The Myth of Multicultural Marketing

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Over one-third of all Americans today are minorities and by 2038 the Census Bureau estimates they will be over half of the population. This plus the fact that Hispanics, African Americans, Asians and Middle Easterners buy over $2 trillion worth of goods and services annually has attracted the attention of companies all across the country who want a piece of this potential business.

As a result, U.S. firms are scrambling to implement multicultural marketing campaigns. In fact, reaching minority customers is the fastest-growing area in consumer marketing today. Companies are spending fortunes to target their advertising to reach culturally diverse consumers. In 2001 just the top 315 companies invested over $100 billion on multicultural marketing.

This huge buying frenzy has spawned the myth that companies simply have to conduct multicultural marketing and they will earn the business of ethnic consumers. The reality is that all of this money is wasted if minority customers are not treated with sensitivity when they come into your store or office. Just as marketing must be adjusted to meet the unique needs of diverse customers so must your sales presentation, store layout, staff, products, services and much more.

Multicultural customers do not buy products and services in the same way as European American consumers, nor do they want to be treated the same. They may prefer goods that are customized for them. For instance, homebuilders may need to change the types of models they offer, the amenities available and even orientation of the property on the site. Similarly, grocery stores must carry the foods that are familiar to ethnic customers.

Just a few of the other difference that affect retailers and service providers include: building rapport, negotiations and contracts. For instance, it's a little-known fact that not all people throughout the world are comfortable being greeted in the same way. As Americans, we assume that everyone wants to be met with a firm handshake which is not necessarily true. In fact, the most common greeting in the world is the bow, not the handshake which can actually be offensive to many people such as traditional Japanese, Asian Indian or Middle Eastern women.

The first step in building rapport with any person, regardless of culture, is never to assume how they want to be greeted. In other words, let them determine the most comfortable greeting by not automatically extending your hand and, instead, wait to see what they do first.

Next, training must be provided so salespeople understand that many new immigrant women do not want to be touched by strangers. This is especially true for traditional Japanese, older Indian and Saudi women. My studies show that 60% of these women do not want to have their hand shaken meaning that if salespeople are not trained to be culturally competent they are likely offending a majority of multicultural buyers.

Therefore, it is crucial after shaking a male's hand to be sure to drop your hand to your side before turning to a woman companion. If she does not offer her hand, simply nod in her direction to acknowledge her present and begin your sales presentation.

The Global Rule™ of greeting is: never assume anything! Greet the customer verbally and then hesitate for a moment giving him or her the opportunity to offer the kind of greeting that is most comfortable to them. Then, of course, simply return the gesture.

There are other cultural differences of which store owners and service providers should be aware. Personal space varies among cultures. In the United States we are used to shaking hands and then standing about two-and-a-half feet apart. This is not always comfortable for some people from more formal countries like Japan where they bow or shake hands and then take a step back. When this happens to an America we feel difficulty in communicating across a distance that seems like the Grand Canyon so we step forward. If you've ever had your personal space violated you know how uncomfortable this can be so a Japanese person will naturally step back to reestablish a more comfortable distance for them. You can easily see how this could result in you "chasing" the customer all over the store or office!

Other cultures may prefer to stand closer than Americans when communicating. Among these are the Middle Easterners and many Hispanics who will often hug you and simply stand at that distance. This is much too close for Americans so we naturally step back to a safer distance. Of course, this is probably too far away for the other party so they naturally step forward violating our own personal space. If this continues they will steadily chase you all over your establishment. Obviously, this makes communications difficult and uneasy. It also does not start your relationship on a very positive note.

Another difference Americans should be aware of is the amount of eye contact to expect from people from diverse cultures. In the United States we equate strong, direct eye contact with honesty and respect. On the other hand, many Asians and Native Americans avoid direct eye contact as a sign of respect for you. They feel that looking someone in the eye is intrusive and rude so they look down to honor you. Unfortunately, this is extremely uncomfortable for people from this country so we do everything possible to catch their eye.

The solution to lack of eye contact is simple – look down. You can also use this as an opportunity to show them brochures, pictures, price charts or other material since they are already looking down at your desk.

As usual, not all cultures behave the same way and there is a tendency for Middle Eastern people and some Hispanics to give very direct and strong eye contact. In fact, there is a saying in the Middle East that the "eyes are the windows to the soul". People from these groups may make Americans somewhat uncomfortable with their intensity. Just get used to it is the best advice you can get.

Many new immigrants come from countries where negotiating is a way of life. Unfortunately, here in America we have gotten into the habit of paying full price for nearly everything except cars and houses. This puts us at an extreme disadvantage when dealing with people who are used to haggling over everything from clothes to food. If you have many customers who hail from negotiating countries it would obviously be a good idea to enroll in a negotiating class as soon as possible!

Contracts are also not the same around the world. In the United States we put everything we agree upon in very detailed writings. When we sign a contract here it ends all further negotiations. In many other countries signing a contract begins the bargaining process, so again, a negotiating class would probably be a good investment.

Another way to make people from other countries comfortable is to have someone who can speak their language on staff. Hiring and retaining bilingual salespeople, cashiers, receptionists, and others requires special talent, knowledge and contacts.

These consumers can be an increased source of income for companies who are willing to adjust, just a little, to make people from diverse cultures more comfortable in doing business with them. You can see that multicultural marketing must be done in conjunction with cultural competency training if you want them to buy from you.

Copyright (c) 2007 Michael Soon Lee

Article Source: http://depositarticles.com/

Michael Soon Lee, MBA, is a cultural expert and author of several books on selling to multicultural customers. He was a Producer for the ABC Television Network and a Marketing Director for the State of California. His company, EthnoConnect™, provides keynote speeches, training and consulting on diversity and selling to the ethnic markets in America. Mr. Lee can be reached at www.EthnoConnect.com or by phone at: (800) 417-7325.

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