and African Americans, however, are still more likely to visit these sites than Non-Hispanic Whites. Again, it is emerging minorities that are leading the future of the digital era in the United States.

The following Chart illustrates that culturally targeted sites do better among specific cultural groups:

Sites that have a preponderance of particular cultural groups, or who target specific cultural groups appear to do well with them. The International Site HI5 and QuePasa do realtively well with Hispanics who prefer Spanish. Friendster, populated by a larger number of Asian Americans does relatively well with Asians as compared with other cultural groups. African Americans are more frequently regular visitors of Black Planet. Thus, cultural targeting seems to have great potential among those who strongly identify with their culture. Interestingly, none of these sites seemed to do particularly well with Hispanics who prefer English or with Non-Hispanic Whites. In the case of Hispanics who prefer English this may be because there are few sites specifically catering to them.

Perhaps even more surprising is that members of all of these online cultural groups visit social networking sites with regularity as the following chart shows:

This last chart illustrates that very few individuals in any of these groups use none of the social networking sites we listed in the questionnaire. This emphasizes the importance that this new social medium has for most online consumers.

Social networking is growing fast and becoming very popular among most Americans. Emerging minorities, however, are leading the trend. Social Media Marketing efforts can capitalize on this knowledge to establish their brands and territories in these social circles.

The moral of the story is: Go market where people are associating with others, and become part of their socio-cultural identity. As culture is rooted in social interaction, brands can become part of these complex patterns of interaction.

Social Media and Emerging Minorities

The new multicultural landscape of the United States is showing some interesting trends, at least with our recently collected data. The Florida State University Center for Hispanic Marketing Communication with the support of DMS Research (an AOL LLC Company), collected data in March of 2008 from a national online sample with over 500 cases in each of the following cultural groups: Hispanics who prefer English (HE), Hispanics who prefer Spanish (HS), Non-Hispanic Whites (NHW), African Americans (AA), and Asians (A) in the United States.


The results are quite interesting. When asked about how often individuals in these groups visit Social Networking sites like FaceBook and MySpace, the following distribution was obtained for TWO OR THREE TIMES A MONTH OR MORE OFTEN:

Hispanics who responded in English and Asians are the most avid users of Social Media with about 35% of them using these outlets 2 or 3 times per month or more often, while Non-Hispanic Whites are least likely to use these media with only 17% of them using them with similar frequency. Hispanics who responded in Spanish and African Americans are in between at about 25%.

What this new and original data seems to say is that emerging minorities are quite a bit more likely than the traditional mainstream of American society to be reachable with Social Media Marketing. It is fascinating that many traditional marketers still talk about "the General Market" when refering to Non-Hispanic Whites and seem to still orient most of their campaigns to this segment. It is revealing that it is precisely those who are not considered the mainstream are at the forefront of the use of Social Media, and apparently eager to participate in what it has to offer.

The lesson of the story is: Those who are forgotten may be your biggest opportunity.

Related links with additional resources:

http://hmc.comm.fsu.edu/

http://www.capturagroup.com/