The 5 Biggest Mistakes Companies Make in Marketing to Latinos

By admin August 18, 2015 10:01

By: Mary Rabago

As a Latino with more than 25 years of living in the United States, understanding and living between two cultures is something that doesn’t cease to amaze me. How is it still possible, with our history of presence in this country, that we coexist but don’t know much about each other?

It reminds me of the situation that has persisted for centuries in the Holy Land in Jerusalem. I remember the “big shocker” for me during my visit in 2012 was the incredible amount of isolation between “neighbors” in the Four Quarters. The area is divided in fourths: one for Muslims, the others for Christians, Armenians, and Jews. The particularity of these neighbors is that they coexist, but know very little about each other. They don’t always know each other’s traditions, cultures, or even religions. Talking to the locals surprised me the most. They don’t interact; and if so, it is at the minimum.

This is somewhat representative of what goes on here in U.S. when it comes to marketing to the Latino community. We are the biggest minority, yet it seems we are the most misunderstood. Regardless of what kind of business you are in, be careful with ignoring this large percentage of the U.S. population – or, more importantly, its buying power. Latino purchasing power in the United States will reach $1.5 trillion in 2015 and $2 trillion by 2020; and 1 of 10 dollars spent on consumer goods in the U.S. is spent by Latino shoppers. There are an estimated 55 million Latinos in the United States, or 17 percent of the population [DATOS 2014 AZHCC].

So here are my questions to you as a business owner:

How can you ignore those numbers?
Can you afford to miss out on that income because of ignorance or a lack of willingness to educate yourself about a certain consumer demographic, and possible new clients to your business?

Knowledge is power, and one of the biggest assets for any business owner. Allow me to share with you the five biggest mistakes companies make while marketing to Latinos in the U.S.

Mistake #1: Making literal translations.

Literal translations of a general market, radio or TV spot, and ads in print media – there is nothing more insulting to me as a Latino. It doesn’t work and is not effective. As a matter of fact, it is insulting to see big firms with millions of dollars in their marketing budgets do this. If you are currently doing this, I suggest you re-evaluate your marketing strategies — not simply paying someone to translate a media spot that was originally produced for the general market.

Mistake #2: Assuming all Latinos are Mexicans.

Believe it or not, not all Latinos are from Mexico! Latin America is made of many countries, each of them rich in their own culture, traditions, and customs. We may speak the same language, but this doesn’t mean that we use the same words to mean the same thing. For example, even between states in Mexico, the meaning of a word may change. In my native Sonora, “huila” is a word used to describe a very thin woman, while in other states it means prostitute. And in Colombia, it is the name of a “Departamento” or state.

Mistake #3: Not knowing the culture, traditions and customs.

How can you market to a community that has culture, traditions, and customs you are not familiar with? Be careful doing this, because you may be up for many costly lessons. There’s that popular saying: “What you don’t know can’t hurt you,” and you could not be more wrong in this respect. In fact, what you don’t know about Latinos could hurt your revenue!

One easy example of this is in the United States, where millions of dollars are spent each year to celebrate “Cinco de Mayo,” the foremost “Mexican” holiday in marketing business. As a Mexican, I cannot explain in words how upset it makes me when I hear a radio host promoting an event on behalf of a beer company, inviting everyone to come and celebrate “Mexican Independence Day.” Cinco de Mayo is not Mexican Independence Day; instead, it’s when we remember or celebrate a battle where Mexicans won against the French Army in Puebla, Mexico. Have caution and learn more about traditions like “Dia de Muertos” and so forth so you don’t miss out on some top-dollar opportunities.

Mistake #4: Not taking the time to learn about the priorities in a Latino family.

It is true that as any other ethnicity, we have the same basic necessities or priorities as a family: food on the table, a home, education, health, and so on. But we also have others, part of the reason many of us (and previous generations) immigrated to this great country. One of these reasons is freedom; and what may be taken for granted by many people in this country is a luxury or a blessing for many Latinos.

Education is another example. Many rural areas in Mexico do not have available schools or even electricity. The opportunity to own a car, or the dream come true of owning a house, or even starting your own business has a very profound meaning to Latinos. Getting in touch with this need of “El sueño Americano” can be the biggest investment you will make for your business when marketing to Latinos

Mistake #5: Thinking Latinos don’t have the means to buy your product or your services.

Not all Latinos are poor or don’t know about quality in products or services. On the contrary, you may be very surprised to know that the biggest name brands like Apple, Nike, and many big designer shoe and clothing brands are a must-have for Latinos. It is the same when it comes to services. We appreciate good service and being treated with respect like any other customer does. However, we never forget when there is the lack of that service, quality, or respect.

In my opinion, there will never be a more loyal customer than a Latino (if you take the time to provide high quality services or products to a consumer of this demographic). Another benefit of this is that we come in large numbers and tend not only to be loyal, but we make recommendations to our BIG families on behalf of that brand or service that we rave about.

The income levels in Latino community vary from one extreme to the other, more so than any other community in the United States. Never assume that we cannot afford or don’t want or need your services or products. This will be elimination by ignorance of an important income stream to your business.

The numbers don’t lie; we are the fastest growing minority in this country. Our buying power is stronger than ever. It could be a very costly mistake to ignore the Latino community by not investing in learning about us so you can better market goods and services to us. We may not speak the same language in many cases, and we have different traditions and customs, but we share the universal language of money. In business, this is the one thing that matters the most, wouldn’t you agree?

Mary Rabago