It’s wise to continue to market in a down economy. Doing so will grow your brand while others shrink. A study that was performed during the recession of 1989-1991 showed that companies who increased their advertising grew by 15% to 70% during the recession while their competitors, who cut back on advertising, experienced a drop in sales that ranged from 26% to 64%. There’s no reason businesses can’t benefit from marketing during our current recession.
Marketing to minorities specifically is wise in a down economy because it seems a brand will get more bang for their advertising buck. For example, one study showed that Asians, African Americans and Hispanics all view the media (specifically TV, radio, newspapers, magazines, and the Internet) as more influential in their purchase decisions than the Non-Hispanic White market does. This means that it’s more effective to target one of these minority groups than it would be to target the general market during a down economy.
The same study as above showed that “African Americans and Hispanics have a more positive attitude toward advertising and marketing than Asians and Non-Hispanic Whites.” Thus, not only do the 3 largest minority groups in the U.S. allow the media to influence their purchase decisions more than the general market, but 2 of them think positively about the advertising they’re seeing. By focusing on consumer groups who think positively about advertising, you eliminate the common disdain that most people feel for advertising which will allow your marketing message to get through easier. Trying to overcome the majority’s negative perception of advertising is a major hurdle that seemingly doesn’t need to be jumped when targeting 2 major minority groups.
One industry that comes to mind that should definitely focus on multicultural marketing is the cell phone industry. It’s a constantly evolving industry and one that touches nearly everyone’s lives. Cell phones are tethered to nearly every Americans hand these days.
This industry should specifically target African Americans and Hispanics primarily because of their affinity for technology. Regarding cell phone technology specifically, 44% of African American and Latino adults are smartphone owners, where only 30% of non-Hispanic whites are. And both African Americans and Hispanics are more likely than their non-Hispanic white counterparts to use their cell phones for things other than making phone calls such as using the internet, playing games, or viewing multimedia content. Minority groups are avid cell phone users.
The cell phone industry should also target African Americans and Hispanics because of their strong family values. It’s likely that if a group places a lot of value on their family connections, they would also place a lot of value on communicating with them. Cell phone companies can use this angle to show features of the phones that can enable its user to communicate in various ways with their family members.
- 5 marketing secrets about U.S. Hispanics (thecontentlab.icrossing.com)