The Dos and Don'ts for Expanding Into the Hispanic Market

And, whatever you do, please:

1. Don't approach Hispanic marketing with a cookie-cutter. Odds are, your go-to-market strategy for the general market will not work for the Hispanic market. So, don't retrofit what is working in the general market. Ever heard of Frankenstein?
2. Don't oversimplify your view of the Hispanic consumer segment. This is a complex market. Beyond there being cultural subsets (by country of origin), there are also Latinos who find themselves at varying levels of acculturation, which has a profound impact on how they view and consume products and services. This goes back to doing your homework. The segmentation model we talked about in the previous section? You bet, that's part of what we're talking about here.
3. Don't get analysis paralysis. Yes, the Hispanic market is a complex market. But too many marketers allow their Hispanic plans to get stalled because they either are afraid to make a misstep or simply get befuddled by that complexity. Remember, Ronald Reagan always said that there were complicated problems, but, oftentimes, their solution was simple. Avoid needlessly becoming a victim of complications.
4. Don't equate Hispanic with multicultural. First, the rules and practices that apply to Hispanics do not necessarily apply across all ethnic segments. Second, these "segments" deserve the proper attention and focus. To lump them all together because of convenience or because they are not "the general market" is absolutely the wrong thing to do. There is no such thing as a "multicultural" consumer. Think about it. Call us what we are. Latinos. African-Americans. Asian-Americans. Go with it.
5. Don't equate Hispanic marketing with Spanish language. That is an old paradigm, and it only gives you access to a part of the market. The new paradigm is dealing with the realization that there is an enormous portion of the market which is bicultural. Marketers who have moved from marketing "in-language" to marketing "in-culture" feel as if they have found the Holy Grail. Why? Because they have tapped into the full potential of the market, not just that portion of the market which is Spanish-only. Furthermore, this paradigm has allowed them to tap into deep, actionable insights that make the work far more impactful, effective and relevant. There are many reasons why Latinos are Latino beyond language.
6. Just as a reminder: Marketing to Latinos in English does not mean assuming that your general market campaigns and communications effectively reach them and speak to them. Marketing "in-culture" means that you tap into cultural nuances, attitudes and insights which inherently speak to them as Latinos. This is the big win. It's worth working for.
7. Don't go on the cheap. For too long, marketers have assumed that Hispanic marketing is good to do because it's cheap(er). These customers are loyal. They spend more time in your stores. They enjoy shopping. They are brand loyal. They believe in reciprocity. They believe in word-of-mouth. They have large families. They are the vociferous advocates of the American Dream. Time and again it has been proven that the LTV (lifetime value) of these customers exceeds the general market. Why should you proportionately spend less to attract them? And why should you spend less when you hire a specialist to help you with this endeavor? Would you pay less for your cardiologist just because he or she specializes in that one little muscle?
8. Don't assume Latinos are low-tech. The fastest growing channel to reach this customer is quickly becoming digital. The speed at which we are moving online, using digital technology, owning and using digital devices is over-indexing against the general market.
9. Don't assume that the Hispanic market opportunity only applies to low-ticket items or general merchandise. We buy flat screen TVs, jewelry, cars, homes, brand-name running shoes, designer apparel. We know who Nike, Prada, Gucci, Lauren, Sony, Apple and Vaio are. We are on a first-name basis, actually.

Alex López Negrete is president/CEO, CCO of Lopez Negrete Communications.