By Art Beroff

By design, people tend to flock together. We congregate into groups based upon interests, occupations, values systems, and goals. Whether it's a fraternal or business association, philanthropic organization, labor union, or ethnic or religious group, human nature bonds us to those with whom we have commonality or an affinity.

Marketing to special interest, minority, and affinity groups can present its own set of marketing challenges. But the rewards can be great if you take the time to carefully plan your approach. Consider these tips:

• Think About What Markets Make Sense
The first step is to think about what new markets make the most sense for your business. Don't be afraid to start small. A local business association, for example, might be the best way to test the waters before getting involved with a larger group. Consider what unique selling proposition your product or service has to offer and in what ways it might appeal to a previously untapped market.

• Know Where to Find Your Target
To build a database of prospects, consider renting lists. Or, do some research at the local library or on the Internet to find relevant associations, organizations, and networks. Also ask for referrals as you build your customer base.

• Really Get to Know Your Audience
While this may seem basic, getting to know your audience might be more difficult than it sounds. First, consider how this group might differ from other segments to which you market. What makes them tick? What bonds them to each other? Are there sub-sets within the larger group? How are they different? Similar?

Then, look at the commonalties to other groups and think about how they may be leveraged. Keep similarities in mind so that you don't find yourself reinventing the wheel.

• Tap into What's Important
Speak to what motivates. If, for instance, you're marketing a product or service to a group that's heavily involved in environmental issues, you might consider printing your message on recycled paper. Or, perhaps they might prefer e-mail as a way to conserve paper usage. Not only are you providing a choice, but you're also demonstrating that you're in touch with what they value.

• Gather Data while You Service
Utilize each point of contact as an opportunity to gather information about your target market. Make note of preferences, lexicons, and unique characteristics - and use them to your advantage. If, for example, you want to target a college alumni group, learn as much as you can about the culture, the allegiances, history, and the sense of pride that bonds them to each other. Then, translate that knowledge and excitement into your offer. Let prospects know that you understand what's important to them. Use surveys to gather information that's beneath the surface.

• Communicate on Their Terms
Ask prospects how and when they prefer to be reached. Some people have
a greater propensity to buy through the mail, some relate better to telemarketing, and still others to the Internet. Ask for e-mail addresses and,
if permission is granted, use this medium to communicate with your prospects. This channel provides an easy to way to establish a relationship, but be careful not to be intrusive or aggressive.

• Use the Opportunity to Cross-Sell
Inventory your suite of products and services to determine which would be appropriate for your audience. Then, structure your offers so that they build upon each other. Interweave relevant products and services to build a lasting relationship with your customers. Make offers based on lifecycle events and research gathered. Knowing preferences will help you anticipate needs and offer solutions that will be most appropriate.

• Form Strategic Alliances
Consider forming partnerships with other businesses that offer complimentary
products or services. Offering a coupon for the restaurant that is located next to your movie theatre and vice versa could help both to build loyalty. But don't fall into the convenience trap. Just because two businesses are in physical proximity doesn't necessarily mean that their services are complimentary or right for the target audience.

• Provide Endorsements to Build Credibility
Use the power of endorsements to build credibility in the eyes of the consumer. If you're selling to a civic or business organization, for example, solicit the endorsement of a respected leader. A letter or testimonial from a trusted colleague will bode well for you. Be sure the figure is not a controversial one and ask permission before putting anything in writing.

Case Study: The Growing Hispanic Market

The Hispanic market is an example of a group that's growing by leaps and bounds. In 1980, there were approximately 10 million Hispanics in the United States. Today, the population has grown to over 33 million. A conservative estimate is that this number will expand to nearly 100 million by 2050.

U.S. Hispanics are young in comparison to the non-Hispanic sector. The median age of U.S. Hispanics is 26 as compared to the median age of 35 for the rest of the population. This group, however, generally has attained lower levels of formal education, with almost half not completing high school. (Businesses that focus on education may take advantage of an untapped opportunity here.)

The Hispanic market will surpass a trillion dollars in purchasing power by the year 2050. With this, there will be an increasing demand for products, advertising, research, and other marketing services.

Here are some additional facts about the Hispanic market:

• After migration to the U.S., many Hispanic consumers remain loyal to brands they grew accustomed to in their counties of origin. Colgate red (or Colgate rojo) is a good example.

• Hispanic consumers tend to be less cynical about marketing and advertising than the general market.

• Hispanic households receive one-tenth the direct mail that average U.S. households do.

Considering these facts, a business wants to target the U.S. Hispanic market might start by developing a strong brand identity for itself, if it doesn't already have one, and allocate a substantial portion of its advertising budget to direct mail. (Because Hispanics get so much less direct mail, they tend to pay more attention to it.)

The business might also send an offer in Spanish and test it against the same offer in English, being careful not to translate the copy word for word (rather re-interpreting it). What's more, the offer would be written in generic Spanish, avoiding dialects so that it maintained a broader reach among Hispanics from varied backgrounds.

In doing further research, the business might ask these questions about this (or other markets):

• How does my product or service appeal to Hispanics?

• Are there variations that can be made to make offerings more appropriate for Hispanics?

• What do I know about the culture that may impact a purchase decision?

• Have I asked my target how they prefer to be communicated with?

• Is direct mail a viable distribution channel for my offering?

• Can I provide a testimonial or endorsement that would be widely accepted?

By using the example of the Hispanic market, it's easy to see how you can develop a marketing strategy to target special interest, minority, or affinity groups. And by studying the market and speaking their language, you, too, can successfully extend your market reach.

Credit:
Art Beroff is an investment banker and corporate advisor, and is a member of the National Advisory Council of the Small Business Association. He can be reached at 718-845-3103 or by fax at 718-845-6845 or via e-mail at art_beroff@compuserve.com.

Reprint of this article does not constitute an endorsement by the National Business Association; the article is for informational purposes for our members and viewers of our Web site.