As companies have seen the potential by concentrating on the population’s multicultural segments, there has been an increasing amount of resources dedicated to reaching these demographics. There are numerous ways to segment differing multicultural audiences, and the method of identifying the right focus area varies from one scenario to the next. For some offerings, an international focus will be most profitable, while for others, a domestic focus is where efforts should center. Beyond location, further segmentation might be based on ethnicity and religious affiliation, among a host of other demographic and psychographic data points.
The rationale for a focus on specific multicultural segments will also vary quite broadly. For example, some campaigns might concentrate on a particular audience for a generalized product offering based on data showing a low product penetration. Others, and very much in our Jewish centered marketing domain, will focus on an audience because of particular appeal correspondence between product and market.
There are numerous multicultural audiences, but here we perform an overview of the Chinese, Hispanic, and Jewish markets. In our view, these three hold unique value for a variety of marketing scenarios.
Chinese Audience
The Chinese market stands alone in its volume and presents a massive opportunity for businesses of all kinds. From casinos to consumer packaged goods (CPG), over the last decade or so, there has been an enormous expansion into this market in part because of the ever-expanding Chinese middle class. China is, hands down, the behemoth of foreign markets and boasts a dazzling array of opportunities for growth opportunities. Simultaneously, those familiar with the market know that a discerning approach is required because of the complex and sometimes state decreed hurdles. Because of this, more than any foreign market, entering the fray in China requires a learned hand to navigate it successfully.
Some notable stats concerning the Chinese segment illustrating its size and opportunity include:
- On the biggest shopping day in China, known as “Singles Day,” over $38 billion US dollars was spent in 24 hours.
- Of the $38 billion spent, a mobile device was behind a majority of payments. After all, China, like other once emerging economies, went straight to mobile and skipped the desktop and landline decades. This contrasts with markets like the United States and Europe, where there was a desktop and landline concentration before mobile took over.
- Due to mobile concentration, businesses need to concentrate on the appropriate platforms when undertaking their marketing campaigns. TV ads and other traditional media should generally be exchanged for ads on apps and other web-based digital platforms.
- In large part, due to the Chinese government’s censorship of popular websites such as Facebook and Twitter, China has distinct versions of such websites. It is, therefore, essential to make use of these websites in any marketing campaign. These include Baidu (largest search engine in China), WeChat (a messaging service), & Weibo (a microblogging website).
- When deciding to enter the Chinese market, it is crucial to understand your product’s demand and your target demographic. Some of the hottest retail sectors are fashion, beauty, electronics, and baby-related items.
Hispanic Audience
Like the Chinese multicultural segment, the Hispanic one is also one of the largest. With the growing portion of the Hispanic demographic in the United States, this segment has taken on ever more appeal for domestic businesses. It is a mistake, though, to view the broader Hispanic audience as a monolith. The differences range and include varying social backgrounds as well as diverse cultural lines. Companies need to ensure that their marketing activities take these differences into account to achieve optimal marketing results.
Some notable facts about the domestic Hispanic consumer concerning its potential for marketing purposes include:
- The Hispanic population has experienced over 50% growth since the year 2000.
- Hispanics in the United States have over $1.5 trillion in combined spending power.
- Many brands have Hispanic specific marketing platforms, such as Dunkin Donuts’ Hispanic Twitter account.
- Mexico is the country where most Hispanics in the USA originated from, followed by Guatemala.
- Close to 20% of the population in the USA is Hispanic.
- Marketing to the Hispanic population requires a very nuanced approach due to the diverse population demographics, which stem from 21 Latin American countries.
- 25% of Hispanics in the United States speak English as their first language, 25% Spanish as a first language, and 50% are bilingual.
Jewish Audience
Of most relevance to us here at SquaredUnion, where we focus on targeted Jewish advertising, the multicultural Jewish segment holds particular appeal to businesses of all kinds but for more unique rationales than solely addressable size. After all, in comparison to the Chinese and Hispanic elements, the Jewish audience is minuscule. So why do businesses focus on such a small audience? There is not one driver motivating marketers to focus on the Jewish demographic. A common rationale relates to significantly higher than average wealth profiles among Jews. With that said, other unusual aspects of the audience lend themselves to application in campaigns. For example, we have written about the unique applications in health and pharma, travel and hospitality, and kosher food, to name a few.
As with other multicultural marketing campaigns, it is vital to perform strategic segmentation that accounts for differences between the generalized audience and the segment itself. While each of these smaller communities shares commonalities, they also have stark differences that set them apart. The same holds for Jewish centric campaigns. Therefore, segmentation between differing Jewish audiences within the broader community is key to conducting a successful campaign.
- Forty-six percent of Jews earn more than $100,000 a year, compared to 19% among all Americans.
- Word of mouth within tight-knit Jewish communities through native social networks can amplify marketing messaging well beyond the initial spend, a phenomenon we have termed “the firecracker effect.“
- The availability of dedicated marketing platforms within different Jewish communities allows the market to market to the target audience with a laser-like focus.
- With an exceptionally family-focused culture and an abundance of holidays, certain products and services are in uniquely high demand for the Jewish audience well above the general market.
A Common Theme For Capitalizing On Multicultural Markets
Marketing to various multicultural populations or segments of communities provides an abundance of opportunities for businesses looking for growth. Successful marketing to these audiences requires an in-depth familiarity with their respective cultures’ ins and outs and relevant sensitivities. It is essential to keep in mind that even within a specific audience, there are often sub-segments within the larger group with their nuances that should be taken into account. Failure to properly understand your target audience, and the proper way to reach them effectively and efficiently, can lead to handicapped or even failed campaigns. On the other hand, with the right strategy and proper execution, multicultural marketing campaigns hold the potential to bring in substantial returns.
