How to Market to People Not Like You. We’ve Changed.

How to Market to People Not Like You

We’ve Changed

1 in 3 is not White

Source: 2010 U.S. Census

The Census Diversity Index Has Been Increasing Consistently

• The probability that two people chosen at random would be of a different race and ethnicity on a 0-100 scale. The scale ranges from 0 (no diversity) to 100.

Source: U.S.A Today, Minority births drive growth in U.S. diversity , 6/22/10

California’s Diversity Index

73 In California, the probability that two people

selected at random will be of different races or ethnicities is 73%

Best Place to Get Your Local Data

• usatoday.com/news/census/index

• You can find the diversity index for every county and city, as well as:

• Population density• Racial & ethnic composition

Screen Shot from the Website

Diversity Index by Locale

4 States &The District of Columbia have Minority Majority Populations

• Minorities account for more than 50% of the population in California, Hawaii, New Mexico, Texas and DC

Source: New U.S. Census to Reveal Major Shift: No More Joe Consumer. AdAge, October 12, 2009.

States with Majority Minority Among Children

• In 10 states, the share of children who are minorities has already passed 50 percent, up from five states in 2000:

Mississippi

Georgia

Maryland

Florida

Arizona

Nevada

Texas

California

New Mexico

Hawaii

Not Just in Select Places…

• Across every major market in the U.S. the majority of the child population is nonwhite

Non-Hispanic Whites

• Whites share of the total U.S. population dropped over the last decade from 69% to 64%

• Whites are aging fast: median age is now 41 (up from 38.6 in the 2000 Census)

• Will be minority by 2041

Multiracial Americans

• Multiracial Americans now number 8.7 million

• 3% of the population

• 25% increase in last decade

The Browning of America

A Country within a Country

• 50.5 million Latinos in U.S.

• Mexico 108.7 MM• U.S. 50.5 MM• Colombia 44.4 MM• Spain 40.4 MM• Argentina 40.3 MM• Peru 28.7 MM• Venezuela 26.0 MM• Chile 16.3 MM

Source: Synovate 2010, CIA World Factbook, 2010 Census

50.5 Million Hispanics

Source: 2010 U.S. Census

One in six U.S. residents is Latino

Among Children,

1 in 4 is

Hispanic

Every 30 seconds, a Latino turns 18 in America

Source: NPR, Latino Mayor May Be A Glimpse Of Things To Come, December 12, 2010

Latino Growth from 2000 - 2010

Diversity Comes in Many Forms• Gender

• Religion

• Political views

• Age/Generation– Matures (seniors)– Boomers– Gen X– Gen Y

• Gay/Lesbian

• Physical abilities

• Rural / Metro

• Military/Civilian

Diversity Comes in Many Forms• Racial

– White, Black, Asian, Native American

• Ethnic/Linguistic– Hispanic, Indian, etc.

• Nativity– Foreign-born or U.S. born

• Lifestage– New moms/dads, retirees, college students, empty-nesters

• Lifestyle/Affluence– Working poor, middle class, wealthy

• Core values– Environmentalists, vegetarians, home schoolers

The Hottest Market Segments Now1. The Boomers

They’re big and affluent

2. Hispanic MarketThey’re new and growing

3. The African-American MarketThey’re loyal and lucrative

4. Gen YThey’re powerful and elusive

5. Women and MomsThey’re highly influential and highly connected

Feeling the Boomers’ Influence

• Dockers now the best-selling brand of men’s pants, not Levi’s jeans

• Eyeglasses as fashion statement– Frames became more stylish

• Yoga explosion

• Popularity of “adventure vacation”, experiences– Safaris, bike tours through Italy, mountain climbing

Feeling the Hispanic Influence…

Feeling the AA Influence…

• General Foods identified key differences among AA consumers and General Market consumers

• AA’s use cornbread rather than loaf bread for stuffing

• AA’s refer to the food as “dressing” rather than “stuffing”

• Ads created with special tagline:– “The box says stuffing but the

taste says dressing”

Feeling the Gen Y Influence

• U hgry 4 za? (Are you hungry for pizza?)

• Emoticons : )

• LOL, BTW, IDK, TTYL, CUL8R

• Women buy for their entire family and influence what their friends and neighbors buy as well

Women’s Influence: She-conomy

Mommy Bloggers Exploding

Blog Force

• 1 of 3 bloggers is a “Mommy Blogger”

• 18.3 million women with children read blogs at least once a month

• 1 in 4 moms has purchased a product because of a website or blog

• 60% of Mommy bloggers blog about brands they love or hate

Understanding Someone Different from You Means Understanding Their

Life

Their priorities

Their values

The experiences that define them

Try This Exercise!

• When asked to name how Kennedy died…

• Matures & Boomers– Gunshot in Dallas

• Gen X– Plane crash near Martha’s Vineyard

• Gen Y– “Kennedy who?”

Who is Ron Howard?

• Matures

• Boomers

• Gen X & Gen Y

Matures, Boomers, Gen X, Gen Y

Key emotional drivers and icons

Matures (age 68 and older)

• Iconic entertainer: Frank Sinatra• HHI: $40,400• Defining Idea: Duty• Style: Team player• Work is: an inevitable obligation• Education is: a dream• Reward because: you’ve earned it• Home stuff: Timex, milk and cookies• Money: put it away, pay cash• Family: traditional nuclear• Technology: slide rules and rotary phones

Boomers (age 49-67)

• Iconic entertainer: Mick Jagger• HHI: $59,800• Defining Idea: Individuality• Style: Self-absorbed• Work is: an exciting adventure• Education is: a birthright• Reward because: you deserve it• Home stuff: Casio, milk and Oreos• Money: buy now, pay later• Family: disintegrating• Technology: calculators, touchtone phones

Generation X (age 36-48)

• Iconic entertainer: Madonna• HHI: $49,500• Defining Idea: Diversity• Style: entrepreneur• Work is: a difficult challenge• Education is: a way to get there• Reward because: you need it• Home stuff: Swatch, milk and Snackwells• Money: cautious conservative: save,

save• Family: latchkey kids• Technology: spreadsheets and cell phones

Generation Y (age 18-35)• Iconic entertainer: Lady Gaga• HHI: control $160 B

in spending• Defining Idea: Authenticity• Style: Worldly• Work is: a chance to do some good• Education is: an incredible expense• Reward because you can share it• Home stuff: use phones to tell time, iPads,

Xbox, PS3, Wii, organic • Money: earn to spend• Family: merged families

• Technology: all access, text messaging

No More “Joe Consumer”

"The concept of an 'average American' is gone, probably forever. The ‘average American’ has been replaced by a complex, multidimensional society that defies simplistic labeling.”

– Demographics expert Peter Francese

Source: New U.S. Census to Reveal Major Shift: No More Joe Consumer. AdAge, October 12, 2009.

Strategies for Marketing to People Not Like You

Strategy #1: Be Relevant

• Identify what people want, then give it to them

• Example: Target vs. K-Mart– Relevance: “Style on a budget”

• Benefit: value with dignity

Strategy #2: Build Your Infrastructure

• Diversity efforts require examination of infrastructure

• Angelika theatre in Dallas:

The Container Store in Manhattan

Strategy #3: Know Thy Target

• Bad example: Wireless company: – Cinco de Mayo themed ads in Miami

• Good example: San Francisco: Bank of America partnered with AT&T to tap into huge Asian population– Open a new checking account, get AT&T prepaid

calling card good for calls to Asia – AT&T customers received free checking at BofA

• Goal: 1,500 new accounts• Actual: 22,000 new accounts

Strategy #4: Understand Different Needs

• Hispanic life insurance questions

• Women want testimonials/customer reviews online

Strategy #5: Tap into Values

Gen Y: FOMO

“Fear of Missing Out”

Gen Y Saved Amtrak from Extinction

Strategy #6: Be Respectful

Strategy # 7: Communicate on Their Terms

Social is Everything

Strategy #8: Use Consumer Insights

• Women trust what other women say

• Hispanics: great customer service trumps mistakes

Strategy #9: Be Fearless• It may feel weird and unconventional to you, but

if it’s what the customer wants, then it’s the right thing

Strategy #10: Train for Cultural Sensitivity

• Law firm partner took young associate out to lunch as part of mentoring program. Partner is older White gentleman, associate is African-American.

• “Where are your people from?”

• “Talking louder does not make me bilingual”

Marketing Must Adapt

• Not just advertising efforts and messaging• Financial literacy and educational efforts• Community involvement• Mobile is hot

Be the Good Guys

• Demonstrate & market social consciousness– Green efforts– Community involvement

• “We don’t need information. We need advice.”

Helping Beats Selling

“We don’t need information.

We need advice.”

Your Turn

Turn to your neighbor and discuss a potential customer market that you haven’t tapped into yet and how you can approach cultivating that opportunity

Final Thoughts

• Pay attention to the shifting demographics and values of customers and community around you

• Meaningful marketing has growing relevancy with every consumer segment as our desire for connection grows

• Good marketing is always about tapping into closely-held values

The Big I Can Help

• IIABA has developed free resources for you:

• 7 webinars – steps on how to market to diverse segments

• Hispanic, African-American, Asian, women, Gen X & Y

• Agent/Broker Resource Toolbox:– Data Packets on consumer segments– Marketing “How To” Papers – Advertising Messaging Guides – Utilizing Social Media Guide – List of Online Resources

My New Book Can Help!

Praise from Major Business Press

On the Business Book Bestseller List!

©2013 McDonald Marketing2700 Thomas Avenue

Dallas, TX 75204214-880-1717, Fax 214-880-7596 www.mcdonaldmarketing.com

All rights reserved. No part of this material may be reproduced

In any form without permission by the author.

For more information aboutConsumer trends and marketing, contact

Kelly McDonald at 214-880-1717 or [email protected]