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Hispanic Direct Marketing: A Primer

This primer provides a comprehensive overview of Hispanic direct marketing, including key demographics, language and cultural considerations, psychographics, and strategic insights.

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Hispanic Direct Marketing: A Primer

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  1. Hispanic Direct Marketing a primer for Michael Saray Michael Saray Hispanic Marketing

  2. 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

  3. ¿Hispanic or Latino? *Pew Hispanic Survey, 2002

  4. ¿Hispanic or Latino? *Pew Hispanic Survey, 2002

  5. March 15, 2004

  6. Hispanic Are Part of the New American Mainstream... … “Hispanics are Fast Becoming Simply Us” Wall Street Journal, March 14, 2001

  7. 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

  8. 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

  9. Population Breakdown 1980-2050

  10. Without white immigration this is a (negative) number Population Growth 2000 - 2050

  11. 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)

  12. 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

  13. Purchasing Power Growth Source: The Hispanic Consumer Market in 1999 and Forecasts to 2020, Standard & Poor’s DRI, October 2000

  14. Critical Mass has been reached • Large population • Acculturation vs Assimilation • Well above average growth • Continually increasing income gains

  15. Hispanics By DMA, % Of Pop. 80.2% of Hispanics in 10 States *Geoscape International, American Marketscape DataStream: 2004

  16. State 2000 Population % Increase vs. 1990 Arkansas 86,866 +337% Georgia 435,227 +300% Minnesota 143,382 +166% No. Carolina 378,963 +394% So. Carolina 95,076 +211% Utah 201,559 +138% Wisconsin 192,921 +107% Texas 6,669,666 +54% California 10,966,566 +337% Florida 2,682,715 +70% New York 2,867,583 +30% Places Hispanics Are Calling Home Source: U.S. Census Bureau

  17. Middlesex 62% Suffolk 46% Nassau 43% Hispanics By County, % Of Pop. *Geoscape International, American Marketscape DataStream: 2004 *Hispanic Business Magazine, August 2004

  18. Hispanics By County, % Of Pop.

  19. Location Of Residence Hispanic Non-Hispanic White *Current Population Survey, March 2000, PGP-4

  20. Country Of Origin *Census 2003

  21. 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

  22. Age Cohort Breakdown

  23. Population Age Breakdown *Census 2003

  24. Age Projections

  25. Static Generational Proportions

  26. A big market, yes, but what do Hispanics think about direct marketing?

  27. Trends in Hispanic Distance Buying (Buyers)

  28. Response to Mail Marketing

  29. Response to Mail Marketing Do you feel that the number of advertising pieces, including catalogs, you receive at home is... *USPS Household Diary Study of Mail Use & Attitudes, 2003

  30. Response to Direct Mail Which of the following best describes how you typically review advertising mail?

  31. Yes, but….. what about the language issues?

  32. Hispanic Households Speak Spanish % U.S Hispanic HHs By Language Spoken in the Home : 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)

  33. First Language Spoken 84% of 16 to 34 year old Hispanics learned to speak Spanish first. *Yankelovich Partners 2000 Hispanic Monitor

  34. Spanish Spoken at Home… ...Regardless of HH Income ...Regardless of Education of Head of HH ...Regardless of Age Source: NHTI Installed Metered Sample, May 2000; Excludes English Only Homes; Based on % of Persons Living in HH’s that Speak Some Spanish

  35. Increasing Reliance On Spanish “I would be more inclined to purchase brands which are advertised in Spanish.” Agree Yankelovich, 2002 Hispanic Monitor

  36. 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.” Agree Yankelovich, 2002 Hispanic Monitor

  37. Even Among Bilingual Hispanics…Spanish language commercials are 3.4 times more persuasive! 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! Source: Roslow Research Group, 2000 “Advertising Effectiveness Among Hispanics”

  38. Direct Response Specific How important is it for you to be able to . . . in the Spanish language? *All differences significant at the .005 level

  39. Direct Response Specific Would you be likely to buy more if the . . . were in Spanish? *All differences significant at the .005 level

  40. Language may be the window to the soul… but there it is much more than just Spanish!

  41. Language and Cultural DNA

  42. Hispanics Language and Cultural DNA Latinos are culturally “hard wired” differently Right brain Left brain • Emotional • Intuitive • Creative • Big Picture • Visionary • Intellectual • Sequential • Analytical • Logical • Accuracy-Driven

  43. 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 • Group study • Multi-tasking • Family setting • Prefer verbal communication Workplace Requires • Teamwork • Multi-tasking • Constant interruption • Verbal skills

  44. 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

  45. 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.

  46. 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 Englishand all languages are biased!

  47. Language and Cultural DNA Conscious is Up;Unconscious is Down Wake up. I'm up already. I'm an early riser. I dropped offand fellasleep. The patient Went under anesthesia, sankinto a coma, then droppeddead.

  48. Language and Cultural DNA Controlling is Up;Being Controlled is Down He's on top of the situation, in highcommand, and at the heightof 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 bottomof the pile.

  49. Language and Cultural DNA Good is Up;Bad is Down High-quality work made this a peakyear and put us over the top. Things were looking upwhen the market bottomed outand hit an all-time low. It's been downhill ever since.

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