Changing Demographics: How to Market & Sell to People Not Like You

Transcription

1 Changing Demographics: How to Market & Sell to People Not Like You We ve Changed OLD NEW 1

2 1 in 3 is not White Source: 2010 U.S. Census The Census Diversity Index Has Been Increasing Consistently The probability that two people chosen at random would be of a different race and ethnicity on a scale. The scale ranges from 0 (no diversity) to 100 2

3 4 States & the District of Columbia have Minority Majority Populations Minorities account for more than 50% of the population in California, Hawaii, New Mexico, Texas and DC Source: New U.S. Census to Reveal Major Shift: No More Joe Consumer. AdAge, October 12, States with Majority Minority Among Children In 10 states, the share of children who are minorities has already passed 50 percent, up from five states in 2000: Mississippi Georgia Maryland Florida Arizona Nevada Texas California New Mexico Hawaii 3

4 Not Just in Select Places Across every major market in the U.S. the majority of the child population is nonwhite Multiracial Americans Multiracial Americans now number 22 million 7% of the population 25% increase in last decade 4

5 Percentage of Whites Declining Whites as a percentage of the U.S. population dropped over the last decade from 69% to 63% Whites are aging fast: median age is now 41 Will be minority by 2041 Gender Diversity Comes in Many Forms Religion Political views Age/Generation Matures (seniors) Boomers Gen X Gen Y Gay/Lesbian Physical abilities Rural / Metro Military/Civilian 5

6 Diversity Comes in Many Forms Racial White, Black, Asian, Native American, Pacific Islander Ethnic/Linguistic Hispanic, Indian, etc. Nativity Foreign-born or U.S. born Lifestage New moms/dads, retirees, college students, empty-nesters Lifestyle/Affluence Working poor, middle class, wealthy Core values Environmentalists, vegan/vegetarians, home schoolers Understanding Someone Different from You Means Understanding Their Life Their priorities Their values The experiences that define them Their perspective 6

7 Try This Exercise! When asked to name how Kennedy died Matures & Boomers Gunshot in Dallas Gen X Plane crash near Martha s Vineyard Gen Y Kennedy who? Who is Ron Howard? Matures Boomers Gen X & Gen Y 7

8 10 Strategies for Marketing & Selling to People Not Like You #1: Be Relevant Identify what people want, then give it to them Example: Target vs. K-Mart Relevance: Style on a budget Benefit: value with dignity 8

9 Foster Happiness Requiring a bit more of the pet parent can result in greater sense of involvement and the moment of happiness Cooking or heating food Waiting for delivery of an exclusive product #2: Know Thy Target Bad example: Wireless company Cinco de Mayo themed ads in Miami Good example: San Francisco: Bank of America partnered with AT&T to tap into huge Asian population Open a new checking account, get AT&T prepaid calling card good for calls to Asia AT&T customers received free checking at BofA Goal: 1,500 new accounts Actual: 22,000 new accounts 9

10 #3: Give People What They Need Macy s Products Differ by Region Salt Lake City Atlanta 10

11 Burger King Adjusts Their Menu New York Bagels Birmingham - Biscuits Sometimes it s Not What, But How 11

12 #3: Tap into Values Locally owned business / local jobs Organic, natural, healthy Green, environmentally friendly What Women Value High customer service standards Vocal, will express pleasure or displeasure Put great stock in what other women say 12

13 What Millennials Value Diversity Custom / personalization McDonald s Experiments with Customization & Fresh Offerings 13

14 Millennial s Key Values Local Fresh / How products are made and food is grown/raised Authenticity Want a relationship, not a transaction Hispanic Key Values Upscale Latinos (HHI $50K - $100K) are deeply invested in the lives of their pets Believe their pets reflect their lifestyle & success Specialty stores Toys Animal hospitals Grooming spas 14

15 #4: Demonstrate Cultural Sensitivity Asian Consumers Present business card with two hands to Asian clients and customers 15

16 Hispanic Consumers Great customer service trumps mistakes African-American Consumers Show people of color in ads, website or any marketing materials Diversity of skin tone is important Don t try to connect on a superficial level 16

17 Transparency Asian Indian consumers About fees, discounts, warranties, exclusions, policies, standards, etc. Selling to Asians Indians Promote that your company is legally sound Heritage: Been in business for xx years or With more than xx years of experience Promote any awards or accolades earned 17

18 Three Cups of Tea The first cup is shared as strangers The second cup is shared as friends The third cup is shared as family #5: Use Consumer Insights 18

19 Consumer Insights: Women Value expansive choices, seeing all options Consumer Insights: Men Want choices simplified The magic number is 3 19

20 #6: Be the Good Guys Demonstrate & market social consciousness Community involvement Educational efforts #7: Pay Attention to Trends Social is everything 20

21 New Products Meet Demand for Connectivity Trends, Not Fads. 21

22 #8: Use Contemporary Imagery People want to see the real real #9: Be Fearless 22

23 #10: Helping Beats Selling We don t need information. We need advice. Relevance + Tapping into Values = 23

24 My Book Can Help! #5 on the list of Bestselling Business Books of

25 For more information about consumer trends, contact Kelly McDonald at or 2016 McDonald Marketing 3700 Quebec Street Suite Denver, CO , Fax All rights reserved. No part of this material may be reproduced In any form without permission by the author. 25