TARGET MARKET- AMERICAN GURU
Are Asian-Americans a valuable demographic
segment to target?
Absolutely, says Ronnie Fok, executive VP of A Partnership, inc.,
a New York City-based advertising agency.
Marketing to Asians have been a primary focus for the first time,
through out the United States, in 2006. And, will continue to
be the target for many years to come. Asian-Americans are rapidly
moving up the growth curve.
“Although relatively smaller in absolute size, the affluent
Asian market offers tremendous opportunity,” says Fok. Asians
who represented only 3.6 percent of the U.S. population have the
highest median family income of all groups.
Some statistics and census data puts the figure at $51,200, more
than $10,000 above the average U.S. household.
Fok’s agency predicts that the Asian population, now at
10.3 million, will reach 40 million by the year 2050.
However, targeting this market might not be an easy task for
large and small companies through the United States. It is a very
complex group because of its diversity. Asian-Americans come from
different countries of origin, and different languages. This group
even speaks many different languages within their own individual
countries. They live and approach life from different perspectives
based on their religions, customs and traditions. No to mention
the fact, that, they also come from different social backgrounds
and levels of education.
Asian-Americans represent six percent of the American population.
They could be segmented as following: China with 21 percent, the
Philippines with 18 percent, Vietnam and Korea with 10 percent,
Japan with 9 percent and India with 11 percent. The majority of
Asian-Americans live in metropolitan areas; such a geographical
clustering helps in American companies targeting purposes. Most
of the cities, in America, where Asian-Americans live are: Los
Angeles, New York, Honolulu, Chicago, New Jersey, and Miami.
Past “wisdom” had marketers treating the Asian-American
community as a homogeneous unit and appealing to its shared “American-ness.”
New thinking has American companies devising campaigns to address
differences. Packaged Facts, a leading marketing research company,
says brands are using specialty agencies that “have a firmer
grasp on the cultural and linguistic nuances that can make or
break an Asian-American campaign.”
Fok says that in order to target and position your company among
the Asian-American Market, to do the following: Find the Asian
customers who are valuable and worth pursuing. But, do not forget
to separate them into homogenous groups. Make sure that you determine
reasonable costs. Make campaigns relevant. “Data is meaningless
unless you apply the proper marketing strategies, “he says.”
Is it financial rewarding to pursue this complex, yet, fascinating
group? Absolutely!
The percentage growth of Asian-American purchase power has jumped
124 percent to $254 billion in 1990 – more than any other
minority group, says the University of Georgia-Center of Economic
Growth.
During my research, I found that Asian-Americans out-index all
other groups when it comes to having a computer in their home,
purchasing products on the internet, and using the internet for
financial transactions. Asians also continue to out-distance Caucasians
and white-Spanish in education. Census indicates that 46 percent
of Asian-Americans hold at least a bachelor’s degree, compared
to 31 percent of Caucasians and White-Spanish.
It would be a mistake to paint the entire Asian population as
rich and well-educated though; many residents are recent immigrants.
Sixty-six percent are foreign born, and 63 percent use their native
language at home. Twenty-three percent have five or more members
in their family, compared to Caucasians and Spanish, says the
census.
But in despite of the facts described above, American companies
need to pay attention to this group and watch the numbers. They
have a great saying, participation and play in our great service
oriented industry. Asian-Americans are a minority of relevance
in today’s market; nevertheless, a challenging process,
it would prove financially rewarding for the large and small American
Companies.
Diana Benavides
This article is patented by its author: Diana Benavides