Marketer’s Watch: The new cross cultural reality
Marketing communications and advertising must change to consider that the convergence of cross cultural values around the world is impacting the way people think, connect, communicate and behave. Thus, in place of traditional demographic segmentation criteria, I propose that in order to craft meaningful, engaging creative strategies and ideas that are relevant to this new human reality we must begin to study the consumer market on the basis of their level of cross cultural engagement and its effects on preferences, life choices and shopping behavior. By definition, culturally-specialized strategic companies and agencies are better suited to address this transformation than are global generalist shops because we are more deeply attuned to cultural insights and their influence on consumption behavior. Properly harnessed, we can transform the ad industry in the U.S. and potentially, in the rest of the world.
Bold? Yes!
In the U.S., general, ethnic, demographic and multicultural market segmentation is no longer valid. Simplistically, this approach predisposes that each group belongs in its own individual, homogeneous, cookie-cutter box. Likewise, global marketing predisposes that human needs and wants are universal in principle therefore “universal ideas” are created for all regions of the world however, they seldom deliver optimal performance at the local or regional levels. This cross cultural reality is also evident in East & Western Europe, Asia, Latin America and other parts of the world, but for argument’s sake in this post and in the interest of time, I will focus on the United States.
By definition and historical chronology:
General market = Global in nature: everyone, anytime, anywhere.
Ethnic market = Segmentation by ethnicity: Hispanic, African American, Asian, East European, etc.
VALS = Gen X, Gen Y, Millenials, Moms, traditional marketing/advertising segments that associate certain values with demographic & psychographic criteria to define a target group.
Multicultural markets = Lumps all non-white groups into one broad segment based on ethnicity or country of origin. This approach places importance on reflecting a “multicultural reality” at the executional level by depicting various ethnicities in a universal situation, in one creative campaign or addressing all ethnicities with a universal idea based on a universal insight. We call this the political check-box.
Urban markets = Fundamentally a demographic terminology that labels African American, Latinos and to some extent, Asian youth that live in large urban centers across the U.S. and somewhat/sometimes converge in very specific lifestyle activities but who are culturally and ethnically distinct at the core.
LGBT markets = Also a demographic terminology that labels Lesbian, Gay, Bisexual & Transgender people who share a lifestyle based on their sexuality and sexual preferences.
The new Cross cultural market = Heterogeneous consumer groups of all origins, ethnicities and sexual preferences that are influenced by and who influence each other based on socio-cultural criteria and related value choices.
The emergence and pervasiveness of new cultural influences over American culture are creating new, multidimensional, psychologically complex personas that cross cultural boundaries and are demonstrating deep, transformational change in their preferences, choices and shopping behavior. This is most dramatically seen in categories such as food, fashion, personal care, entertainment, among many others, as well as in social & environmental consciousness and politics/government policy. When we overlay the impact of digital & social media over these cultural dynamics, we have an unbridled force that has the most sophisticated marketers seeking for ways to regain control of the uncontrollable. It is the force of a new breed of consumers who are now not only in control of their choices but of the cultural influences they choose to make their own.
The most basic instinct of human nature is to resist change, to hold on to known truths and beliefs. So while some marketers and ad agencies are recognizing this new reality, many continue their attempts to address it with the tried and true methods that helped them in the 80’s & 90’s, generating thought-stagnation across many business sectors.
Free enterprise, consumption and profitable businesses are at the core of our economic system. In these challenging times, we must look deeply into the transformation of our industry in line with that of the consumer constituencies which we serve. More importantly, in order to deliver strategic brand-building for our clients in this new environment we must catalyze economic and financial recovery through a deeper understanding of the cross cultural influences that impact consumer behavior.