Will the Real Total Market Please Stand Up? Q&A session from AHAA’s Webinar on 09/24/14

Q: CARLOS, the conclusions of this webinar, says that, for marketers to succeed they need to recognize that growth segments must be targeted with culturally relevant communications resulting from a single strategic voice. Honestly, that is what some of us have been saying for a long time in justifying the need to targeted marketing communications. However, the total market conversation currently being had by most clients and general market agencies is … [inferring] that ethnically focused agencies need to…
Carlos Santiago is Chair of AHAA’s Research-Thought Leadership Committee

 

Q: CARLOS, the conclusions of this webinar basically say that for marketers to succeed they need to recognize that growth segments must be targeted with culturally relevant communication resulting from a single strategic voice. Honestly, that is what some of us have been saying for a long time in justifying the need to targeted marketing communications. However, the total market conversation currently being had by most clients and general market agencies is exactly what Isaac’s second bullet point in the client page says. In other words, ethnically focused agencies need to go away because all clients need–inside their general market shops–is a few foreign-language translators to communicate the same message to ALL consumers. And in a world more and more being dominated by procurement departments, agency consolidation and agency fee savings is very welcome. Please react.

A: We appreciate your honesty and your concerns are well-taken concern. We understand the magnitude of the forces misinterpreting the consensus definition as a single solution. Our goal is to educate the industry on the importance of:

  • If & when a single solution is called for, it is not the old general market approach, but rather a reflection of insights deep in the psyche of the main sources of growth of the new mainstream, in the same proportion to the opportunity.
  • Evaluate business (KPIs – growth opportunities; revenue potential, potential ROI) against multicultural segment.
  • Establish strategic foundation inclusive of multicultural segments.
  • Employ an integrated segmentation strategy whenever it boosts growth & rounds up the opportunity left open from a mass ‘air cover’ approach, which is most of the time
  • Select one of three approaches with greatest EFFECTIVE Relevant ROI based on growth opportunities.
  • Deliver authentic and relevant multiple outputs under one unified strategic umbrella.
  • Seek the most effective connection between consumer and brand and as such not only resonate.

Response supplied by Carlos Santiago

Q: Which agency disciplines will mostly likely be impacted with TM approach/integration? Strategic Planning? Creative? Media? Digital? CRM? Client management?

A: We don’t anticipate the disintegration of these capabilities at Hispanic agencies, but, rather more integration across agency teams in the areas of strategic planning/insights, creative

development, account management and digital-content development opportunities. However, models of operation and alignment is a topic of future discussion among both TMP Client and Agency roundtables.

Response supplied by Gaby Alcantara-Diaz is Chair of AHAA’s Education Committee

Q: As a vendor, working for ad agencies, I’m struggling to understand why some brands still think that “Total Market” means “Let’s add a single Spanish-language translator to our existing General Market efforts” or “Let’s add some black and brown actors to our work and call it a day.” It’s causing all kinds of quality issues down at the broadcast production level, where we work — approved scripts that are incorrectly translated, huge cultural missteps (like “Latino teenagers” gathered at “Cinco de Mayo celebrations” in every storyboard). How do we communicate to brands how utterly vital true multicultural / total market specialists, at full service ad agencies, are? I’m just a vendor, but I want brands to know how important it is for them to pick truly knowledgable agencies, because the alternative is missing the mark.

A: Your perspective is very well taken and reinforces the DON’Ts of an ineffective TMP. Our collaborative goal is to reinstate the competitive advantage, benefits and rewards of segmentation vs. massification, while maintaining authenticity and relevancy across their holistic marketing communications efforts.

Response supplied by Carlos Santiago & Gaby Alcantara-Diaz

Q: What are some of the benefits, and challenges, of bringing multicultural vendors — particularly in the broadcast production sector — to the table on Total Market jobs?

A: Overall, it is a smart business practice for multicultural vendors to be considered for Total Market jobs.

The benefits of including multicultural vendors on Total Market production jobs are:

1.      Satisfies supplier diversity needs of brand’s and agency’s to increase share of spending with the nation’s growing multicultural/diverse businesses and audiences;
2.      Stimulates US economy by doing business with companies owned by historically under-represented groups e.g., Black, Hispanic, LGBT
3.      Satisfies traditional government contract spending requirements;
4.      Increases the number of diverse employees through expanded opportunities

The challenges of including multicultural vendors on Total Market production jobs are:

1.      Large non-multicultural production companies and/or agencies may not be aware that multicultural vendors exist due to lack of marketing and access to bids;
2.      Multicultural vendors may be viewed as less experienced or too small;
3.      Multicultural vendors may not have supplier diversity certifications.

Response supplied by Linda Jefferson, SVP Group Media Services, Burrell Communications Group

Q: Can Isaac elaborate on last comment regarding digital having a one-on-one communication and how TM approach is the opposite of our current landscape?

A: One of the biggest difficulties in reaching bicultural Hispanics with relevant messages regardless of language has been how inefficient it is to deliver a message in Spanish (that would spill over to more “Preservers”) or in English (that would also reach non-Hispanics). If we look at how we can deliver individualized messages to clients and prospects using Digital tools like Display, Social and Mobile and if project that TV services will probably also allow this laser targeted messaging in 3-5 years we can see that the market is moving towards more individualized messages rather than generic messages that reach a broader universe based on a broader insight.

Response supplied by Isaac Mizrahi, SVP Managing Director, Alma

Q: If the client is not leading the charge, is it worth fighting for?

A: I think Hispanic agencies should always stand for the power and the importance of relevant segmentation and the ability to connect with consumers with the insights we have for each segment.

Response supplied by Isaac Mizrahi, SVP Managing Director, Alma

Q: How do you recommend course correcting a Total Market conversation with a client that has surrounded efficiencies?

A: Copy testing, comparing the effectiveness of a Total Market transcreated copy vs an originally developed creative probably is a great starting point. If well executed the original creative should show more probability of recall, and consideration.

Response supplied by Isaac Mizrahi, SVP Managing Director, Alma

Q: Many Hispanic agencies operate from superficial secondary reports due to a lack of resource allocation and research budget. Can you do TM without significant segmentation research? Should research be the first step?

A: I don’t think you can really be serious about Total Market if you don’t know enough about your consumer. Anything else is just transcription for the sake of efficiencies, but it is really not Total Market.

Response supplied by Isaac Mizrahi, SVP Managing Director, Alma

Q: For Isaac: Executing a Total Market Strategy requires a change management process within a company (as at Dunkin’). Do you ever recommend that a Client continue to use the standard segmentation strategy because that is better for their organization?

A: Not sure if I understand what you mean by “Standard Segmentation” as different companies have a diverse set of segmentation approaches. The one we recommend the most for the Multicultural Marketplace is one that combines purchase behavior for the product/service in Q with Cultural Affinity.

Response supplied by Isaac Mizrahi, SVP Managing Director, Alma

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