Ethnic & Tribal Marketing

MK502E
2010-2011
 Agenda today
• Lecture
– Tribal marketing
• Application for NPO
– Ethnic marketing

• Work-in-Progress on Group Projects

• Individual Assignment Q&A session

– GOOD NEW: Deadline postponed till November 29th
The existence of groups of united
consumers « implies that power is shifting
away from marketers and flowing to
consumers »…

« …as consumers are increasingly saying

NO to forms of marketing they find invasive
and unethical ».

Kozinets, 1999
 The Nature of Subcultures
A subculture is a segment of a larger culture whose
members share distinguishing values and patterns of
behavior.

Identification with a Subculture Produces Unique Market Behaviors

1. TRIBAL MARKETING
 An example of ethnographic research in marketing:
Kozinets (2001)

• Star Trek is one of the great consumption phenomena of

our time
• Four spin-off series, nine major motion pictures, and
billions of dollars in licensed merchandise revenues
• Kozinets, a marketing researcher, published his findings
in the Journal of Consumer Research (2001)
• Kozinets used ethnography to study Star Trek’s sub-
culture of consumption. He used participant observation
at various fan gatherings and fan-related meetings. He
also used email interviews with 65 self-proclaimed Star
Trek fans.
 Polarizing marketing question
• Two theoretical alternatives:
– Do consumers let themselves be immersed
within and submerged by the system of
commercial consumption
Or
– Are they dodgy dissidents who resist the
market?
 Consumer tribes may be…
• not simply oppositional or resistant
– Reappropriation of products or services
• Génération 2CV or Confrérie des 650
– Meanings and usages differ from the original ones

• Oppositional
• Pabst Blue Ribbon (PBR)
– So uncool it became cool
 Rollerbladers
• Friday Night Fever (1995)
Pari Roller (1998)
• Value: INDEPENDENCE as a rule!!!
– Skaters must not be viewed as traditional marketing
targets
– Nothing may be sold during the actual skate tour
– Excessive branding is prohibited. The ability to host
any partners will belong to the association, whose
predominance must remain visible
• Les randonnées: Partenariat PepsiMax
 Tribal entrepreneurship:
Mozilla Firefox
• Open Source Software
– « …it is a case where individual consumers
become tribe members ans subsequently
marketing agents trying to use the web’s
power to attain marketing goals »
(Krishnamurthy, 2005)
– Spreading the word, putting links & logo, blogging
– Collecting testimonials, voting for their favourite browser
– Donating money
 Use of tribal marketing
in NPOs’ Marketing
• From motivation to segmentation
• From segmentation to recruitment
• From transaction to relationship

• Traditional fundraising & 21stC challenge

From motivation to segmentation
For either Giving or Volunteering
• Brainstorm all the factors which you
think stop you from giving /
volunteering (freins)
• Now think of what factors positively
influence the decision to give money
/ volunteer to an NPO (charity or arts
etc)(motivations)
• Think about the nature of the
exchange which takes place
 From segmentation to recruitment
Basic segmentation – remember?
• Demographic (age, gender, income, stage of
life, education etc)
• Geographic
• Psychographic (lifestyle, values systems, social
identity)
• Behavioural (Frequency, recency, Amount,
Occasions) – can only do this when recruited!

Does this give us our best audiences?

Would this make you respond?
Adrian Sargeant (1997):
Sargeant & Woodliffe (2005)
 Nonprofit Drivers
Mission, Vision, Values
I have a
DREAM
Vision =
The why?

Martin Luther King, 1968

BEWARE:
Vision without action is a daydream
Action without vision is a nightmare
 « What is left when everything else
is taken away? » Philippe Doazan
Why ?
Why ?
Why ? (emotional level…)

A great vision
- looks to the future
- breaks new ground and builds new horizons
- creates a common and shared objective
- inspires with emotion
- is based and linked to your values
 Mission = fight poverty
Why fight poverty? (leads to the vision)

It’s a basic question, but a good one. Why does Oxfam

bother? Why put so much energy into saving lives,
campaigning for change, and developing projects to give
people more control over their future?

The answer is basic too. Belief – belief that in a wealthy world

poverty is unjustifiable, and can be prevented. Belief that injustice
must be challenged. And belief that with the right help, poor
people themselves can change their lives for the better, for good.

Believe it – then achieve it

Everyone has the right to a life worth living –

and to the basic things that make one possible. This belief
shapes everything we do.
 Nonprofit Drivers
Mission, Vision, Values = How
Greenpeace's cornerstone principles and core values are reflected in all our
environmental campaign work, worldwide. These are:

• We 'bear witness' to environmental destruction in a peaceful, non

violent manner;
•We use non-violent confrontation to raise the level and quality of public
debate;
•In exposing threats to the environment and finding solutions we have no
permanent allies or adversaries;
•We ensure our financial independence from political or commercial
interests;
•We seek solutions for, and promote open, informed debate about society's
environmental choices.
 The 21st Century Donor
« In the world of the 21st Century Donor there is no such
thing as donor fatigue, only fundraising fatigue.

How much can be raised is not limited by how much

people will give but to what extent we can make the giving
experience as rewarding as the foreign holiday, the
evening out or the extra indulgence at the supermarket

Giving money needs to say something as powerful about

the type of person we are or want to be, as buying a BMW
or wearing a Rolex watch or a Gucci handbag »

Source: nfpSynery Report on 21st Donor, Sept 07

 From transaction to relationship
Transaction approach Relational approach
Donor recruitment Donor development

Various Prospection Recruitment new Loyalty of existing donors

recruitment new donors donors
techniques
Cold list List Swap
Over-sollicitation / donor
New to New to us saturation
giving
Did they really want a
relationship with you?
Road shows
Adopt a project for £1000
Internet search engine

Challenge events
 Innovative on-line buying for a good cause
What Christmas presents will you be offering….?
 More
ambiance
Listen to this!
30
2. ETHNIC MARKETING
If you worked in Wal-Mart’s meat department, how would
you slice the meat for Hispanics versus the general
population?
1. Thicker
2. Thinner
3. The Same
If you answered Thinner you were correct.

Hispanics prefer thinner cuts of meat for use in:

 fajitas
 carne asada (marinated grilled beef served in
tortillas)
 stir-fry dishes

Source: L. Miller, “Cutting it Thin,” Supermarket News, November 7, 2005, p. 45.

Subcultures in the American Society

Identification with a Subculture Produces Unique Market Behaviors

 6 Ethnic Subcultures: which are they?

• African Americans
• Hispanics
• Asian Americans
• Native Americans
• Asian-Indian Americans
• Arab Americans
Major Ethnic Subcultures in the US 2010-2030
Ethnic Subcultures and Consumption
 Regional Subcultures

Regional subcultures arise as a result of the following:

- climate conditions
- natural environment and resources
- characteristics of the various immigrant groups that
have settled in each region, and
- signification social and political events.
Regional Consumption Differences
 Geodemographic Profiling
• Charles Booth
– Profiled all homes in London: 5 broad groups
• Chicago School (1925)
– « The simplest possible description of a community is this: a
collection of people occupying a more or less clearly defined
area. But a community is more than that. A community is not
only a collection of people, but it is a collection of institutions.
Not people, but institutions, are final and decisive in
distinguishing the community from other social
constellations. »
• Harris, R., Sleight, P., Webber, R. (2005)
Geodemographics, GIS and Neighbourhood
Targeting. Wiley.
Importance of Neighbourhood
context
• Geodemographic softwares: MOSAIC,
Pathfinder, etc
– Built from census, commercial transaction
and survey data to provide the
neighbourhood profile.
– Massive amount of data or is it
‘knowledge’.
Networks and the digital divide

• The Future is Digital

– ICT automatically capture data &the Future
is Data.
• Google type technologies together with
analytical tools means we are all becoming
‘knowledge workers’ processing the digital
harvest.
• Beware of Facebook!
The Data Harvest is easy in some countries
Example of the Community Coding of
Electoral Register in the UK

• 46,330,000 records on file

• 99.1% coded by community of origin
• 130 Cultural, Ethnic, Linguistic types
• 13 Cultural, Ethnic, Linguistic groups
 NUMBER AND % RECORDS BY GROUP
GROUP RECORDS %
AFRICAN 139,920 0.302
CELTIC 10,238,813 22.097
EAST ASIAN 176,886 0.382
ENGLISH 32,735,358 70.648
EUROPEAN 582,716 1.258
GREEK ORTHODOX 103,043 0.222
HISPANIC 143,246 0.309
JAPANESE 5,740 0.012
JEWISH AND ARMENIAN 47,404 0.102
MUSLIM 1,018,107 2.197
NORDIC 36,277 0.078
SIKH 285,036 0.615
SOUTH ASIAN 491,126 1.060
INTERNATIONAL 29,088 0.063
UNRECOGNISED 154,247 0.333
DATA ERROR 149,080 0.322
TOTAL 46,336,087 100.000
 Mapping in a novel way using
personal name + family name + postcode

• Most likely ‘cultural/ethnic/linguistic group’

• The postcodes are coloured according to

the group with the highest number of
names in the postcode.
 Dominant names by postcode
Blue = Sikh, Yellow = Pakistani, Red = Hindu
 The ethnic map of London

R. Webber
Residential segregation :
selected Local Authorities
 Conclusions on ethnic marketing
• ICT Networks will become increasingly
pervasive in the coming years
• Knowledge no longer in the hands of the ‘police’
or ‘police officers’. Consumers of knowledge.
• Geodemographic, cultural, ethnic and language
profiling will become easily accessible.
• Challenge is whether we buy into this
‘knowledge’ as a new way of doing business or
ignore it.