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Five Simple Rules for Launching a Multicultural Strategy

As the general market shrinks, multicultural markets have become more important for a company's success. Throughout many industries, organizations are beginning to integrate multicultural marketing into their business plans and are experiencing significant revenue growth. Companies have discovered these virtually untapped markets and are now (finally) going after $1.3 trillion in spending power-the estimated combined spending power for the black, Hispanic and Asian-American markets, according to the Strategic Research Institute. These groups make up a total of 88.2 million people, about 30 percent of the U.S.population.

The multicultural marketplace has achieved so much buying power for many reasons, but one of the most important is education.The U.S. Census Reports that in 2003, 47 percent of Asian-Americans earned bachelor's degrees and 17 percent of African-Americans had at least a bachelor's degree. Among the Hispanic population, 12 percent had bachelor's degrees, up from 6.7 percent in 1979.These statistics quickly dispel the stereotypes that all minorities are poor and uneducated, and put a new emphasis on the importance of targeting marketing and communications directly to these influential groups.

How are companies tapping into this market? How are they developing their marketing, public relations and advertising strategies to reach these nontraditional audiences?

First and foremost, they recognize that one size does not fit all. Some companies adapt products by creating ethnic- specific brands, while others focus solely on niche positioning.These markets can be tapped in a variety of ways, but most multicultural marketing practitioners employ a few universal rules.


Rule No. 1: Integration is key

Fifteen years ago, the process for reaching multicultural markets was often limited to one-dimensional efforts such as the literal translations of general market campaigns.

Today, organizations are developing new products designed specifically to meet the needs of this new America. Companies are creating separate multicultural departments, allocating marketing budget by segment, and, most important, setting measurable goals for each segment.This trend toward integration is rendering impressive returns.

Companies with a corporation-wide, integrated multicultural approach are able to acquire and retain more customers than their competitors. Many times organizations, especially service-based organizations, will have to tailor their infrastructure to meet the needs of a market, especially for Asian and Hispanic segments which have significant language needs. Be prepared for this by gaining the support of management early in the process. High-level approval is needed to foster integrated interest and investment across departments.

Integration between public relations and advertising is also a critical factor to consider.The traditional divide between editorial and advertising is sometimes blurred in ethnic media.You can either ignore this controversial reality or embrace it.


Rule No. 2: Do your research

Demographic research, psychographic studies and a dash of sociological awareness are needed to adequately prepare for the planning phase. Research can be costly, but it is critical for sustainable success. Carefully study your segment and its relationship with your product or service prior to developing a strategy. Understanding the cultural nuances of a market before you start is important.

Studying ethnic media is also important in the research phase. Ethnic media are among the few growth sectors in American journalism.The United States has more than 700 Spanish-language newspapers and more than 600 Asian- language media. Do your research. Build your lists and identify the appropriate media contacts. A common request we hear from journalists is,"Your clients should know what I cover, what my respective reporting deadlines are, and should review my work prior to reaching out to me." Develop foreign-language media relations campaigns for reaching the ethnic press. Don't assume the ethnic media work just as the general market media do, which is a topic for another article.


Rule No. 3: Cultural connectivity

Cultural connectivity is the ability to reach a consumer through their cultural context. A few influential cultural connectors to consider are values, community, religion, lifestyles, ethnicity, race, sexual orientation, class, country of origin, degree of acculturation (which impacts every aspect of the marketing mix) and language.Winning over a community or retaining your current customers is a game of ongoing connectivity.The goal is to connect in an intimate way with both communities and individuals simultaneously through effective cultural context.


Rule No. 4: Perception is reality

How communities see a company will influence how individuals will see it. A consumer's perception of a product is reality.This basic marketing concept is critically important in the multicultural landscape. Fortune 500 marketers and their agencies are working to battle or create a perception every day. For this reason, many successful organizations launch cause-related PR strategies, placing the community and its needs at the center of their communications.The best way to conduct these efforts with credibility is to partner with national or local ethnic organizations. For example, many top Hispanic marketers partner with the National Council of La Raza (the largest national Hispanic, nonprofit, membership- based organization in the country).These organizations can help you develop an effective program.

After creating a program, identify a spokesperson (preferably one who is bilingual for the Hispanic and Asian markets) who can champion and be a voice for the initiative. Ethnic media love covering cause-related campaigns.


Rule No. 5: Partner with the experts

Over the past decade, specialized multicultural services (consulting, public relations, advertising and research) have seen significant growth for all multicultural segments. When planning a campaign, identify the appropriate resources and consider hiring an agency.

These five basic rules, along with setting measurable goals, will guarantee success. Be patient with the process, build ongoing relationships with the communities and the media and remember that multicultural marketing in the PR profession is still young. As such, there is great opportunity and flexibility for creativity.

Source: (C) 2004 Public Relations Tactics. via ProQuest Information and Learning Company; All Rights Reserved, Hispanic Business Online