Myth Busters

It’s time for marketers to accept the fact that in many areas, the majority of consumers are no longer predominantly Anglo, and that to succeed, they must embrace diversity.

Is it possible, in this day and age, when one-third of the American population is Asian-American, African-American or Hispanic, that there are marketers and merchandisers still in search of the so-called general market? Keep in mind that over 100 million people make up the multicultural market. That ratio swells to as much as 70 percent in markets like Los Angeles or Miami. Perhaps marketers should search for a new kind of general market.

The single biggest obstacle for companies to achieve a fully integrated plan from conception through execution is a faulty belief that 90 percent of the budget should continue to target a market that’s decreasing in major metros, and has been for the past 30 years.

Gone are the days when Madison Avenue could hope to reach the general market via the three major networks and perhaps an independent station or two. Today’s paradigm demands that to be really efficient and inclusive, a media buy requires adding Spanish-language broadcast outlets in many of the U.S. top markets.

American tastes, media preferences and shopping behaviors are too varied and diverse to be confined within a single segment. Regardless of cultural backgrounds, there’s a growing preference for exploration of ethnic-based food, fashion and entertainment for many Americans. The multicultural market is equally diverse in its consumer tastes and behaviors.

Reality vs. Myth

On my recent 45-minute mystery shopping trip at a Whole Foods in a suburban area of Detroit, salsa music played over the PA system. I also noticed that of all the appealing prepared foods offered during the lunch hour, only one tray was empty: the one that had contained chile verde.

I don’t have any data to quantify how many Latinos live in the area. To the best of my knowledge, the neighborhood is primarily made up of African-Americans, Chaldeans (an Iraqi Christian population), Russians, Arabs, Indians and whites. It’s safe to say I was probably the only card-carrying Latino for miles. It wasn’t Hispanic Heritage Month or Cinco de Mayo or any other special salute to Hispanics or their food — it was just the way Whole Foods went to market on that day.

Around the same time, I also visited an area called Hamtramck just outside of downtown Detroit. It had been a Polish neighborhood up until the 1960s, and you can still see vestiges of that heritage. The fact that the local McDonald’s now serves food and beverages with halal (Islamic) certification, however, indicates how much the old neighborhood has changed. Stopping at the local soccer field and hearing nothing but Arabic being spoken, I thought I had been transported to another country, but I still felt right at home. Mainstream has a distinct meaning to Hamtramck residents.

Expand Your Quest

If your quest is to reach the broadest possible audience, then you should have no trouble getting there. But if you persist in defining the general market as the white mass market, then you’ll be going against market trends, and increasing the difficulty in building market share for your stores and brands. Your plan should be a thoughtful balance including the entire ethnic shopping base surrounding the retail footprint.

I continue to hear from clients that their budgets barely cover their general market needs. By letting go of conventional thinking and taking a step toward the ethnic customer, you may find the whole plan that has been eluding you. Invest impartially and you may discover budgets go further than you think. It may be unfamiliar, but find comfort in the fact that ethnic shoppers are consumer-friendly and high-spend shoppers. Growing ethnic markets may compensate for the void left by the general market myth.

Armando Martín is the co-founder of XL Edge and a managing partner of the XL Alliance, a network of companies dedicated to helping business executives elevate their culture and maximize their profits in the competitive retail environment. To find more information on multicultural perspectives and practical resources, visit www.xledge.com or www.myculturalintelligence.com .