0816_TOEFL-Test-and-Score-Manual-1997

Marketing Strategies ● 187
GREAT
IDEA
Get Certified as a Woman- or
Minority-Owned Business
Big companies get brownie points for buying goods and
services from small businesses, but in many cases,
only if the small business is certified by a legitimate third-party certification
group.
One such organization is the National Minority Supplier Development
Council (NMSDC), which works closely with 43 regional supplier councils
to match up 25,000 certified minority business owners with 3,500
corporations.
Most big U.S. companies actively seek to do business with minority
firms in order to meet various government and corporate supplier diversity
goals. Corporate marketers also understand the economic advantage of
catering to minority consumers.
“The buying power of minority groups is billions of dollars a year,
and that is a huge opportunity we have to pay attention to,” said John
Edwardson, former president and chief executive officer of United Airlines.
Small, minority-owned companies provide a variety of services and
products to large companies. For example, H. K. Enterprises, a small New
Jersey firm, developed “Undeniable,” one of Avon’s best-selling fragrances.
“We see minority business development today as an investment in our own
future,” said James Preston, former chairman of Avon Products.
When he was in charge, Avon contracted with 400 minority-owned
suppliers, accounting for 12 percent of the cosmetic company’s annual
purchases. The 12 percent was about three times the national average for
corporate purchases from minority suppliers.
Avon is committed to buying from minority-owned firms because
Avon products, sold by independent representatives, are extremely popular
among women of color and their families. Preston said his minority
suppliers also provide Avon with insight into the marketplace.
Dealing with minority-owned companies makes good economic sense
for any company. Census data indicates that by the year 2050 two of every
five Americans will be of minority descent.