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Segmenting Latinos for Hispanic Marketing

market 1

market 1 (Photo credit: tim caynes)

Last year, I was approached by Lee Raymundo, MBA candidate at UCLA. He asked for an interview. He wrote:

“I read your article ‘Marketing to Second-Generation Latinos’ with
great interest and believe your insight would be of great value to me. I have
been trying to understand the behavior and culture of second generation Latinos vs. first generation and what ideals would most likely appeal to them. I understand that Bud Light is especially popular with this segment but have so far, struggled to understand why.”

He explained that his team was working with Budweiser, “on understanding the most effective way to reach the Latino community with a brand that resonates with this segment.” So, we addressed his questions. I gave him a general overview on the language preferences for first- and second-generation Latinos/Hispanics, which are basically related to acculturation. 

Based on that particular interview and several other similar conversations, I have concluded that many professionals trying to reach Latinos/Hispanics assume that Latinos/Hispanics fall into one single market–an assumption that is too general.

“Latino/Hispanic” is a term used in census-taking to track people whose
heritage can be traced to 21 countries in Latin America plus Spain (Europe),
but should not be used—or misused—when marketing to a specific population under this umbrella term.Thus, every time I am asked to talk about Latinos/Hispanics, I always reply with the same question, “Which segment of Latinos/Hispanics?

Most people do not understand the huge cultural, socioeconomic, and generational differences among Latinos aside from their country of origin, language of preference, and acculturation levels. Language is of utmost importance. Yet, it should not be understood simply as English vs.Spanish, but how well the target group speaks either language and how extensive is their vocabulary in either one.

Other questions include: Has the market segment been schooled and/or received college degrees in Spanish or in English? Do they prefer reading in English but speaking Spanish at home? It might be that English is the language they learned to read and write grammatically, but they prefer the emotional connection associated with the sounds and certain words in Spanish. Our accents and the extent of our vocabulary tell a lot about who we are culturally, where we come from, our education and socioeconomic levels–all of which are important marketing indicators for Hispanic marketing strategic planning.

There is also the “American Latino/Hispanic” layer, which encompasses all Latinos/Hispanics living in the U.S. and can be very subtle. For instance, most first-generation, Spanish-dominant Latinos/Hispanics in the U.S. know common English-language terms they use in their daily lives even though their primary language is Spanish at home and work.

Moreover, there are cultural dimensions that second-generation, bilingual and English-dominant Latinos/Hispanics do not give up and that includes collectivismus, we, nosotros. That is the one specific example I gave to Mr. Raymundo. I told him that whatever message he is trying to communicate across the board with Latinos/Hispanics, do not market to them through an individualistic identityme, I, only myself—because that’s crossing into assimilation terrain and an assimilated Latino/Hispanic no longer counts culturally as a Latino/Hispanic. 

Hispanic Marketing in Quotes

English: CEO of the Salt Lake Organizing Commi...

THE PREMISE: “America’s corporations can no longer ignore Hispanic marketing like Mitt Romney Did.”

THE RELUCTANCE: “Companies [have failed] to understand the importance of being culturally relevant because they first-and-foremost have their brand’s interests – rather than Hispanic consumer’s cultural values, preferences and passion points – at heart.” Armando Azarloza

THE CHALLENGE:  “Companies are deprived of diversity in leadership, [thus] lack the imagination, creativity, authenticity and innovation to market to today’s fast growing demographic shift.”

AND THE GOOD NEWS:  “Hispanic small businesses are growing at twice the rate of the national average – generating over $350B in annual revenues (that some estimate is closer to $650B).”

Quotes from Forbes’, November 12, 2012, article by Glenn Llopis

Generalizing Hispanics

Fast and easy analysis does not always translate into accurate analysis.  The infographic below from CutCue states that “U.S. Hispanics are very proud of their heritage and never forget where they come from.” This might be true for Latinos/Hispanics across generations—more specifically Latinos/Hispanics of Mexican descent who are the majority.

However, the next statement, “They are self reliant and have a negative view about asking for help” relates more to individualistic societies. In general, Latinos/Hispanics regardless of their acculturation level tend to be on the collectivist side. So, my question is—Which segment of Latinos/Hispanics is CutCue talking about?

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Research and Opinions in Hispanic Marketing

My response to the post “Why Hispanic Communities Should be the Foundation of Your Hispanic Market Research” by Jose Espinoza:

“There is a big difference between research-based information and opinions. Thus, constant research is needed. “

Missing the Mark on Culture

English: Black Hispanic and Latino Americans

The blog “Are Marketers Missing the Mark?” by Hispanic Market Weekly has stated that “An attitudes-based acculturation model provides a more focused lens for looking at Latinos and capturing the estimated $500 billion in purchasing power held by bicultural Hispanics” based on a report from Culturati Research & Consulting.

Let’s clarify that the largest percentage of bilingual Latinos/Hispanics do not need to acculturate; they enculturate instead.  They acquire the culture in their first years of life through schooling and media in English. Acculturation is for people such as immigrants who move from one society or culture into another.

Ethnic marketing is prone to these wrong and misleading statements. Let’s also clarify that Hispanic marketers are not experts in cross-cultural theories or cultural anthropology and should not be haphazardly using terms that are outside their field or field-specific that they ignore. They need to either learn more about social sciences or leave such studies to the experts because they are “missing the mark.”

Univision Network No. 1 last week

Mari D. González

Does Univision, the largest U.S. Spanish-language TV network, understand that the largest Latino/Hispanic segment -young and bilingual- want relevance and quality in media?

The emerging young Latinos/Hispanics have been complaining about the lack of quality of programming at Spanish-language TV networks and that the English-language networks neither represents them nor includes them.

With the news that Univision has taken the No. 1 spot on viewership not only among Latinos/Hispanics but across the board, perhaps Univision is finally listening to this powerful market subgroup.

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