Transcript Document

Hispanic Direct Marketing
a primer for
Michael Saray
Michael Saray Hispanic Marketing
Outline
•
•
•
•
•
•
•
•
•
¿Hispanic vs. Latino?
Key Demographics and Critical Mass
Language
Language and Cultural DNA
Psychographics
Hispanics and Direct Marketing
Military Specific Issues
Misperceptions
Strategic Summary
¿Hispanic or Latino?
34%
53%
13%
*Pew Hispanic Survey, 2002
Do not have a
preference
Prefer the term
"Latino"
Prefer the term
"Hispanic"
¿Hispanic or Latino?
Total Latinos
54%
Foreign-Born
Latinos
Native-Born Latinos
21%
68%
29%
1st Generation
24%
23%
38%
21%
24%
24%
20%
35%
57%
Respondents' / Respondent's parents' country of origin
Latino or Hispanic
American
*Pew Hispanic Survey, 2002
6%
46%
68%
2nd Generation
3rd Generation and
higher
24%
6%
March 15, 2004
Hispanic Are Part of the New
American Mainstream...
QuickTime™ and a
TIFF (LZW) decompressor
are needed to see this picture.
… “Hispanics are Fast Becoming Simply Us”
Wall Street Journal, March 14, 2001
Current Key Numbers
• Over the last census period the Hispanic
population grew 57%, vs. 13% for the
general population
• Not counting Puerto Rico, there are 43
million Hispanics in this country
• There are an estimated 4 - 6 million
undocumented Hispanics and close to 4
million in Puerto Rico
• In TX, CA, NM, HI, the non Hispanic white
population is less than 50%
• On 7/9/03, 28% of MLB rosters were Latino
*Census 2002, 2003, Geoscape International, American Marketscape DataStream: 2005, M. Saray
Current Key Numbers
• In California, more than 50% of the births
are Hispanic
• Nationwide, 1 in 5 births is Hispanic
• Over the past two years 1/2 the population
growth in the US was Latino
• Average Hispanic family size is 3.8 vs. 2.4
for the general population
• The Hispanic population will nearly triple by
2050, to a projected 102.6 million, an
increase of 66.9 million
• In 2005 Hispanics will represent 14.6% of
the population vs 12.5% in 2000
*Census 2002, 2003, Geoscape International, American Marketscape DataStream: 2005, M. Saray
Population Breakdown 1980-2050
1980
2000
2025
2050
1.0%
8.8%
White
13.2%
Hispanic
AA
52.7%
Asian
Other
1980
2000
2025
2050
75.6
69.1
63.9
52.7
24.3%
9.0
12.5
17.0
24.3
12.1
12.3
12.8
13.2
2.9
3.7
5.7
8.8
4.7
2.4
0.6
1.0
Population Growth 2000 - 2050
160.0
140.0
137.7
(millions)
120.0
100.0
80.0
Without white immigration
this is a (negative) number
66.9
60.0
40.0
25.5
22.7
20.0
15.4
14.6
Other
White
-
Total
Hispanic
Black
Asian
Current Key Numbers
• Latino purchasing power, currently greater
than $600 billion, will reach $1 trillion by
2007
• Hispanic Buying Power Growth is 8.9%
annually, from 1990 to 2004
• Hispanic employment has increased 11%
since 2000, vs. 0 - 2.0% growth in the
general population
• 8 of 10 new male labor force participants are
Hispanic (1990s)
Current Key Numbers
• The median income of Hispanic HH is over
$45,000 in 2005 projections
• Over 1 million Hispanic HHs earn more than
$150,000
• The U.S Hispanic market is the 11th largest
in the world
Purchasing Power Growth
% Projected Hispanic Growth from 2000
321%
229%
126%
51%
2000
18%
35%
52%
2005
2010
2015
Population
70%
2020
Buying Power
Source: The Hispanic Consumer Market in 1999 and Forecasts to 2020, Standard & Poor’s DRI, October 2000
Critical Mass has been reached
Large population
Acculturation vs Assimilation
Well above average growth
Continually increasing income gains
Hispanics By DMA, % Of Pop.
80.2% of Hispanics in 10 States
QuickTime™ and a
TIFF (Uncompressed) decompressor
are needed to see this picture.
*Geoscape International, American Marketscape DataStream: 2004
Places Hispanics Are Calling Home
State
2000
Population
Arkansas
Georgia
Minnesota
No. Carolina
So. Carolina
Utah
Wisconsin
Texas
California
Florida
New York
86,866
435,227
143,382
378,963
95,076
201,559
192,921
6,669,666
10,966,566
2,682,715
2,867,583
Source: U.S. Census Bureau
% Increase vs.
1990
+337%
+300%
+166%
+394%
+211%
+138%
+107%
+54%
+337%
+70%
+30%
Hispanics By County, % Of Pop.
Middlesex
62%
Suffolk
46%
Nassau
43%
QuickTime™ and a
TIFF (Uncompressed) decompressor
are needed to see this picture.
*Geoscape International, American Marketscape DataStream: 2004
*Hispanic Business Magazine, August 2004
Hispanics By County, % Of Pop.
Location Of Residence
Hispanic
Non-Hispanic White
9%
21%
23%
46%
45%
56%
Metro, inside central city
Metro, outside central city
*Current Population Survey, March 2000, PGP-4
Non Metro
Country Of Origin
*Census 2003
A Young Population

34.7% of Hispanics are under age 18

Median age for Non-Hispanics is 37.7

Hispanic median age is 25.8
* 2000 Census
Age Cohort Breakdown
QuickTime™ and a
TIFF (LZW) decompressor
are needed to see this picture.
Population Age Breakdown
100%
80%
63.1%
62.6%
73.1%
60%
87.0%
40%
3.7%
14.9%
4.9%
13.3%
4.1%
20%
11.6%
18.7%
1.6%
18.7%
7.1%
11.2%
4.3%
0%
<18
*Census 2003
18 - 34
Hispanic
35 - 54
AA
Asian
55+
White
Age Projections
100%
4.6%
5.4%
6.2%
4.3%
5.4%
4.3%
5.1%
15.7%
15.0%
5.8%
4.7%
90%
13.1%
13.5%
80%
15.5%
17.8%
70%
a
e™ and ssor
13.9% QuickTi m c15.3%
re
omp
15.4%
ure.
ZW) de this pi ct15.5%
L
(
F
IF
e
T
e
s
ded to
a
are nee
e™ andes s or
im
T
k
ic
Qu
ompr
W ) dec t his pic ture.
Z
L
(
F
TIF
s ee
ded to
e
e
n
e
r
a
19.9%
21.4%
23.6%
60%
18.6%
15.5%
22.7%
24.5%
25.5%
50%
65.1%
61.3%
57.5%
58.0%
56.1%
40%
49.8%
54.6%
49.8%
50.9%
30%
Total
Total
2010
2020
Total
2030
< 17yrs < 17yrs < 17yrs
2010
2020
2030
17-24
yrs
17-24
yrs
17-24
yrs
2010
2020
2030
Other
Asian
Black
Hispanic
White Only
Static Generational Proportions
70
60
50
40
30
20
10
0
1995
2000
2005
Foreign Born
2010
2015
2nd Generation
2020
2025
3rd+ Generation
A big market, yes, but what do
Hispanics think about direct
marketing?
Trends in Hispanic
Distance Buying (Buyers)
60%
How likely are you to continue purchasing products
or services from a distance in the future?
50%
40%
40%
30%
24%
19%
20%
10%
7%
8%
0%
Definitely will
Probaby will
Might or might Probably will
not
not
Definitely will
not
Response to Mail Marketing
50%
45%
40%
Please rank how you feel about direct mail offers on
a scale of 1 to 5 where 1 = very useful and 5 = not
useful at all:
37%
35%
30%
27%
25%
20%
15%
13%
12%
11%
10%
5%
0%
Very Useful
2
3
4
Not Useful at
all
Response to Mail Marketing
Do you feel that the number of advertising pieces,
including catalogs, you receive at home is...
Too few/would like more
Want More*
15%
3%
Just the right amount
Don’t Mind Getting Some*
49%
30%
Too many
Wish Got Less*
36%
64%
*USPS Household Diary Study of Mail Use & Attitudes, 2003
Response to Direct Mail
Which of the following best describes how you
typically review advertising mail?
Review every page/section
23%
Review selected pages
14%
Glance or skim through
40%
Pass it along to others
3%
Usually discard without looking at it
4%
Depends on specific type of mail
15%
Yes, but…..
what about the language issues?
Hispanic Households Speak Spanish
% U.S Hispanic HHs By Language Spoken
in the Home
Any Spanish
89%
English Only
11%
: Nielsen Media Research Universe Estimates, January 1, 2000 Hispanic TV Households
by Language Strata Spanish Dominant = Spanish Only and Spanish Mostly;
English Dominant = English Mostly and English Only)
First Language Spoken
84% of 16 to 34 year old Hispanics learned to speak Spanish first.
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
97%
90%
84%
16%
10%
16 - 34
35 - 49
Spanish
*Yankelovich Partners 2000 Hispanic Monitor
3%
50+
English
Spanish Spoken at Home…
...Regardless of Education
of Head of HH
...Regardless of Age
Spanish Language Usage
by Age
2-5
93%
12Š17
91%
35Š49
50+
Spanish Language Usage
by Income
92%
6Š11
18Š34
Spanish Language Usage
by Education
...Regardless of
HH Income
94%
H.S.
Gr ad
Som e
Colle ge
82%
73%
92%
$20-$30
$30-$40
88%
87%
92%
Colle ge
Gr ad+
67%
$40K+
Source: NHTI Installed Metered Sample, May 2000; Excludes English Only Homes;
Based on % of Persons Living in HH’s that Speak Some Spanish
70%
Increasing Reliance On Spanish
“I would be more inclined to purchase brands
which are advertised in Spanish.”
71%
Agree
64%
62%
58%
55%
46%
1990
1992
Yankelovich, 2002 Hispanic Monitor
1994
1997
2000
2002
Increasing Reliance On Spanish
“I get more information about a product
when it’s advertised in Spanish than when
it’s advertised in English only.”
69%
65%
Agree
60%
60%
50%
1990
Yankelovich, 2002 Hispanic Monitor
1994
1997
2000
2002
Spanish Advertising Is More Effective
Among Hispanics, Spanish commercials (as
compared to English commercials) are...
• 61% more effective at increasing awareness!
• 57% more effective in message
comprehension!
• Nearly 4.5 times more persuasive!
Even Among Bilingual Hispanics…Spanish language
commercials are 3.4 times more persuasive!
Source: Roslow Research Group, 2000 “Advertising Effectiveness Among Hispanics”
Direct Response Specific
How important is it for you to be able to . . . in the
Spanish language?
English
Interview
Spanish
Interview
Overall
Mean
View television offers
3.42
1.97
2.53
Receive telephone offers
3.65
2.14
2.86
Visit Web sites
4.13
2.44
3.58
Receive email advertisements
4.39
2.86
3.92
Item (1= very important at all and
5 = not important)
*All differences significant at the .005 level
Direct Response Specific
Would you be likely to buy more if the . . . were in
Spanish?
English
Interview
Spanish
Interview
Overall
Mean
Telephone offers
3.68
2.22
2.90
Television offers
3.84
2.52
3.03
Mail offers
4.18
2.56
3.31
Web sites
4.21
2.67
3.71
Email advertisements
4.36
2.95
3.92
Item (1= very important at all
and 5 = not important)
*All differences significant at the .005 level
Language may be the window
to the soul…
but there it is much more than
just Spanish!
Language and Cultural DNA
Language and Cultural DNA
Latinos are culturally “hard wired” differently
Left brain
Right brain
• Intellectual
• Sequential
• Analytical
• Logical
• Accuracy-Driven
• Emotional
• Intuitive
• Creative
• Big Picture
• Visionary
Hispanics
Language and Cultural DNA
Academic
Success
Involves
•
•
•
•
Largely solitary
study
Generally
uninterrupted
work
Concentration on
a single subject
Much written work
Generally
Hispanic’s
Prefer
Workplace
Requires
• Group study
• Teamwork
• Multi-tasking
• Constant
interruption
• Verbal skills
• Multi-tasking
• Family setting
• Prefer verbal
communication
Language and Cultural DNA
“America's system of education was built
upon a strong cultural bias toward the left
hemisphere of the brain…”
Professor Ken Robinson, The 21st Century Learning Initiative
“ We should consider changing our thinking
process in the field of science by trying to
reason in English.”
Susumu Tonegawa of Japan, Winner of the 1987 Nobel Prize
in Medicine, MIT professor
Language and Cultural DNA
Dr. Tonegawa wasn't saying that English is
better than Japanese. He was saying that:
• English is better than Japanese for the
purposes of scientific research
• English has a particular ideological basis
that Japanese does not.
• We call that ideological basis "the scientific
outlook.”
• However, the scientific outlook, and English,
is very left brain oriented.
Language and Cultural DNA
• To reason in Japanese is not the same thing
as to reason in English or Italian or 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!
Language and Cultural DNA
Conscious is Up; Unconscious is Down
Wake up. I'm up already. I'm an early riser.
I dropped off and fell asleep. The patient
Went under anesthesia, sank into a coma,
then dropped dead.
Language and Cultural DNA
Controlling is Up; Being Controlled is Down
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.
Language and Cultural DNA
Good is Up; Bad is Down
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 and Cultural DNA
Rational (left-brain) is Up;
Emotional (right-brain) is Down
I pulled myself up from this lowly state and
had a top-notch intellectual discussion with
my therapist, highly regarded for his rational
thought. However, my heart soon sank into
the depth of despair, unable to lift my
emotions.
Language and Cultural DNA
Maybe that’s why French, Italian,
Spanish,Latin and Portuguese are called
the "Romance" (right brain) languages.
What does this all mean?
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
Further Support
• In a recent Yankelovich study, consumers
have been broken down into four groups:
Fervents, Indifferents, Practicals, and
Emotionals
• Practicals and Emotionals make up two
thirds of consumers
• The most significant demographic difference
between the two groups is that Hispanics
are twice as likely to be Emotionals
For each of the following is this
something you personally agree with..
78%
It is better for children to live in their
parent's home until they get married
46%
47%
73%
Elderly parents should live with their
adult children
53%
68%
89%
Relatives are more important than
friends
In general the husband should have
the final say in the family matters
African American
*Pew Hispanic 2002
67%
68%
36%
26%
44%
Whites
Latinos
Family Type
White
Hispanic
18.1%
32.7%
55.7%
55.1%
19.0%
8.5%
3.1%
7.1%
Married/Families
*Census 2003
Male Householder
Female Householder
Non Family Household
Synovate National Panel Study
• The sample of 660 consists of three subsamples:
– Non-Hispanic White adults (n= 279)
– Hispanic-E adults (n= 239)
– Hispanic-S adults (n= 142)
• Household incomes $35,000 or above
• 50% males
• Age ranges are between 20 to 60 years
balanced by census figures
Language Preference in 20
Situations
• 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
• 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
Cecilia Alvarez, FIU, 2004
English
all the
time
English
most of
the time
English
and
Spanish
equally
Spanish
most of
the time
Spanish
all the
time
QuickTime™ and a
TIFF (LZW) decompressor
are needed to see t his picture.
Cecilia Alvarez, FIU, 2004
Familism
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
11. 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
Disagree
Neutral
Agree
Strongly agree
Quic kT ime™ and a
T IFF (LZW) decompres sor
are needed to see this pic ture.
Cecilia Alvarez, FIU, 2004
Disagree
2
Neutral
Agree
3
4
Strongly
agree
5
White
Hispanic
Cecilia Alvarez, FIU, 2004
Savings Allocation
If you had $10,000 to save how much would you
save for..?
• Emergencies
• Children’s education and future
• Home
• Purchases (vacation, car)
• Retirement
• Help my relatives
Cecilia Alvarez, FIU, 2004
Savings Allocation by Generation
and Ethnicity
$3,310
Children's Future*
$1,680
$2,170
Retirement*
$3,500
$940
Relatives*
$1,200
$0
First
$500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500
Second
Third
Anglo
*Differences are significant after controlling for gender, age, income
Cecilia Alvarez, FIU, 2004
Hispanic Direct Marketing
•
While most DM principles are the same as
general market there are two key
differences.
1. Language and culture play a more
significant role. This affects the message.
2. Acculturation and product lifecycle issues
are key to marketing success. Here,
targeting and creative are important.
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
Culture and DM
• Clear product explanation
– But don’t be afraid of proven DM techniques
• Emphasize the 800 number
– Many Hispanics prefer this order method
• Who are you targeting?
– Spanish or Bilingual
– Level of Acculturation
– National or a Hispanic segment..
• What’s a pachuco?
Culture and DM
• Be aware of Hispanic DM learnings
– Bilingual for Financial Services
• Acculturation and product lifecycle are closely
related, although not always as expected.
• Hispanics over index in many categories,
under index in others, regardless of income.
• All segments on the acculturation scale can
be marketed to.
Language, Cultural and DM
Culture and DM Offers
You Get All This Free:
• Binder for Cards
• Dividers to organize
• 2 packets, 24 Cards
• Bongo Premium
You Get All This for $5.95
• Binder for Cards
• Dividers to organize
• 3 packets, 36 Cards
• Bongo Premium
*And pay only $5.95 for your fist packet
• Here’s how it works
• Questions? Call 800 xxx
Culture and DM
Acculturation Jeopardy
• Burial Insurance for Children
– What product will you never sell to
Hispanics?
• Ingles sin barreras
– What product is successfully marketed to
non acculturated, nearly economically
invisible Hispanics?
• Trading stocks online
– Where do Hispanics over index general
market
Acculturation Jeopardy
• Insurance
– What product do Hispanics under index,
regardless of income or acculturation?
• Donations to Charity
– In what DM category do foreign born, less
educated, lower income Hispanics over
index?
• Mamá
– Whose blessing is required to join the
military
• Hispanic Junior Class
– Who are far less likely to respond?
U.S. Army Insights
HCM Trend Analysis, Before Hiatus
$300
$250
$200
$150
$100
$50
$0
11
/1
8
-$50
HCM Trend Analysis, After Hiatus
$300
10
9
$250
8
6
$150
5
$100
4
3
$50
2
$0
1
CPS
Linear (Calls/Spot)
CPL
Linear (Leads/Spot)
Calls/Spot
Linear (CPS)
9/
8
9/
15
9/
22
9/
29
10
/6
10
/1
3
10
/2
0
10
/2
7
9/
1
8/
4
8/
11
8/
18
8/
25
7/
7
7/
14
7/
21
7/
28
6/
9
6/
16
6/
23
6/
30
6/
2
-$50
Leads/Spot
Linear (CPL)
Calls/Leads
7
5/
5
5/
12
5/
19
5/
26
CPS/CPL
$200
GCM :30 Before Hiatus Trend Analysis
$300
$250
$200
$150
$100
$50
$0
-$50
9/
30
-$100
$300
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
-
$250
$200
$100
$50
$0
-$50
CPS
Linear (Calls/Spot)
CPL
Linear (Leads/Spot)
Calls/Spot
Linear (CPS)
Leads/Spot
Linear (CPL)
9/
15
9/
8
9/
1
8/
25
8/
18
8/
11
8/
4
7/
28
7/
21
7/
14
7/
7
6/
30
6/
23
6/
16
6/
9
6/
2
5/
26
5/
19
5/
12
-$100
5/
5
CPS/CPL
$150
Calls/Leads
GCM :30 After Hiatus Trend Analysis
% Hisp, Indices by State, 18 - 24
25%
Leads, Calls, % of Hisp 18-24
20%
15%
10%
5%
0%
CA
TX
NY
FL
IL
AR
CO
NC
GA
DC
NM
PA
MA
OR
WA
% Hisp, Indices by State, HH
25%
Leads, Calls, % of Hisp HH
20%
15%
10%
5%
0%
CA
TX
NY
FL
IL
AZ
CO
NM
PA
MA
DC
NV
WA
GA
NC
Country of Origin and Call Index, 18 -24
100%
90%
80%
248
Country of Origin
70%
60%
192
192
DC
NM
50%
143
40%
132
121
30%
96
20%
10%
75
75
79
67
72
AZ
IL
TX
WA
CA
103
49
0%
CO
NV
PA
GA
MA
NY
FL
Country of Origin and Lead Index by HH
100%
300
90%
80%
216
60%
200
191
Lead Index
Country of Origin
70%
165
50%
40%
30%
95
84
20%
71
118
100
84
72
48
10%
0%
98
106
114
12
NM
0
CO
Mex
TX
PR
AZ
IL
Cuban
CA
Dom
WA
PA
Central
NV
MA
South
NY
FL
Other
GA
DC
Lead Index
Further Insights
• More comprehensive information from Spanish
newscasts.
• Communication with family in Latin America.
• More Hispanics on the front line.
• 9% of soldiers, 18% of casualties, 4% of
officers.
• Edgar Hernández, Shoshana Nyree Johnson
or why is Jessica Lynch the only hero?
* Jorge Ramos, La Ola Latina
Direct Mail Examples
Influencer Postcard
Influencer Postcard
Influencer Postcard
QuickTime™ and a
TIFF (LZW) decompressor
are needed to see this picture.
Buddy Card
FY 02 Grad/Workforce October 18
Response Break Down
100%
90%
11%
21%
28%
23%
20%
77%
80%
80%
70%
60%
50%
40%
89%
79%
72%
30%
20%
10%
0%
12/17/01
Grad/Some
4/25/02
Grad/Some
12/17/01
5/22/02
3/27/02
Senior
Senior
Junior
Base as a % of Total
Buddy as a % of Total
Outside Lists
Response ForwardMail Quantity% of total
G/W, 4/25
Total Mailing
JRAP C ontrol
C lub Musica, Males
C lub Musica, Females
Focus, HYA, Male
Focus, HYA, Female
Hispanic HH by State
Hispanic Family MOB
Experian, HYA
ASL
0.88%
0.61%
2.36%
1.30%
0.38%
0.29%
0.36%
0.28%
0.37%
0.50%
57%
72%
44%
55%
70%
85%
66%
73%
72%
65%
523,519
193,526
91,098
35,534
44,750
24,967
40,046
39,380
29,387
24,831
Seniors, 5/22
Total Mailing
JRAP C ontrol
Ethic Technologies
Student Marketing
0.27%
0.32%
0.19%
0.60%
73%
77%
65%
67%
423,742
323,683
72,782
27,218
Leads
% of total
37.0%
17.4%
6.8%
8.5%
4.8%
7.6%
7.5%
5.6%
4.7%
2615
844
953
252
121
62
95
82
78
81
32.3%
36.4%
9.6%
4.6%
2.4%
3.6%
3.1%
3.0%
3.1%
76.4%
17.2%
6.4%
1007
807
90
110
80.1%
8.9%
10.9%
Outside/Vertical List vs JRAP CPL
Grad/Workforce
JRAP
Club Musica
Quantity
Response
Forwardability
Leads
193,526
0.61%
72.0%
850
91,098
2.36%
44.4%
954
List Rental
List Processing
Premium & Premium Fulfillment
Paper Fulfillment
Printing
Postage
Total
C ampaign C ost/m
C PL
677
4,909
527
44,511
38,705
89,329
461.64
105.10
10,021
319
5,511
592
20,953
18,220
55,615
611.15
58.28
$
$
$
$
 Even with low forwardability some outside lists are very cost effective.
Misperceptions
• While the previous sections clearly illustrate
the potential of the Hispanic market, and its
differences from general market, it is
important to start with a clean slate.
• There are many misperceptions that must
be dispelled prior to developing an effective
strategy
Immigrants Will Quickly Assimilate
• The immigration model that fueled growth
over the first half of the 20th century is no
longer applicable. The notion that recent
arrivals will assimilate has changed. The
US is no longer a “melting pot” but more
like a “cultural stew”
• Hispanic are the first immigrant ethnic
group that will control their own level of
acculturation. Note the word acculturation,
the majority of Latinos will not assimilate.
All Hispanics Will Ultimately
Learn English
• The Latino population has reached critical
mass. There are many large regions of this
country where it is very easy to get along
speaking only Spanish. While most
Hispanics will learn English there is no day
to day reason to do so
• As a consequence, the majority of
Hispanics will be Spanish dominant or
Spanish preferred
Most Hispanics Learn English So
My Existing Message Will Work
• Over time Hispanics learn English.
However the language spoken at home
remains Spanish. Even with the young
bilingual 17 -24 age group 83% spoke
Spanish first.
• Your English message is not reaching the
market, neither through broadcast or DM.
For example, Hispanics only receive 1/10
the mail that the general market does
We Will Translate Our Current Efforts
• The Spanish language is a right brain
language reflecting a different thought
process than English. The left brain bias of
English is not apparent in Spanish
– To gain share of wallet one must gain
share of heart. The Spanish language and
in culture communication is the best way
to accomplish this
– A simple translation of the marketing
message will not likely work, moreover, it
may be damaging
We Can Offer the Same Product or
Services to the Hispanic Market
• The product lifecycle may be at a very
different place in the Hispanic community.
The existing product mix may have to be
adjusted
• Hispanics over index in many categories
but under index in others
• Most products or services will work but the
communication platform will be different
Strategic Implications
• Rapidly growing population that maintains
various degrees of acculturation and, by
virtue of its size and homogeneity, will
determine its own course of acculturation.
• When objective is to achieve “share of
heart”, the most efficient combination is done
in language with cultural relevance
• The traditions of Hispanic culture are not
necessarily in-synch with the concept as
“mainstream society” or the “American
Dream”
Strategic Implications
• In general, Hispanics are right brain
thinkers. The marketer must “acculturate”or
risk losing relevancy by continued reliance
on left brain thinking.
• Product lifecycle considerations are the
basis of a solid marketing plan.
• The rules of direct marketing apply but the
approach or offer will have to be adjusted.
Gracias…thank you
Michael Saray Hispanic Marketing
212 807 2780
[email protected]
www.michaelsaray.com