As the United of States becomes more heterogeneous,
minority’s population subcultures are growing in affluence and sophistication. Understand consumers’ subculture became a
marketing opportunity for companies to increase revenues by developing
successful marketing strategies that can integrate consumers’ moral values.
African
Americans for instance, comprise a significant subculture and account for 41.1
million, approximately 13.5% of the American population (BlackDemographics.com,
2010), while Hispanic represents 16.3% with 50.5 million Hispanics in U.S.,
followed by Asia with 14.7 millions (United
States Census Bureau, 2010). Additionally, the purchasing power of ethnic subcultures are growing substantially,
Hispanics Americans are expected to surpass $1.4 trillion in 2013, African
Americans surpass $1.2 trillion and Asian Americans $752 billion (Pride &
Ferrell , 2010). Although the marketing phenomenon of targeting subcultures is gaining
ground and is expected to escalate in the future, only the companies that
really understand the cultural differences will be able to explore this
opportunity and obtain success.
However,
housing lenders and real estate agents are going to face a lot of challenges
across ethnic subcultures. Where, cultural generalizations about whole
societies and how they view ethical issues may not be completely appropriate in
the future (Jenner et al. 2008). Among African Americans for example, marketers
have found differences relating to aspirations, in terms of brand and style
consciousness and even generational differences (Hawkins, et al, 2010). Especially among the Hispanic Americans the
generation differences heavily influence their buying decisions. This happened
because of the degree to which an immigrant has adapted to his new culture (Hawkins, et al, 2010). Asian groups
also represent a challenge because of the various nationalities, an effective
communication has to be more than simply translating an ad (Hawkins, et al, 2010). There are cultural symbols and meanings with
different relevance for each nationality segment, which can be very confusing
for a company to master.
Although
this article is focus on the three majors American subcultures it is important
to consider that there other subcultures that also have their own interest and
preferences, such as Native Americans, Asian-Indian Americans, Arab Americans
and other religious subcultures as such Christian and non-Christians. All those
subcultures reflect the diversity of not only United States but also the whole
market place where there is no distance and companies are more global than
ever. Understanding and distinguishing patterns of behavior in each subculture
is a challenge for the housing market but can provide an opportunity to develop
an unique programs (Hawkins, et al,
2010), to match the unique needs of each subculture.
Overall
marketing strategy
for targeting each of the following groups:
a)
African-Americans
Only
28% of African Americans who own a house are a married-couple family compared
to 49% in all races and more than 29% are female householder with no husband
present compared to 12% in all races (BlackDemographics.com, 2010). Considering
that 34% are families with no husband (BlackDemographics.com, 2010), this type
of family situation creates unique needs for areas with child care, practical,
easy to maintain houses and recreation. The product should have characteristics
of energy and time saving.
Although
the Black Population has increased in all US regions since 1990, the South has had
the most growth. Therefore the strategy should focus on the southern states of
America because more than half 55% (BlackDemographics.com, 2010), of the
African American population lives in the South. This is especially true in
urban areas, where more than 80% of African Americans reside
(BlackDemographics.com, 2010).
According
to table B most African Americans believe that the person buying home does have
to pay a real state professional. There is an opportunity for the marketing
strategy to make clear that to buy a house they don’t have to pay the real
state professional and therefore the price is fair. Also only 36% know that the
house lenders are not required by law to give the lowest rates on loans,
combine this with the fact that only 57% know that is not necessary to have a
perfect credit rating to qualify for a mortgage. This combination of facts results in a fact that more than half of all
African Americans rent house instead of buying at a figure of 53% (BlackDemographics.com,
2010). A promotion strategy should demystify those factors and make the process
look less complex. Giving the feeling of ownership could also influence
positively the attitudes towards the purchase of a home.
b)
English Hispanics
While
English Hispanics scored the highest percentage on every key reason to purchase
a home the most important reason is the feeling of ownership. Also, they seem
to
understand the process of purchasing a home better, than other groups. Therefore, the focus of the marketing
strategy should be the product itself. With more than 63% representing married house holders and 39% have young
child (U. S. Census, 2010 b) a house should accommodate children and therefore
schools and facilities close to the house would make a difference.
Because
most of English Hispanics think that rent is “bad” the price of the house can be
one of the biggest attractions for them to purchase a house if put in
comparison with the rental price. Also, those houses should be placed in one of
the 25 states in which Hispanics were the largest minority group or California
where 14 million of the population of the Hispanic-origin population lives (U.S.
Census, 2010 b). A promotion strategy should emphasize the ownership,
achievement of a dream and avoidance of discrimination while the benefits of
the home’s characteristic would satisfy their needs.
c)
Spanish Hispanics
According to table B this group
have the least home buying knowledge, consequently on table C their perceptions
is of a process which is too complex which they don’t understand very well. The
fact is that the language has created an issue and the fact that most of the
information is only available in English has created a gap between real state
and Spanish Hispanics. Little things like the manual for air-conditioner in
Spanish might make a difference whether members of this group to buy a house.
Even the position of the kitchen can be an issue, for example Hispanics don’t
like to have kitchen open to the family room (Hawkins,
et al, 2010).
With
the language issue, promotion must not only include the translation of ads and
documents. It must improve the home buying knowledge and give more confidence
in a home buying skills to encourage the purchase. Again, those houses should
be placed in one of the 25 states in which Hispanics were the largest minority
group or California where 14 million of the population of the Hispanic-origin
population lives (Census, 2010 b). To communicate to them, since Spanish
Hispanics are not so familiar with the internet use, it is possible to reach
them through Spanish languages TV or even newspapers.
Example of advertising campaigns for Fannie Mae:
a) African-Americans
The overall positioning strategy and core theme is
“feel as light as a clouds when you buy a house with Fannie Mae”. The idea as
it is on Figure 1, is to position in African American’s mind as a reason to own
a house because Fannie Mae’s process will give for them more confidence while
increasing their knowledge about the homing buying process. The visual elements
are a black woman dressed as a working professional while she also has kids to
take care of. She looks happy because she has the feeling of home ownership.
The bubble with another image with her in the clouds transmits the feeling of
freedom and simplicity that is inside her by owning a house. The key advertising
copy points explain the visual elements to their target market while directing
them to the company by saying that “this is what you feel like when you buy a
house with Fannie Mae”. The key media outlets for this ad should be in
magazines that specifically target African American culture, internet and in TV
shows that are related to or deal with African American themes.
FIGURE 1:
African American advertising Campaign
a) English
Hispanics
The
overall positioning strategy and core theme is “Fannie Mae can help you to
achieve your dreams”. The idea as it is on Figure 2 is to position Fannie Mae
in English Hispanic’s mind as a realization of a dream and therefore Fannie Mae
can make it happen for them. The visual elements are the English Hispanic
family arriving in a new house, very happy while the neighbor to the right
outside of the door just looks surprised. With this image it is expected to emphasize the ownership,
achievement of a dream and avoidance of discrimination while the benefits of
the home’s characteristic would satisfy their needs. The key advertising copy points states: “Achieve
your dreams” while directing them to the company by saying: “call to Fannie Mae
today”. Since this group are English dominant language, the key media outlets
for this ad should be in English magazines that specifically target Latino culture,
internet and in TV shows that are related to deal with Latino themes.
FIGURE 2: English
Hispanic advertising Campaign
c)
Spanish Hispanics
The
overall positioning strategy and core theme is “Problemas para comprar su casa?”.
The idea as it is on Figure 3 is to position Fannie Mae in Spanish Hispanic’s
mind as a company that has the tools necessary to help Spanish speakers to
understand the process to buy a house and finally make a purchase. The visual
elements are the Spanish Hispanic guy confused while trying to understand the
process of buying a house. This is contrasted by the other images on the bottom
showing Spanish staff talking with potential consumers, sale signs in Spanish
and even a personalized service by Fannie Mae. The key advertising copy point statements
are in Spanish and it lists the tools that make Fannie Mae able to facilitate
this process to the Spanish Hispanic communities. Since this group is not
English dominant language, the key media outlets for this ad should communicate to them through Spanish
languages TV and news papers.
FIGURE 3: Spanish
Hispanic advertising Campaign
Training materials
First of all, the type of training
materials should include an educative process that improves intercultural
learning via the development of cognitive, affective and behavioral
competencies needed for successful interactions in diverse subcultures. Using
the thesis from Littrell (2006) about Cross Cultural Training, it would be
necessary to provide for lenders and real-estate agents the knowledge, skills
and abilities necessary for cross-cultural adjustment and integration to
improve interaction performance and minimize failure in understanding.
After
lenders and real-estate agents understand or at least have an acceptance of the
subcultures, they should learn the reasons for purchasing a home by ethnicity
and then they can focus on that information to encourage each subculture according
to their preferences. However, the home buying knowledge is relatively low
among all the subcultures as a consequence the home buying confidence was very
low as well. Therefore, lenders and real-estate agents must increase their
knowledge about the process to be able to transmit this information clearly
among the subcultures. Things like the need for attorney or not, time of
commitment, rates on loan and mortgage issues should be discussed to enhance
their interactions with consumers from various ethnic backgrounds. Of course
the language is an issue for Spanish Hispanics therefore language training
should be essential for real estate agents who are focusing on this group.
The
type of training materials would include in-house lectures, cultural assimilation,
mentoring, field experience, interviews with members of subcultures and host
country in Spanish Countries. In-house lectures range from interactive methods
of case studies, critical incidents, cultural simulations and role playing to
guided discussions (Harris, Brewster and Sparrow 2003). Field experience exposes
trainees to the emotional stress of living and working with people from a
different subculture through orientation visits, probation and interviews with
members of the subculture. As being a hosted in other countries such as Mexico
for example, they will be able to get familiar with the conditions and environment
where those subcultures came from and hence be in the best position to impart
the necessary knowledge and skills to the real estate market (Osman-Gani 2000,
230).
REFERENCES
BlackDemographics.com.
(2010). African American population. Retrieved in July/2012 from http://www.blackdemographics.com/.
Jenner,
S., MacNab, B., Briley, D., Brislin, R., & Worthley, R. (2008). Cultural
change and marketing. Journal of
Global Marketing, 21(2), 161–172
Hawkins,
D. I., Mothersbaugh, D. L., & Best, R. J. (2010). Consumer behavior:
Building
marketing strategy (11th ed.). New
York: McGraw-Hill/ Irwin
Harris,
H., C. Brewster, and P. Sparrow (2003). International human resource
management.
London: The Chartered Institute of
Personnel and Development
Littrell,
L.N., E. Salas, K.P. Hess, M. Paley, and S. Riedel (2006). Expatriate
preparation: A
critical analysis of 25 years of
cross-cultural training research. Human Resource
Development Review 5, no. 3: 355–88.
Osman-Gani,
A.M. 2000. Developing expatriates for the Asia-Pacific region: A comparative
analysis of multinational enterprise
managers from five countries across three continents.
Human Resource Development Quarterly 11, no. 3: 213–36
United
States Census Bureau (2010). 2010 Census
Shows America's Diversity. Retrieved at July/2012
from: http://www.census.gov/newsroom/releases/archives/2010_census/cb11-cn125.html
United States Census Bureau (2010b). Hispanic Heritage
Month 2011: Sept. 15 -Oct. 15. Retrieved at July/2012 from: http://www.census.gov/newsroom/releases/archives/facts_for_features_special_edition s/cb11-ff18.html
William M. Pride & O. C. Ferrell (2010).
Foundations of Marketing. Cengage Learning, 01/01/2010.
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