Marketing Myths That Will Alienate Hispanic Consumers

Editor’s note: This piece is part of our Columnist Network series, which explores the tactical thoughts and actions from Adweek’s community of high-level experts. Today, understanding your consumers and their lifestyles is more vital than ever. However, like every relationship, you must invest time and nurture it. You can’t expect results overnight. This is especially crucial in marketing to the rapidly growing Hispanic market. Change your perceptions about this audience, and you will open yourself up to stronger sales, customer retention, competitive edge, higher ROI—the list goes on! I once had the opportunity to work with a national luxury automobile dealership on their Hispanic marketing efforts. We used market research to identify opportunities, then created a strategy and approach that would help them truly connect with Hispanics. They invested and committed to the plan, knowing it had potential but would take time to pay off. Adjustments were made across the board, from their marketing approach to hiring additional Hispanic employees and improving all aspects of the customer experiential, including point of purchase. By sticking with their commitment to our initiative, we increased their Hispanic representation from 10% to 40% in the first two years, delivering millions of dollars in additional sales and revenue. Many executives are not committed to the success of multicultural marketing initiatives because they don’t understand the market nor the power it can have in their success. They are too focused on the quick buck and let their misconceptions get in the way. Specifically, these four myths about the Hispanic market can keep you from greater revenue. Multicultural Agencies Explain How Brands Can Build Credibility With Hispanic American Audiences Myth #1: Hispanics don’t react as quickly as general market consumers Many companies haven’t effectively connected with Hispanics or cultivated a relationship with them—so of course Hispanics are not going to react as quickly as an audience they've had a relationship with for decades. Some executives think, since they have been in the market for years, they have brand equity and consumers know their brand. But if someone doesn’t have a connection with you, they aren’t going to be eager to reach for your products. You and I can live in the same neighborhood for decades, see each other, wave but not much more. Would you come to my house for a neighborhood gathering if I didn’t introduce myself and invite you? How will Hispanics know your brand if you haven't communicated with them effectively or consistently? The truth is, if you invest in a relationship with Hispanics, they will be your most loyal consumers, promoting your brand to their family, friends and communities. Reallocate your marketing dollars wisely. If you are in a market where over 45% of the population is Hispanic and you have only been investing 2% of your budget, it is time to reevaluate your investment. Once our luxury automotive client made adjustments, committed to a culturally relevant initiative, invested appropriately and saw it through, that’s when things got rolling. Now that they are building better relationships with Hispanic customers, those consumers react just as quickly as their general market consumers do. Myth #2: Hispanics don’t have disposable income to buy certain products or services This couldn’t be farther from the truth. Hispanics are the largest and fastest growing minority segment in the U.S. and quickly becoming an integral part of the mainstream middle- to upper-class. According to Forbes Magazine, the Hispanic community has contributed significantly to the U.S. economic growth and will continue to do so. Hispanics in the U.S. have become one of the top ten economies in the world. They live in larger households with a greater presence of kids, and they over-index in many categories across industries. That translates to a lucrative market and a huge business opportunity. Myth #3: You can reach Hispanics with a total market approach The "one size fits all" approach is one of the biggest misconceptions. Even though a large portion of Hispanics are English-speaking or bilingual, it doesn’t mean they live life, perceive things or interact with brands the same way the general market does. It is important to highlight that reaching and engaging are two separate things. They might see your ads on the general market network, but that doesn’t mean you are activating sales with them. If your execution lacks cultural relevancy or is seen as pandering, you will not be successful. You must understand your consumers’ cultural nuances—for any market, any audience, this is the only way to achieve a high level of engagement. Myth #4: Your competition isn’t marketing to Hispanics, so you don’t need to either The only way to grow your sales is by connecting with audiences you haven’t tapped before, especially those that are growing as rapidly as the Hispanic market. The fact that your competition is not reaching Hispanics is actually a great business opportunity. If you reallocate marketing dollars to this new, influential audience, it can help balance a loss of sales from the general market where competitors may outperform you. Don’t let misconceptions get in your way. To be successful, you have to check your personal bias, be humble and embrace evolving markets. So many people are reluctant to confront their biases, but when you do, that's where you will see real growth. We live in a fast-moving society where technology and diversity are driving change and growth. You'll become obsolete very quickly if you are not open to new ideas.

Columnist Network

4 Marketing Myths That Will Alienate Hispanic Consumers

This demographic is the secret to your success—as long as misconceptions don't get in your way

Hernan Tagliani

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Hernan Tagliani