Four Critical Factors For Successful Hispanic Marketing

Four Critical Factors For

Successful Hispanic Marketing

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Outline

1. Product Life cycle

2. Acculturation or Lifestyle Stage

3. Right versus Left Brain thinking

4. Communication Style

5. Examples

Population Growth 2000 - 2050

Hispanic

African-American

Asian-American

Non-Hispanic Whites

Population Growth 2000 - 2050

(millions)137.7

66.9

25.5 22.715.4 14.6

-

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

Total Hispanic Black Asian Other White

Without white immigration this is a (negative) number

What Do The Numbers Say?

Where Is Your Customer in the Product Life Cycle?

NEW

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

Product Life Cycle

Acculturation Range

Life Stage

AD&D or Burial Insurance with casket repatriation

Privacy

(maybe)

Left vs. Right Brain

• Intellectual• Sequential• Analytical • Logical • Accuracy-Driven

Left brain Right brain

• 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.

• 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!


He's on top of the situation, in high command, and at the height of 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 bottom of the pile.


Language Preference in 20 Situations

• When writing my own notes I prefer to write in

• I prefer to think in• 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 my parents, I prefer

to speak• When speaking to my grandparents, I

prefer to speak

• When speaking to answering services 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 at work, 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

English all the time

Englishmost of the time

English and

Spanishequally

Spanish all the time

Spanish most of the time


Spanish language use declines as the generation increases

Familism

11. A person should always support his uncles or aunts if they are in need Relatives are more important than friends

12. No matter what the cost , dealing with my relatives’ problems comes first

13. Children should always have the respect for their parents

14. Children should always have respect for elderly people

15. Adult children should make sacrifices to care for their parents

16. Adult children should often seek their parents’ advice

17. Parents should sacrifice themselves in order to provide their children with the best

18. Daughters should live with their parents until they get married

19. Married children should live close to their parents to help each other

20. Aging parents should live at home with their children

1. I will be fulfilled as my family succeeds

2. I value my children’s health above my own

3. I work hard to give my children the best education they can get

4. One of the most important goals in life is to have children

5. Some equality in marriage is good, but by and large the father ought to have the main say in family matters

6. Parents should feel responsible for their children’s happiness

7. In an unhappy marriage, parents should stay together for their children’s sake

8. People should consult close relatives concerning important decisions

9. Keeping old family recipes is important

10. Children should be taught about their family history

Disagree Neutral Agree Strongly agree


Cultural values are maintained even as the generation increases


White

Hispanic

There are significant differences between the Hispanic and general market

Disagree Neutral Agree Strongly agree

2 3 4 5

(Average of generations)

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.

Main point/conclusion

Supporting Arguments

GeneralMarket

Main point/conclusion

Supporting Arguments

Hispanic

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

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

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.

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.

Hispanics and Giving

83%

31%

62%

43%

50%

34%

30%

86%

40%

62%

43%

45%

45%

41%

88%

53%

50%

49%

42%

42%

28%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Family

Ethnicity

Friends

Hometown

Bay Area

Professional

Silicon Valley

White Asian Hispanic

Hispanic sense of community differs from the general market. Family and ethnicity are more important to Hispanics.

In terms of geography, the more immediate area is also more important. This is worth noting when considering a cause that is more national in nature.

“La familia is something that has no translation, you can translate it to family, but I think la familia is the way you live, the way you work, the way you act…

Who is the family? Close relatives, then the neighbors, then the community. I think that is the basis for what we decide and what we do”.

Silicon Valley Hispanics


$1,410

$1,068

$1,684$1,542

$1,268$1,162

$2,061

$1,239

$1,643

$-

$500

$1,000

$1,500

$2,000

$2,500

All Hispanics

Age <35 Age 35+ US Born

Foreign BornHH Inc < $60KHH Inc > $60KNo College

Some College

Silicon Valley HispanicsHere we see the propensity to give is improved by higher income, age and education.


3.9%

3.3%

3.8%

2.8%

5.0% 5.0%

1.9%

4.5%

3.1%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

All Hispanics

Age <35 Age 35+ US Born

Foreign BornHH Inc < $60KHH Inc > $60KNo College

Some College


This chart shows similar trends as in the DMA research, at least in % terms.

Lower income, less educated, and foreign born Hispanics give a higher % of income.



The causes that Hispanics support also differ from other groups.

Note the higher giving to church and people outside the U.S. and the much lower levels given to environmental causes.


Independent Sector 1999

This chart considers the total populations, not just givers.

We see the same trends as in Silicon Valley regarding the type of preferred causes.

We also see that overall, Hispanics give less than non Hispanics.




This simple chart shows that when asked, Hispanic are just as likely to give as in general market.

Hispanics and Environmental Causes

25%

27%

19%

17%

42%

25%

16%

8%

-5%

5%

15%

25%

35%

45%

Strongly Agree Somewhat Agree Somewhat Disagree Strongly Disagree

English Spanish

Do you agree or disagree that most people who call themselves "environmentalists" are white, middle class and live in the suburbs?

(by language of interview)

Latino Issues Forum

Clearly Hispanics do not feel that they are part of the environmental movement and that this is a cause championed by others.

This was a California based survey.

Survey of California Hispanic voters, 1998.

(overall)

¡Gracias y Thank You!

Michael Saray Hispanic Marketing, Inc.

419 Lafayette

New York NY 10003

212 277 8027

[email protected]

Documents

Four Critical Factors For Successful Hispanic Marketing