NFIB

Tapping Into the Hispanic Market
09/ 12/ 2003

by Jeffrey Moses

There are now over 30 million Hispanic people living in the United States, making the group the largest minority in the country. This market is a largely untapped resource for marketers, because Hispanics account for over 13 percent of the United States population, while only about 1 percent of all marketing dollars are spent addressing this market segment (U.S. Hispanic Market 2002 -- Strategic Research Corporation). As a group, the Hispanic community purchases more than $400 billion of goods and service annually.

Hispanics are also a growing market segment online. A recent Nielson/NetRatings report stated that more than 7 million Hispanics use the Internet regularly, and that the Hispanic community represents the fastest-growing online market segment of any minority group. This makes the Hispanic community an attractive segment for online marketers as well.

As in any large group, Hispanic individuals have widely diverse purchasing habits, but also have characteristics and behaviors unique to them. The best ways to tap into this growing market are:

Consult an expert in Hispanic culture and language during the design phase of a marketing campaign. Be aware that -- as with any language -- translations from English to Spanish need to be monitored carefully. For example, a well-publicized campaign by the California Milk Producer Board in the '90s found that "Got Milk?" literally translates into Spanish as "Are you lactating?" Clearly, a revision in the famous headline was required.

When setting up retail stores, direct-mail response centers, or other types of sales operations, the employees who interact directly with Hispanic consumers should be bi-lingual. It's often not enough to speak Spanish only -- and English-speaking sales representatives frequently will be at a loss because many in the Hispanic community speak little or no English.

Marketing campaigns should maintain sensitivity and cultural appreciation. These are concepts that are important to Hispanics who respond more readily to approaches that respect traditions and display an innate understanding of how their unique culture is being influenced by American values.

When marketing your product or service to Hispanic-owned businesses, it's important to keep the same things in mind regarding Hispanic culture and values. It is often noted that the success of business deals in Latin America relies heavily on the relationship between the two parties. Whereas in other countries, the United States in particular, the success relies on the business's ability to pitch a sale.

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