Key terms
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This paper takes forward the social inclusion debate in a more commercial manner by looking at marketing to a sector of society that is sometimes excluded - ethnic minorities. |
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Key facts
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The confluence of demography, technology and globalisation is transforming culture and society worldwide. Marketers are increasingly addressing ethnic minorities and multi-cultural communities in defining their strategies. Ethnic minorities make up a huge target market in the UK. They comprise 5.5% of the UK population and this market is expected to grow by 2.5% annually.
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How does it work?
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Organisations can approach ethnic marketing in a couple of very different ways:- Integrating and assimilating ethnic minorities into the mainstream (European and US focus)- Penetrating markets with a strong ethnic history as well as diversity in languages, dialects, religions, food habits, dress codes etc. (Asian-Pacific, African and Latin American focus)
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Implications for business
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Ethnic marketing can be a very sensitive issue, and companies need to understand their target market very well. Most seem to be scared of venturing into the area in case they get it wrong and, instead of selling their goods, they alienate an entire section of society. There are certainly challenges as the market is extremely diverse.
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Opportunities for business
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The ethnic market has an annual spending power of £15 billion annually. The market tends to be better educated (thus better job and better income), younger (high disposable income) and geographically easier to reach (e.g. population concentrated around London, Birmingham and Manchester). Companies that can create brand awareness in this market can also attract talented employees.
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Further reading:
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