Ethnic Marketing Makes Good Business Sense
by Michael Hamilton
Many companies are spending lots of money to market to 80 million Baby Boomers. But the nearly untapped U.S. multicultural population is even bigger at nearly 100 million. Companies that embrace diversity will benefit. America is changing and business leaders understand that taking advantage of multicultural America is a promising way to grow.

How do you capitalize on a diverse market opportunity? Diversity should be about good business and not just about completing a required compliance exercise.

There are many options when it comes to selecting which diverse markets to pursue. It will depend largely on the population that’s growing around you.

Start your diversity initiatives by focusing on one market. It’s very important to find out if someone on your team is willing and able to support you in growing the diverse markets. We often assume that anyone who looks “ethnically diverse” has the knowledge and interest in growing multicultural markets. But, you may find a white male employee who is more committed to diversity than are some employees from other ethnic groups. Find people based on their knowledge and commitment.

Identify A Target Market Leader

Once you identify your market, look for someone who has access. To tap into ethnic markets, you need people who are involved in professional ethnic organizations or community organizations. Some examples include women’s professional groups, Hispanic Chambers of Commerce, the National Urban League, and Asian professional associations.

Has there been a consistent change in the ethnic make up of your community? Have new ethnic stores opened in your neighborhood? Who owns your favorite restaurant? Who is your doctor? Who runs your local dry cleaner? They may be your new customers.

Your best external partners can be community leaders and organizations from your target market. In most ethnic markets, numerous organizations are heavily involved in civic and community services. Well-known community leaders can give you access to the market. In return for sponsoring some local events, you will get an excellent exposure in a new and less-competitive market for a very low cost.

Ask these community leaders to help you identify someone you may consider hiring. Ideally, you should hire a second line manager from your target ethnic market. The key is to have a person who is passionate about ethnic marketing and willing and able to benefit you through their involvement in the community. Once you have the right person, meet with them to develop marketing and communication plans that will bring incremental growth to your agency.

We should make an effort to have our sales force look like our potential customers. But, the worst thing you can do is to hire people just to look the part. It is about hiring the right people with the right plan. We must recruit diversity for the same reason we pursue diverse markets for our products. Recruiting has become tougher than ever. I truly believe that the diverse markets offer a valuable talent pool and will play a critical role in developing the future work force in all industries including ours.

Develop Measurable Diversity Goals And Monitor Them

Diversity is not a feel good initiative. It must be measurable just like any other business objective. You must have measurable goals and monitor them regularly. In fact, monitoring your goals periodically will motivate you and encourage your team to get involved in these growing markets.

Make A Long-Term Commitment

You should implement diversity as strong-ly as you implement anything else that is critical to your business. You don’t have to speak Spanish to capitalize on the growing Latino market, just as you don’t have to be a Baby Boomer to target that market. Going after the diversity market is not a six-month plan; it requires a long-term commitment and investment. Your initial effort will probably require two to three years to see some growth from diverse markets. You should monitor activities from the first year of your involvement. Carriers are looking for partners in the field since they cannot achieve their diversity goals without a successful retail marketplace strategy, which can only come from you.
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Mike Hamilton is president of Nationwide Financial Network, the affiliated retail distribution business of Nationwide Financial Services, Inc. (NYSE: NFS), an Ohio based company. He can be reached at hamilm12@nationwide.com.

 

The Booming South Asian-American Market

Consider these statistics from the U.S. Census Bureau, which give a snapshot of one growing ethnic market:
• The South Asian-American population, which is under 3 million, includes people primarily from Bangladesh, India, and Pakistan. South Asians make up about 1% of the total U.S. population. This ethnic group has among the highest rates of population growth.
• Asian Indians, in particular, are among the highest educated. They also have among the highest annual household incomes – even higher than the general population. One percent of the Asian Indian population represents nearly 8% of physicians in the U.S. Also, 1% of Asian Indians own more than 40% of the budget hotels and motels in America.
The vast majority of South Asians in the United States haven’t purchased life insurance because it isn’t commonly used in their native countries. Many South Asians don’t buy a product; they buy a solution. A father doesn’t think in terms of wanting his family to have life insurance; he wants his children to have a college education. That’s probably why he came here in the first place.

In India, people’s children are their retirement plan. When they get old, their children take care of them. But after Indian children have been in the U.S. for many years, you can’t expect them to do that. Parents who look forward to that are in dreamland.