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Monthly Issues

Marketing Realities For The Browning Of America
by Lafayette Jones
In 1990, the U.S. Census Report issued a wake-up call to marketers across the country. The census figures told us that African Americans, Hispanics and Asians make up the fastest growing consumer group in the country. In fact, in certain cities-- Washington, DC, Los Angeles and Miami, for example--the minority now represents the majority of the population.  

This shift in demographics is called the "Browning of America." But, the shift is not limited to increasing population numbers; it is cultural.  

Afrocentric fabrics and fashions are being worn by all races and ethnic groups. Mexican food is one of the most popular foods among Generation Xers. Popular music increasingly is influenced by rap, gospel, rhythm and blues, and Tejano music. Even the smallest cities have at least one Chinese restaurant--and some of them have Vietnamese and Thai restaurants, too.  Furthermore, the general population is now seeking so-called "ethnic products."  

The Browning of America has motivated forward-thinking companies to seek the best and brightest to work in their ethnic marketing, in their diversity departments, and in other areas. Companies are offering scholarships and mentor programs to attract new talent in colleges and universities, and they're hiring minority-owned firms that specialize in reaching niche markets.  

Our company, Segmented Marketing Services Inc. (SMSi) is part of a group of marketers who grasped the magnitude of this trend ---- long before the Census report documented it.  Consequently, we've built a successful business helping Fortune 100 companies reach these consumers.  

The company was founded in 1978 by Sandra Miller Jones, a Dean's List MBA graduate in Marketing from Northwestern's Kellogg School of Business and former marketing executive for The Quaker Oats Company. While at Quaker, she realized that marketers were missing important opportunities in the African-American consumer market.  

She found a cost-effective way to promote products to limited groups of people.   Gift bags, filled with samples and coupons for a variety of brands, were the solution.  

I joined the company as a partner in 1988. As a marketing executive for Hunt-Wesson, I've created successful strategies for Orville Redenbacher Gourmet Popping Corn and Hunt's Manwich. I've also worked at other corporate giants such as Lever Brothers, General Foods, Pillsbury and Johnson Publishing; founded the American Health  & Beauty Aids Institute (AHBAI), the trade association of Black haircare companies; and founded the  Product Sampling Council of the Promotion Marketing Association.  

In 1990 we recruited another partner, Rodney Lawrence, SMSi's executive vice president. Lawrence's prolific career has included marketing positions at Sears, McDonalds, Leo Burnett Advertising, Johnson Publishing and Soft Sheen Products.  

SMSi provides marketers with unique alternative venues that reach consumers who are important to urban retailers but are not reached by conventional sampling techniques.  

For example, according to 1990 U.S. Census Bureau data, African Americans, Hispanics and Asians now account for one-fourth of the U.S. population and will represent one-third after the turn of the century. But, only five percent of African-American and Hispanic consumers receive samples through traditional programs. This means the sampling efforts of many manufacturers are failing to reach a significant portion of the market; especially in inner cities of many markets where these consumers represent the majority of the population.  

SMSi has developed an unusual portfolio of community-based sampling venues, including churches and beauty salons, to reach ethnic consumers in urban markets with promotions that work. These are high traffic areas consumers patronize because they feel a sense of connectiveness.  

In addition to our sampling programs, we help clients like Procter & Gamble,  Kraft, General Mills and Coca-Cola execute special programs to reach ethnic consumers. We have developed strategic alliances with companies who are interested in more effectively reaching ethnic consumers. We're working with HEB a $6 billion, Texas-based chain of  more than 400 food and drug stores to develop programs to reach its African-American and Latino consumers. We've signed an agreement with AdvanceStar--a company that produces more than 70 trade magazines for a number of industries including art, landscaping, hotel/motel and beauty--to create a magazine for the ethnic health and beauty care, fashion and music industries. And, for the past two years, we've partnered with Media General to produce a trade magazine that builds a bridge between urban retailers and manufacturers interested in reaching America's fastest growing populations.  Media General is an independent, publicly owned communications company with more than 100 consumer newspapers in the Southeast.  

Our clients are committed to doing the right thing. That's why we've developed special programs to help them deliver the right products and services to ethnic consumers.  

There's no doubt about it. America is turning brown. If you'll concentrate your studies on building a strong business foundation and courses that focus on both traditional and non-traditional marketing, you'll be poised to help these companies reach this lucrative market.  


Lafayette Jones Gif
Lafayette Jones is the President and CEO of Segmented Marketing Services, Inc., in Winston-Salem, NC. He is also the Publisher of Urban Call, a popular trade magazine for urban retailers.    

 

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