Minorities, collectively, are becoming the majority. By 2050, African Americans, Asian Americans and Latinos will comprise 50 percent of the U.S. population and hold more than $3 trillion in purchasing power. In response to this drastic change, ethnic marketing is becoming more prevalent and essential to reach the markets that control this tremendous purchasing power.
Corporate America is starting to realize the potential of these markets and trying various means to reach them. Ethnic marketing, however, is not new. What is new and important is the increased effort by corporations to use positive imagery, cultural identity and community development in their marketing strategies. This effort, and related successes and failures, merits close examination.
The historical use of stereotypes in advertising has caused lasting damage and hurt to minority consumers that plague the advertising industry to this day. Corporate America is starting to utilize ethnic marketing agencies in an attempt to reach minority groups more effectively. These agencies have in-depth knowledge of minority communities and draw on strategic tactics to reach them. Their extensive expertise in the development of advertisements and use of ethnic communities to build brand awareness are key factors in helping them achieve their goals successfully.
Analyzing previous ethnic marketing successes and failures, evaluating critiques from the experts and reviewing statistics provides valuable, current information pertaining to ethnic marketing. Further, it demonstrates how effective practices need to be implemented now in order to reach the new majority of tomorrow and to secure loyalty and profit in the future.