Emerging Minority Groups That Deserve More Attention (Part 2)

In my previous blog, I wrote about how diversity should be encouraged in real estate, banks and mortgage companies since African Americans and Hispanics make up 13.8% and 17% of the population, respectively. I also wrote about the benefits of hiring a diverse workforce and the importance of supporting minority communities. In this blog I will address how companies can start changing their business strategies to accommodate these emerging markets.  The solution is not new it just not happening at the rate it should be given the staggering business opportunities in these emerging markets.

The "changing demographics" is simply business language that there is a new target market to pursue – African Americans and Hispanics. There is plenty of potential for marketers to tap into Hispanic and Black groups by developing relevant strategies, tactics and messaging. But what can real estate, banks and mortgage companies do to capture their attention? This blog cannot address all the strategies, tactics and messaging but I can address messaging.    

One clear way to approach any target market is by communicating your understanding of the needs and interests of their respective cultures. Right now, there are several sub-groups that marketers need to pay close attention to because they understand those needs in the most intimate way.  One of the most powerful and educated sub-group are  women. This has long been the case in the African American community but I am learning it is the same in the Latin community as well. Married women in the African American community are leaders, bread winners who bring home the bacon and fry it up in the pan. They are entrepreneurial, more educated and have a lower unemployment rate than there males counterpart. Single African American women with children are in poverty but nevertheless understand the needs of their household.

Married Latinas are not much different in the US and are more likely to be the primary decision makers across most product categories. This means that women are the key to reaching minority families. These powerful women value education and careers to be able to provide a better future for their families. So what messaging will get their attention - Family! There is nothing greater or more important than family to women. In addition, there is nothing that speaks to the security that women want and demand in their family than a home that they own. Homeownership is the path to financial security and stability for all minorities.

Another emerging subgroup within the demographic are the Hispanic and African American millennial. These key influencers are most often the heads of the households and are most likely to call the shots. Millenials are primary native-born embracing Millenial values of balance and risk aversion while still holding on to their culture and identity. But for this group, the message will be just as important as the way the message is delivered. No group has been so quick to take advantage of new technologies and communication tools. This means that the best way to reach this market is to make use of social media. The good news is that the message is the same because the values are the same. The delivery of the message is not.

Corporate America is aware of the changing demographics and understands that they must come up with more creative and appropriate marketing and advertising strategies. When many figure it out it may be too late especially for smaller firms.The irony in all of this is that it will not be minorities that will help with crafting their message and creating marketing and advertising strategies because they are simply not there to do so.  There are very few Hispanic and/or African American at the senior level in Corporate America to be heard. Another Irony is that the strategy or game plan to get started with addressing the needs of this community is to hire African American, and Hispanics mortgage professionals, real estate agents, Sales manager, advertising executives,  marketing specialist and more. This is the easy part but is not happening anecdotally from my perspective and statistically.

Companies that focus on diversity will grow organically and will have the competitive advantage in the emerging markets that will dominate the financial and economic landscape. Showing interest in other cultures and being willing to serve them will open potential  doors that where, closed, unknown and untapped. We are no longer all the same from a marketing perspective and we were never the same. This approached was based on long standing racial biases, ignorance of culture, complete ignorance of the growth in the minority community right before their very eyes. The reality is that most companies are playing catch up.

Minorities have not been valued as profitable customers until the sheer size of their market potential hit the news 2 years ago and open the eyes of business community. Sadly many great and small businesses and their leaders have their eyes closed and the evidence is the lack of diversity in their company or on their management team. There is not a one size fits all marketing strategy. Each market is different and you have to go get the business  on their terms and in their language and within the culture. Or you can stand on the sidelines and watch someone else do it.  Welcome to free enterprise and competition.

Emerging markets deserve more attention be we are not all the same. The best way to spend your marketing dollars is by audience segmentation. The ethnic make-up of the U.S. is changing at a fast rate. Hispanics and African Americans have serious purchasing power. Go get it. Diversity is good business.

References:

http://blog.porternovelli.com/2013/09/24/six-myths-about-the-hispanic-market/

http://blog.porternovelli.com/2014/02/21/three-african-american-groups-to-watch-powerful-women-millennials-and-the-emerging-south/