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Hispanic Marketing – Segmenting Latinos
market 1 (Photo credit: tim caynes)
By Mari D. González
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 collectivism—us, 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 identity—me, I, only myself—because that’s crossing into assimilation terrain and an assimilated Latino/Hispanic no longer counts culturally as a Latino/Hispanic.
What Makes Latinos, Hispanic?
By Mari D. González
What Makes Latinos, Hispanic?
It is their pride of their culture of origin, their personal stories before coming to the U.S. and the similar challenges faced once here.
PR Newswire’s meet the media (Photo credit: robinhamman)
And, PR Newswire knows it. Their invitation for Hispanicize 2013 conference participants to showcase their national flag along with “Thier Historia,” is a great example of cultural relevance that promotes conversation in the conference and on social media.
Here is their call to action: “PR Newswire, a long-time sponsor of Hispanicize, invites Hispanicize
2013 attendees to stop by booth #8 to collect a Latin American flag sticker they can attach to their PRN “Share Your Historia” pin. PR Newswire also invites everyone to “Share Your Historia” via Twitter, hashtag: #shareyourhistoria, telling us why they retain a strong affinity to Hispanic culture.”
Note that the post does not say “collect your Hispanic flag,” but Latin American flag. Thus, when we talk about Hispanics, in reality we are talking about Latinos or people with origins in Latin America.
Hispanic Marketing in Quotes
By Mari D. González
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
Mexicans: The More Segregation, the Less Assimilation.
By Mari D. González
The less segregation, the more assimilation. It is a give and take situation.
~Altar de Muertos~ (Photo credit: uteart)
The highest level of education a Latin American immigrant has, the more willing he/she is to assimilate. Yet, he/she gives up his cultural origins. In terms of their level of integration in the U.S., there are implications for both the Mexicans and the more assimilated Latin American groups in the U.S. While the later might enjoy greater economical benefits than Mexicans, Mexicans is the only ethnic group that has kept its cultural roots generation after generation at the expense of not enjoying such economical benefits.
While Mexicans have refused to assimilate, they have influenced the U.S. culture in every way. A couple hundred years from now, the only culture alive in the U.S. will be the Mexican (Dia de los Muertos, piñatas, mariachi, tacos, etc.). The rest will be passing technology, brands, and disposable things. Mexicans have the ability to layer several cultures without renouncing their own. I’m very proud of every single bilingual and bicultural Mexican-American in the U.S.
Generalizing Hispanics and Marketing
By Mari D. González
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?
IXMATI 