Page 246 - Marketing Management

IDENTIFYING MARKET SEGMENTS AND TARGETS | CHAPTER 8 223

TABLE 8.4 Multicultural Market Profile

Hispanic Americans Asian Americans African Americans

Estimated population—2007 46.9 million 15.2 million 40.7 million
Estimated population—2050 132.8 million 40.6 million 65.7 million
Number of minority-owned businesses in 2002 1.6 million 1.1 million 1.2 million
Revenue generated by minority-owned businesses in 2002 $222 billion $326 billion $89 billion
Median household income in 2007 $38,679 $66,103 $33,916
Poverty rate in 2007 21.5% 10.20% 24.50%
Percentage of those aged >25 with at least a high school 62% 86% 82%
education in 2008
Number of veterans of U.S. armed forces 1,100,000 277,751 2,400,000
Median age in 2008 27.7 35.4 30.3
Percent of population under 18 years old in 2008 34% 26% 30%
Buying power—2008 $863 billion $847 billion $509 billion
Sources: www.selig.uga.edu. and www.census.gov.

Verizon, and General Mills all significantly increased their advertising investment in the Hispanic
market during the last recession.

State Farm After trailing its main competitor for years, State Farm decided to
make its Hispanic American marketing a priority in 2008. The firm sponsored local Latino
community events, soccer matches, the Latin Music Awards, and Univision’s highly rated
Saturday night variety show, Sabádo Gigante. Perhaps State Farm’s most original market-
ing activity, however, was the support and sponsorship of a new band. Los Felinos de la
Noche (The Felines of the Night), as the six men (primarily Hispanic immigrants) are called, play the
percussion heavy pop-rock sound of Norteño or Northern Mexico regional music. With State Farm’s State Farm’s musical sponsorship
support, the band recorded singles, shot music videos, and played live concerts to make a name for of the band Los Felinos de la
themselves. State Farm, however, chose a subtle approach to its sponsorship. Although the band’s Noche reflects the company’s
Web site did not display the State Farm logo or contain marketing messages, the band did praise the increased emphasis on Hispanic
company for the opportunity it gave them in many of the posted inter- marketing.
views. The color red in the band’s uniforms was meant to tie in State
Farm’s familiar color. Targeting first-generation Hispanics with an emo-
tional appeal showed that State Farm understood the needs of the
Hispanic community. Positively received, the campaign has been cred-
ited with helping to change opinions of that market. 33

Hispanic Americans often share strong family values—several
generations may reside in one household—and strong roots to
their original country of origin. They have a need for respect,
brand loyalty, and a keen interest in product quality. Procter &
Gamble’s research revealed that Hispanic consumers believe “lo
barato sale caro” (“cheap can be expensive,” or in the English equiv-
alent,“you get what you pay for”). P&G found Hispanic consumers
were so value-oriented they would even do their own product tests
at home. One woman was using different brands of tissues and
toilet paper in different rooms and bathrooms to see which her
34
family liked best.