Relating,Relating,Not Translating:

How to Market to U.S. Hispanics

First Things First: Latino or Hispanic?

• Both are acceptable and most people use them interchangeablyg y

• There are a few differences:There are a few differences:– Latino is more current terminology, more in fashion– Latino is more inclusive

• Includes Brazilians, who are Latin American, but not Hispanic

I L ti b t ill Hi i h iti• I use Latino, but will use Hispanic when citing research that uses that term

Latinos/Hispanics Can Be of Any Race

• Ethnicity, not raceD fi iti f Hi i ll li th• Definition of Hispanic generally relies on three factors:– Self-identification

• People who identify themselves as Hispanic or Latino

C f bi h– Country of birth• Born/Ancestry in one of 22 Spanish-speaking countries

Li i ti– Linguistic• Spanish was 1st language learned, is primary language or

language of ancestrylanguage of ancestry

50.5 Million HispanicsOne in six U.S. residents is Latino

Source: 2010 U.S. Census

Among ChildrenAmong Children, 1 in 4 is1 in 4 is HispanicHispanic

Every 30 seconds, a LatinoEvery 30 seconds, a Latino turns 18 in America

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

A Country within a Country

• 50.5 million Latinos in U.S.

• Mexico 108.7 MM• U S 50 5 MM• U.S. 50.5 MM• Colombia 44.4 MM• Spain 40 4 MMSpain 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, US Census 2010

More Latinos than Canadians in Canada!

A Population Trend that Can’t Be Ignored…

2010 2020

16% 20%

14%

Hispanic

A-A

20%

14%

4%66%Asian

White

14%

5%61%

Source: Synovate 2010

Top 15 Latino Markets

Market Latino Pop. % Latino

1 L A l 8 106 800 441 Los Angeles 8,106,800 442 New York 4,588,100 213 Houston 2,063,900 324 Miami 2 033 600 454 Miami 2,033,600 455 Chicago 1,985,100 196 Dallas-Ft. Worth 1,846,900 267 San Francisco 1,570,400 228 Phoenix 1,455,200 279 San Antonio 1,318,000 5410 McAllen-Brownsville 1,161,400 8811 S t 1 060 800 2411 Sacramento 1,060,800 2412 Fresno 1,006,300 5113 San Diego 970,100 3114 Denver 812 800 2014 Denver 812,800 2015 El Paso 777,900 78

Source: Synovate 2010

Latino Growth Extends North & East

Hispanics Driving Growth

• More than half of the growth in the total U Sgrowth in the total U.S. population between 2000 and 2010 was due to theand 2010 was due to the increase in the Hispanic populationpopulation– A 43% Increase from 2000

• Most growth came from births rather than immigration

Fountain of Youth?• Latino population is the youngest of all ethnic

groups

• Mean age by ethnicity:– Latino 27.9– African American 32.0– Asian 32.6– White 41.0

• Their prime income-earning years are ahead of themare ahead of them

Source: U.S. Census

Growing in Size, Growing in Affluence

• Latinos now have the greatest purchasing power of any minoritypower of any minority

• Average Latino HHI:

$52 725$52,725

Source: Claritas

Foreign-Born Hispanic Adults are Majority

39% Foreign-Born

61%U.S. Born

Source: Synovate

Reaching Latinos EffectivelyReaching Latinos Effectively

Language Use and Preferences

Language most Language g gcomfortable speaking spoken at home

22% Spanish

English

24%

56%53%16%

English

Both

56%20%

Source: Synovate

Internet Usage is Majority English

Yet Most Feel Spanish Online Content is Importantp

• 67% percent of all online Hispanics (regardless of language preference) feel it's important to have Spanish content online

½ f f• More than ½ of bilingual online Hispanics feel the same way, and also more than half “wish more websites were in Spanish”

82%

70%

90% SpanishDominant

59%

70%

51%60%

70%

80% Bilingual

40%

50%

10%

20%

30%

0%

"It is important to have Spanish content online" "I wish more websites were in Spanish"

Source: America Online/Roper Public Affairs 2010 Hispanic Cyberstudy (AOL/Roper)

Acculturation, Not Assimilation

• Assimilation:– Forfeiting one’s culture and adopting another

• Acculturation:Acculturation:– The acquisition of a second culture while

retaining one’s first cultureretaining one s first culture

Latino Acculturation Stratification™UNACCULTURATED ACCULTURATED

CULTURAL LOYALIST™

CROSSCULTURER™

CULTURALINTEGRATOR™

CULTURALEMBRACER™LOYALIST INTEGRATOR

• Foreign Born• Foreign Born • U.S. Born • U.S. Born

• U.S. is home now

• Spanish

preferred

• Recent arrival

• Spanish

dependent

• First generation

• Bilingual &

Bicultural

• 2nd, 3rd Generation

• English Preferred

• Latino Proudp

• Aspirational

p

• Traditional values • Professional

• In touch with roots

• Retro-acculturation

• Influential

U.S. Hispanics Acculturation

8%Partially

23%Unacculturated

69%AcculturatedAcculturated

Source: Synovate

Hispanics Online & Social Media

“Mobile Phones Are Our Computers”

Hispanics Use Internet AND the Phone

"Online bookings on the Latino section of th H lid I b it d bl d b tthe Holiday Inn website doubled between 2006 and 2007," Goff notes.

Yet Goff also says the Latino who goes online to visit the hotels' website still callsonline to visit the hotels website still calls the chain's toll-free number to find out where the hotel is located and what'swhere the hotel is located and what s nearby.

Peggy Goff, al Punto Advertising

Hispanics Text More Than Their General Market Counterparts

69%69%

53%Hispanic

T t lTotal

T t M UText Message Use

Source: Hipcricket, Hispanic Mobile Marketing Solution, 2010

Mobile Marketing Impacts Hispanics

52

40

50

Non-Hisp

3230

40 Non HispHisp

13

22

2013

10Most Likely to Recall Most Likely to Respond

Sources: 1. eMarketer, Feb. 2, 2009. Nielsen’s “Mobile Advertising Report” as quoted in Mediapost.com, Connecting Via Mobile: Speak Their ‘Idioma‘, January 15, 2010.

Hispanics Are Higher Users of Facebook Than Other Ethnicities

30% English Preferring Hispanics

Percentage Of Respondents Who Visit Facebook

30% g g p

Spanish Preferring Hispanics

Asians

African Americans18%

13%

18%

12%

20% Non- Hispanic Whites

7%10%

0%Facebook

Source: “The Multicultural World of Social Media Marketing”, Mediapost.com, Feb 19, 2009

English-Preferring Hispanics Top List for Frequency of Usageq y g

36%

Percentage Of Respondents Who Visit Social Networking At Least 2 Or 3 Times A Month

26%27%

34%36%

30%

40%

26%

18%20%

10%

0%English

PreferringHispanics

Asians SpanishPreferringHispanics

AfricanAmerican

Non-HispanicWhites

Source: “The Multicultural World of Social Media Marketing”, Mediapost.com, Feb 19, 2009

English-Preferring Younger Hispanics Are Particularly Heavy UsersAre Particularly Heavy Users

Percentage Of Respondents 35 And Younger Who Visit Social Networking Sites More Than 2 Or 3 Times A Month

57%58%58%

33%33%

EnglishPreferringHispanics

Asians SpanishPrefferingHispanics

African American Non-HispanicWhites

Source: “The Multicultural World of Social Media Marketing”, Mediapost.com, Feb 19, 2009

Hispanics and the Travel & Recreation Industryy

Hispanic Travel Growing Fastest

20

Travel Volume Growth 2000 – 2003 (%)

10

42

Hispanic Asian A-A TotalHispanic Asian A A Total

Source: TIA Minority Travelers Report Jan. 2004

“Every sector of our industry – hotels, theme parks cit isitor b rea stheme parks, city visitor bureaus –has begun to reach out to the

i it t l th h t t dminority traveler through targeted advertising, minority travel guides and special ethnic promotions, and we’re seeing the results.”g

- William Norman President and CEO TIA- William Norman, President and CEO, TIA

Key Activities of Hispanic Travelers

10%

13%34%

Shopping

Outdoor Recreation34%

Visit Theme Parks

13%

14% 16%

Visit Historical Places

Go to Beach14%Other

Source: TIA Minority Report, Jan. 2004

Hispanics Spend on Entertainment

• Hispanics spend 6% more on souvenirsd 5% thand 5% more on games than non-

Hispanics

Cultural Insights

• Hispanic culture values leisure, life balance

• 74% of Hispanics state that leisure time is usually yspent with other Hispanics

• “Family friendly” is key to Hispanic entertainment

• Children are indulged, but not spoiled

Source: Racial & Ethnic Diversity 2009

Key Strategies for Cultivating Latino Customersfor Cultivating Latino Customers

with Little or No Budget

Strategy #1: Bilingual Staffing is Key

• Always start with representation

• Immediate benefits:– Puts Spanish-dominant and Spanish-Puts Spanish dominant and Spanish

preferred customers at ease

Word of mouth resonates within Spanish– Word-of-mouth resonates within Spanish-speaking community

– Allows you to market and merchandise sincerely

Strategy #2: Reflect Hispanic Faces

• In your marketing pieces, include images f Hi i lof Hispanic people

– We all want to see images that reflect ourselves

Strategy #3: Reflect Hispanic Values

• Do not overlook the growing Hispanic business marketmarket

Hi i ft b i d l i• Hispanics often merge business and leisure travel, bringing family/groups along to meetings and conferencesand conferences

• Acknowledge this and encourage this:e.g. “Turn your conference into family fun! Bring the kids,

abuelita and explore Las Vegas!”

Strategy #4: Target Hispanic Associations & Conferences

• Market yourself to Hispanic conventions, conferences and associationsconferences and associations

• There are many and more forming all the timeThere are many and more forming all the time

• For every association in the General market, y ,there’s a “sister” organization for Hispanic professionals

E g NAHREP National Asso of Hispanic Real Estate– E.g NAHREP National Asso of Hispanic Real Estate Professionals

– Hispanic Meetings & Travel

Your Website Doesn’t Have to Be in Spanish

But…. consider integration.Don’t market in Spanish and then p

link to a English only site

Major Insurance Companies Inviting Latinos to Connect with Them

• Spanish sites ask clients to connect• However when you go to social media sites, they are in English

Let Them Know It’s Not Ready… Yet!

• It is alright to let consumers gknow that not all your services are in Spanish

- Hispanics appreciate the truthHispanics appreciate the truth and effort

• Nationwide has an excellent, personalized way of lettingpersonalized way of letting consumers know that some of their products are not available in Spanish yet

“We are sorry! The page that you want to see is not available in Spanish. in Spanish yetot a a ab e Spa sWe are working toward making this available real soon.

Would you still like to ti i E li h?”continue in English?”

Strategy #6: Be “Latino Ready”

• Build the infrastructure to support Spanish-ki tspeaking customers

– Employees who speak Spanish• Voicemail in Spanish• Business cards in Spanish

– Signage in Spanish– Spanish instructions on telephone systems– Products right for Hispanic needs, tastes– Marketing materials in SpanishMarketing materials in Spanish

Strategy #7: “Be Latino Friendly”

• Inform staff of what you’re doing and why• Impress upon them their important role • Train them on do’s and don’tsTrain them on do s and don ts

“T lki l d d t k bili l”“Talking louder does not make me bilingual”

Hispanics Are More Likely To Do Business Where…

70%

63%70%

64%69% 68%

51%49% 51%

Good, high quality products

are available

Is a store/place you trust

Makes you feel welcome

Is pleasant to be in

Source: Synovate 2008

General Market

Hispanic

Strategy #8: Adapt to Differences

• Recognize that there are differences and adapt your business accordinglyyour business accordingly

• Longer drives more acceptable to Hispanics• Longer drives more acceptable to Hispanics• Often reluctant to leave voicemail

P l i i t t th d• Personal service more important than speed• Cookies not as sweet, more subtle flavors

– Westin Hotel in San Antonio serves Mexican cookies during their afternoon tea service

Strategy #9: Don’t Overlook Quinciañeras

“My daughter may get married more thanmarried more than once. But she’ll only turn 15 once ”turn 15 once.

Implications for You• Spanish-speaking consumers will become more

selective and use only those businesses/services that are more sensitive to their linguistic and culturalthat are more sensitive to their linguistic and cultural roots

• Those brands that learn how to effectively connect with this consumer will have the significant competitive edge

Th th f th Hi i k t i t f d• The growth of the Hispanic market is not a fad.

This large lucrative and loyal consumer can be your• This large, lucrative and loyal consumer can be your customer, today and mañana

My book can help!

On the Inc. Bestseller List for 6 Months!

Reviewed & Recommended by Forbes, Fast Company, The Street and BusinessWeek!p y,

N d f th “T 5 B t B i B k f 2011”Named one of the “Top 5 Best Business Books of 2011”

For more information aboutth L ti k ti d t d t tthe Latino consumer, marketing and trends, contact

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

www mcdonaldmarketing com

©2011 McDonald Marketing

www.mcdonaldmarketing.com

©2011 McDonald Marketing2909 Cole Avenue Suite 115

Dallas, TX 75204214-880-1717, Fax 214-880-7596kelly@mcdonaldmarketing.com

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