Page 248 - Marketing Management

IDENTIFYING MARKET SEGMENTS AND TARGETS | CHAPTER 8 225

(18 percent), India (11 percent), Vietnam (10 percent), Korea (10 percent), and Japan (9 percent).
The diversity of these national identities limits the effectiveness of pan-Asian marketing appeals.
The Asian American market has been called the “invisible market” because, compared to
Hispanic Americans and African Americans, it has traditionally received a disproportionally small
43
fraction of U.S. companies’ total multicultural marketing expenditure. Yet it is getting easier and
easier to reach this market. The number of media outlets targeting Asian Americans has grown
from 200 in the 1980s to between 700 and 800 by 2007.
Philadelphia-based Sovereign Bank has been successful targeting Boston’s Chinese American
community with a 100 percent Chinese American–staffed branch. Not only do employees speak
Cantonese, they know that in financial planning for Chinese Americans it is appropriate to
44
acknowledge the need to care for elderly parents. Traditional packaged-good firms have also been
getting in the act. Here is how Kraft got its start.

Kraft Kraft’s initial Asian American marketing efforts began in 2005 with an integrated
marketing campaign featuring in-language ads, in-store product demos/tastings, and a Web
site with recipes and tips for healthy living. Kraft’s research revealed that Asian American
shoppers did not want more Asian-style products from Kraft. Rather, they wanted to learn how
to prepare Western-style meals using Kraft products. Kraft’s marketing communications used
Mandarin and Cantonese, two of the more commonly spoken dialects of Asian immigrants,
and targeted immigrant moms as the cultural gatekeepers of their families at home, strik-
ing a balance between Western and Eastern cultures. One print ad used the Chinese
proverb “Life has a hundred flavors” to show an array of Kraft products brightly arranged on
a platter. To further connect with shoppers, Kraft deployed Chinese-speaking representa-
tives to supermarkets. The reps conducted cooking demos of Western recipes using Kraft
products, handed out product samples, and offered suggestions for convenient kid-friendly
school lunches. Kraft also launched a Web site (www.krafthealthyliving.com) to promote
tips for healthy eating, such as “sip your tea” for better health benefits. 45
Asian Americans tend to be more brand-conscious than other minority groups
yet are the least loyal to particular brands. They also tend to care more about what
others think (for instance, whether their neighbors will approve of them) and share
core values of safety and education. Comparatively affluent and well-educated, they
are an attractive target for luxury brands. The most computer-literate group, Asian
Americans are more likely to use the Internet on a daily basis. 46
Lesbian, Gay, Bisexual, and Transgender (LGBT) The lesbian, gay,
bisexual, and transgender (LGBT) market is estimated to make up 5 percent to
10 percent of the population and have approximately $700 billion in buying
power. 47 Many firms have recently created initiatives to target this market.
American Airlines created a Rainbow Team with a dedicated LGBT staff and Web
site that has emphasized community-relevant services such as an event calendar of Kraft has actively targeted Asian
gay-themed national events. According to one survey of the gay and lesbian community, Absolut, Americans with its brands and
Apple, Levi’s, and Bravo and Showtime television networks are seen as among the most products.
gay-friendly businesses. 48
Logo, MTV’s television channel for a gay and lesbian audience, has 150 advertisers in a wide va-
riety of product categories and is available in 40 million homes. Increasingly, advertisers are using
digital efforts to reach the market. Hyatt’s online appeals to the LGBT community targets social
sites and blogs where customers share their travel experiences.
Some firms, however, worry about backlash from organizations that will criticize or even boy-
cott firms supporting gay and lesbian causes. Although Pepsi, Campbell’s, and Wells Fargo have all
experienced such boycotts, they continue to advertise to the gay community.

Psychographic Segmentation
Psychographics is the science of using psychology and demographics to better understand con-
sumers. In psychographic segmentation, buyers are divided into different groups on the basis of