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Special
Markets |
| Want to reach 40 million potential new
customers? Marketing to African-American consumers is worth the investment, because they’re prime prospects. African Americans represent 12.9% of the U.S. population. Now numbering 36.4 million, the segment will reach 40 million by 2010. Further, African Americans have the largest total income of all ethnic groups and spend two out of every three dollars spent by minorities, giving them the strongest buying power of any U.S. minority group. In 2002, that power reached $645.9 billion. Predictions estimate it will hit $705 billion in 2005, and $1.01 trillion by 2010. The Challenge With the growing numbers and wealth of Black consumers, it’s becoming nearly impossible to maintain market leadership without directly and meaningfully addressing them. Yet, many marketers don’t understand why they need to address African American consumers differently. Effectively marketing to them requires a level of cultural understanding plus the ability to be respectful without appearing patronizing. Historically, African Americans are the only ethnic group to arrive in the United States involuntarily. However, the U.S. Bureau of Census defines the term to include persons from South America and the Caribbean as well. “Black” and “African American” can be and often are used interchangeably. A word of caution, however: Care should be taken to avoid identifying people strictly based on skin color, especially with the increase in the American biracial and multiracial populations. The Market According to the Selig Center, a research organization at the University of Georgia, the 10 states with the largest African American markets are New York, California, Texas, Georgia, Florida, Maryland, Illinois, New Jersey, North Carolina and Virginia. The middle- and upper-income segments of the African American community have grown exponentially in the past decade. Census 2000 reports that 5.3 million Black households earn $35,000-plus annually. From 1997 to 2000, the number of African American households with incomes of over $100,000 a year saw an increase of 154%. Of course, cultural attitudes and characteristics are important to consider. According to the African American Monitor, African Americans like the freedom to express themselves and keep up with the latest styles and trends. Early adopters and trendsetters have a great deal of influence over what styles, fashions, music and technologies are accepted into the African American marketplace, which then seep into the general marketplace. African Americans are also 20% more likely than Whites to have a high estimation of their own intellect. Moreover, more than two-thirds want to become more involved in their communities, and are church and family-oriented. African American households are usually larger than those of Whites, the composition is different. Fifty-six percent of White households are married, compared to 32% for African Americans. Thirty-three percent of black households are female-headed, compared to only 9% of White households, making African American women a highly important target segment. Buying Trends The black market is youth driven. Based on findings by research firm Motivational Educational Entertainment, the popularity of hip-hop and rap music decreases with age. While 54% of Black 16- and 17-year-olds choose it as their favorite musical genre, the percentage drops to 40% among 19- and 20-year-olds. Young Black males prefer hip-hop/rap at a rate more than double than that of their female counterparts. Young Black females, on the other hand, prefer R&B, by a 50%-19% margin. Movies are popular with Black youth. A total of 62% of those surveyed go to the movies two or more times a month; more than a quarter (27%) go once a month. Comedies and action films are the favorite themes. African American households spend more on apparel, telephone services and natural gas than average U.S. households. African Americans also spend a higher proportion of their after-tax income on housing, electricity, transportation and food eaten at home. They spend a lower percentage of their income on personal insurance and pensions, eating out, healthcare and household furnishings. Blacks also spend about the same proportion of their incomes as the overall population on various goods and services, including household operating expenses, housekeeping supplies, alcoholic beverages, tobacco products, personal-care products, and cash contributions. The relationship African Ameri-cans have with certain brands can be significant. For older Blacks, a recognizable brand name often means quality, while for younger people, it’s the prestige value that’s most appealing. African Americans will pay more for certain brands, are more loyal to them than the general market, and are less likely to prefer non-branded alternatives. Promotional Opportunities Networking with African Ameri-cans at culturally specific events such as Kwanzaa or Black History Month programs are some prime opportunities to cultivate trust. In addition, joining or sponsoring established African American organizations and celebrations in your community can also help build meaningful relationships. Wearables work very well at events of this nature. In fact, they can work anywhere, anytime. T-shirts, caps and jackets using themes incorporating the particular celebration are great gifts. Apparel with recognizable African American artwork or colors is also popular. The same is true of African and Caribbean themes. Music themes are also popular — for instance, logoed CDs featuring hip-hop/rap, R&B, jazz or gospel. Other items with tie-ins to community events can also be effective. Fun, trendy key tags, such as shaped carabiners or key holders with compasses or AM/FM radios can be effective giveaways. Dual-function key tags, with a picture frame, mirror or magnet are also good choices. And using licensed designer logos appeals to the African American love of brand names. For more upscale events, such items as pocket PDAs that store phone numbers, tell time and keep appointments are good choices. Lifestyle premiums such as golf balls/tees, catchers’ mitts, footballs, caps and jerseys are popular items. You can use a theme of specific African American events and holidays, or, if feasible, licensed images of professional athletes and teams. A popular theme today is the Negro League baseball teams of pre-integration America. Fashion watches, (usually mid-priced pieces, occasionally featuring the brand name of leading designers with your logo etched on metal or stamped on the band), imprinted cotton or nylon bags, and disposable cameras to record the day, combined with a product coupon or admission to a promotional event are also good ideas. Ask your counselor about licensing and imprinting various merchandise. Reaching the African American consumer, variety and brand recognition are good rules of thumb. Combined with cultural sensitivity, these are elements of an effective campaign. Patrice Kelly is a freelance writer based in Cleveland. |
