FEATUREThe why, how and what of multicultural marketingThe terms “multicultural marketing” and “marketplace diversity”strike fear in the hearts of many marketing managers. Their fear iswell founded: these professionals may have been wildly successfulat targeting mainstream customers but are now facing anincreasingly diverse body of consumers and have little experienceto serve them.By Anne M. BrumbaughThe fact is, professionals shouldn’tconsider multicultural segmentationand marketing because it’s the feelgood-flavor-of-the-dayor the “right thingto do.” There are many reasons why it’sgoing to be good for your bottom line.Why multicultural marketing?The 2010 census projects that whitenon-Hispanic Americans will be<strong>com</strong>e aminority majority (i.e., plurality) by 2042.I predict this will occur closer to 2035 asmore people intermarry, have children,travel and work here and abroad, andchoose to identify with more than one ethnoracialgroup on the census and otherpolls. Some white non-Hispanics seem tobe on the edge of panic that this day willbe some cultural Armageddon. My advice:embrace it, or at least get over it. If youdon’t, your customer base will shrink.Ethnoracial minority groups that have,for one reason or another, fallen into thelower tail of the socioeconomic distributionare making great strides. Not onlywill there be more consumers of diversebackgrounds, but they will have moremoney. They will not be buying theupscale homes and fancy sports cars withextra piles of money that wealthy whitenon-Hispanic Americans (allegedly) have,but they will be buying more and buyingbetter than they ever have in the past. Andthey will remember <strong>com</strong>panies that targetedthem with respectful, value-addedofferings on the way up.Multicultural marketing is where your<strong>com</strong>petition is going. Both nature andbusiness abhor a vacuum, and underservedmarkets will not remain underserved forlong. If you don’t get with the programand learn how to target diverse consumers,your <strong>com</strong>petition will. It may not be yourbiggest, closest <strong>com</strong>petitor, but rather asmall shop that’s willing to end run youbut good with a little extra effort, creativity,and heart. The customers are there andthe money is there. Go for them beforesomeone else does.White non-Hispanic consumers willremain the largest ethnoracial group evenafter be<strong>com</strong>ing a “minority.” The thing is,some of them will be gaining an appreciationfor the range of ideas, assortment ofgoods and services, and spice of life that amore diverse America brings to them, andthey will want to patronize firms thatembrace that. Multicultural marketing iswhere the mainstream mindset is going.Terms like the “New Mainstream,”“Cultural Creatives,” and “DiversitySeekers” reflect an evolving ethos amongcurrent majority white non-Hispanic consumerswho value diversity in their lives.Companies that don’t update their appealsto be more inclusive toward everyone maylose these folks as well.Here’s a piece of wisdom fromEconomics and Marketing 101: if all yourconsumers are the same, seeking the samesource of value for the same reasons, youcan’t differentiate and you end up playinga price game in a <strong>com</strong>modity market. Onthe other hand, the more diverse your consumersare, the more opportunity you haveto differentiate — do more, do different,and do better than your <strong>com</strong>petition in theeyes of your consumers. Unfortunately,it’s going to take more money, moreknowledge, and more effort than it has inthe past, but if misery loves <strong>com</strong>pany, atleast everyone’s in the same boat. If youcan figure out how a particular consumersegment is different, cater to that point ofdifference, and then deliver on it, you’regoing to thrive in this new, multiculturalmarketplace.How to implement multicultural marketingOnce you’ve <strong>com</strong>e to the realization thatyou need to consider multicultural marketing— targeting different consumer segmentson the basis of ethnic, racial, orother cultural group membership — youneed to figure out how to get ready to doit. If you want to do a mediocre job, simplyread an oversimplified demographicprofile of your target group on the Internet,reinforce marketing stereotypes that mayor may not hold true for the group, replacea few white characters in your ads withmembers of that group, and translatedirectly your existing <strong>com</strong>municationsinto their languageOn the other hand, if you want to knowhow to do a really good job — one thatresonates with your subcultural target andhas a positive ROI — you need to do a littlebackground work first.As members of the dominant culture,we white Anglos have a difficult timeknowing if, when, and how the beliefs,values, and behaviors of other culturalgroups differ from ours. We may erroneouslyassume that members of anotherculture behave just like we do, or that theybehave <strong>com</strong>pletely differently from howwe do. Successful multicultural marketingstarts by checking both types of assumptionsat the door. Research, particularlyqualitative, is absolutely essential forunderstanding the consumer beliefs about,motivations toward, uses of, and propensityfor different product categories andbrands among diverse cultural segments ofwhich we are not members. Assume nothing,research everything.Learn the culture of your target. Readthe literature of your target — be sure toinclude a biography or two, fiction, andnon-fiction of different historical periods.Take a history, sociology, or anthropologycourse to learn the culture’s ethos — whatmakes its people tick. Identify what popularmedia your target consumes (televisionshows, online content, magazines,radio, news, etc.) and consume them yourselfto learn what the current issues withinthe <strong>com</strong>munity are. You’re doing all thisnot to learn how to market to them per se,but rather to understand their values andbeliefs.Marketing to diverse consumersrequires a diversity of thought, and you getthis diversity of thought from havingdiverse employees. That doesn’t necessarilymean that if you would like to targetsubcultural segments X, Y, and Z, youhave to have employees from subculturalsegments X, Y, and Z (though it doesn’thurt). It does mean, however, that youhave to have different types of people inyour firm with a diversity of experiencesand backgrounds so that they can questionassumptions, tap into a broad network ofconnections and resources that a narrowemployee base might not have, and generatebetter ideas than a homogenous groupcould.There is substantial heterogeneity withinany segment, and failure to acknowledgeit could be disastrous. UnderstandContinued on next page28JUNE 2011 WWW.ODWYERPR.COM
diversity within diversity. An AfricanAmerican mom with three kids and a minivanis probably more like her white soccermom counterpart than she is like a blackCaribbean hip hop artist when it <strong>com</strong>es topurchasing an SUV, and a fifteen year oldHispanic boy is probably more like thatsame hip hop artist than he is like his ownMexican grandfather when it <strong>com</strong>es tochoosing clothing. Individuals in ethnoracialsubcultures differ substantially withregard to how much they identify withtheir subcultural groups, and these differencesinfluence how they respond to targetedmarketing efforts.Too often when firms decide to target aparticular cultural subsegment, they namesomeone within their organization of thatsame subsegment to lead the effort (withoutregard to his or her marketing acumen),fund the effort from ad hoc sources(without regard to how much money it willactually require), and expect immediateresults (without regard to how long it islikely to take). Though firms seem reluctantto redeploy their best assets on cultivatinga new, unknown, smaller, riskiersubsegment than they are used to, successfulmulticultural marketing requires thatthey do so. Commit money and talent. Ifyou’re not going to <strong>com</strong>mit theseresources to the effort, you may not beready for multicultural marketing yet.What is multicultural marketing?By now you know why it’s imperativethat you consider doing some multiculturalmarketing, have thought a bit abouthow you might approach doing so, andmight even know whom you might targetfirst. But what do you actually do to “do”multicultural marketing? Just throwing afew brown-skinned people in your ads,translating your website into Spanish, andsaying you’re <strong>com</strong>mitted to servingminorities are not enough. Irrespective ofyour specific target market, here are somegeneral guidelines for increasing yourprobability of success with any diversecustomer base.Avoid stereotyping and ghetto-ing.Obviously, intentionally depicting minoritygroups in an unfavorable light is notonly bad marketing, but also, well, justplain bad. However, well-intentionedmarketers might unintentionally do so. Irecently reviewed a piece targeting collegestudents. The firm obviously attempted tobe inclusive across a range of ethnoracialgroups. In the collage, there were picturesof white-only groups of students studying,rowing crew, and graduating.Additionally, there was a picture of ayoung Asian woman playing the cello, oneof several black males playing basketball,and one of a group of blacks partying.Seriously? Each individual picture wasfine and the emphasis on whites appropriatestatistically speaking. Taken together,however, the collage unequivocallyemphasized stereotypes of Asians as overachievingstring musicians, blacks as athletesand not-so-serious students, andwhites as privileged elite. That no singlepicture showed a diverse mix of students iswhat I call “ghetto-ing” — segregatingeach group into its own photo space.Firms need to acknowledge prevailingstereotypes and think critically about howto offset them with positive, counterstereotypicalimages of ethnoracialminorities. Even if contrived, a single pictureof a diverse group sends a far strongersignal of inclusion than a photo collectionof different groups depicted separately.Unless your firm has a long-standingrelationship with a minority group it wouldlike to target, it needs to invest in grassroots activities to earn the right to be ableto target that group in order to be truly successful.Members of minority groupsknow when they are being pandered to, anda firm that has a poor or non-existent trackrecord with the group will have a muchmore difficult time than a firm that hasinvested in philanthropies, <strong>com</strong>munityactivities, and local organizations affiliatedwith the group. Firms need to demonstratethat they are deserving of the minoritygroup’s consumer spending in order for itstargeting efforts to be wel<strong>com</strong>ed.In addition to having a diverse employeebase, your firm needs to cultivate relationshipswith vendors and partners experiencedin doing marketing research, socialmedia, advertising, distribution channelmanagement, and product developmentwith members of your intended target market.The survey questions you ask of onegroup may be irrelevant for another. Howmembers of one group incorporate a socialmedium into their daily lives and identitiesmay be different from how another groupdoes it. While two groups appear to bothshop at the same distribution outlet, whateach buys there may be very different.Thus, it is not enough to be aware of potentialdifferences, but to partner with folkswho can explore and utilize them effectively.Most marketing phenomena operate onan S-shaped response curve. This meansthat for a low level of spending, you get no(zero, zip, zilch) results. You might as wellnot spend a penny. Then at some point(“critical mass”), increased levels of spendingactually move the needle and you see aresponse among consumers (brand awarenessfor ad spend, unit sales for promotionspend, engagement for social mediaspend). For a while, greater spend yieldsproportionally greater out<strong>com</strong>es up to asecond point, at which effectiveness againdrops off (“point of diminishing returns”).Too often firms fail to spend enough on targetingefforts to move the needle at all —the budget for a specific subsegment issimply too low to have any effect.Managers skeptical of the effort in the firstplace are validated when the targetingeffort fails, and managers who had theimpossible task of targeting the subsegmentwith insufficient resources see theirunits disbanded. It is crucial to research theresponse function for a specific segment,identify its sweet spot on the curve, andfund the effort fully to that spot.Finally, be accountable. It is absolutelyappropriate to require accountability fromthe unit tasked with targeting a minoritygroup. In a form of reverse discrimination,some firms are reticent to hold unitsresponsible for marketing to minority segmentsto the same standards as held formainstream audiences. This underminesthe credibility of the units and hurts overalltargeting effectiveness. Ample resourcesshould be allocated and expectations forROI set beforehand, as is done with anybusiness function. Only then can midcoursecorrections in strategy and implementationbe made, improving the functionof both the unit and firm.Whether it titillates or terrifies you, fillsyou with anticipation or dread, makes youexcited or exhausted, ready or not, the multiculturalmarketplace is here. Before yourun off and stick your head in the sand orworse, make a grave mistake, take a stepback and heed the advice herein. Youshould take away three themes from allI’ve described herein. First, educate yourself— about cultures, best practices, differentpopulations, etc. You are much lesslikely to do something horrible if you learnabout diverse others with genuine curiosityand respect. Second, surround yourselfwith smart, diverse people, the kind whowill question assumptions, thereby reducingthe likelihood of failure and generatingmore and better ideas. Finally, do themath: count what resources it will actuallytake to be successful in a multicultural marketingeffort, calculate what an appropriateROI would be, and hold the effort accountable.Go for it!Anne M. Brumbaugh, is Founder andOwner of Anne Brumbaugh Marketing inCharleston, SC. Dr. Brumbaugh holds anMBA with a specialization in marketingand a PhD in business and consumerbehavior, and teaches marketing courseson contract in top-ranked MBA programs.This article is <strong>com</strong>piled from a series ofblogs she originally wrote forwww.charlestonpr.<strong>com</strong>. JUNE 2011 WWW.ODWYERPR.COM 29