- enough hype - ¿what is the real direct marketing opportunity for the hispanic market?

- Enough Hype -¿What is the Real Direct Marketing

Opportunity for the Hispanic Market?

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Ripped From the Headlines

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

Hispanic new business growth 3X general market

In our 2004 survey, 49% of Hispanics received Credit Card offers by mail. In the 2006 survey

the number climbed to 77%

In our 2004 survey, 41% of Hispanics had more than 1 credit card. In the 2006 survey

the number climbed to 56%

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

Households with Any Type of Bank Account

70%

98%

84%

98%

0%

20%

40%

60%

80%

100%

Hispanics General Market2004 2006 2004 2006

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

Hispanic

African-American

Asian-American

Non-Hispanic Whites

By 2050 the Hispanic population will reach 110 million





And in Your Neck of the Woods

282,000 Hispanics in Utah, about 15% of the total population





And in Your Neck of the Woods

Segmentation

Age

-15% -10% -5% 0% 5% 10% 15%

Under 5

5 to 9

10 to 14

15 to 17

15 to 19

20 to 24

25 to 29

30 to 34

35 to 39

40 to 44

45 to 49

50 to 54

55 to 59

60 to 64

65 to 69

70 to 74

75 to 79

80 to 84

85+

Hispanic White Non-Hispanic

Country of Origin

Country

Mexico85%

Mexico

Puerto Rico

Cuba

Dominican

Costa Rica

Guatemala

Honduras

Nicarauga

Panama

San Salavador

Other CA

Argetina

Bolivia

Chile

Colombia

Ecuador

Paraguay

Peru

Uraguay

Venezuela

Other

Other108,000 Utah Hispanics, or 38%, are foreign born

HISPANIC ORIENTATION

Assimilated

Bicultural to different degrees

Culturally Unique

Monocultural Hispanic

+

+

Acculturation

ANGLOORIENTATION

Hispanic

Hispanic Dominant Bicultural

AssimilatedCulturally Unique

Anglo

Yankelovich/ /Cheskin Hispanic Monitor 2002

Classifications

Culturally Unique

Assimilated

Hispanic Dominant

Bicultural

Assimilated

23%

Bicultural

20%

Hispanic Orientation

Anglo Orientation

Hispanic Dominant

56%

Culturally Unique

2%

People En Español HOT Study 2002

Yankelovich/ /Cheskin Hispanic Monitor 2002

Synovate

Cultural tension

Low High

No perceived discrimination Perceived discrimination

Close family ties in US Close family ties in country of origin

Little Hispanic participation Much Hispanic participation

Less traditional More traditional

Enjoy company of different others

Prefer similar others

The US is home Country of origin is home

Mostly Acculturated 11% and Low Cultural Tension

Partially Acculturated

American Latinos

New Latinos

Traditionals

63%

23% Low CT

26% Intermediate CT

14% High CT

Relatively Unacculturated

Unacculturated Stable

Unacculturated Traditionals

26%

9% Low CT

17% Intermediate/High CT

Synovate

The Five Steps

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.

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.

Language Use in 2006: Hispanic

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.

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.

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

Left brain Right brain

• Emotional • Intuitive • Creative • Big Picture• Visionary

Hispanics

Latinos are culturally “hard wired” differently

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


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.



High-quality work made this a peak year and put us over the top. Things were looking up when the market bottomed out and hit an all-time low. It's been downhill ever since.

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


Familism11. 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


Disagree Neutral Agree Strongly agree

2 3 4 5


White

Hispanic

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

DMA/Directo Research

Multiple responses given by some respondents

No other reason was mentioned by more than 7% of respondents

Reasons for Distance Shopping2004

English2006

English2004

Spanish2006

Spanish

Convenience of shopping from home

45% 62% 25% 40%

Discounted and reduced prices 12% 21% 23% 37%

Time saved 11% 40% 15% 34%

Availability of unique/unusual/new items

8% 32% 14% 24%

Culture and DM Offers

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

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.

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.

¡Gracias y Thank You!

Michael Saray Hispanic Marketing, Inc.

419 Lafayette

New York NY 10003

212 277 8027

[email protected]

- enough hype - ¿what is the real direct marketing opportunity for the hispanic market?

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