Ethnic & Tribal Marketing

MK502E2010-2011

Agenda today

• Lecture– Tribal marketing

• Application for NPO

– Ethnic marketing

• Work-in-Progress on Group Projects

• Individual Assignment Q&A session– GOOD NEW: Deadline postponed till November 29th

The existence of groups of unitedconsumers « implies that power is shiftingaway from marketers and flowing to consumers »…

« …as consumers are increasingly sayingNO to forms of marketing they find invasive and unethical ».

Kozinets, 1999

The Nature of Subcultures

A subculturesubculture is a segment of a larger culture whose members share distinguishing values and patterns of behavior.

Identification with a Subculture Produces Unique Ma rket BehaviorIdentification with a Subculture Produces Unique Ma rket Behavior ss

1. TRIBAL MARKETING

An example of ethnographic research in marketing: Kozinets (2001)

• Star Trek is one of the great consumption phenomena of our time

• Four spin-off series, nine major motion pictures, and billions of dollars in licensed merchandise revenues

• Kozinets, a marketing researcher, published his findings in the Journal of Consumer Research (2001)

• Kozinets used ethnography to study Star Trek’s sub-culture of consumption. He used participant observation at various fan gatherings and fan-related meetings. He also used email interviews with 65 self-proclaimed Star Trek fans.

Polarizing marketing question

• Two theoretical alternatives:– Do consumers let themselves be immersed

within and submerged by the system of commercial consumption

Or

– Are they dodgy dissidents who resist the market?

Consumer tribes may be…

• not simply oppositional or resistant– Reappropriation of products or services

• Génération 2CV or Confrérie des 650– Meanings and usages differ from the original ones

• Oppositional• Pabst Blue Ribbon (PBR)

– So uncool it became cool

Rollerbladers

• Friday Night Fever (1995) � Pari Roller (1998)

• Value: INDEPENDENCE as a rule!!!– Skaters must not be viewed as traditional marketing

targets– Nothing may be sold during the actual skate tour– Excessive branding is prohibited. The ability to host

any partners will belong to the association, whosepredominance must remain visible

• Les randonnées: Partenariat PepsiMax

Tribal entrepreneurship:Mozilla Firefox

• Open Source Software– « …it is a case where individual consumers

become tribe members ans subsequentlymarketing agents trying to use the web’spower to attain marketing goals »(Krishnamurthy, 2005)

– Spreading the word, putting links & logo, blogging– Collecting testimonials, voting for their favourite browser– Donating money

Use of tribal marketing in NPOs’ Marketing

• From motivation to segmentation• From segmentation to recruitment• From transaction to relationship

• Traditional fundraising & 21stC challenge

From motivation to segmentationFor either Giving or Volunteering

• Brainstorm all the factors which youthink stop you from giving / volunteering (freins)

• Now think of what factors positivelyinfluence the decision to give money / volunteer to an NPO (charity or arts etc)(motivations)

• Think about the nature of the exchange which takes place

From segmentation to recruitmentBasic segmentation – remember?

• Demographic (age, gender, income, stage of life, education etc)

• Geographic

• Psychographic (lifestyle, values systems, social identity)

• Behavioural (Frequency, recency, Amount, Occasions) – can only do this when recruited!

Does this give us our best audiences?

Would this make you respond?

Adrian Sargeant (1997) :

Sargeant & Woodliffe (2005)

Nonprofit DriversMission, Vision, Values

I have a DREAM

Martin Luther King, 1968

Vision = The why?

BEWARE:Vision without action is a daydreamAction without vision is a nightmare

Why ?

Why ?

Why ? (emotional level…)

A great vision

- looks to the future

- breaks new ground and builds new horizons

- creates a common and shared objective

- inspires with emotion

- is based and linked to your values

« What is left when everything else

is taken away? » Philippe Doazan

Mission = fight povertyWhy fight poverty? (leads to the vision)

It’s a basic question, but a good one. Why does Oxfam bother? Why put so much energy into saving lives, campaigning for change, and developing projects to giv epeople more control over their future?

The answer is basic too. Belief – belief that in a wealthy world poverty is unjustifiable, and can be prevented. Belief that injustice must be challenged. And belief that with the right help, poorpeople themselves can change their lives for the better, for good.

Believe it – then achieve it

Everyone has the right to a life worth living –and to the basic things that make one possible. This b eliefshapes everything we do.

Nonprofit DriversMission, Vision, Values = How

Greenpeace's cornerstone principles and core values are reflected in all our

environmental campaign work, worldwide. These are:

• We 'bear witness' to environmental destruction in a peaceful, non

violent manner;

•We use non-violent confrontation to raise the level and quality of public

debate;

•In exposing threats to the environment and finding solutions we have no

permanent allies or adversaries;

•We ensure our financial independence from political or commercial

interests;

•We seek solutions for, and promote open, informed debate about society's

environmental choices.

The 21st Century Donor

« In the world of the 21st Century Donor there is no suchthing as donor fatigue, only fundraising fatigue.

How much can be raised is not limited by how muchpeople will give but to what extent we can make the givingexperience as rewarding as the foreign holiday, the evening out or the extra indulgence at the supermarket

Giving money needs to say something as powerful about the type of person we are or want to be, as buying a BMW or wearing a Rolex watch or a Gucci handbag »

Source: nfpSynery Report on 21st Donor, Sept 07

From transaction to relationship

Prospection new donors

Recruitment new donors

Loyalty of existing donors

Over-sollicitation / donorsaturation

Did they really want a relationship with you?

Transaction approach

Donor recruitment

Relational approach

Donor development

Cold list

New to giving

List Swap

New to us

Variousrecruitmenttechniques

Challenge events

Internet search engine

Road shows

Adopt a project for £1000

Innovative on-line buying for a good causeWhat Christmas presents will you be offering….?

More ambiance

Listen to this!

30

2. ETHNIC MARKETING

If you worked in Wal-Mart’s meat department, how would you slice the meat for Hispanics versus the general population?

1. Thicker

2. Thinner

3. The Same

Hispanics prefer thinner cuts of meat for use in:

� fajitas

� carne asada (marinated grilled beef served in tortillas)

� stir-fry dishes

Source: L. Miller, “Cutting it Thin,” Supermarket News, November 7, 2005, p. 45.

If you answered Thinner you were correct.

Subcultures in the American Society

Identification with a Subculture Produces Unique Ma rket Behaviors

6 Ethnic Subcultures: which are they?

• African Americans

• Hispanics

• Asian Americans

• Native Americans

• Asian-Indian Americans

• Arab Americans

Major Ethnic Subcultures in the US 2010Major Ethnic Subcultures in the US 2010 --20302030

Ethnic Subcultures and Consumption

Regional SubculturesRegional Subcultures

Regional subculturesRegional subcultures arise as a result of the following:

- climate conditionsclimate conditions

-- natural environment and resourcesnatural environment and resources

-- characteristics of the various immigrant groups that characteristics of the various immigrant groups that have settled in each region, and have settled in each region, and

-- signification social and political events. signification social and political events.

Regional Consumption Differences

Geodemographic Profiling• Charles Booth

– Profiled all homes in London: 5 broad groups

• Chicago School (1925)– « The simplest possible description of a community is this: a

collection of people occupying a more or less clearly definedarea. But a community is more than that. A community is not only a collection of people, but it is a collection of institutions. Not people, but institutions, are final and decisive in distinguishing the community from other social constellations. »

• Harris, R., Sleight, P., Webber, R. (2005) Geodemographics, GIS and Neighbourhood Targeting. Wiley.

Importance of Neighbourhood context

• Geodemographic softwares: MOSAIC, Pathfinder, etc– Built from census, commercial transaction

and survey data to provide the neighbourhood profile.

– Massive amount of data or is it ‘knowledge’.

Networks and the digital divide

• The Future is Digital – ICT automatically capture data &the Future

is Data. • Google type technologies together with

analytical tools means we are all becoming ‘knowledge workers’ processing the digital harvest.

• Beware of Facebook !

The Data Harvest is easy in some countriesExample of the Community Coding of

Electoral Register in the UK

• 46,330,000 records on file• 99.1% coded by community of origin• 130 Cultural, Ethnic, Linguistic types• 13 Cultural, Ethnic, Linguistic groups

100.00046,336,087TOTAL

0.322149,080DATA ERROR

0.333154,247UNRECOGNISED

0.06329,088INTERNATIONAL

1.060491,126SOUTH ASIAN

0.615285,036SIKH

0.07836,277NORDIC

2.1971,018,107MUSLIM

0.10247,404JEWISH AND ARMENIAN

0.0125,740JAPANESE

0.309143,246HISPANIC

0.222103,043GREEK ORTHODOX

1.258582,716EUROPEAN

70.64832,735,358ENGLISH

0.382176,886EAST ASIAN

22.09710,238,813CELTIC

0.302139,920AFRICAN

%RECORDSGROUP

NUMBER AND % RECORDS BY GROUP

Mapping in a novel way using personal name + family name + postcode

• Most likely ‘cultural/ethnic/linguistic group’

• The postcodes are coloured according to the group with the highest number of names in the postcode.

Dominant names by postcodeBlue = Sikh, Yellow = Pakistani, Red = Hindu

The ethnic map of London

R. Webber

Residential segregation : selected Local Authorities

Conclusions on ethnic marketing

• ICT Networks will become increasingly pervasive in the coming years

• Knowledge no longer in the hands of the ‘police’or ‘police officers’. Consumers of knowledge.

• Geodemographic, cultural, ethnic and language profiling will become easily accessible.

• Challenge is whether we buy into this ‘knowledge’ as a new way of doing business or ignore it.