According to Sam Fahmy[1] in a News Release dated November 10, 2010 which appeared on News at the Terry College of Business, a website sponsored by the University of Georgia, the Hispanic consumer market has reached one-trillion dollars (that’s with 12 zeroes). Better yet, look at it this way:
Hispanic-American Consumer Market = $1,000,000,000,000
He goes on to say that it will reach 1.5 trillion dollars in 2015. No wonder almost every vendor is looking for ways to tap into this fast growing market. If you have not targeted this market segment yet, do something about it now.
Marketing in Spanish is Key
According to the U.S. Census Bureau, 12.1% of the American population, or thirty-five million people, speak Spanish at home [2]. Of these, 53.1% speak English very well. This means that even though they are bilingual, Spanish is their preferred language. Another 46.9% of this group, or sixteen-million-five-hundred-thousand people, do not speak English very well. Your personal feelings about whether or not people living in the United States should speak English notwithstanding, Spanish is the language of choice when marketing to this group.
Some studies show that Hispanics who are one-hundred percent bilingual are more likely to purchase from a company that does marketing in Spanish than from one that only does marketing in English. The reasons are not clear. It could be because they have exposure to the marketing in both languages and that serves as reinforcement. It could also be they feel that companies that market in Spanish are more likely to cater to their needs than ones that ignore the language altogether. Marketing includes advertising, branding, sales literature, your web site, and public relations.
Translations don’t always work. While the theme of your campaign can remain constant, it is best to develop the message and branding in the target language. Developing a message in English and translating it into Spanish may change the message. People often ask me, “How do you say that in Spanish?” Well, sometimes the answer is, “You don’t say that in Spanish.”
There is a story that Chevy II Nova was a disaster in Mexico and Latin America. “No va,” in Spanish means, “Doesn’t go.” Hispanics were not about to buy a car branded as "doesn't go." Although the story is probably not true, the point it makes is nonetheless important. You need to be careful about using branding designed for one language in a different language.
When targeting the Hispanic consumer, consider the regional differences in the language. The Spanish from Mexico and the Spanish from Argentina are not always the same. If you are targeting a specific sub-set of the Hispanic consumer market, use the Spanish most familiar to them. Don’t sell “habichuelas” (beans) to Mexicans or Central Americans and “frijoles” (beans) to Puerto Ricans. Puerto Ricans buy “habichuelas” and Mexicans and Central Americans buy “frijoles.” If you are targeting the general Hispanic population, use the most generic Spanish possible that will be meaningful to the widest audience possible.
Spanish Marketing Is Not Enough
Your products and services also must satisfy the demand for Spanish language preferences. This means that assembly and operating instructions must be available in Spanish. There is no use in selling someone a product that he can’t use because he does not understand the instructions. He won’t buy the product again. Do not translate. Have a fluent Spanish-speaker write the instructions in Spanish. We have all bought a product manufactured in another country and discovered when we opened the package that we did not understand the assembly instructions. In many cases, they were in English; translated from another language.
In addition, your sales staff and customer service staff must be equipped to service the Spanish speaking customer. With the sales staff, there is more tolerance. When a customer sees a salesperson truly trying to communicate in Spanish, he or she will be more accommodating or forgiving even if the Spanish is atrocious. This may be because the customer believes the salesperson is making an extra effort. This may not be so with the customer service staff. A frustrated customer is not as quick to give kudos for effort.
Don’t Ignore Cultural Differences
There are 20 Hispanic-Latino countries in the Western Hemisphere including one, Brazil, whose primary language is Portuguese. Each country has a different culture, a different history, and a different outlook. Although principles and values tend to be cross-cultural, priorities, preferences, and demographics may not be. For example:
- Educational levels differ[3]. While all Hispanic cultures place a great importance on education, some countries provide a better educational system than others do. Also, groups who have been in the United States longer are typically better educated.
- or that affects the economic condition is family size. As a whole, Latino families are larger than non-Latino families. However, some groups have larger families [4] than others. Although I have not found a study on the subject, I would guess that family size correlates directly with the level of assimilation.
- young community[5]. Just over 60% of all Hispanics in the United States are under the age of 45 and 75% are under the age of 55. Here again, there are differences. For example, the median age for people born in the Caribbean is 45.5 years old as compared to 36.6 years old for people born in Central America.
There Are Many Similarities Among Hispanic Groups
There are, of course, many similarities upon which to capitalize. These include:
- neration has significant influence upon the younger generations. Parents and grandparents continue to influence their children, even after the children have their own families and live apart. Sons and daughters speak with their parents and grandparents on an almost daily basis.
- he youthfulness of the community as a whole, Hispanic consumers are more likely to consist of families with children living at home. Many will have very young children. Address the needs of busy career-minded couples with children.
Marketing to The Hispanic Community Seems Overwhelming
It sounds like a lot of work to target the Hispanic consumer; but it is worth it. Hispanics tend to be loyal; another cross-cultural characteristic. If you can sell them when they are young, they will stay with you longer. To prevent mistakes, when marketing the Hispanic community, be sure to use a resource, such as a marketing or advertising agency or a consultant, that understands the Hispanic community and the nuances within it. Develop programs to specifically target your products, services, and marketing to this ever-increasing market.
The Hispanic market is large and growing at a tremendous pace. It is possible, that in another 50 years, Hispanics will no longer be a minority in this country. Do the math. With a higher birth rate and lower death rate than non-Hispanics, every generation doubles the population. The goal of every business is to tap into an expanding market. Here is one that is exploding. All you need to do is find a way to tap into it. The benefits will be very long-lasting.
[1] Fahmy, Sam, “Despite recession, Hispanic and Asian buying power expected to surge in U.S., according to annual UGA Selig Center Multicultural Economy study.” News at Terry College. Release date November 10, 2010. http://www.terry.uga.edu/news/releases/2010/minority-buying-power-report.html
[2] S1601. Language Spoken at Home. U.S. Census Bureau, accessed February 1, 2011., http://factfinder.census.gov/servlet/STTable?_bm=y&-geo_id=01000US&-qr_name=ACS_2009_5YR_G00_S1601&-ds_name=ACS_2009_5YR_G00
[3] S0506. Selected Characteristics of the Foreign-Born Population by Region of Birth: Latin America. U.S. Census Bureau, accessed February 1, 2011. http://factfinder.census.gov/servlet/STTable?_bm=y&-geo_id=01000US&-qr_name=ACS_2009_5YR_G00_S0506&-ds_name=ACS_2009_5YR_G00_&-_lang=en&-redoLog=false&-CONTEXT=st
[4] S0506. Selected Characteristics of the Foreign-Born Population by Region of Birth: Latin America. U.S. Census Bureau, accessed February 1, 2011. http://factfinder.census.gov/servlet/STTable?_bm=y&-geo_id=01000US&-qr_name=ACS_2009_5YR_G00_S0506&-ds_name=ACS_2009_5YR_G00_&-_lang=en&-redoLog=false&-CONTEXT=st
[5] S0506. Selected Characteristics of the Foreign-Born Population by Region of Birth: Latin America. U.S. Census Bureau, accessed February 1, 2011. http://factfinder.census.gov/servlet/STTable?_bm=y&-geo_id=01000US&-qr_name=ACS_2009_5YR_G00_S0506&-ds_name=ACS_2009_5YR_G00_&-_lang=en&-redoLog=false&-CONTEXT=st
Carlos Flores - Management Consultant/Business Analyst/Writer
