The Whole Enchilada 2 Most Common Mistakes and How

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Hispanic Marketing: The Most Common Mistakes & How to Avoid Them: 

Hispanic Marketing: The Most Common Mistakes & How to Avoid Them Tucson Hispanic Chamber of Commerce And Metropolitan Tucson Convention & Visitors Bureau February 15, 2006

Reaching Latinos Effectively: 

Reaching Latinos Effectively Culture & Value Differences The Importance of Language

The 5 F’s: the Bedrock of Latino Culture: 

The 5 F’s: the Bedrock of Latino Culture Faith Family Friendship Food Fútbol (soccer)

Hispanic Pride: 

Hispanic Pride Feel very proud of my Hispanic background Source: Yankelovich Hispanic Monitor 2000

Religion and Faith: 

Religion and Faith

Family First: 

Family First

Respect for Elderly: 

Respect for Elderly

Holidays and Celebration: 

Holidays and Celebration

Slide9: 

Music/Songs

Strong Ties to Culture: 

Strong Ties to Culture Sustaining ethnic traditions and symbols is important Source: Yankelovich Hispanic Monitor 2000

Strong Ties to Each Other: 

Hispanics feel closer to others like themselves Leisure time usually includes other Hispanics Strong Ties to Each Other Source: Yankelovich Hispanic Monitor 2000

Broad Cultural Differences Between Latinos and Modern American Middle Class: 

Broad Cultural Differences Between Latinos and Modern American Middle Class Larger families Respect for authority Fresh meal preparation Delayed gratification “High-touch” – hugs, etc. Spontaneous Overt emotions OK Relaxed about time Very sensitive to fashion Longer social protocol, indirect Adapt to environment Smaller families Often question authority Meals rarely from scratch Immediate gratification “High tech”, more distant Planners Hiding emotions expected Adhere to strict schedules Relaxed about fashion Brief, to the point, direct Change environment

Broad Cultural Differences Between Latinos and Modern American Middle Class: 

Broad Cultural Differences Between Latinos and Modern American Middle Class Spiritual, religious things more important than material things Low reliance on institution Very decorative in homes Buy American products* Value highly personal service Appreciate being given time Rely on implicit understanding Material things more important than spiritual things High reliance on institution More casual about home décor Tend to buy imports Value fast, efficient service Appreciate speed & efficiency Rely on explicit language *excluding automobiles

Mexican Cultural Overview: 

Mexican Cultural Overview Motivation to migrate to U.S.: Poor economic conditions Desire to improve standard of living Family reunification Self-identification: Mexican first, Mexican-American, Latino, Hispanic Strong identification with Mexican cultural heritage Weak identification with other Hispanic groups Report having positive relations with Anglos

Mexican Cultural Overview: 

Mexican Cultural Overview Higher HHI than Puerto Ricans, but less than Cubans More Mexicans own their homes than Puerto Ricans and Central/South Americans Strong family values prevail – family ideology requires individual sacrifice for family good. Mexicans more “group-oriented” than other Hispanic groups Extended families more prevalent among immigrants Divorce less socially acceptable. Smoking less acceptable. Modest: Reluctant to discuss sex, sexually transmitted diseases. More politically active than other groups. Support cultural heritage, equal rights, bilingual education Catholic Favor religious art (la Virgin de Guadalupe, santos, alters, etc.) Soccer, boxing are most popular sports

Latinos Prefer Information in Spanish: 

Latinos Prefer Information in Spanish 69% of Latinos agree or strongly agree with the following statement: “I get more information about a product when it’s advertised in Spanish than when it’s advertised in English only” 71% agree or strongly agree with the statement: “I would be more likely to purchase brands or services which are advertised in Spanish.” Source: Yankelovich, 2002 Hispanic Monitor

Spanish vs. English Ad Effectiveness: 

Spanish vs. English Ad Effectiveness Awareness 61% more effective in Spanish Persuasion 4X more persuasive when ads are in Spanish Recall 57% more Hispanics will recall an ad’s message when they receive a message in Spanish 2000 Roslow Research Group, “Spanish vs. English Ad Effectiveness” study

But It’s More than Just Spanish…: 

But It’s More than Just Spanish… Effective marketing is always about tapping into your target consumer’s values What do they need? Want? Fear? Aspire to?

Slide19: 

Mis Hijos: The Number One Saving Priority Hispanics: Kids’ Education/Future Total Population: Retirement

Hispanics and the Travel Industry: 

Hispanics and the Travel Industry

Hispanic Travel Growing Fastest: 

Hispanic Travel Growing Fastest Travel Volume Growth 2000 – 2003 (%) Source: TIA Minority Travelers Report Jan. 2004

Slide22: 

“Every sector of our industry – hotels, theme parks, city visitor bureaus – has begun to reach out to the minority traveler through targeted advertising, minority travel guides and special ethnic promotions and we’re seeing the results.” - William Norman, President and CEO, TIA

Hispanic Traveler Facts and Profiles: 

Hispanic Traveler Facts and Profiles Travel by air 15% Travel by rental car 7% Spend more than $1,000 15% excluding transportation Travel with children under 18 33% Source: TIA Minority Report, Jan. 2004 Racial & Ethnic Diversity 2002

Key Activities of Hispanic Travelers: 

Key Activities of Hispanic Travelers Source: TIA Minority Report, Jan. 2004

The Hispanic Traveler Profile is Ideal…: 

The Hispanic Traveler Profile is Ideal… More group travel 33% of Hispanic trips include 3+ HH members U.S. average: 25% Strong ties to family and loved ones More international trips Spend freely, especially on los niños (the kids) Souvenir spending 6% higher than non-Latinos’ Source: TIA Minority Report, Jan. 2004

Traveler Profile: Hispanic vs. White : 

Traveler Profile: Hispanic vs. White Hispanics Whites Use a travel agent 25% 18% Prefer going to several places 59% 50% Fill a suitcase and fly 56% 40% Never take vacation 45% 8% Vacation more than once/year 17% 62% Source: Yankelovich Hispanic Monitor 2002

Spanish Prevails: 

Spanish Prevails “Our Hispanic customers want to speak Spanish when buying travel, even if they understand English.” - Reggie Whitehead, VP of Special Markets Walt Disney World Resorts “We have clients call, speaking English, but they ask if we speak Spanish” - Jackye Alton, President Carlson Wagonlit/Almeda Travel, Houston, TX

Comfort in High Touch, Not High Tech: 

Comfort in High Touch, Not High Tech Strong preference for talking to a “live person” Often surf the web to compare air and hotel prices, but then call a travel agent or hotel directly Willing to go to the travel office to meet with agents Loyalty is often to those who provide service in Spanish, i.e. Ana at the desk/counter, not the company Source: Hispanic Business magazine, October 2003

The 20 Most Common Mistakes & How to Avoid Them: 

The 20 Most Common Mistakes & How to Avoid Them

#1: Exploiting Customers: 

#1: Exploiting Customers Dodge truck owners focus groups

#2 : Translating Messages Straight from English: 

#2 : Translating Messages Straight from English Got Milk? ¿Tiene leche? Chicken fast food Too vulgar to say!

#3: Use of Stereotypes or Sloppy Efforts: 

#3: Use of Stereotypes or Sloppy Efforts Direct mail pieces with: Sombrero, chile peppers Instead of ¿, turned ? backwards

#4: Lack of Cultural Relevance in Messages: 

#4: Lack of Cultural Relevance in Messages Nissan trucks: “tough” vs. “versatile” Maxwell House coffee: significance of the coffee moment in the morning Optima Homes: English: we make it easy Spanish: we make it possible

#5: Lack of Operational Preparedness: 

#5: Lack of Operational Preparedness Poorly trained people in front-line positions Friendliness is universal

#6: Lack of Grassroots Activities: 

#6: Lack of Grassroots Activities Take the message to the people “Surprise & Delight”

#7: Penny-wise but Peso-foolish: 

#7: Penny-wise but Peso-foolish Expertise pays off MoneyGram’s radio ads and mobile van marketing

#8: Using English Accolades in Spanish Ads: 

#8: Using English Accolades in Spanish Ads “Rated Best by Consumer’s Digest!”

#9: Assuming Speed is More Important than Service: 

#9: Assuming Speed is More Important than Service Infrastructures built for speed and efficiency may backfire with Hispanic consumers “In particular, these consumers crave personal attention and service. They like asking questions and obtaining guidance as they shop for many items, but particularly at the meat/seafood and deli counters, and at the bakery” Source: How Hispanic Experience Grocery Shopping 08/02/03 “Hispanics have a high interest in courtship and rapport-building rather than being sold. This translates to longer conversations with call center representatives – but also to stronger brand loyalty.” Source: Multichannelmerchant.com

#10: Lack of Innovative Financial Plans: 

#10: Lack of Innovative Financial Plans Many from Mexico are familiar with layaway, but in tiny amounts by U.S. standards Union Bank of California Created innovative financial products to serve the unbanked: 51% of customers are Latino Loans: Accept proof of rental payments, utilities, jewelry and furniture store layaway payments. Anything that demonstrates payment history

#11: Terms, Conditions, Policies in Spanish: 

#11: Terms, Conditions, Policies in Spanish

#12: Lack of Family-Friendly Infrastructure: 

#12: Lack of Family-Friendly Infrastructure Car dealership added chairs to sales offices

#13: Assumptions: 

#13: Assumptions My Hispanic surname means I am Hispanic My Hispanic surname means I speak Spanish “Not everyone with a Hispanic surname is actually Hispanic, and not all Hispanics have Hispanic surnames. But a telephone study, based on an SSI Hispanic Surname Sample, covering five metropolitan areas across the U.S., showed an overall contact incidence of over 70%, compared to 6.5% nationally”. Source: Survey Sampling International

#14: Using English or American Cultural Icons/Phrases: 

#14: Using English or American Cultural Icons/Phrases Budweiser’s “wassup?”

#15: Under-Utilizing Direct Mail: 

#15: Under-Utilizing Direct Mail Latinos receive up to 90% less direct mail Less than 10% of mail received is in Spanish

#16: Incorrect Language or Situation: 

#16: Incorrect Language or Situation Wrong language/situation for a specific culture Example: Cinco de Mayo does not resonate with Cubans, Puerto Ricans, South Americans, etc.

#17: Not Adapting to Product Differences: 

#17: Not Adapting to Product Differences Wal-Mart in Laredo Women’s jeans not selling Hispanic women have smaller waists, fuller hips McDonald’s in Corpus Christi Add jalapeño to your cheeseburger for just 15¢ Rent-to-own center in Dallas “I was terrified the first time we got a red couch” “I can’t keep pictures of The Last Supper in stock”

#18: Take the Message to the People!: 

#18: Take the Message to the People!

#19: Rude, Insulting or Ignorant Behavior: 

#19: Rude, Insulting or Ignorant Behavior “José-o, get me a taxi-o, will you?” Asking about credit references just because I speak Spanish Talking louder does not make me bilingual PA announcement: “Hispanic on the floor”

#20: Under-spending. Treating as Secondary: 

#20: Under-spending. Treating as Secondary “Most marketers continue to invest less than 1% of their total advertising budget in the Hispanic market”. Source: Directmag.com May 1, 2003

AHAA “Right-Spend” Report: 

AHAA “Right-Spend” Report Association of Hispanic Ad Agencies Sister organization of AAAA’s Published Right-Spend Report in 2003 Identified Key Industries as “Developing” or “Underdeveloped” based on: Growth of category Hispanic consumption in category Ad spending within category

Examples of Categories: 

Examples of Categories Developing Food/Grocery Beverage Personal Care Children’s Products General Merchandise Telecommunications Under-Developed Insurance Automotive Specialty Retail Banking Investment Services Travel & Entertainment Source: AHAA Right Spend Report 2003

Exercise: Develop an Idea for Your Business: 

Exercise: Develop an Idea for Your Business What to do that you’re not doing, or What to stop doing that you’re currently doing

Latinos are “el futuro” – the future: 

Latinos are “el futuro” – the future This is not a fad. This market will only continue to grow and get larger. Spanish-speaking consumers will become more discriminating and use only those businesses that are more sensitive to their linguistic and cultural roots Your company can grow and prosper by putting the welcome mat out for Latinos Your efforts to reach this lucrative market will pay dividends, today and mañana!

¡Adelante!: 

¡Adelante! ¡Gracias! Any questions?

©2006 McDonald Marketing 2700 Thomas Avenue Dallas, TX 75204 214-880-1717, Fax 214-303-1635 kmcdonald@mcdonaldmarketing.com All rights reserved. No part of this material may be reproduced In any form without permission by the author.: 

©2006 McDonald Marketing 2700 Thomas Avenue Dallas, TX 75204 214-880-1717, Fax 214-303-1635 kmcdonald@mcdonaldmarketing.com All rights reserved. No part of this material may be reproduced In any form without permission by the author. For more information about the Latino consumer, marketing and trends, contact Kelly McDonald at 214-880-1717 or kelly@mcdonaldmarketing.com

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