The Value of Understanding What People of Color Really Think About Your Brand

When we talk about the value of understanding what people of color think of your brand, we aren’t casually talking about the term “value.” We mean value as in actual dollar signs.

Consider that, according to Inc. magazine, U.S. multicultural buying power increased from $661 billion in 1990 to $3.4 trillion by 2014. If you are wondering how you can expand your market, realize that that was an increase of 405%—double the increase in buying power of the U.S. as a whole. In 2018, the buying power of U.S. Hispanics alone is expected to hit $1.6 trillion; that’s more than the entire Mexican GDP.

But all that growth will seem like nothing in 2021, when it’s estimated to skyrocket to more than $16 trillion.

And marketing to multicultural groups isn’t just rewarding; it’s cheaper to do. Using Inc.’s analysis, the cost of a 30-second network commercial can fund an entire targeted multicultural ad campaign.

But how do you know what people of color really think about your brand? Through sophisticated multicultural market research that will give you the data you need to delight your diverse client base.

For instance, Asian-Americans lead the way for online purchases in several product categories. If you’re in one of those businesses, you may want to invest in a superb online shopping experience, rather than expand physical locations.

Multicultural research will also help you understand when you need to vary marketing within ethnic groups because even targeted markets may be less homogeneous than you think. As one example, older African-Americans are more likely to take pride in their ethnic identity, when compared to younger African-Americans. Therefore, your marketing efforts may need to be further segmented to match attitudes within each group.

Another reason why multicultural research is so vital: While you’re widening your client base, you’re also getting a leg up on your competition. In one study, two-thirds of B2C companies had some multicultural marketing in place, but only 20% of B2Bs said they had a multicultural marketing plan in place. And even when firms did have these programs, their senior marketing officials reported that they didn’t have as much company buy-in as they needed—both in terms of budget and CEO support.

At Ebony Marketing Systems, we are experts recognizing the value in multicultural communities. Designing and conducting research that meets your company’s unique needs, we tailor our work to best suit you, the communities you serve, and those you want to serve. For more information, call us at (718)742-0006 or send us a message today.