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A common mistake is the assumption that there is a discipline called Hispanic Marketing. The mistake is perpetuated and promoted by self-anointed "Hispanic Marketing experts" who claim their "Hispanic Marketing expertise" is needed to advertise to the Hispanic consumer segment.
These experts claim knowledge of a "different" marketing practice entirely based on their time working or living with Hispanic consumers in a non-marketing function, speaking Spanish as a second language, birth, mission, marriage, or peace corps experience. Imagine trusting your mainstream marketing efforts to a social worker because he once built schools in Belize? While he speaks the language he is not a marketer.
From their seemingly authoritative experience they recite erroneous facts and present misguided marketing strategies. These facts are based on obsolete data, and in some cases simple observations based on a sample of one.
Worse, these flawed strategies are duplicated and overlaid on other categories and products. Marketing principles are ignored in favor or “if it worked once, then it should work again” mindset. As Anne Bradstreet said, “Authority without wisdom is like a heavy axe without an edge; fitter to bruise than polish."
The aforementioned “experts” exist because there is a real need to market goods and services to the Hispanic Consumer Segment. A segment that demands proper marketing practices, just like any other segment in the marketplace.
My philosophy is that marketing is an absolute discipline. A marketing plan is developed properly or it is not a marketing plan.
The essential steps necessary to create a solid marketing plan are similar to the framework in a building. There is a strong base and supporting elements on which to build upon, without them the structure collapses. You wouldn’t build a house on a shaky foundation, so why trust any advertising plan built on anything but structurally sound marketing.
Good ideas are based on logical thinking and solid rationales – It’s common sense. Good marketing plans are built on a disciplined process; serendipity does not exist in good marketing plans.
I understand the rationale behind believing the "Hispanic Marketing" myth. Targeting consumer segments is different than targeting the general market. Segments have different consumer behavior, different media, and in some cases different or multiple languages. I understand it can be daunting, and in most cases a new and unfamiliar task to an already full card in the responsibilities of a brand manager or director of marketing. Accepting the expertise might be easier than challenging it. But the Hispanic Consumer Segment has become too important to ignore in many product and service categories. Especially in economic downturns, when every consumer (especially younger ones with larger families) becomes increasingly important.
All marketing plans to all consumer targets must possess the same elements. And while the category might deem a segment market emergent to the category, the steps necessary to plan and implement a marketing program will always be absolute. When elements are ignored, or bypassed, the chances for success will decrease. Inversely, a well-executed plan decreases the chances of failure.
Speaking the language, sampling the culture and cuisine or knowing the holidays is not enough. Advertising to consumer segments requires sound and disciplined marketing. That is an absolute necessity.
Copyright 2008, Carlos Arámbula. All rights reserved.
The Hispanic Segment is the he largest consumer segment in the U.S. I could list data describing the size of the market, households, and growth projections. But there are research companies and census date that list very accurate information. I’ll provide a link to the information from our agency’s website.
Of course, if the segment can’t be measured, If the efforts lack an evaluation metrics, you might as well be throwing your money away. Additionally, it will be rare when the entire consumer segment is entirely your target, so it is critical to understand the target group within your segment
Copyright 2008, Carlos Arámbula. All rights reserved.
Four years ago, as a guest columnist for TalentZoo.com, I wrote the column below. I'm disappointed to recognize that while Hispanic consumer market advertising has gotten better over the last four years, there are still agencies and clients turning out the “Hispanic Marketing” creative I criticize in the column. Please read on.
Grandmas and Mustaches
by Carlos Arámbula
Guest Columnist for TalentZoo.com
09/29/2004
"What's Hispanic about them?"
The first time I heard that phrase was eleven years ago, while working on Hispanic market efforts for an automobile account. The principal of the agency was referring to concepts developed by the creative team. They were on strategy, entertaining, relevant, compelling and apparently not Hispanic enough for his taste.
"Hispanic?"
The principal explained that the commercials did not have a single icon to merit it being "Hispanic." "Relevance," he elaborated, "is not enough to make it Hispanic, it needs an iconic representation such as family, art, music, grandmas." In other words, stereotypes.
With a bit more than a half decade on the business, albeit not necessarily targeting the Hispanic consumer, I was stubborn, or foolish, enough to argue the "Hispanic" qualifier with the principal.
My logic, at the time more academic than practical, stated that consumers were not defined by the product or brand. Instead, the attributes of relevance to our consumer dictated the communication. Adding a mustache to the dad, or a grandma to the family did not make the spot more relevant, or more Hispanic.
In the end, I persevered, and eleven years later I am still in the industry, while my old principal, thankfully, is not.
A couple years later, I worked internationally managing the Pan American Grey Advertising efforts for Mars' Pedigree dog food, and I can't think of a single instance where an agency global manager asked: "What's Brazilian (or any other country) about it?" I also never had requests to add gauchos or mariachis to make concepts relevant to the country. Instead, we always endeavored to find the relevant points of a well-established brand to cultures where the concept of prepared dog food was just starting to develop.
A global brand promoted across different cultures does not change, the consumer does. And in some cases, where the brand and category development are parallel, the consumer does not change very much.
We, as advertisers, have become efficient in managing global brands and consumers. However, we continue to experience stereotypes in domestic Hispanic creative that fail to deliver brand relevance. I still see communications presented as "Hispanic" simply because of added icons to the brand and images. This is not unique to ethnic segments; anyone living in California can tell you about the overabundance of surfing Santa’s at the end of the year.
While humorously exaggerated stereotypes can serve a purpose in setting a mood, holding a mirror to segment consumers and sticking a brand in it usually appears contrived and hardly engaging. For example, a fiesta in the midst of an antacid commercial does not make it a Hispanic spot—it is actually more relevant to non-Hispanics who might have experienced stomach problems while eating Mexican food.
I could list a dozen current creative pieces where I find the stereotyping insulting and wasteful, but I rather leave the creative critique to my right-brained colleagues. The reason it bothers me is a lot simpler; as a "suit" I like to see efficient creative work. I enjoy smart strategy—even when it comes from competing agencies, and smart strategy usually results in compelling creative. From my perspective, using broad stereotypes is a wasteful and lazy use of client's resources.
Admittedly, international markets are easier to define than domestic segment markets. Domestic segments—particularly those stereotyped, include various degrees of acculturation and assimilation, language preference, socio-economic situation, and several countries of origin.
But the difficulty of defining the segments, the challenge of finding the answer without having to rely on broad stereotypes, is part of the reason I got into this business. It's the reason I look forward to coming into work every day.
Copyright 2008, Carlos Arámbula. All rights reserved.
Link to original post
A month ago, I wrote about the myth of Hispanic Marketing. My position is that there is no “Hispanic Marketing,” there is only one discipline called marketing, and all consumer segments should be approached in the same deliberate and disciplined method.
On January 31, in retailwire.com, the following question was posted for discussion: Is the American public, marketers included, naïve and gullible when it comes to understanding the Latino consumer? If so, why? If not, why do there seem to be so many mistakes?”
In my opinion, the article preceding the question was as reveling as the contentious discussion that followed.
Free registration is required to view Retail Wire (I encourage you to join). I've posted a link for your perusal.
*A description of the discussion by an intelligent and learned individual
Copyright 2008, Carlos Arámbula. All rights reserved.
As mentioned on my prior post, a segment is defined as a significant consumer block that due to different purchasing behavior, media usage, and in some cases language, are not reached via the mainstream marketing communication efforts.
Not all segments share the same characteristics. Some segments can be the core target of a particular advertiser, others are simply a segment outside a larger core group, and still other segments are emerging and new to a category.
In any stage or format, the particular consumer segment is not being motivated by the mainstream marketing efforts to buy into the brand or services of the marketer.
You might think you don’t have any unattended consumer segments. Look again.
Is your sales data showing a significant gap in certain geographies? Have sales steadily declined in a particular distribution format or geography? Is there a regional competitor outselling your national brand? Is the ideal demographic target not responding to your messages?
The aforementioned challenges will not be solved by new distribution initiatives... Additional media expenditures and/or a new mainstream message will be as irrelevant as the old one...And it definitively doesn’t mean that consumers in certain retail formats, or geographies “don’t get it.”
Just look closer…or step back and conduct proper marketing practices. You might find that your product is not positioned in the relevant context to the consumer needs and wants.
Take food as an example; in the US West Coast, flavor profiles have been heavily influenced by the foreign immigration into the region. The schisms between the West Coast and the rest of the country in regards to flavors are huge. So it’s reasonable to expect lower sales of particular flavors in the Western regions unless the consumer segments are being addressed in a relevant manner.
McDonald’s recognized that within this Big Mac loving country, regional flavors played a significant role. So it split it’s operational and marketing teams into the regions. They got it right.
Opposite to the golden arches, Burger King insists on dictating to the rest of the country from the Southeast. The results? Well…there are happier franchisees in the East than on the West Coast (where the consumer segments are not being properly addressed with the national programs).
There are many other examples of consumer segments not being addressed and the opportunity to positively impact profit is lost. Automotive, Packaged Foods, and Financial Services, are the worst at leaving potential sales unattended.
On following posts, I will address the Hispanic Consumer Segment. The largest of all the consumer segments, the myths and their origins, and the realities.
Copyright 2008, Carlos Arámbula. All rights reserved.
I’m often asked about Hispanic marketing:
- What are the rules?
- How is it different?
- What’s the best book to learn from?
- Who are the Hispanic Marketing Experts?
- What is the best case study to imitate?
For the benefit of the reader, I will write periodically and elaborate on the answers. It will surprise some of you.
On my next blog entry I will cover the first rule of Hispanic Marketing by paraphrasing a line from the movie Fight Club: The first rule of Hispanic Marketing is there is no Hispanic Marketing.
Copyright 2007, Carlos Arámbula. All rights reserved.
One of the most memorable engineering management books I read in college is called “Breakthrough Thinking: The Seven Principles of Creative Problem Solving” by Dr. Gerald Nadler and Dr. Shozo Hibino. Actually, it's one of the best marketing management books I've read.
You may be a practitioner of one or more of the following principles. In fact, if you think back to the most successful work you have done, you will recognize you have incorporated all seven principles.
THE SEVEN PRINCIPLES
UNIQUENESS: All problems, issues or opportunities are different. Consumers and their needs are fluid. There are no controlled environments; you will always have changes. Throw away the old axioms or research the roots, you might find they where wrong all along. There are learnings, keep those and use them properly, but they are not patterns for your next strategic document.
HIERARCHY OF PURPOSE: Anything we do has a purpose within a hierarchy of purposes. Explore and expand purposes to understand what really needs to be accomplished. While it appears to be “common sense” the hierarchy of purpose is the first thing ignored when we are under pressure. Can you imagine building a house without a proper base because of deadline issues? Yet, I constantly see ad campaigns that where clearly started at the creative execution level that are completely devoid of strategy and tactical in nature.
Strategic advantage results when we clearly understand the context (from small to large) of our purpose as an advertising agency to the client’s business.
SOLUTION-AFTER-NEXT: What happens after our work achieves its objectives? Work backwards. Consider the solution you would recommend if in three years you had to start all over again. Recommend approaches today based on what might be the solution of the future. Ask yourself, once the campaign works, where should it have started? When was the tipping point? Was it a particular media option, programming, venue? Was it a convergence of several smaller successes? You will find several potential starting points -- that’s the beauty of it. Breakthrough Thinking should generate more than one big idea.
SYSTEMS: Everything is a system; product, price, distribution, media, competition, consumers, call centers, signage. Include all of them in your thinking. This is not just about the four P’s. It’s about the whole experience. Think about the first point of contact to the repeat purchase. Think of evolution, life of the product, and role of brand in the consumer’s life.
PEOPLE DESIGN: Involve all who will be affected by the strategy. Think of the Systems Principle, allow everyone affected by the strategy to participate in its development. Give everyone a stake in the development, implementation, and evolution of the strategy. This is also politically savvy.
COLLECT ONLY THE NEEDED INFORMATION: Study solutions, not problems. Collect only the information needed to continue the overall purpose. Keep in mind the Purpose Principle. Don't be a DRIP: Data Rich and Information Poor.
EVOLUTION: Install triggers for evolution of communications. Everything evolves.
Allow me to elaborate on why I feel the seven steps are important.
Studies have shown that around 8% of the people are intuitive “Breakthrough Thinkers.” Some of these folks have chosen marketing and advertising as their careers – only some of them. The rest tend to be administrators.
Following the Seven Principles can make intuitive thinkers and administrators work alongside. It organizes ideas and creates actions. There’s nothing wrong with administrators, we need them, they have a purpose on the system. Just keep in mind that leadership and management is always above administration.
Now go back and review your most successful marketing or advertising efforts. You will find that success included the seven principles.
And should you find one example lacking the seven principles, it was a fortunate stroke of serendipity.
I know some will be bothered by my practice of engineering principles in advertising. After all Bernbach said "Advertising isn't a science, it's persuasion. And persuasion is an art."
I agree with Bernbach. And he would be the first to tell you that art has a process -- as would many other artists.
Bernbach also said "Properly practiced, creativity can make one ad do the work of ten."
Copyright 2007, Carlos Arámbula. All rights reserved.
These experts claim knowledge of a "different" marketing practice entirely based on their time working or living with Hispanic consumers in a non-marketing function, speaking Spanish as a second language, birth, mission, marriage, or peace corps experience. Imagine trusting your mainstream marketing efforts to a social worker because he once built schools in Belize? While he speaks the language he is not a marketer.
