This is the third of a three-part series on marketing to ethnic consumers by Dr. Bobby Siu, president of Infoworth Consulting, a Toronto-based firm specializing in ethnic marketing and international business. Siu can be reached at (416) 967-5292 or fax (416) 967-6024.

There are a number of considerations – demographic, socio-economic, cultural and psychological – which marketers must take into account if they wish to influence ethnic consumers to buy their goods and services.

First, there is value in knowing as much as possible about the demographic factors (for example, age, gender, language, place of origin, duration of residence in Canada, and so on) of the ethnic consumers whom marketers are trying to influence.

This information enables marketers to target more specifically, narrow the scope of marketing considerations, utilize certain communication channels or media, design proper graphics and images and present appropriate commercial messages.

Marketers cannot assume that ethnic groups are homogenous.

Take Chinese immigrants as an example: They may come from Hong Kong, the People’s Republic of China, Taiwan, Trinidad, Jamaica, Panama, Vietnam, and so on. Using a blanket ‘ethnic’ marketing strategy may not yield as good a result as a ‘regional’ approach. An understanding of the ‘places of origin’ of ethnic consumers will yield more sophisticated marketing methods and help marketers to connect with community, business and professional organizations established to serve immigrants coming from specific places or regions.

Second, incorporating knowledge of the social and economic status of ethnic consumers in a marketing strategy will make it more effective.

Information on ethnic consumers includes occupational groups, education, income levels, religious backgrounds, residential modes and household size. This information tells us a lot about ethnic lifestyles, consumption patterns and social values.

Tropicana Canada, for example, has noted the socio-economic backgrounds of Chinese Canadians (high income and education levels, with larger family size) and decided to target them in selling its orange juice. This is a good example of how knowing the demographic, social and economic characteristics of ethnic groups helps marketers to develop marketing strategies and influence consumers.

Marketers must also be aware of the socio-cultural-religious backgrounds and the historical/political baggage that immigrants bring with them when the immigrate to Canada. For example, ‘Punjabi’ Indians are not the same as ‘Hindi’ Indians in many ways, and ‘Taiwanese’ Chinese are different from Chinese who come from the People’s Republic of China.

Such knowledge is absolutely essential in marketing and advertising, lest marketers wander into ethnic minefields.

As far as cultural considerations are concerned, this subject arouses the greatest interest among marketers, yet is perhaps the least understood.

Using traditional values, beliefs and symbols appeals to the recent immigrant’s sense of cultural/historical roots as well as heightens his or her comfort and security level.

In marketing to ethnic consumers who recently came to Canada, it is crucial for marketers to have a good sense of what appeals to these immigrants ‘culturally.’

Traditionalism appeals most to older immigrants, who tend to be decision-makers in the purchase of big-ticket items (such as houses and cars.)

A number of questions must be asked: How do cultural values, beliefs and symbols affect the younger generation of ethnic consumers? How do cultural factors affect consumption of lower-priced items? and How do cultural factors affect other aspects of life (such as a desire to have a modern lifestyle or to be accepted by other Canadians?)

In ethnic marketing, perhaps the ultimate question is: What role do cultural factors play in consumers’ decisions to buy or not to buy certain goods and services?

The answer seems to lie in the changing psychology of various groups of ethnic consumers. Marketers must understand the collective minds of ethnic groups, both immigrant and native-born.

The psychology of ethnic consumers changes the longer they are in Canada. In a strange land, many recent immigrants find comfort in things with which they are familiar. This explains why recent immigrants prefer authentic ethnic foods, grocery products, furniture, appliances, utensils, clothing and so on, with which they were brought up in their home countries.

The cultures these immigrants brought from their home countries are then ‘frozen’ at the time they migrated to Canada. Brand-name loyalty for these immigrants is crucial at this stage. Marketers must build upon this special psychological need.

Many recent immigrants ‘rediscover’ their ethnicity and culture in Canada. Some Hong Kong Chinese develop a new taste for traditional Chinese rosewood furniture and Chinese classical brush-painting. Some African-Canadians rename themselves using traditional African names and start wearing traditional African clothing and accessories.

Centuries-old symbols and images of success, dignity and well-being resurface and assume significance in the ethnic psyche. Marketers must take into consideration this ‘back-to-the-future’ style of culture in marketing to these consumers.

However, as immigrants live here longer, they begin to adopt values and lifestyles similar to ‘ordinary’ Canadians. The mosaic in Canada begins to melt.

After five to 10 years of living in Canada, immigrants begin to feel more comfortable with the culture of their adopted country, while retaining some of their ethnic traits.

For example, more established Chinese immigrants may not have ‘dim sum’ and Chinese tea every day, but their still maintain a sense of respect for seniors.

Marketers trying to make inroads into these groups must learn how to decipher the meanings and implications of this strange mix of traits.

Native-born ethnic consumers may also develop special psychological characteristics. Some may attempt to ‘hide’ their ethnicity, some strive to instill selected ethnic/cultural features in children, and some try to ‘out-Canadianize’ the Canadians.

Some act ‘ethnically’ in front of older generations and behave as ‘Canadians’ on other occasions. Some deliberately avoid mixing with their own ethnic group members. Marketing to this group of ethnic consumers requires special efforts.

Demographic, socio-economic, cultural and psychographic factors contribute to the complexity of ethnic marketing.

They force marketers to ask two questions of strategic importance:

– Should I find the common threads among the different segments of ethnic consumers and design marketing strategies accordingly? or

– Should I target specific segments of ethnic groups with their unique characteristics, and use focused marketing strategies?

The answer to these questions will determine a marketer’s overall approach to ethnic marketing. This, combined with the four considerations outlined above, should make the task of influencing ethnic consumers easier.