How to Market to People Not Like You

Not a Melting Pot, But a Salad Bowl…

OLD NEW

1 in 3 is not White

Source: 2010 U.S. Census

The Census Diversity Index Has Been Increasing Consistently

• The probability that two people chosen at random would be of a different race and ethnicity on a 0-100 scale. The scale ranges from 0 (no diversity) to 100.

Source: U.S.A Today, Minority births drive growth in U.S. diversity , 6/22/10

Tennessee’s Diversity Index

40In Tennessee, the probability that two people selected at random will be of different races or ethnicities is 40%.

Best Place to Get Your Local Data

• usatoday.com/news/census/index

• You can find the diversity index for every county and city, as well as:

• Population density• Racial & ethnic composition

Screen Shot from the Website

Diversity Index by Locale

4 States &The District of Columbia have Minority Majority Populations

• Minorities account for more than 50% of the population in California, Hawaii, New Mexico, Texas and DC

Source: New U.S. Census to Reveal Major Shift: No More Joe Consumer. AdAge, October 12, 2009.

States with Majority Minority Among Children

• In 10 states, the share of children who are minorities has already passed 50 percent, up from five states in 2000:

MississippiGeorgiaMarylandFloridaArizona

NevadaTexasCaliforniaNew MexicoHawaii

Not Just in Select Places…

• Across every major market in the U.S. the majority of the child population is nonwhite

Non-Hispanic Whites• Whites share of the total

U.S. population dropped over the last decade from 69% to 64%

• Whites are aging fast: median age is now 41 (up from 38.6 in the 2000 Census)

• Will be minority by 2041

Multiracial Americans

• Multiracial Americans now number 8.7 million

• 3% of the population

• 25% increase in last decade

The Browning of America

A Country within a Country

• 50.5 million Latinos in U.S.

• Mexico 108.7 MM• U.S. 50.5 MM• Colombia 44.4 MM• Spain 40.4 MM• Argentina 40.3 MM• Peru 28.7 MM• Venezuela 26.0 MM• Chile 16.3 MM

Source: Synovate 2010, CIA World Factbook, 2010 Census

50.5 Million Hispanics

Source: 2010 U.S. Census

One in six U.S. residents is Latino

Among Children, 1 in 4 is Hispanic

Every 30 seconds, a Latino turns 18 in America

Source: NPR, Latino Mayor May Be A Glimpse Of Things To Come, December 12, 2010

Latino Growth from 2000 - 2010

Diversity Comes in Many Forms• Gender

• Religion

• Political views

• Age/Generation– Matures (seniors)– Boomers– Gen X– Gen Y

• Gay/Lesbian

• Physical abilities

• Rural / Metro

• Military/Civilian

Diversity Comes in Many Forms• Racial

– White, Black, Asian, Native American

• Ethnic/Linguistic– Hispanic, Indian, etc.

• Nativity– Foreign-born or U.S. born

• Lifestage– New moms/dads, retirees, college students, empty-nesters

• Lifestyle/Affluence– Working poor, middle class, wealthy

• Core values– Environmentalists, vegetarians, home schoolers

Understanding Someone Different from You Means Understanding

Their Life

Their prioritiesTheir values

The experiences that define themTheir perspective

Try This Exercise!

• When asked to name how Kennedy died…

• Matures & Boomers– Gunshot in Dallas

• Gen X– Plane crash near Martha’s Vineyard

• Gen Y– “Kennedy who?”

Who is Ron Howard?

• Matures

• Boomers

• Gen X & Gen Y

Strategies for Marketing to People Not Like You

Strategy #1: Be Relevant

• Identify what people want, then give it to them

• Example: Target vs. K-Mart– Relevance: “Style on a budget”

• Benefit: value with dignity

Strategy #2: Build Your Infrastructure

• Diversity efforts require examination of infrastructure

• Angelika theatre in Dallas:

The Container Store in Manhattan

Strategy #3: Know Thy Target

• Bad example: Wireless company: – Cinco de Mayo themed ads in Miami

• Good example: San Francisco: Bank of America partnered with AT&T to tap into huge Asian population– Open a new checking account, get AT&T prepaid

calling card good for calls to Asia – AT&T customers received free checking at BofA

• Goal: 1,500 new accounts• Actual: 22,000 new accounts

Strategy #4: Recognize Different Needs

Not Just What, But How

• Public storage payment options

Strategy #5:Relieve Pain

Different Customers Care About Different Things

• Women want security & great personal service

Men Hate Ironing

• Omni Hotels learned that men hate ironing

• Their “Select Guest” program now offers free ironing of two garments

Women

• The truth can never hurt you

• No pressure – ever

• Value expansive choices, seeing all options

Men

• Want choices simplified

• The “magic number” is 3

#6: Pay Attention to Trends…

• Social is everything

New Products Meet Demand for Connectivity

Strategy #7: Be Fearless• It may feel weird & unconventional to you, but if

it’s what the customer wants, then it’s the right thing to do

Strategy #8: Helping Beats Selling

“We don’t need information.We need advice.”

Relevance + Tapping into Values = Feeling the Love

Bestselling Books!

©2014 McDonald Marketing7820 Enchanted Hills Blvd. Ste. A-199

Rio Rancho, NM 87144214-880-1717, Fax 214-880-7596 kelly@mcdonaldmarketing.com

All rights reserved. No part of this material may be reproduced

In any form without permission by the author.

For more information aboutconsumer trends, contact

Kelly McDonald at 214-880-1717 or kelly@mcdonaldmarketing.com