Building a Business Case for the Ethnic Markets:
“Servicing a Broadening Customer Base”
What’s happening in the
demographic U.S.
U.S. Population: 295,292,828
• Hispanic Population:
– 42,850,201 (14.51%)
• African-American Population:
– 38,123,935 (12.91%)
• Asian-American Population:
– 13,249,051 (4.5%)
Source: U.S. Bureau of the Census, August 2005
U.S. Population by Race
2005
Population by Race
2010
Population by Race
Percentage Change
Population by Race
Total
295,292,828
Total
307,825,552
Total
13%
White
Black
236,619,412
38,123,935
White
Black
244,109,693
40,244,239
White
Black
12%
13%
Asian
13,249,051
Asian
14,176,663
Asian
15%
Hispanic
42,850,201
Hispanic
50,031,411
Hispanic
20%
Households by Race
2005
Households by Race
2010
Households by Race
Percentage Change
Households by Race
Total
112,077,900
Total
118,166,443
Total
5.43%
White
Black
Asian
92,775,274
13,369,000
3,801,935
White
Black
Asian
96,961,939
14,426,694
4,276,861
Black
Asian
White
4.51%
7.91%
12.49%
Hispanic
11,130,453
Hispanic
12,966,296
Hispanic
14.16%
Median Income by Race
2005
Median Income by Race
2010
Median Income by Race
Percentage Change
Median Income by Race
US
48,300
US
54,447
US
12.73%
White
50,982
White
57,432
White
12.65%
Black
35,988
Black
40,874
Asian
60,852
Asian
69,459
Black
Asian
13.58%
14.14%
Hispanic
44,110
Hispanic
52,348
Hispanic
18.68%
Hispanic
Demographics
Population by Race and Hispanic Origin
All Other
5%
NonHispanic
White
67%
Hispanic
15%
NonHispanic
Black
13%
Other
7%
Central &
South
American
14%
Percent of Total Population
Cuban
4%
Mexican
65%
Puerto Rican
10%
Source: Current Population Survey, 2005
National Origin of Diversity
•
Mexican – oldest, newest, nearest, most dispersed,
increasing diversity
•
Puerto Rican – dual nationality, citizenship, urban
concentration
•
Central Americans – refugees, nationality pockets, proximity
to Mexicans
•
Cuban – multiple waves, generational shifts
•
South American – Peruvians, Colombians, etc.
•
Others - New Mexico, Colorado, Texas, Arizona, Dominican
enclaves
Total U.S. & Hispanic Population for
Top Twenty U.S. Markets
Market
Total Population
Hispanic
% of DMA
Los Angeles
17,519,792
7,810,446
45%
New York
20,700,787
4,355,376
21%
Miami- Ft. Lauderdale
4,243,305
1,900,353
45%
Chicago
9,500,028
1,780,090
19%
Houston
5,594,922
1,775,534
32%
Dallas-Ft. Worth
6,481,681
1,517,284
23%
San Francisco-Oakland-San Jose
6,772,728
1,459,648
22%
San Antonio
2,198,348
1,207,240
55%
Phoenix (Prescott)
4,538,285
1,191,460
26%
Harlingen-Weslaco-Brownsville-Mc Allen
1,139,915
1,013,941
89%
Fresno-Visalia
1,841,523
931,892
51%
Sacramento-Stockton-Modesto
3,928,142
918,659
23%
San Diego
3,002,406
915,687
30%
915,631
730,462
80%
Denver
3,732,239
725,748
19%
Albuquerque-Santa Fe
1,722,780
687,843
40%
Washington, D.C. (Hagerstown)
6,154,393
579,959
9%
Philadelphia
7,720,332
547,033
7%
Atlanta
5,803,176
475,489
8%
Orlando-Daytona Beach-Melbourne
3,313,629
475,066
14%
4,037,324
471,267
12%
El Paso (Las Cruces)
Source: U.S. Bureau of the Census, 2005 Series
Tampa-St. Petersburg (Sarasota)
Demographics
Younger population than US overall:
•2/3 of Hispanic Population (19 million) are less
than 35 years old.
•38.7% are under the age of 20
•By 2010, nearly 18 million Hispanics will
be in the 25-44 age group.
Asian
Demographics
Asian-American Demographics
U.S. Population: 295,292,828
Asian-American Population: 13,249,051
Asian-American Population as
a Percent of Total U.S.
Population:
4.5%
Source: U.S. Bureau of the Census, 2005
Population by Race and Asian Origin
18%
20
15
10
5
0
14.01%
7.73%
hi
C
se
e
n
li
i
F
n
pi
o
se
e
n
a
p
Ja
11.79% 13.51%
an
e
or
K
m
a
tn
ie
V
e
es
9.62%
er
h
t
O
U.S. Bureau of the Census, 2005
Asian-American Demographics
• 52% of Asian households are
owner-occupied (Census 2005)
• Asian/ Pacific Islanders have the
highest median home values of
any group in the U.S.
• Asian/ Pacific Islander median
home value in the Western U.S. is
86% higher than the median
value for all homes in the West.
Source: U.S. Bureau of the Census, 2005
Asian-American Demographics
Asian households are the most likely of all groups
(including White households) to be in the $75K or
above income range
40%
Household Income above $75,000
35%
30%
27%
20%
13%
13%
Hispanic
Black
10%
0%
Asian
Source: U.S. Bureau of the Census, 2005
White
Total U.S. & Asian Population for
Top Twenty U.S. Markets
Market
Total Population
Asian
% of DMA
Los Angeles
17,519,792
1,951,719
11.1%
New York
20,700,787
1,815,998
8.8%
San Francisco-Oakland-San Jose
6,772,728
1,569,599
23.2%
Honolulu
1,291,401
554,523
42.9%
Chicago
9,500,028
484,967
5.1%
Washington, D.C. (Hagerstown)
6,154,393
461,202
7.5%
Sacramento-Stockton-Modesto
3,928,142
378,886
9.6%
Seattle-Tacoma
4,473,061
357,659
8.0%
Houston
5,594,922
307,348
5.5%
Philadelphia
7,720,332
299,946
3.9%
Boston (Manchester)
6,186,618
296,270
4.8%
San Diego
3,002,406
282,568
9.4%
Dallas-Ft. Worth
6,481,681
275,661
4.3%
Atlanta
5,803,176
196,906
3.4%
Detroit
5,012,175
170,218
3.4%
Minneapolis-St.Paul
4,300,475
161,064
3.7%
Portland
2,954,987
124,919
4.2%
Fresno-Visalia
1,841,523
108,019
5.9%
Denver
3,732,239
106,345
2.8%
Phoenix (Prescott)
4,538,285
101,613
2.2%
1,747,383
96,721
5.5%
Source: U.S. Bureau of the Census, 2005 Las Vegas
African-American
Demographics
African-American Demographics
U.S. Population: 295,292,828
African-American Population:
38,123,935
African-American Population as
a Percent of Total U.S.
Population:
12.91%
Source: U.S. Bureau of the Census, 2005
African-American Population for
Top Twenty U.S. Markets
Market
New York
Total Population
Black
% of DMA
20,700,787
3,986,496
19.3%
Chicago
9,500,028
1,721,086
18.1%
Atlanta
5,803,176
1,542,549
26.6%
Philadelphia
7,720,332
1,452,845
18.8%
Washington, D.C. (Hagerstown)
6,154,393
1,416,595
23.0%
17,519,792
1,363,723
7.8%
Detroit
5,012,175
1,082,065
21.6%
Miami-Ft. Lauderdale
4,243,305
1,000,807
23.6%
Houston
5,594,922
910,885
16.3%
Dallas-Ft. Worth
6,481,681
872,148
13.5%
Memphis
1,787,068
764,892
42.8%
Raleigh-Durham (Fayetteville)
2,579,435
751,037
29.1%
Baltimore
2,841,558
744,354
26.2%
Norfolk-Portsmouth-Newport News
1,923,333
645,475
33.6%
New Orleans
1,795,837
616,793
34.3%
Cleveland-Akron (Canton)
3,885,387
557,425
14.3%
St. Louis
3,111,140
524,975
16.9%
Charlotte
2,627,261
520,359
19.8%
Orlando-Daytona Beach-Melbourne
3,313,629
473,811
14.3%
San Francisco-Oakland-San Jose
6,772,728
469,057
6.9%
1,781,558
462,483
26.0%
Los Angeles
Source: U.S. Bureau of the Census, 2005 Birmingham (Anniston And Tuscaloosa)
Buying Power
Buying Power
Consumer-buying
power in this segment
will triple what it was
in 1990, indicating
major economic strides
among Asians,
African-Americans
and Hispanics,
according to a the
University of Georgia
Selig Center.
African-American Buying Power
African-Americans buying power will rise from
$316.5 billion in 1990 to $723 billion in 2004, and
to $965 billion in 2009.
1990
$316.5
2004
$723
2009
$965
Asian Buying Power
Asian buying power will rise from $117.6 billion
in 1990 to $363 billion in 2004, and to $528
billion in 2009 .
1990
$117.6
2004
$363
2009
$528
Hispanic Buying Power
Hispanic buying power will rise from $223 billion
in 1990 to $686 billion in 2004, to $992 billion in
2009.
1990
$223
2004
$686
2009
$992
Emerging Opportunities
Emerging Opportunities
Children and young adults account for nearly
half of the EM population.
The next generation-
“The children of immigrants”

Are avid media consumers,
 Comfortable with computers and
 Connected to the Internet
E-merging Opportunities Hispanics
Internet usage among Hispanics
jumped 7.4% in 2004 after an
8% rise in 2003.
Source: emarketer 2004
E-merging Opportunities Hispanics
It is projected that
13.3 million
Hispanics were
surfing the Internet
in 2004, up from
12.4 million in 2003
and 8.7 million in
2000.
Source: emarketer 2004
E-merging Opportunities Asians
By comparison, the number of
Asian Internet users rose to
6.7 % in 2004.
Source: emarketer 2004
E-merging Opportunities –
African-American
AfricanAmerican surfers
increased by
5.7% in 2004.
E-merging Opportunities –
White
White Internet users increased
by 4.2%
5 Simple Rules to Reaching the Ethnic Markets
Rule No. 1:
Integration is the key!
In the past, the process for reaching multicultural
markets was often limited to one dimensional efforts
such as the literal translations of general market
campaigns.
Today organizations are developing new products
designed specifically to meet the needs of this new
America. Companies are:
• Creating separate multicultural departments
• Allocating marketing budgets by segment,
• And most important, setting measurable goals for
each segment.
Source: 2004 Public Relations Tactics. Via ProQuest Information and Learning Company
Culturally Diverse Companies…
• Implement an integrated year-round
out reach campaign to the ethnic
markets.
• Provide high level customer service
in multiple languages from end-toend.
• Become valuable corporate citizens in
the ethnic communities.
• Offer culturally relevant products and
services at competitive prices.
Source: Valle, F.J., Madel, J.M., (2003) How to win the Hispanic Gold Rush
Rule No. 2: Do your research!
It may cost you a little upfront, but it is critical to
your success. Carefully study your market and
its relationship with your product or services
prior to launching a diversity initiative.
Understanding the cultural nuances of a market
before
start iseveryone
important.who speaks Spanish
Don’t you
assume
is Mexican and everyone Asian is Chinese
Source: 2004 Public Relations Tactics. Via ProQuest Information and Learning Company
Rule No. 3:
Cultural Connectivity!
Cultural Connectivity is the ability to reach a consumer
through their cultural context. A few cultural connectors to
consider include:
The goal is to
– Values
connect in an
– Community
intimate way
– Religion
with both
– Lifestyles
communities and
– Ethnicity
individual
– Race
– Sexual orientation
simultaneously
– Country of origin
through effective
– Degree of acculturation
cultural context.
– Language
`
Source: 2004 Public Relations Tactics. Via ProQuest Information and Learning Company
Rule No. 3:
Cultural Connectivity!
• Do new ethnic customers receive a welcome or
thank you written in their language at the time
service is delivered?
• Does your brokerage or firm conduct postclosing satisfaction surveys with ethnic
customers?
• Is diversity a strategic objective in your business
or strategic plan?
• Is there a senior level position with the proper
authority to implement this initiative?
Source: Valle, F.J., Madel, J.M., (2003) How to win the Hispanic Gold Rush
Rule No. 4:
Perception is Reality!
How communities see a company is how an individual
will see the company. This basic marketing concept is
critically important to the multiethnic landscape.
Many successful companies launch cause related PR
strategies that put the ethnic community and its needs
at the center of its communications.
Source: 2004 Public Relations Tactics. Via ProQuest Information and Learning Company
Freddie Mac
Fidelity National Title –
www.fidelityhouston.com
Fidelity National Title –
www.micasaenhouston.com
Fidelity National Title –
www.micasaenhouston.com
Rule No. 4:
Perception is Reality!
The best way to conduct these efforts with credibility
is to partner with national or local ethnic organizations
(i.e. AREAA, NAHREP, and NAHREB)
Source: 2004 Public Relations Tactics. Via ProQuest Information and Learning Company
Rule No. 5:
Partner with the experts!
Don’t try and go it alone. When planning a
campaign, identify the appropriate resources
and consider hiring an agency.
Lastly, Identify a multilingual spokesperson
who can champion and be the voice for the
initiative.
Source: 2004 Public Relations Tactics. Via ProQuest Information and Learning Company
Building Diversity Into Your Business Model
Building This Emerged Market Into
Your Business Model
• Through a referral arrangement
• Recruiting an agent at a time
– Keep tabs on agents on the other side of your
transactions
• Buying a company and merging it into your
existing operation
– Merging disparate cultures
• Buying a company or a joint venture and leaving it
as a stand alone
– Bring more than money to the table
Hispanic Business Magazine –
October 2005
Diversity Checklist
The only way to know if a diversity
initiative is effective is to monitor and evaluate it.
– What is being expended on the initiative?
– What is the return?
– How many more customers were gained?
– What is the company’s market share and penetration?
– What elements of the campaign worked well and which
did not?
Source: Valle, F.J., Madel, J.M., (2003) How to win the Hispanic Gold Rush
The Bottom Line
Your emerging market initiative success
will ultimately be determined by:
1. Your effectiveness in developing and being able
to offer culturally relevant products and
services.
2. Your ability to brand products and implement
culturally relevant marketing strategies.
3. Your skill in providing a high level of customer
service in multiple languages.
4. Your aggressiveness in positioning and pricing
quality products.
Source: Valle, F.J., Madel, J.M., (2003) How to win the Hispanic Gold Rush
It’s about……..
Building your
economic as well as
your social equity
with Ethnic
homebuyers!
Contact us at:
Houston Office
14090 Southwest Freeway
Suite 300
Sugar Land, TX 77478
Phone: 281-277-7784
Fax:
281-277-8167
Austin Office
1615 W. 6th Street
Suite A
Austin, TX 78703
Phone: 512-450-0553
Mailing Address
17424 W. Grand Parkway, # 405
Sugar Land, TX 77479
www.thegonzalesgroup.com
Building a Business Case for the Ethnic Markets:
Servicing a Broadening Customer Base”
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Building a Business Case for the Ethnic Markets