DIVERSITY IN THE MARKETPLACE DIVERSITY IN THE MARKETPLACE The trend in every aspect of American life is toward greater cultural, ethnic, and linguistic diversity. Hispanics, Asians, African-Americans, and other culturally distinct segments can't all be successfully targeted with the same goods and services via the same marketing and advertising strategies that succeeded when the United States was (or thought it was) a monolithic, Anglo-dominated market. Businesses have learned that money is just as green when it is spent by people of color. As the following chart shows, minority groups have increased their buying power considerably over the last ten years.
Source: Selig Center for Economic Growth, University of Georgia, 200 Furthermore, according to the 2000 Census Report showing the changes in real median household income by race and Hispanic origin between 1999 and 2000, income increased for blacks by 5.5 percent, and was unchanged for other groups. As was true in 1999, moreover, the 2000 real median income was the highest ever reported for all racial and ethnic groups, and represents new highs for Blacks and Hispanics. In addition, the disparities between the median incomes of men and women have declined over the last three years. COMPARISON OF MALE AND FEMALE MEDIAN INCOME OF PEOPLE
BY SELECTED CHARACTERISTICS: 2000, 1999, 1998
In 1980, barely one-in-two blacks over age 25 held a high
school diploma. Based on the A number of mainstream cosmetic companies have recognized the advantages of marketing to ethnic and minority customers. Developing cosmetics for ethnic and minority women is an especially good idea given that the median age for Caucasians is almost thirty-three, while the median age for blacks and Hispanics is far younger. Younger customers, moreover, are more likely to try new products. U.S. companies that learn about the tastes and preferences of the ethnic markets within this country are also finding an extra benefit; they can use their new knowledge to enter overseas markets in the Pacific Rim and in Latin America, where there is great pent-up consumer demand for U.S. goods. TARGETING MINORITY SEGMENTS There are many ways to target immigrant markets. Most banks, for example, have programmed their ATM machines to allow the use of both English and Spanish; in other areas, such as in Brighton Beach, Brooklyn, Russian is another alternative. Another example is New York Downtown Hospital, near Manhattan's Chinatown. It appeals to Chinese patients with by serving traditional foods such as sticky rice, and bean curd with black bean sauce. However, sometimes all that may be needed to capture a new ethnic segment of the market is a change in the manner of advertising, promoting, or selling or a focus on customer service. All that may be needed to capture a new market is to make a segment aware that the product exists. Blacks, Asians, and Hispanics are not the only growing market segments. The large gay and lesbian population, the disabled, and the growing number of traditionally observant Jews and Muslims also seek products and services tailored and targeted to them. Issues in Multicultural Marketing | Home |