HispanicTrending

Way back when I had just started this blog, one of the articles that caught my eye and I still have a link to it in the left-hand sidebar, under “Hispanic Advertising & Marketing” was “Hispanic Advertising Trends – 2004”, by San Antonio, TX based advertising agency García360°. Soon after sending them a message about it, I was contacted by Erika Prosper, the agency’s Director of Account Planning and Research.

Erika is a graduate of the University of Texas at Austin, holds a BA in Plan II Liberal Arts, and a BS in Advertising.  She obtained her Masters from the Annenberg School of Communications at the University of Pennsylvania.

Erika has a full plate on her hands. Besides working closely with the creative communications team crafting branding strategies and messaging for all agency campaigns, she oversees and manages all primary and secondary outside consumer research efforts, including focus groups, surveys, personal/telephone interviews, and on-line work. 

With ten years of work and educational experience in advertising and marketing operations, Erika has a strong expertise in the Hispanic and youth markets.  She has worked with various clients including, the Puerto Rico Federal Affairs Administration, Fannie Mae, Dial Corp., Transamerica, Anheuser-Busch, Audi of America, Home Depot, Providian Financial, Infinity Insurance, Minute Maid, the Centers for Disease Control and Prevention and the San Antonio Public Library.

After making her acquaintance we’ve corresponded a couple times, but I’ve got to know her much better through her discerning, straightforward, and “picante” articles, most of which I’ve shared with you through this website. I just had to feature her as a “Wonder Mujer OnHispanics”, which she truly is. She graciously accepted my invitation.

As with all her past articles, she’s clever and insightful…

Hispanic Trending: What trends are you observing on the Hispanic market growth?

Erika Prosper: I am seeing three main sources of Latino consumer growth in this country. The first and most obvious one is the continued influx of Latin American immigrants into the United States. Secondly, as reported recently in Marketing y Medios, we are also witnessing a new Latino baby boom, especially as second and third generation Hispanics increase their education and household income and can more readily afford to produce and care for more offspring. Finally, I also see a resurgence of cultural pride adding more Hispanics to our count, as people of “mixed” or Latin descent self identify themselves more openly about their ethnicity ala Rachel Welch. The invisible Latinos finally come out of the closet and are counted, so to speak.

How do you refer to the largest minority in the country, Latino or Hispanic? Why?

I tend to interchange Latino and Hispanic when speaking of the population, mostly because I have read and have done studies for clients where this is a tough question to get a straight answer on. However, I have seen that more people are using Latino in the press lately, and suspect that this will soon become the moniker of choice among the Hispanic population. One client I have once wrote “Hispanic/Latino” in all documentation so as to not offend people’s preferences. I though that was a nice sensitivity, and I suspect many other companies probably fret about this too. 

What language should be utilized when marketing to Latinos…Spanish, English, or Spanglish? Why?

I love this question. Let me go on the record and say that I do not think there is such a thing as a true bilingual Latino. Yes, there are people who can speak and write and read both languages, but everyone has a preference as to what language they want to use in their home. You either prefer to speak English or you prefer Spanish.  This does not mean you do not use both, as I did growing up, speaking Spanish to my mother and English to my sisters, but at the end of the day, I preferred English-just like some of my friends preferred Spanish. 

Instead of using English dominant, bilingual or Spanish dominant, I suggest to all marketers and media to begin using Spanish dominant, Bilingual Spanish preferred, Bilingual English preferred and Spanish Dominant. 

As far as Spanglish in concerned, I think it’s right for some brands but not for others. I have had consumers tell me that for financial services, they are looking for professionals that can speak and write in good Spanish because they rely on them to translate services and if they use Spanglish, the consumer gets nervous, thinking that maybe this person is misrepresenting or misunderstanding the contract.

How would you identify the acculturation stages newly-arrived Hispanics go through? How can this knowledge be used to better market to Latinos?

Acculturation is another one of those words I have come to hate. The truth is, I do not think Latinos acculturate in the traditional sense anymore, where as the years go by they become so Americanized that they bury their culture and can be rolled into the general market. 

My theory is that Hispanics today are on a cultural continuum and their level of “acculturation” depends on context.  In other words, they can choose when to be more Latino (like at a tio’s birthday party) or more “Acculturated” (like at a business meeting). The beauty of Hispanics is that we can be whoever, whenever we want and that’s not acculturation.

What diversity, if any, do you notice among Hispanics? What would be the main differences among the Hispanic sub-cultures? How do you segment the Latino market?

I segment based on country of origin. While I know that there are many similarities that as marketers we try to impose on the Latino population, experience has taught me that a Peruvian is  Peruvian first and a Latino second, and the same goes for Mexicans, Puerto Ricans, Cubans, etc. But that does not mean that they will not listen to a message meant to appeal to the one universal Marketing thread that binds them together: consumerism. If there is market need, then you should consider that need first in your message and then use country of origin as a means to help you determine the channels you will use.

Which source of information would you recommend to someone interested in learning more about the Latino Market?

I say there are five main sources everyone should read to get familiar with Hispanics. First, the U.S. Census Hispanic briefs which are available online at www.census.gov. Second Latino Cultural Citizenship by Flores and Benmayor. Great book about Hispanic identity. Third, the American Communities Project website, which is chockfull of already analyzed census data by MSA [Metro Survey Area]. Fourth, the controversial book, The Education of Richard Rodriguez, by Richard Rodriguez, which gives you a different perspective on the Latino lifestyle. Finally, I recommend people re-screen El Norte to understand the immigrant mentality a bit better. It was a great film the first time around, but now that I study consumers, I find great insights in the movie I never noticed before.

Hispanics family values vs. Non-Hispanic whites family values… How would you say they differ?

I do not think family values differ that much between Non-Hispanic and Hispanics families. Respect, appreciation, politeness-all these are part of the family structure regardless of ethnicity. But I do think that Latino families tend to be more expressive of their feelings toward one another in public and value that show of expression. I remember one boyfriend of mine freaked out when my aunt went to kiss him on the cheek the first time she met him.  That much physical contact was strange to him. I also think that Latinos tend to get the whole family involved in matters even if they are not the ones affected by the decision or outcome, where as there is a more “See no evil, hear no evil, speak no evil” mentality in some non-Hispanic households-or maybe that was just my family! 

What should non-Latino businesses do to effectively cater to Hispanics? In what industries would you say Hispanics are being underserved… do you have an idea/opinion why is that and what could be done (or needs to be done) about it?

I think Latinos are underserved in homeownership, medical insurance, mental health services and small business support. I know exactly what needs to be done to help these industries better target and serve Hispanics, but since that’s what I get paid to do, I will leave you hanging!

Should businesses have a multicultural /bilingual staff?

Yes. Somewhere out there, someone just lost a sale because they put a customer on hold to find someone who could speak to that customer in Spanish. A man just walked out of a store because he could not read any signs pointing him in the direction of the product he was looking for and no one stopped to help him. A woman just turned down a retailer’s credit card because she could not truly understand how the offer was beneficial to her and the man behind the counter could not either. Companies loose money everyday due to this simple yet overlooked gaffe.

Which are the most usual misconceptions, bad assumptions and mistakes that you have encountered made by non-Hispanics about Latinos?

The misconceptions usually lie in one of two places: creative and budget. Companies that are not used to marketing to Latinos tend to want creative that is more “Latin,” meaning colorful, spicier, using stereotypical icons. Usually, they get to understand why we suggest otherwise when needed. The other misconception is that Hispanics have no money to buy high end products. My sister has been waiting for her Spanish language Pottery Barn catalog for a while.

How do different Hispanic groups (according to their country of origin) interact with each other?

There are tensions at times from populations outside of Mexico. Can you blame them? Most creative is targeted at Mexican consumers, leaving the South Americans and Caribbean Latino populations feeling a bit resentful. But for the most part, I think there is a camaraderie that forms among Latinos from different populations working together, at least in the ad industry. I think it’s because they help one another understand a fuller picture of what it means to be a Hispanic in the U.S. 

What is your perception regarding Hispanics and their use of general market/English media?
Not only do they watch it, they are willing to pay to watch it.  Look at cable numbers for Latinos. They are rising fast as are satellite subscribers. Again, Latinos are not isolated. 

Chris Day is Group Director of Public Relations and Promotions (Cartel Impacto) for San Antonio’s The Cartel Group. His group is currently working on the national Hispanic PR and Promotions plan for the U.S. Army, portions of the multicultural plan across all ethnic segments for Church’s Chicken, a portion of the Hispanic grassroots outreach efforts for Western Union and  concept development for some projects that they are hoping to launch with Rent-A-Center.

Chris received his degree from Colorado State University in Ft. Collins, Colorado. Before joining Cartel he had fairly varied background that covers everything from Newspaper and Magazine publishing, Event Marketing, and PR Services to musical performance.  It was while he was working in PR a couple years ago that we had the chance to meet, and have kept in touch since then. Last year, I had the opportunity to attend, as Chris’ guest, the Hispanic Media 100 Awards, which he singlehandedly launched.

I am really glad that Chris agreed to share the experience he’s had regarding the Hispanic Market with us… Enjoy.

Hispanic Trending: How does someone named “Chris Day” lead the PR team for one of the nation’s leading Hispanic advertising agencies? Tell us a funny story related to this.

Chris Day: Well, growing up in New Mexico gave me some pretty extensive exposure to certain parts of Hispanic culture very early in my life.  I went to La Cueva High School. I lived off of Paseo del Norte in Northeast Albuquerque and my school mascot’s name was “Oso.” I met my wife, who is from San Luis Potosi, Mexico during a year hiatus from College which led, obviously, to an even deeper attachment to and understanding of Hispanic culture, values, families, politics, and differences.  Finally, when I was helping to run a Public Relation’s services firm in Denver, I had the opportunity to launch the Hispanic Media Awards which looks at the top Spanish language and bilingual journalists in the country.  That project really threw me entirely into studying all of the different Hispanic groups from Seattle to Iowa to Maine and of course markets like Miami, New York, Chicago, Dallas, and Los Angeles as well.  At the time, it did not take a particularly wise individual or even a recent census to show that the Hispanic market was a great place to be from a business perspective and I happen to like it tremendously on a personal level as well.   In many ways I’ve been a student of different cultures my whole life and have been led down a path that has given me the right kind of experiences to help guide a team at Cartel Impacto in this very unique in this industry.

What are some unique issues you face marketing to Hispanics and ethnic groups generally?

Marketing to any ethnic segment is a challenge because you must understand the cultural nuances that exist among each group’s subsegments and understand that they are truly important to those individuals that make up the marketplace. I’ve found that many agencies and individuals understand the raw numbers that create the marketplace but they do not understand the psychology of the culture. It is critical to realize that there are multiple dimensions of a culture and each culture is made up of individuals that themselves have numerous dimensions. Thus, you end up with marketing plans and efforts that must evolve and change just as individuals do. Otherwise, you are always one step
behind.


What trends are you observing on the Hispanic market growth?

The simplest answer to this is the ongoing growth rate of the market segment and the increasing importance of consideration among small and large businesses alike for the Hispanic consumer in planning marketing strategy and implementing programs. I think the more interesting question is to try looking out 20, 30, or 50 years from now and asking how will the trends and growth within the Hispanic market today effect business a decade from now and beyond. The entire makeup of this nation’s culture is shifting and it is incredibly interesting to be a part of it. Hispanic is not defined by a specific country of origin or a specific language and depending where you are in the country the definition of what describes a Hispanic in lifestyle terms tends to shift.


How do you refer to the largest minority in the country, Latino or Hispanic? Why?

I refer to the group as Hispanic. The reason why is very simple. When I launched the Hispanic Media 100 Awards several years ago, I called journalists and business contacts across the country and got feedback as to the most commonly accepted term and the least politically sensitive term. Hispanic is where it landed. I am aware of the nuances and differences in the terms, but think that Hispanic is the generally accepted reference. If you talk to companies about the “Latino” market, they aren’t always quite sure what it means depending on where you are. The term “Hispanic” tends to be clearer.

What language should be utilized when marketing to Latinos…Spanish, English, or Spanglish? Why?

Well, that’s not a fair question unless I get to ask you at least a dozen questions to clarify things… But to attempt an answer to your question, I would say that it depends on the product, the sub-segment of Hispanics you want to reach, the age, where you are trying to reach them (i.e. OOH, TV, Radio, promotions, PR, etc.), are they first generation immigrants or someone who’s family has been here for two hundred years, where in the country are you looking at, etc., etc.? All of these things will start to tell you how you want to speak to a group. As is the case in any sales process, you want to identify the key lifestyle segment issues that are important and then appeal to it. Whether it’s English, Spanish or a combination of the two can’t be identified without at least some study.

What diversity, if any, do you notice among Hispanics? What would be the main differences among the Hispanic sub-cultures? How do you segment the Latino market?

There is tremendous cultural diversity among Hispanics. The Hispanic market is made up of individuals from so many countries, economic backgrounds, and experiences that just as you cannot blanket the “General Market”, you also run a huge risk if you treat the Hispanic market as an autonomous unit. However, that does not mean you have to take precious marketing dollars and split them in so many ways that you end up being completely ineffective with everyone. I tend to prefer segmentation on lifestyle terms. When you do that, you look at what is similar among the target individuals and cater to that. In a situational analysis using lifestyle segmentation models, you have to be aware of the differences among segments, but you focus on the similarities instead. My experience is that you can achieve a broader customer base and better results with lifestyle segmentation models.

Which source of information would you recommend to someone interested in learning more about the Latino Market?

First, I’d suggest they take some trips. Visit Miami, San Antonio, Los Angeles, Kansas City, New York, Chicago, Denver, San Juan P.R. and Portland. Don’t go to the tourist sites but immerse yourself in the differences that you’ll see everywhere. If you can’t get the time or resources for those trips, do it virtually and study culture, music, business(big and small), family histories, artwork, language, the history of business in countries of origin. Then read the papers. Read the magazines, look for the websites, the Blogs, go to the conferences and become a sponge for information.

Hispanics family values vs. Non-Hispanic whites family values… How would you say they differ?

While I don’t really like speaking in stereotypes, there are some significant differences in la familia and the family. The Hispanic family tends to be much more centralized. Hispanics tend to stay closer to their roots and provide a much broader and deeper foundation of support than today’s average Non-Hispanic family unit. While not always the case, the Latina tends to be more family focused and willing to fulfill the traditional role of mother and the central support of the family. However, there is an evolution or change in the multigenerational Hispanic female role in the family as the Hispanic segment acculturates and the Latina takes on both the family and professional role. It is very clear that as you move from studies of the new arrival Hispanics to the second, third, or fourth generation, the differences in the family values diminish.

Who is doing a great job marketing to Hispanics? Why?

I’ve been impressed by a lot of what Ford has done, MGM Mirage has started some really good things on the Diversity outreach side of things, and Bank of America has done some really good TV, Radio, and POS.

Who is doing a terrible job marketing to Hispanics Why?

No names here, but there are a lot of huge entities out there who have completely ignored the Hispanic market. They have been doing business the same way for a long time and they have ignored the changing face of the nation or mistakenly believe that it doesn’t affect them. Some of them resort to tokenism in their spending against the Hispanic space which is even worse than ignoring them because it shows a complete lack of intelligence and zero business sense. If you believe that there isn’t a place for your business in the Hispanic market, I’d challenge anyone to write me a well thought out reason for it. Give me a day, and I’ll show you how the reason isn’t accurate.

What should non-Latino businesses do to effectively cater to Hispanics? In what industries would you say Hispanics are being underserved… do you have an idea/opinion why is that and what could be done (or needs to be done) about it?

The first step is to pay attention to them as you would any customer group. Identify what the needs are and deliver a solution. That’s Business 101 regardless of who you’re talking to. I think that the financial services industry and the travel industry are missing out in a huge way. A handful of businesses in these industries are doing good work, but most are way behind.

Should businesses have a multicultural /bilingual staff?

If you don’t have a multicultural staff, you aren’t in complete touch with your customer. I don’t care what kind of business you are in. These days, it is also extremely important to have bilingual staff. It doesn’t matter if you are in Iowa or East Los Angeles, there are going to be individuals that are your customers who prefer or have to speak Spanish.

Which are the most usual misconceptions, bad assumptions and mistakes that you have encountered made by non-Hispanics about Latinos?

The biggest mistake is to stereotype all Hispanics as a recent arrival, Spanish language preferred, low income individual. It is far from accurate.

Should companies offer options to their customers to access their Website/Literature/ Answering Services… in Spanish? Why?

Probably. But, as I mentioned before, identifying the appropriate language type, style, or mix can’t be completely determined unless we look at the product or service, the goals, and then decide.

What is your perception regarding Hispanics and their use of general market/English media?
A huge number of them, read it, watch it, listen to it, etc. There is a place for Spanish language media as well, but regardless of whether it’s good or bad, much of what is on the English media frequently drives huge segments of the Hispanic population. The emerging bilingual media(especially Television) is interesting to watch as well as it further illustrates the changing dynamic in the marketplace.