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Ethnic marketing moving to fast track as population, buying power of minorities grows

3.6K views 37 replies 26 participants last post by  moman  
#1 ·
LILLIE GUYER | Automotive News


As automakers increase their marketing to African American, Hispanic and Asian American consumers, they also are making greater use of specialized ad agencies that have experience in reaching minority groups.

Racial and ethnic minorities make up a growing share of the nation's population and buying power. As a result, so-called one-stop shopping - expecting mainstream ad agencies to handle multicultural campaigns - no longer works, many auto and advertising executives agree.

Dave Rooney, the Chrysler group's media director, says the company's advertising spending in minority media has grown in the past two years. He would not disclose amounts.

GlobalHue, the nation's largest minority-owned advertising agency, handles the Chrysler group's multicultural marketing. The account is worth an estimated $140 million a year.

A seat at the table

To maintain consistency of brand and product messages in its advertising, Rooney says, Chrysler gives Global Hue, of Southfield, Mich., a seat at its strategic planning table along with its general ad agency, BBDO Detroit.

Allen Pugh, GlobalHue's executive vice president, says his agency seeks to "drive traffic" among minority buyers to the Chrysler, Jeep and Dodge brands by maintaining cultural sensitivity in the ads it produces.

"We take the brand essence and make it relevant" to minority consumers, Pugh says. "You can't just take what's done for the general market. You need to understand cultural relevance and needs."

He cites the example of a TV commercial from GlobalHue for the new Hemi V-8 Dodge Charger car. The commercial shows a sharp-looking African American man in business attire. It suggests the car transforms the driver into a superhero.

The commercial was used frequently during broadcasts of this year's NBA playoffs.

Multiple segments

In 2003, Toyota Motor Sales U.S.A. Inc. hired interTrend Communications Inc., of Long Beach, Calif., to create Asian American ad campaigns for Toyota.

"The automotive category is now the hottest category in the Asian arena," says interTrend Senior Vice President Robert Liu. Different groups of Asian Americans have different characteristics and needs, Liu says. Automakers and their marketers need to learn and address those needs, he adds.

"It's not just different languages," Liu says. "It's a unique lifestyle, culture and needs. It's building an emotional connection."

Asians are the second fastest-growing U.S. population group, trailing only Hispanics, the U.S. Census Bureau says. The Bureau estimates that last year there were about 41.3 million Hispanic Americans and 14.0 million Asian Americans in this country.

Research firm Competitrack, of Long Island City, N.Y., estimates that while automakers spend about $250 million a year to advertise in Hispanic media, they spend just $20 million to advertise in Asian-American media.
More: http://www.autoweek.com/news.cms?newsId=103266
 
#2 ·
Re: Ethnic marketing moving to fast track as population, buying power of minorities grows

Remember when America was a melting pot, and everyone knew they had to speak English as soon as they arrived (actually they really had no choice because the Govmnt didn't enable them and Bank ATMs, etc were only in English), and everyone basically went to school, then went to work, then became a productive citizen without whining?

Ahhh, the good old days.
 
#3 ·
Re: Ethnic marketing moving to fast track as population, buying power of minorities grows

steve333 said:
Remember when America was a melting pot, and everyone knew they had to speak English as soon as they arrived (actually they really had no choice because the Govmnt didn't enable them and Bank ATMs, etc were only in English), and everyone basically went to school, then went to work, then became a productive citizen without whining?

Ahhh, the good old days.

:beer:
 
#5 ·
Re: Ethnic marketing moving to fast track as population, buying power of minorities grows

GM advertises the GMC Denali line heavily to African-Americans. I guess they have a certain "bling" factor like the Escalade.
 
#6 ·
steve333 said:
Remember when America was a melting pot, and everyone knew they had to speak English as soon as they arrived (actually they really had no choice because the Govmnt didn't enable them and Bank ATMs, etc were only in English), and everyone basically went to school, then went to work, then became a productive citizen without whining?

Ahhh, the good old days.
:beer::beer:
 
#8 ·
Re: Ethnic marketing moving to fast track as population, buying power of minorities grows

steve333 said:
Remember when America was a melting pot, and everyone knew they had to speak English as soon as they arrived (actually they really had no choice because the Govmnt didn't enable them and Bank ATMs, etc were only in English), and everyone basically went to school, then went to work, then became a productive citizen without whining?

Ahhh, the good old days.
:beer::beer::beer:

Wow...big suprise Toyota going after Asian Americans :rolleyes:
 
#10 ·
Re: Ethnic marketing moving to fast track as population, buying power of minorities grows

GM_Fanatic said:
Then why post?

It seems to me GM doesn't really advertise to the Asian population here on the west coast. That would be a great market to tap too.
Definatly...and they should use brands like Caddilac or Saab for that...there was an article that a huge percentage of Asians in America buy Lexus or BMW..GM should step up their luxury brands for this audiance....maybe with the "New" Saturn?
 
#11 ·
Re: Ethnic marketing moving to fast track as population, buying power of minorities grows

Do different groups like being specifically targeted? Would you be more inclined to buy a vehicle that the manufacturer pushes as built for 'your people'? How does marketing for Hispance differ from marketing to whites or Asians or any other group? Are the actors of those races? Can't say I've ever come across ethnic-specific marketing, at least that I recognized.
 
#12 ·
paul8488 said:
Do different groups like being specifically targeted? Would you be more inclined to buy a vehicle that the manufacturer pushes as built for 'your people'? How does marketing for Hispance differ from marketing to whites or Asians or any other group? Are the actors of those races? Can't say I've ever come across ethnic-specific marketing, at least that I recognized.
I haven't come across any either, and I believe thats the point. Based on what I've read from GM about the hispanic marketing with Chevy, it is just a matter of sponsering Hispanic events (award shows...etc) and putting advertising on hispanic commercials and magazines. So yes I assume it is in spanish with hispanic personalities.

If I put myself in their prospective I would definetly not be offended, if anything I would appreciate the fact that a company is making the effort to understand my culture.

I suppose those words would have more meaning coming from someone that is actually in a specific ethnic group that has experienced it first hand.
 
#13 ·
Re: Ethnic marketing moving to fast track as population, buying power of minorities grows

steve333 said:
Remember when America was a melting pot, and everyone knew they had to speak English as soon as they arrived (actually they really had no choice because the Govmnt didn't enable them and Bank ATMs, etc were only in English), and everyone basically went to school, then went to work, then became a productive citizen without whining?

Ahhh, the good old days.
:beer: :beer: :beer: :beer: :beer:
 
#14 ·
GM_Fanatic said:
I haven't come across any either, and I believe thats the point. Based on what I've read from GM about the hispanic marketing with Chevy, it is just a matter of sponsering Hispanic events (award shows...etc) and putting advertising on hispanic commercials and magazines. So yes I assume it is in spanish with hispanic personalities.

If I put myself in their prospective I would definetly not be offended, if anything I would appreciate the fact that a company is making the effort to understand my culture.

I suppose those words would have more meaning coming from someone that is actually in a specific ethnic group that has experienced it first hand.
Well, now, personally I also prefer it when a company makes the effort to understand my culture, American culture. This country's been here for over 200 years, we have a culture.
And, am I also a member of a ethnic group? I'm Polish, plus I'm Jewish.
You know, I'm kinda offended that GM isn't catering to my special needs by not including polka music and a gefilte fish in their ads! (sarcasm added for special effect).

If a poor choice in Presidents doesn't kill this country, multi-culturism will.
 
#17 ·
Re: Ethnic marketing moving to fast track as population, buying power of minorities grows

steve333 said:
Remember when America was a melting pot, and everyone knew they had to speak English as soon as they arrived (actually they really had no choice because the Govmnt didn't enable them and Bank ATMs, etc were only in English), and everyone basically went to school, then went to work, then became a productive citizen without whining?

Ahhh, the good old days.

Yeah, and much of the problem is, if a political candidate / business takes the appropriate path and refuses to reach out to Spanish-language audiences, they lose votes / business to others that do. It's a vicious circle, and it'll continue to get out of control until the U.S. is a billion-person Hispanic China. Mark my words ... just give it 50 to 100 years.
 
#18 ·
steve333 said:
Remember when America was a melting pot, and everyone knew they had to speak English as soon as they arrived (actually they really had no choice because the Govmnt didn't enable them and Bank ATMs, etc were only in English), and everyone basically went to school, then went to work, then became a productive citizen without whining?

Ahhh, the good old days.

:beer: :beer: :beer: :beer: :beer:
 
#19 ·
Re: Ethnic marketing moving to fast track as population, buying power of minorities grows

desmo9 said:
Yeah, and much of the problem is, if a political candidate / business takes the appropriate path and refuses to reach out to Spanish-language audiences, they lose votes / business to others that do. It's a vicious circle, and it'll continue to get out of control until the U.S. is a billion-person Hispanic China. Mark my words ... just give it 50 to 100 years.
no it wont. once the hispanics move out of lawn care and into the comfortable lifestyles that the rest of the nation now has, the growth will cease and the population will level off. it all goes in cycles.
 
#20 ·
Re: Ethnic marketing moving to fast track as population, buying power of minorities grows

steve333 said:
Remember when America was a melting pot, and everyone knew they had to speak English as soon as they arrived (actually they really had no choice because the Govmnt didn't enable them and Bank ATMs, etc were only in English), and everyone basically went to school, then went to work, then became a productive citizen without whining?

Ahhh, the good old days.

:beer: :beer: :beer: :beer: :beer: :beer:
 
#21 ·
Re: Ethnic marketing moving to fast track as population, buying power of minorities grows

Going out on a limb and talking out of my @ss here... but it doesn't seem to me that Canada has quite the same separations in ethnicity that these marketers observe in the States. We have a hugely varied ethnic make-up, at least in the urban centres... but maybe because we have a comparatively small population, we simply don't have the huge groups that would necessitate unique marketing. Can any of you other Canadians comment? The people I know with different ethnic backgrounds than me (third-gen Canadian with British/French background) quite often have a strong tie to their ancestral background, but also seem to be very proud and comfortable to be recognized as Canadians also. Is that generally true, or have I just not seen the whole picture in Canada?
 
#22 ·
paul8488 said:
Do different groups like being specifically targeted? Would you be more inclined to buy a vehicle that the manufacturer pushes as built for 'your people'? How does marketing for Hispance differ from marketing to whites or Asians or any other group? Are the actors of those races? Can't say I've ever come across ethnic-specific marketing, at least that I recognized.
I think it's more subtle than that. Different cultures are programmed to think in different ways, have different values and priorities, etc... I would assume it's simply identifying what's 'important' to a particular group and trying to play that up.
 
#23 ·
Re: Ethnic marketing moving to fast track as population, buying power of minorities grows

tama z71 said:
no it wont. once the hispanics move out of lawn care and into the comfortable lifestyles that the rest of the nation now has, the growth will cease and the population will level off. it all goes in cycles.
The problem is illegal immigration and a legal immigration system that completely favors hispanics, Mexicans especially. Until the US closes its borders effectively, refuses to hand out another illegal alien amnesty, and reconfigures its legal immigration policy to favor needed skills over chain family migration, our immigration policy basically consists of transferring Mexico's population into the US. A rising poverty level and a shrinking middle class will make the US resemble a third world country very very soon.
http://www.fairus.org
 
#24 · (Edited)
You guys are missing the point of the original article. GM (as well as Ford and Chrysler) have a customer base that is heavily white. Fact is the white population in this country is declining. Detroit's automakers must sell more cars to Asians and Hispanics to survive, and right now they're having a hard time of it.
 
#25 · (Edited)
uujjj said:
You guys are missing the point of the original article. GM (as well as Ford and Chrysler) have a customer base that is heavily white. Fact is the white population in this country is declining. Detroit's automakers must sell more cars to Asians and Hispanics to survive, and right now they're having a hard time of it.
uujjj, thank you for steering the conversation back to the original topic.

Speaking for myself , being a Asian (Chinese) and immigrated to the US back in the mid 70'. In most cases, our body physical form is smaller than most Americans, that is why we prefer the smaller and medium size vehicles, so IMO, 2 things that I think that are wrong/not provided by the US's car makers, that is their cars are larger then the Asian makes, secondly, if you want to buy a American luxury cars, you have no choice but to go with the larger size cars, you guys see where I am going with this, GM needs to design small/medium size car/truck with the luxury in mind from the get go, and not slap on some luxury items on a Chevy or Buick and called them Cadillac, which what they did in the 80's, I know GM have changed their strategies as of late, the CTS for example, but they need something in the mid-lux in the medium size car, smaller size cars and sports car as well, some of the cars I know my family and friends love to own are the BMW 3 and 5 Series, the Audi A4 and A6, the Acura TL, the Mini Copper S, Porsche Boxster (immediate family members I can talk them out of buying the non GM brand).

If all the auto maker's ad agencies do is to add Asian music and actors/actress in the ads, like GM did to the ad during the Superbowl game (if I remember correctly) for the Hispanic market, then they will fail as far as the Asian consummers goes.
 
#26 ·
Re: Ethnic marketing moving to fast track as population, buying power of minorities grows

In Central florida I would say the majority of import car drivers are hispanic (Everyone drives American SUV's though) I see advertising in spanish from the Toyota and Honda dealerships but never any from GM ones. They could def push the cobalt here where the civic and corolla are a dime a dozen.