CAB multicultural marketing resource center

Business Rationales for the creation of specialized initiatives to reach Hispanic, African American and Asian American consumers.

The reasons for targeting the various ethnic groups in the U. S. are no different than those for marketing to any other segment in a given target audience.

The major difference between the ethnic groups and the general market is not so much age, income, occupation or sex, but on a much larger scale, culture. Due to differing cultural backgrouns one consumer may not even hear or even see an advertised message if it isn't relevant or placed within an environment conducive to his cultural behavior i. e. language or media preference.

For marketers planning for growth, recognition of ethnic and cultural segments is essential. If you are looking to move your profit needle in a positive direction, consider the following:

MINORITY POPULATIONS OF THE US AND THE PERCENTAGE OF THE TOTAL POPULATION

2000

Source: Strategy Research Corporation
U.S. Bureau of the Census
2020

Source: Strategy Research Corporation
U.S. Bureau of the Census

The total minority population is projected to grow 10.9% in just 19 years!

2000 POPULATION GENERATIONS X & Ñ

Using the demographic category of Adults 18-34 to represent the young adult market segment often referred to as Generation X, we find that among U. S. Hispanics, that market segment (Generation N) contains a significant portion of the total U. S. Hispanic population. More than one third (34%) of US Hispanics qualify as Generation N, while only 25.7% African Americans, 26.7% Asian American and 22% of Non-Hispanic Whites are part of Generation X.

Source: U.S. Bureau of the Census
Current Population Reports, P25-1130
Strategy Research Corporation

MINORITY BUYING POWER

In 2001, minority buying power (African American, Native American, and Asian) will exceed its 1990 level by 95.6 percent, and will total $860.6 billion, or $420.7 billion more than in 1990. African Americans will account for two out of every three dollars of minority spending, or $572.1 billion. Even though percentage gains in minority buying power will vary considerably by race-from a gain of 124.8 percent for Asians to 85.9 percent for blacks to 81 percent for Native Americans-all of these target markets will grow much faster than the white market, where buying power will increase by only 67.4 percent. Due to relatively fast-paced growth, minority buying power will account for 12.2 percent of the nation's total buying power in 2001, up from 10.6 percent in 1990. This 1.6 percent gain in market share amounts to an additional $113 billion in minority buying power. The market share claimed by a targeted group of consumers is important because the higher their market share, the lower the average cost of reaching a potential buyer in the group. It is more difficult to target consumers in diffuse markets, although selective media or zip code mailings can lower the cost per individual.

For detailed buying power by ethnic group, click the appropriate button on the top of this section.

US POPULATION STATISTICS BY RACE, 1990 AND 2001

Ethnic groups vs. general market in key categories.

* Population estimates for 1990 obtained from the U.S. Bureau of the Census (Internet release date September 15, 1999).
Source: Selig Center for Economic Growth, Terry College of Business, The University of Georgia, August 2000