Archive for May, 2009

IS THERE A VALID BUSINESS CASE FOR DIVERSITY MARKETING IN AN ECONOMIC RECESSION?

Thursday, May 28th, 2009

Emphatically, I say, “YES!”

I’m sure you’ve heard the American proverb, “He who has the gold makes the rules!”

As we near the end of the second quarter of 2009, marketers would be wise to follow this bit of astute wisdom as they assess their remaining advertising budgets.

Of course, first you’ll need to discover the gold-holding rule-makers: I will tell you they are the affluent ethnic consumers.

Being the savvy marketer that I’m sure you are, it’s likely you’ve read the articles identifying ethnic consumers as viable new prospects. What I’m not seeing much information disseminated about is the affluent segment – not the middle class – but the truly affluent sub-segments within this consumer group. They are a largely ignored and under-served market segment who are patiently awaiting the right marketing approach from you.

The key to your approach is to never make the mistake of marketing to affluent ethnic consumers from your perspective and asking them to come to you. This sub-segment has made their own rules, and they are highly influential in today’s marketplace. Deliberately cater to them by getting on their turf, seeing through their eyes, and speaking their language. You must go to them, and serve them on their terms, in order to build lasting and meaningful relationships. I’m sure their $282 billion in purchasing power is something you want to harness.

Here are a few tips for luxury marketers, or any marketer, to plan a successful target marketing strategy:

• Identify and utilize appropriate ethnicity-based traditional and non-traditional media outlets in your advertising.
• Partner up with membership-based ethnic organizations.
• Consider instituting a Diversity Advisory Board in your company.
• Hire a more diverse workforce.

Now is not the time to cut back marketing expenditures; instead, correctly divert them toward this sub-segment, and I guarantee you will see better ROI in the way of stronger loyalty, broader word-of-mouth, and fresh revenue streams in addition to your general market initiatives.

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Black Demographics

Sunday, May 24th, 2009

According to the US Census Bureau in 2007 there were 40.7 million Blacks in America of the total population of 301.6 million. The black population exceeded 500,000 in 20 states. Blacks were the largest minority group in 24 states, compared with 20 states in which Hispanics were the largest minority group.

By the 1990s middle class Black America was well established as a separate community and was no longer forced to live with lower income Blacks. Communities such as South Dekalb (Atlanta), Prince George’s County (DC/MD), and Baldwin Hills (Los Angeles) sprung up across the country and are still growing today.

Southeast DeKalb County, GA is Americas second largest black middle class community. 

As of the 2000 Census, the Dallas Fort Worth metro Black population was 729,772 making it the ninth largest Black metro in the nation. Since then the area has gained more than 150,000 additional African Americans, bringing the Black population to 881,930 in 2007.

 

Black Middle-Class Dallas 

Dallas has a large and growing Black middle-class. This is evident by the number of Black families now enjoying home ownership in the area. Much of the Black population is educated and highly skilled. Although Dallas is not known for its Black entrepreneurship there are several thousand Black owned business and hundreds of top African American executives. 

The results of this Growing Black elite can be seen in the majority Black southern Dallas suburbs as well as other areas around the Metroplex. They are building beautiful landscaped developments and demanding the best education for their children. Blacks in Dallas are developing a black Mecca of their own and are soon to change the African American community here forever.

Baltimore has always had a significant African American population. Even though Maryland was a slave state, Baltimore had a larger Black free population than that of the slaves. Baltimores proximity to Washington DC puts it in the same market commercially. It also makes the combined Black population the second largest in the US after New York City with 2.2 million combined. The city itself is steep in Black culture and home to three Historically Black Schools: Morgan State University, Coppin State University and Sojourner Douglas. According to the Census Bureau - 2007 American Community Survey, the income for  in the past 12 months the median household income was calculated at $63,699 (vs. $34,169 for Black USA overall).

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