The fact of America is changing. And with it, the concept of "mass" marketing.
"In what has been termed the `Age of Diversity,' applying mass-marketing techniques has become obsolete," says Gary Berman, president of Market Segment Research Inc., a Florida-based research and consulting firm specializing in ethnic markets.At the Food Marketing Institute convention in Chicago recently, Berman talked about the diverse marketplace and how manufacturers and advertisers are responding.
Consider, he says, that currently about 25 percent of the population is Asian, Hispanic or black; by the year 2050 that will increase to almost 47 percent. Right now, the number of Hispanics in the United States (26.8 million) is almost equal to the total population of Canada (27 million).
Each of the ethnic populations constitutes a sizable market, says Berman. For example, estimated buying power of Hispanics is $244 billion; for blacks $341 billion and for Asians $107 billion.
And when it comes to shopping, there appear to be key similarities as well as differences between ethnic groups, says Berman. In general, Anglo and black consumers are the most similar ethnic segments in their shopping beliefs and habits. For example, in both segments five out of 10 say they shop around to take advantage of specials and bargains. Similarly, four out of 10 in both groups say that once they find a brand they like, it is difficult to get them to switch.
On the other hand, Hispanics are the most likely to prefer brand-name products and the most likely to say they don't buy unknown brands merely to safe money. Hispanics are also most likely to plan far ahead to purchase expensive items but are also the most likely to buy items on the spur of the moment.
Other findings about shopping habits and consumer behavior include:
- Hispanics view/listen to significantly more media (television and radio) than other ethnic segments, averaging 55.2 hour a week, compared to 32.4 hours for Anglos, 32.4 hours for blacks and 38.6 hours for Asians.
- Hispanic and Asian Americans tend to be bilingual in their weekly media consumption.
- Regardless of ethnic origin, education is considered the most important issue facing Americans today. Drug-related issues rate second for blacks, Hispanics and Anglos, while Asians consider crime the second-most important issue affecting their communities.
- Regardless of ethnic group, an overwhelming majority agree that it is the responsibility of immigrants to learn English if they plan to reside in the United States.
- Discount coupon usage is highest among Anglos (66 percent) and lowest among Hispanics (44 percent). Total population consumers receive more than 600 direct mail pieces on average each year, but Hispanic consumers receive under 20.
- Of all Americans, Hispanics are the most demanding in regard to detailed product information and are more likely to want product and service benefits and instructions for use spelled out in advance of purchase.
- On average, blacks spend the most on groceries each week, just edging out Hispanics. Both groups average just over $100 a week. Anglos are next, spending about $85 a week; and Asians about $75.
- On the other hand, Asians average the most visits to the grocery store, with approximately 85 percent saying they visit at least once a week. That compares to 70 percent of the Hispanics, 68 percent of the Anglos and about 45 percent of the blacks.
- Some interesting differences in product usage:
- Analgesics: 35 percent of the Anglos, 30 percent of the blacks, 58 percent of the Hispanics and 34 percent of the Asians have purchased in the past month.
- Antacids: 30 percent of the Anglos, 30 percent of the blacks, 37 percent of the Hispanics and 13 percent of the Asians have purchased in the past month.
- Cold remedies: 31 percent of the Anglos, 24 percent of blacks, 40 percent of the Hispanics and 16 percent of the Asians have purchased in the past month.
- Denture cleaner: 18 percent of the Anglos, 21 percent of the blacks, 7 percent of the Hispanics and 8 percent of the Asians have purchased in the past month.
- Soft drinks: 70 percent of the Anglos, 55 percent of the blacks, 72 percent of the Hispanics and 48 percent of the Asians have purchased regular carbonated soft drinks in the past month; 46 percent of the Anglos, 25 percent of the blacks, 30 percent of the Hispanics and 17 percent of the Asians have purchased diet carbonated soft drinks in the past month.
- Butter: 52 percent of the Anglos, 61 percent of the blacks, 70 percent of the Hispanics and 38 percent of the Asians have purchased in the past month.
- Cooking oil: 67 percent of the Anglos, 72 percent of the blacks, 91 percent of the Hispanics and 68 of the Asians have purchased in the past month.
- Dry pasta: 44 percent of the Anglos, 35 percent of the blacks, 53 percent of the Hispanics and 24 percent of the Asians have purchased in the past month.
- Cheese: Both Anglos and blacks put American cheese at the top of their lists, followed by cheddar, mozzarella and parmesan. Hispanics list American, followed by mozzarella and Monterey Jack; Asians list American, cheddar and Swiss as preferences.
- Dairy products: Anglos use the most cottage cheese, followed by sour cream and yogurt. Yogurt tops the list for blacks, followed by sour cream and then cottage cheese. Hispanics also prefer yogurt, with sour cream just edging out cottage cheese for second place. Asians use the least of all three but also prefer yogurt to cottage cheese.
- Hispanics purchase the most ready-to-eat cereal, followed closely by the Anglos and the blacks. Only about 10 percent of the Asians purchased ready-to-eat cereal in the past month.
- Hispanics also purchase the most white rice (85 percent purchased in the past month) followed closely by Asians. Less than 50 percent of the Anglos, however, had purchased white rice.
What this all means, says Robert Bartels, chairman of the Food Marketing Institute, is that "we no longer have a mass market. Each neighborhood has its own mix," he says, and the grocery industry is responding to that mix by tailoring stores to the needs and wants of the customers.
Advertisers are responding, too, with more ads not only featuring different groups but with messages that are clearly targeted to one or another group.
"Mainstream America is changing, getting wider" says Berman. "We no longer have the melting pot of the past, but a salad bowl. Rather than assimilation, we have acculturation." This new age of diversity, he says, will be an interesting time, not only in the marketplace, but in society in general. We can all learn a lot from each other.