The AHAA has released preliminary findings on a new study about the Hispanic community with different marketing approaches to mining growth from Hispanic and multicultural segments. The results are based on 321 online surveys of marketing professionals from client-side, general and multicultural specialized ad agencies, media buying agencies, public relations and consulting firms.
Nine in 10 executives believe the primary purpose of a Total Market Strategy is to balance effectiveness with efficiency. As such, two main models have emerged:
- Integration, where Multicultural is integrated into every step of the business process and marketing execution to fully take advantage of growth potential across Hispanic, Multicultural, Millennial & Caucasian. With an integration strategy, marketers approach the market in totality as well as in segments to ensure that nuanced needs & opportunities are effectively addressed across 360 strategies-tactics.
- Adaptation, where the same idea is adapted to different audiences using the same budget to reach all the segments. With an adaptation strategy, marketers utilize less targeting to particular ethnic consumers, leveraging broader strategies that will appeal to all in new multicultural marketplace.
Currently, 54 percent of advertisers are implementing some form of Total Market Strategy. Of these, half are applying it company-wide, while the other half is executing at a department level. More than half of marketers surveyed believe TM Strategy will ultimately benefit their company, while 44 percent are concerned about implementation.
Of the 46 percent not employing a Total Market Strategy, 15 percent are planning to implement in 2014. Nearly half are exploring various total market models but are unsure of its implementation in the future, while 36 percent have not thought of utilizing this approach and just 3 percent have decided against pursuing it altogether.
Selective across brands with Advertising
Companies are in various stages of implementing Total Market Strategy with the majority employing this approach for select brands (54 percent). More than a third has applied a Total Market Strategy across all company brands, and 15 percent are testing the concept on one brand. Few companies spread the total market function throughout the company with two out of three relying on brand champions or multicultural centers of excellence.
The bulk of Total Market Strategies are being executed in advertising with 84 percent in ad messaging and 78 and 65 percent across media buying and media planning respectively. Finally, between 43 and 65 percent of marketers also are employing Total Market Strategies across promotional, communication and digital vehicles.
According to the AHAA, 66 percent of the companies surveyed who are utilizing a Total Market Strategy, have reported incremental results in increased market share, efficiency, and revenue growth, among others.
While 27 percent are still testing and measuring, more than half of companies surveyed revealed they are various stages of expanding their total market initiatives.
Marketing strategies are under great scrutiny in response to the explosive growth of multicultural populations. As many companies seek to reconcile and recalibrate efforts toward multiple market segments, questions arise with regards to the potential of defining and addressing a Total Market Strategy.
To finish, the AHAA says that “However, the “Total Market” approach is largely misunderstood and is used as a catchphrase for various marketing strategies. The marketing industry is ripe for a more uniform definition of Total Market Strategy, and there is a tremendous need to continue studying this marketing strategy in order to share guidelines and criteria for proper implementation.”