Thursday, April 30, 2015

The New Power Latino

The US Hispanic market is on fire, as the demographic keeps growing it has become the most important consumer opportunity today. Every brand should consider connecting to latinos but not everyone knows how to. There are many misconceptions about how to segment the US Hispanic community with much talk about acculturation levels. However, the Hispanic community is very diverse within itself and it has many more layers than it would appear. Such is the case with the elusive upscale latino segment.

The often mis-targeted upscale latino segment is spending $500B annually, and contribute nearly 40 percent of the $1.5 trillion Hispanic spending power, as reported by Nielsen. The upscale latino has a very different mentality than their Hispanic counterparts. Historically, there has been large socio-economic differences in latin America, that are still deeply ingrained today. There is a very interesting essay written by Simon Bolivar, widely known as "The Liberator", and regarded as the leader of the Latin American Wars of Independence. His essay, written in 1815, explains that when Spaniards appeared in the new world, the natives considered them as a superior species, due to fear of their force and because the natives saw the Spaniards as divine messengers of sorts. The old beliefs are still somewhat present in the modern era, and can be seen through a need to acquire and defend a high standing status.  Research by Nielsen has shown that this segment is more likely to be luxury seekers, compared to upscale non-Hispanics, which would confirm the need to protect status.

Members of the upscale latino segment often enjoy a privileged lifestyle in their native countries and are seen in positions of power, they have a tendency to operate within closed inner circles. However, across all luxury segments, about 60% have strong ties to the latino culture, and 30%-40% voice a strong cultural duality (Nielsen). The research also showed that upscale latinos share similarities with upscale non-Hispanics, yet maintain their uniqueness . This finding would explain why the number one top-recalled ads in Spanish-language magazines was a straight translation of an English-language ad featuring the same (very American-looking model). The conflicting findings suggests that brands seeking to connect to the upscale latino demographic must take on a different strategy than the old tried and true, and seek to make connections with this segment in a deeper more meaningful level.

Call SEED Branding Studio for fresh strategies to connect with the Power Latino. 
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Monday, April 13, 2015

6 Highly Effective Advertising Persuasion Secrets

We are constantly being bombarded with messages imploring us to change our attitudes and buy products. These persuasion attempts can range from logical arguments to graphic pictures, from peers who try to intimidate us to celebrities who try to charm us.

Persuasion involves an active attempt to change attitudes. This is of course Job #1 for many marketing communications. Today we will share some basic psychological principles that influence people to change their minds or comply with a request.

1. Reciprocity - We are more likely to give if first we receive. That's why including money in a mail survey questionnaire increases the response rate by an average of 65 percent over surveys that come without financial incentives in the envelope.

2. Scarcity - Like people, items are more attractive when they aren't available. In one study, researchers asked people to rate the quality of chocolate chip cookies. Participants who only got one cookie liked them better than did those who evaluated more of the same kind of cookie. That helps explain why we tend to value "limited-edition" items.

3. Authority - We believe an authoritative source much more readily than one that is less authoritative. That explains why the American public's opinion on an issue can shift by as much as 2 percent when the New York Times (but not the National Enquirer) runs an article about it.

4. Consistency - People try not to contradict themselves in terms of what they say and do about an issue. In one study, students at an Israeli university who solicited donations to help disabled people doubled the amount they normally collected in a neighborhood if they first asked the residents to sign a petition supporting this cause two weeks before they actually asked for the donations.

5. Liking - We agree with those we like or admire. In one study, good-looking fundraisers raised almost twice as much as other volunteers who were not as attractive.

6. Consensus - We consider what others do before we decide what to do. People are more likely to donate to a charity if they first see a list of the names of their neighbors who have already done so. To illustrate, think about how many brands claim to be "America's favorite (fill in the blank)?"

This principles are applied in most every form of sales, bear in mind that they can also be applied in many settings of everyday life. So next time you need to persuade someone you may be able to pull a new trick from your sleeve. Happy persuading!