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Multicultural Marketing
Summer 2005 News Version 6.0 News
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Ethnic Technologies, LLC will be exhibiting at the following shows in the spring and summer of 2005

1. KidPower Conference May 10 – 13 in Lake Buena Vista FL.
2. Marketing Expo at the Pennsylvania Convention Center on June 12th and 13th at booth #84.
3. DMDays New York at the Javits Center NYC June 28 – 30 see us at Booth #401.
4. List Vision 2005 at the Waldorf Astoria NYC August 12th & 13th.

E-Tech has just added 2 new employees to the roster.

Karen Sinisi in the Sales Department and William Lara in the IT department.

We welcome them to our family..

E-Tech Personnel Interviewed for a Magazine Article focusing on the Asian Markets.

As Published in the Inside Direct Mail, February 2005 Issue
By Tracy A. Gill

According to a 2004 study by the Selig Center for Economic Growth at the University of Georgia, since 1990 the buying power of the Asian market in America has increased by 14.8 percent and up to $363 billion in 2004. The much sought-after Hispanic market slightly tops this level of growth (up 14.9 percent since 1990) and easily outpaces the general population, which only marked an 8 percent increase. According to Geoscape International, a market intelligence consultancy based in Miami, the numbers will continue to climb and the total population should experience a 4.2 percent growth over the next five years. They also expect that the Asian market will grow by 8.6 percent. While Asian Americans represent just a fraction of the total population, it’s a fraction that is rapidly growing in both size and opportunity.

“There’s only about 11 million Asians in this country, but look at the strength they have, the amount of spending power they control,” states Vince Andaloro, CEO of Asian-Pak, a direct marketing agency that specializes in list services, FSI and door hanger programs, and co-op mailings for niche markets.

Candace Kennedy, national sales and marketing manager for list service company Ethnic Technologies, agrees that the demographics of the Asian-American market, namely advanced levels of education and high per capita income, make it rife with opportunity. She also points out that the market has ignored this segment despite it being in the beginning of the Hispanic marketing explosion.

However, that seems poised to change, as the population begins to know the reality of this burgeoning market. “The trend of mailing more to Asian Americans is on its way up,” states Andaloro. He adds that he has seen an increase in database requests to target Asians, as well as movement in FSI placement, over the last year. Some of the sectors that have begun capitalizing on this trend include financial services, insurance, travel, cable TV, overseas calling plans, technology, and ISP providers. One area that has not seen much movement in the Asian-American market that has great potential is Business-to-Business. “More Asians own their own business than any other ethnicity,” states Andaloro.

Effectively capitalizing on this opportunity, however, is about more than just buying a list and hiring Asian-American models. Knowing your audience is essential to the success of any direct mail campaign, but cultural differences and language barriers make it even more vital in this market. Creating relevant and effective communications to this elusive market requires dedication, aggressive segmentation, and targeted messaging.

Identifying the Target

The biggest challenge of reaching out to the Asian-American market is that, it does not exist. What demographers and market researchers typically referred as “Asian American” really is a compilation of a number of ethnic subsets including Chinese, Vietnamese, Thai, Japanese, Korean, Mongolian, and Indian. Ethnic Technologies segments its Asian Prime Prospects list by the 20 largest ethnic selects and that only represents a handful of the subgroups out there. These distinctions play an important role in your marketing efforts. Kennedy asserts, “One size does not fit all within the Asian community.”

“Finite list segmentation,” recommends T.J. Lindsay, CFO and director of research for Ethnic Technologies, “is integral within this market because it allows you to dig into the list and tailor your message for that perfect fit, beginning with ethnicity.”

Narrowing your focus within the Asian-American market to one or two specific ethnicities will enable you to create messages that are relevant on both a cultural and consumer-oriented level. Which groups you choose will depend on your product or service and your goals. At Asian-Pak, Andaloro has found that Chinese is the most popular select because it returns the most hits. Japanese comes in second because although there are fewer names on the file, because it offers a higher per capita income.

Cynthia Chan, research manager at market research consultancy Cheskin, agrees that Chinese is a popular select. She also sees great potential in the Vietnamese market, because it is experiencing growth both in size and spending power as families expand and more and more members attain higher levels of education. Because its members assimilate more into American culture than other groups, Chan advises that Japanese files will probably perform well with general market campaigns. She states that, “The market that is out there now has grown up here, speaks fluent English, and is accustomed to advertising.”

“Korean lists are seeing more movement,” according to Lindsay. Lindsay also notes that there has been a recent large increase for Indian lists. In addition, she sees opportunity in the up-and-coming Mongolian market.
With so many viable options, the key is identifying which groups will work best for your product or service. For example, Chan points out that offers for mortgage and educational services will do well with groups that have high numbers of recent immigrants. Emphasize how your product or service will enable them to improve both their own lives and the lives of their families by appealing to their familial ties and their desire to gain a foothold within the American economy. Chan asserts, “Education is important because it will not only bring you personal success, but your families will be happy for you and will benefit.”

General market food and beverage brands and automobiles have found success with more acculturated segments. Casinos and investment companies also have found success with acculturated groups with higher per capita incomes, because Asian men have a propensity to be gamblers with their money. “For these groups,” Chan suggests, “emphasizing the quality and status afforded by your product or service. But proceed with caution when using status as a message because no one wants to admit to that. This message needs to be woven indirectly into your communication.”

A note of caution when choosing lists to target within the Asian market: Unless the lists you are using are compiled from self-reported data, proper identification of names can be quite challenging because of the similarity of Asian surnames and the prevalence of multicultural families.

To ensure that the names on your list do in fact belong to the appropriate ethnic group, Lindsay recommends that you make sure the list was compiled using multiple factors, including surname, middle name, first name, and geography.

Talk the Talk

Once your target ethnicity has been determined, Kennedy stresses the importance of identifying language preference. “Language targeting is a growing marketplace within all the different groups,” says Kennedy, who points out that about 53 percent of Ethnic’s Asian Prime list prefers to be contacted in-language. Within Ethnic’s list, these percentages are higher for the Vietnamese community because it has newer immigrants. These percentages are lower in the Chinese segment, because its members tend to be later-generation Americans. Therefore, they assimilate more into American culture.

“Even within second- and third-generations, in-language offers can be effective,” says Chan, “because Asian families are very culturally oriented, passing language and practices down through generations.” Kennedy agrees by pointing to sources that say Asian-American families tend to have multiple generations in the same household and prefer to speak their native language within the home. Many lists will feature data on language preference to give you a better idea of how your prospects would like to be contacted.

Beyond language preference, other popular selects within Asian lists include: income, age, geography, professionals, and presence of children, homeowners, and credit cards. Kennedy notes that one area that opportunity marketers are not taking advantage of its mail-order buyers. “There are a lot of different catalogs and products out there that are targeted toward the Asian community,” she says. “But people are not utilizing that.”

Another important thing to assess is your target’s level of exposure to and experience with your product or service. “Different cultures will have different levels of understanding of American practices,” asserts Chan. For example, the health insurance industry in China is very different from that of the United States, so you would need to devote your message to education when targeting that group.

In this age of personalized communications, generic messages targeted toward the entire Asian community will fall flat. Language preference, level of acculturation and experience are just a few of the factors that will have a strong influence on how other individuals perceive your messages.

If you feel that developing unique campaigns to target the different ethnic groups within the Asian-American market seems cost-prohibitive, Andaloro stresses that this market’s buying power and brand loyalty makes the investment worthwhile. In addition, advances in digital and variable data printing have made targeting a more accessible and more affordable reality for mailers of any size. Maximize the return on your investment by thoroughly researching the preferences, inclinations, and values of your target and use the best lists to get the right message to the right people.

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