Targeting minorities is a sound business practice - Essay Example

1Targeting Minorities is a Sound Business Practice Introduction A target market is the market segment which a particular product is marketedto and often defined by age, gender, and/or socioeconomic grouping. Smart businesses are discovering the buying power of the nation's minorities. Experts say that minority consumers show a high degree of loyalty. When a business addresses their need directly, it can have an enormous impact. The explosion of ethnic and racial populations across the U.S. has caused business to realize that targeting minorities is a sound business practice.

Sound Advice Don't make the mistake of thinking that all minorities are alike. The four major sub-groups of the Hispanic market are Mexican, Cuban, Puerto Rican, and "other Hispanic." which includes Spanish-speaking people from Central and South America, the Caribbean and Spain. There's a tremendous difference between the preferences and buying patterns of. Puerto Ricans living in New York, Cubans in Miami, and Mexicans in the southwestern states. There are more than two dozen ethnic groups within the Asian community.

Within the African-American segment, French-speaking Haitian-born Americans, for example, may have little in common with American-born blacks. Equally important are generational differences. Consequently, it's virtually impossible to create generic advertising or promotional tools that appeal to all segments. The solution is to pick a very specific target and tailor your message to their needs. If trying to attract more than one target, it would be wise to create more than one message.

Learn as much as you can about your potential customer's traditions and beliefs. Be careful when translating English, especially slogans, into foreign languages. Sharpen your sensitivity to cultural slurs or taboos. Successful marketers have their promotional materials reviewed by members of the minority group or groups being targeted. The protocol of customer relations in any culture is always prompt, courteous service. However, the requirements of courtesy may differ among various ethnic groups.

Asian- Americans place great value on respect for elders, whom salespeople should treat with honor and greet specifically, if not first, when they come to the store with younger family members. Asian-Americans differ, however, in their behavior as customers. "Chinese-Americans ask many questions," says David Hsu, co-owner of Huan Yuan Restaurant in Oakland, California, "and they are very picky." They want informed answers without high-pressure selling, which they find impolite. Korean- and Filipino-Americans, in contrast, ask few if any questions.

"Koreans are very sensitive about loss of face," says Harry Kim, chairman of the San Francisco-Seoul Sister City Committee, so they are uncomfortable showing they don't know. Latinos also ask few questions and are highly brand-conscious. They are turned off by sales pressure and will walk away. Caucasian and African-American customers, on the other hand, may ask numerous questions. Caucasians are very careful about details. The Korean style of business is, "We make a friendship, then do business with friends," says Hiroyasu Kitagawa, San Francisco manager of Matsuzakaya department store.

Asian- American etiquette Chinese-Americans depart from this style; they wrap up a transaction in a single meeting, with "no time to develop a relationship." Socializing is part of the Hispanic business culture, and politeness toward all is essential. As for etiquette, last names and handshakes, or hugs, are used, and punctuality is required. In African-American and Caucasian companies, first names are often used, firm handshakes are the gesture of greeting, and punctuality is appreciated.

Conclusion Ethnic groups respond to ads tailored to them. Cultural sensitivity is imperative when developing promotional tools. Always keep in mind that some colors can be offensive, words can often translate poorly, and certain products or services may conflict with religious or moral beliefs. Using the language of the group is essential Ethnic groups provide a large and growing market for business operators and entrepreneurs. While these markets have existed for a long time in larger cities, they are becoming increasingly significant in smaller communities.

Ethnicity, as parts of their cultures, have proven to provide loyalty to the businesses which do their research and provide the diverse groups the products and services which are important to them, and in the manner to which they can relate. WORKS CITED "Ethnic Markets Project Survey" Online: http://www.sheepgoatmarketing.org July 27, 2003 "Minorities in Business 2001" US Small Business Administration Online: http://www.sba.gov/advo/stats July 27, 2003 Let's Talk Business May, 2004 Online: http://www.uwex.edu/ces/cced/lets/0405ltb.html