Slide 1Slide 2Slide 3Slide 4Slide 5Slide 6Slide 7Slide 8Slide 9Slide 10Slide 11Slide 12Slide 13Slide 14Slide 15Slide 16Slide 17Slide 18Slide 19Slide 20Slide 21Slide 22Slide 23Slide 24Slide 25Slide 26Consumer Behavior [MKTG.301]Dr. CarterETHNIC VALUE MATCHING:Segmentation for Diverse Market Values2ETHNIC VALUE MATCHING PROJECT:[Consumer Behavior (MKTG.301); Dr. Carter]A. The “Depth” and “Breadth” of Ethnic Diversity1. The “Depth” of Diversity – Inclusion vs. Isolation•“E plurabus unum” / “E unum plurabus”•Out of many come one / out of one come many•Unity in diversity / diversity in unity•Many branches – one root•Many doors -- one room•I am because we are / because we are I am•Yin / YangAB DEC* ** * B r e a d t h [ ethnic exposure as “isolated” cultural silos ] DePth *[ ethnic exposure as “inclusive” episodes of cultural intersection ] Our past periods of complex intersection … Provide lessons for future interaction3B. THE “BUSINESS CASE” for ETHNIC DIVERSITY Competitive free market creates a results-oriented “sports team” context that emphasizes …* Behaviors vs. Attributes * Future vs. Past * Cohesion vs. Contention * Positive vs. Negative1. The Trend’s Your Friend [“Portfolio Theory” of Demographics and Growth Rates]2. Survival of the Fittest [Biodiversity as Market Diversity]3. Free Markets Create Ethnic Choices [Ethnic Identity vs. Ethnic Orientation]4. Think Globally, Act Locally [Cross-Cultural Analysis for American Ethnic Segments]5. Matching Values in Valuable Markets [Triangulation of People, Products, Processes]A. The “Depth” and “Breadth” of Ethnic Diversity [Cont’d.]2. The “Breadth” of Diversity – Spectrum of Specialties•Anthropology – “mosaic of meanings” •History – “trail of tears … and triumphs”•Sociology – “let ins and left outs” •Political Science – “power blame and power brokers”•Business – Portfolio Markets and bio-diversity Competence ETHNIC VALUE MATCHING PROJECT:[Consumer Behavior (MKTG.301); Dr. Carter]* Reference: www.diversityinc.com [search “the business case for diversity”]4C. SEGMENTATION – The Fundamental Framework1. Segmentation Purpose/Logic [“Homogeneous – Heterogeneity”]2. Segmentation Bases [“Ways to slice the pie’]3. Segmentation Method and Technique [“Process for slicing the pie”]4. Assessing Meaningfulness of Segments [“Ways to test the slices”]5. Segmentation Strategies [“Ways to taste the slices”]ETHNIC VALUE MATCHING PROJECT:[Consumer Behavior (MKTG.301); Dr. Carter]5Ethnic Value MatchingConsumer Behavior [MKTG.301]Dr. Carter 2K7SECTION ONE:A“MARKETING STRATEGY”PRIMER ON“ETHNIC SEGMENTATION”6Ethnic Value MatchingConsumer Behavior [MKTG.301]Dr. Carter 2K7Ethnic Diversity in the American Marketplace …… Creates a Strategic Dilemma Regarding Future Paths to Market SuccessMainstreamAsian Am.Hispanic Am.African Am.Arab Am.7Ethnic Value MatchingConsumer Behavior [MKTG.301]Dr. Carter 2K7Ethnic Market Segmentation is a Strategic Solution …… to the Dilemma Created by Diverse Ethnic NichesMainstreamHispanicAm.African Am.Asian Am.Arab Am.8Ethnic Value MatchingConsumer Behavior [MKTG.301]Dr. Carter 2K7Effective Ethnic Segmentation Creates “Market Diversity” Within “Diverse Markets” …… By Emphasizing INTRINSIC Ethnic PatternsInstead of EXTRINSIC Profiles of RaceETHNICITY – the unifying cultural identity & traditional orientation of people who share a common history [e.g., beliefs, values, symbols, customs]RACE – a class or kind of people with genetically similar physical & biological traits, characteristics, and tendencies [e.g., skin, hair, face features, body type]9Ethnic Value MatchingConsumer Behavior [MKTG.301]Dr. Carter 2K7THIS CREATES A“CULTURAL COMMODITY”STRATEGY TOWARDSETHNICITY & MARKETS10Ethnic Value MatchingConsumer Behavior [MKTG.301]Dr. Carter 2K7SECTION TWO:A“FREE-TRADE THEORY”OF“ETHNIC COMMERCE”11Ethnic Value MatchingConsumer Behavior [MKTG.301]Dr. Carter 2K7The Beginning of “Market Diversity” …… is the Freeing of Ethnic Identity from Ethnic OrientationEthnic Identity• Fixed• Collective• Traditional• Chain• Intergenerational• Self-referential• Ends Ethnic Orientation• Fluid• Individual• Transitional• Choice• Situational• Self-constructing • Means12Ethnic Value MatchingConsumer Behavior [MKTG.301]Dr. Carter 2K7“Market Diversity” is Driven by Ethnic Orientation …… Just as Ethnic Identity Defines “Diverse Markets”Ethnic Identity• Ethos• Demographics• Bio-Genetics• Ancestry• Consummation• Cultural Values• Faith/Belief System(s)Ethnic Orientation• Logos• Psychographics/Lifestyle • Psycho-Genetics• Access• Consumption• Market Values• Financial/Barter System(s)13Ethnic Value MatchingConsumer Behavior [MKTG.301]Dr. Carter 2K7In the Language of Markets, Ethnic Identity Defines People & Customer Segments …… Whereas Ethnic Orientation Defines Products & Consumption SituationsEthnic People & Culture Ethnic Products & Consumption14Ethnic Value MatchingConsumer Behavior [MKTG.301]Dr. Carter 2K7Although Ethnic Identity is Authentically Created “Of” & “By” a Particular Ethnic Segment …… Ethnic Orientation Forms/Expressions are Shared “For” All Ethnic Segments to Collaborate & Consume Authenticity of Ethnic Identity“ROOTS” Affinity of Ethnic Orientation“FRUITS”15Ethnic Value Matching Consumer Behavior [MKTG.301] Dr. Carter 2K7In “Free-Market” Societies like America …… Ethnically Diverse Customers CHOOSE which Cultural Pool they Consume “ETHNIC MENU”“Styles White* African Hispanic Asian Arab Others of Life” Foods Fashion Fun Function Furnishings Finance Facts*Note: Includes multiple European/Anglo ethnic groupsFall 2004Ethnic Music Profiles “Sounds of Diversity”Winter 2005Ethnic Automotive Profiles “Driving Diversity”Fall 2005 & Spring 2006 – Ethnic Agri-Food BrandingFALL 2007 as well as Spring 2007; Fall 2006 & Winter 2002Ethnic Fashion BrandingFall 2001 – Packaged Foods Branding “New Product Works (NPW) “Ethnic Collection”http://www.arborstrategy.com/asg/newproductworks/newproductworks.html16Ethnic Value MatchingConsumer Behavior [MKTG.301]Dr. Carter 2K7THIS CREATES A“TRADE OF VALUES”APPROACH TOWARDSETHNICITY & MARKETS17Ethnic Value MatchingConsumer Behavior [MKTG.301]Dr. Carter