September 2007
Marketing to Multicultural Audiences
The emerging attendee market for both trade and consumer shows is multicultural. Today, one-third of U.S. residents fit that profile. By mid-century, the number will jump to nearly half. Understanding the cultural nuances necessary to reach and interest these markets is a challenge show organizers must meet.
By Patricia D. Sherman
It couldn’t be just any dog; it had to be a red dog.
Fortunately, Lee Corkhill, Senior Marketing Specialist for Portland, ME-based Diversified Business Communications (www.divbusiness.com), discovered this cultural intricacy about the Year of the Dog before she sent a holiday message to the All Asia Food Expo mailing list.
When she had a mock up with clip art of a dog, she ran it by a member of the show’s advisory board who is of Chinese heritage. “The advisor said, ‘No, You can’t send a black dog. That would be an affront. It has to be a red dog!’ That was something I never would have known,” says Corkhill.
For most show organizers, multicultural markets present lots of unknowns. But they also present lots of potential for new attendees and exhibitors. Reaching these markets and understanding the cultural nuances is a challenge that all show organizers are going to have to meet — sooner, rather than later. In fact, the U.S. Census Bureau reports that currently about one in three U.S. residents is multiethnic, multiracial or multicultural. By mid-century, the bureau predicts 47 percent of the population will be nonwhite. A major departure from just a few years ago when white middle-aged men dominated the trade show environment, especially for association shows where, in general, membership was often (and sometimes still is) referred to as the good ol’ boys network.
Future attendees for both trade and consumer shows will come from multicultural markets because that’s where the growth and the new business are. Companies that market direct to consumers — your exhibitors — as well as ad agencies and convention and visitors bureaus (CVBs), are embracing the new reality with targeted promotion campaigns and resources (both budget and staff) dedicated to understanding and attracting this emerging market.
Some shows are taking note of the changing demographics of their attendees and developing strategies to address this inimitable challenge. But it will take more than simply adding photos of attendees with different ethnic backgrounds to promotional materials or using graphics and themes that play up obvious cultural references. It will take a genuine understanding of these multicultural markets — just ask Corkhill. Will your show capture this emerging market?
Shifting demographics and consumer trends
Associations are particularly feeling the effects of demographic shifts. Membership in many umbrella organizations is stagnant or declining as the pool of “traditional” members diminishes. At the same time, smaller specialized groups, particularly those based on ethnicity or culture, seem to be growing, according to Michael Faulkner, CAE, author of “Will Demographic Trends Transform Association Membership?” published in the Journal of Association Leadership, (www.asaecenter.org) Winter 2005.
In addition to the surge in the U.S. multicultural population, their buying power on the consumer side continues to increase. In 2003, African-Americans, Hispanics and Asian-Americans spent $1.6 trillion, according to a report issued in May 2007 by the Selig Center for Economic Growth (www.ethnicmajority.com).
“There are nearly 32 million people of Hispanic origin in the United States, almost 12 percent of the total population. This year, Hispanic consumers will spend $422 billion, according to the Standard & Poor’s DRI, The Hispanic Consumer Market in 1997 and Forecasts to 2010.
Because they have younger and larger households, Hispanics consume more than the general public in many product categories, such as food, beverages, clothing, and telecommunications, says Alex Cornelio, Chief Operating Officer of ADN Communications (www.adn-comm.com), a Coral Gables, FL, marketing firm that helps clients reach the Hispanic Market.
With a purchasing capacity of $101 billion, Asian-Americans have a huge impact as consumers even though now they lag behind other ethnic groups in numbers, says Andrea O. Sigler, Ph.D., Chairman of the Board of the Asian Leaders Association (www.asianleaders.org) and a member of the board of the International Association of Hispanic Meeting Professionals (www.hispanicmeetingprofessionals.com). “With a current population exceeding 13 million and a growth rate of about 63 percent in the last census, the Asian-American market is poised to compete aggressively with Hispanics and African-Americans for ethnic marketing dollars. The community is known for its widespread affluence, huge spending power, high household incomes, higher education levels, highest per capita incomes, business savvy, professionalism and a strong work ethic.”
While there’s a fair amount of recent research on consumer trends for multicultural groups, there’s limited data on their business and professional practices for trade show organizers to use — but it’s coming. For the first time, many trade shows have begun collecting and tracking the ethnic demographics of attendees.
Cultural Competence
Reaching these burgeoning markets will take money. “Show managers don’t have to spend many thousands, but they do have to spend some,” says Stephanie Selesnick, Executive Vice President of International Trade Information, Inc. (www.internationaltradeinformation.com) in Los Angeles, producers of national and international trade shows, a number of which are geared toward the Hispanic market. But before show organizers worry about their budgets, they should worry about their cultural competence, she says. “That takes a serious commitment of time.”
Show managers should spend the time to understand target markets at the earliest stages of planning, cautions Cornelio. “Unfortunately, there’s the perception that all it takes to reach the Hispanic market is to translate the general message into Spanish. But reaching this market requires a considered strategy from the beginning. It shouldn’t be an afterthought. When you understand what’s important to the market, you can choose the right media combination.”
Reaching ethnic markets can be daunting. “Ethnic groups aren’t uniform,” says Tanya Hall, Executive Director of the Multicultural Affairs Council for the Philadelphia CVB (www.philadelphiausa.travel). “You can’t say every member is interested in this or that.” There are many sub-groups. “There are Mexican-Americans, Cuban-Americans, Puerto Rican-Americans, etc. Asians may have roots in Malaysia, Vietnam, Singapore, Indonesia, Japan, India, China. Even people of Chinese origin may have roots in Hong Kong, Taiwan or Mainland China,” Sigler says. They may have very different cultural traditions or only subtle, yet important, differences.
But for show managers who take the trouble to become culturally competent, there can be big paybacks — and hazards for those who don’t. “Multicultural customers tend to be more loyal because they’re a smaller, tighter community, but the opposite also is true. The trust factor is huge. If you wipe out a relationship with a few key people, it could spread through the whole community, and you could lose that niche altogether,” says Sigler.
How to Increase Multicultural Attendance
The basics of marketing and promotion apply to all groups, but integrating cultural nuances into contacts, presentations and advertising will increase the likelihood of success.
1. Focus on a vertical marketplace. “You have to establish credibility in the target community” says Selesnick. “Get out and meet the people you want to attract. Become an ambassador. Talk to business people and professional and trade organizations. Attend networking opportunities. Find leaders in the community. Donate merchandise and money to their events and charities. Give scholarships. Even go to ethnic restaurants and events so you’ll appreciate food and entertainment preferences.”
Sigler stresses that grass-roots marketing is critical in Asian and Hispanic markets where churches and organizations often play a central role. Ethnic events and holidays are obviously important for shows to consider when
scheduling and putting together menus.
2. Know the group’s goals. “People group themselves into ethnic organizations because they feel a need for something they’re not getting from mainstream organizations” says Hall. “You have to invest the time to understand that need so you can speak to it. For instance, if I were making a pitch to the Society of Hispanic Professional Engineers, I would want to know why they’re in business. If, for example, on their Web page, I see that their objectives include helping Hispanics become engineers and scientists, I would touch on this theme, rather than general engineering interests, when I promote my show.”
3. Establish partnerships and use them. “Trade access with organizations. Ask them to lead seminars or workshops at your show,” says Lew Shomer, President and CEO of Southern California-based Shomex Productions (http://www.shomex.com), one of the largest producers of diversity career fairs. “Ask for endorsements. These groups tend to be open and appreciative
if you make the effort,” says Cornelio. Feedback helps show managers understand key issues, so they can make informed decisions about emphasis and media combination. “They’ll tell you what they like and dislike — if you listen,” says Hall.
A partnership with Asian Women in Business was crucial in establishing the Asia Food Expo in 2004 in New York, says Corkhill. “They distributed VIP tickets in Chinatown markets we couldn’t reach through traditional media.” A partnership with Goya Foods, one of the largest distributors to the Hispanic market, helped build attendance for Expo Comida Latina, also produced by Diversified. Goya truck drivers distributed 14,000 flyers to bodegas and independent stores as they made their deliveries. “They reached people we would not have met, and the Goya endorsement gave the show credibility,” she says.
4. Build on your contacts. An advisory board made up of community leaders, representatives of organizations and vendors will tell you how to present your message and avoid mistakes. They can help find the best media for the message, says Corkhill.
“Get people in the organizations to make joint calls and presentations with you. It will get you into a lot of places,” says Leslie Edwards-James, Associate Director of Sales at the Sheraton Buckhead Atlanta Hotel (www.Sheraton.com/Buckhead).
A good resource to get you started, she suggests, are the African-American, Hispanic, and Asian-American Yearbooks published by TIYM Publishing Company of McLean, VA, (www.TIYM.com). The yearbooks comprehensively cover organizations, community leaders, publications, radio and churches.
5. Don’t overlook local and regional vendors as potential exhibitors. Multicultural professional associations in your show’s host city and CVBs can often help with this, says Hall. Organizational and community contacts are a good way to develop relationships with potential exhibitors, agrees Edwards-James.
“The suppliers in the community all know one another. They know what’s going on at all times. Make them your allies.”
6. Advertise in ethnic media. These media have a powerful influence in their communities, but show managers have to be willing to invest in them, says Selesnick. “Buy advertising. Then encourage them to cover your show. Invite them to events. Do trade outs. Exchange Web banners.” Shomer advises publicizing through association newsletters and Web sites, as well as through colleges and universities that have diverse students and vast alumni lists.
7. Adjust your advertising. “You can’t put a general ad in the local Black newspaper,” says Hall. “You have to show that whoever is delivering the message knows why it’s important to the community. For instance, a medical group dealing with, say, pulmonary disease wouldn’t be successful placing an ad in a Black newspaper that says we’re having this show and you should come. You would have to demonstrate that you know why these ailments are important to the Black community by emphasizing the crisis caused by heart disease among African-Americans.”
The graphics should show members of the target group, of course, but promoters can’t just plug in a brown, black or Asian face. Hall recalls a conversation she had recently with a Hispanic business leader. He was commenting on an ad featuring a picture of a lone Hispanic man on a riverbank fishing. “Sure, Hispanics fish, but we never fish by ourselves. The promoters don’t understand the role of the family in our culture,” he says. “It looks like a general advertising piece, and they just stuck a Hispanic man it.” The promoter meant to send a positive message, but the received message, was “I haven’t bothered to learn much about you.”
8. Diversify your workforce. “To build multicultural participation, hire people who understand the cultures,” says Shomer. “It’s difficult for a white male to understand the subtleties of other cultures. Any group, whether ethnic, religious or professional, speaks its own language when the members are together. This is often overlooked because when they’re in a mixed group, individuals adjust to that group. Show managers need people familiar with the culture to recognize and speak their language.”
Albert Tucker, Vice President of Multicultural Business Development for the Fort Lauderdale, FL, CVB (www.sunny.org), calls the standard sales pitch “corporate talk. The reps say the right things, but they don’t know their multiracial clients as individuals. They don’t get the point.” Everybody may read
the same data, he adds, but it can mean different things to different groups.
Diversification may also mean hiring specialized advertising and marketing agencies. The Dallas CVB (www.dallascvb.com), for example, has had successful campaigns hiring separate agencies for Hispanic, African-American, Asian, and Gay, Lesbian, Bisexual and Transgender markets, says Phillip Jones, President and CEO, Dallas CVB.
9. Diversify your speakers and entertainment. “Always think of the different groups you want to attend your show when you schedule entertainment. It’s like putting together a puzzle,” says Connie Kinnard, Vice President of Multicultural Sales and Development for the Nashville CVB (www.nashvillecvb.com).
“If you’re going to have Reba McIntyre for one event, consider a gospel or jazz group for another.” It’s not that African-Americans don’t enjoy Reba McIntyre, she explains, it’s that your choice of speakers and entertainment sends the message that you recognize different tastes, and all are welcome.
10. Give special attention to spouse and children’s programs. Family is the basis for many social activities for Asians, Hispanics and African-Americans. They’re more apt to travel with their families, say Cornelio and Tucker. Family activities that feature a cultural element will make shows more attractive to ethnic participants.
Patricia D. Sherman is a Dallas-based freelance writer specializing in the hospitality industry. She was Senior Editor of The Meeting Professional magazine, taught business and professional writing at several Midwestern universities and managed a b-to-b communications and advertising firm.
“If you’re walking the show floor, and you’re not hearing the term ‘dude’ frequently, your show isn’t drawing enough young people — workers under 30 who are the future leaders in their industries and future show attendees,” says Francis Friedman, President of Time & Place Strategies (tjfconsult@aol.com), a trade show consultant based in New York.
“How are shows going to replace the Baby Boomers who are moving through the demographic? We don’t have an answer yet, but attracting younger audiences across all market niches is something show organizers have to think about now,” he says.
Younger audiences bring passion and new ideas to shows. Many new technologies are weighted toward younger groups. At the same time, “It’s harder to get them to participate. They’d rather stay home with their iPods,” he says.
As show organizers take steps to increase multicultural attendance, they also need to motivate the younger segments of these groups.
• Encourage employers within a 200 mile radius to send younger workers. Because employees can drive in, employers will see their attendance as more cost effective.
• Add a few seminars and classes for participants in the early stages of their careers. As attendees have moved into the later stages of their careers, seminars and classes have been designed for
participants with extensive technical background. But to appeal to young workers, show managers need to offer education for their needs. Younger Hispanics, in particular, are highly motivated to find education to improve their performance and advance their careers, says Alex Cornelio, Chief Operating Officer of ADN Communications (www.adn-comm.com).
• Make some changes on the show floor. For instance, Friedman says, wider show aisles that accommodate strollers and carriages, as well as nursing and changing stations convenient to the show floor, have been well received.
• Find out what CVBs can do to attract younger attendees. The Fort Lauderdale CVB has programs that target young African-Americans interested in particular professions, such as law enforcement, firefighting, or journalism, says Albert Tucker, Vice President of Multicultural Business Development. Showing that organizers want to contribute to the community tends to increase attendance across the board.
Forward-looking CVBs all over the country — from Philadelphia, where one of the first multicultural marketing programs was established 20 years ago, to Dallas, which has been aggressively targeting these markets for three years — have developed tools to help organizers reach multicultural markets. Here’s a sampling of what CVBs are offering:
1. Cincinnati (www.cincymeetings.com) — The CVB helps organizers with lists of multicultural media outlets and regional leaders. In some cases, these leaders travel with the CVB and
hospitality partners to pitch Cincinnati. The state and city have dedicated Web pages for visitors seeking multicultural experiences (www.discoverohio.com/multicultural and www.cincinnatiusa.com/Mosaic/index.asp). Last year, the National Society of Hispanic MBAs had record attendance in Cincinnati.
2. Columbus (www.experiencecolumbus.com) — Images available emphasize diversity and focus on the city’s ethnic neighborhoods, arts and restaurants. In 2005, Black Meetings & Tourism Magazine recognized Columbus as the best Midwest city for meetings. In 2007, BET.com ranked Columbus No. 2 in the nation for African-American families, and in 2007, Black Enterprise Magazine cited Columbus as a Top 10 city for African-Americans.
3. Dallas (www.dallascvb.com) — Three years ago, the CVB launched a campaign to draw more multicultural meeting attendees, says CVB President Phillip Jones, “The city was not perceived as a diverse destination. But Dallas is dynamic and evolving and has large Latin, African-American, and Gay, Lesbian, Bisexual and Transgender (GLBT) communities.” The bureau hired two staff members dedicated to African-American, Hispanic, Asian-American, and GBLT markets, outsourced advertising to specialized agencies, and developed group-specific micro-sites and new print collateral. “In three years, we’ve brought more than 85 meetings to Dallas and had an economic impact of more than $231 million,” he says.
4. Fort Lauderdale (http://www.sunny.org/) — Thanks in large part to the focus on multicultural markets in the past seven years, the city has become a year-round destination, booking more than $50 million in meeting business in 2006. The CVB has a multicultural guide and a Web page that feature the African-American Research Library and Cultural Center, museums of African-American and Native American history, and other attractions of particular interest to multicultural groups.
5. Houston (www.visithoustontexas.com) — Houston is one of the most diverse major cities in the country; no racial or ethnic group constitutes a majority of the population. This diversity is reflected in the staff, advertising, Web site and marketing collateral. Advertising is placed in Hispanic and African-American publications; two videos highlighting the city’s diversity; and a section on the Web site is dedicated to multicultural attractions.
6. Indianapolis (www.indy.org) — The CVB’s weekly blog informs attendees about after-meeting activities and allows them to post questions and comments (www.indyinsights.com). African-American convention attendees make up 16 percent of the total booked by the CVB. The city hosts Summer Celebration, the largest and longest-running African-American cultural expo in the United States, attended by more than 300,000 visitors. The CVB has a strong relationship with the Indy Rainbow Chamber of Commerce and promotes to the GBLT market.
7. New York (www.nycvisit.com) — The CVB has a staff member dedicated to the African-American and Hispanic markets. Pre- and post-show programs that highlight the city’s diversity include the Harlem Spiritual Tour that covers the history of African-Americans from the city’s founding in the Financial District to modern-day Harlem. The CVB has visitor guides in Spanish, German, French, Italian and Japanese, and multi-lingual Web sites.
8. Philadelphia (www.pcvb.org) — The Multicultural Affairs Congress (MAC), a division of the Philadelphia CVB, was founded two decades ago and has four staff members dedicated to the African-American, Hispanic and Asian-American markets. When MAC was created, the city had six multicultural meetings on the books. Now it’s common to host more than 100 a year. The PCVB has booked more than $1.5 billion in multicultural meetings and conventions — $52 million in 2006. The city has been cited repeatedly as a top meeting destination in ethnic media outlets, including Essence, Ebony, Black Enterprise and Hispanic Meeting & Travel magazines.
9. Tampa (www.visittampabay.com) — The CVB has a new multicultural brochure and enhanced photo archives that highlight area multicultural attractions. It maintains membership in meeting associations that serve ethnic markets and provides organizers with contacts in ethnic communities. Local representatives and community leaders are cast in video greetings and broadcast invitations.
10. Virginia Beach (www.vbfun.com) — The CVB has a dedicated sales manager for the multicultural market. The past three years have seen more than $13 million in bookings from this
market. The CVB has a multicultural Web site and advertises heavily in Black Meetings & Tourism Magazine.
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