Ethnic Marketing in Canada: The Challenges Ahead

Age : 45 Joined : 08 Mar 2008 Posts : 1850

Multicultural marketing or ethnic marketing are terms often used interchangeably when considering strategies for addressing the consumer habits of Canada’s diverse population. What is ethnicity? It is a multidimensional expression of identity that includes race, origin or ancestry, language and religion. It is influenced by immigration, blending and intermarriage which very often influence the strength of ethnic identification. It is often associated with cultural practices, customs and beliefs and sometimes dress and eating habits. Ethnicity also requires some self-identification as individuals often choose how to relate to the group. Belonging to more than one group is more and more common as cultural mixing is increasingly on the rise. A 2002 survey conducted by Statistics Canada on the country’s ethnic diversity reveals that some three-quarters of Canadians describe their ethnic identity and ancestry as important. According to a 2003 Environics survey more than three-quarters of Canadians say they are interested in learning more about their ancestry and are familiar with their heritage.

Measuring identity is complex and examining the impact of ethnic attachments presents several challenges. Some argue that such attachments weaken from one generation to the next and where the blending of ethnicity occurs identities are yet further diluted. Nearly half of the Canadian-born population identify with more than one ethnic group. Yet others insist that ethnic attachments persist over several generations and even where weaker can resurface under certain conditions. For example, the victory of the Italian team in the World Cup of Soccer saw many third generation Canadians of Italian origin proudly display the colors of their country of origin.

Attention and interest in ethnic marketing is far more prevalent in the United States than in Canada. You are more likely to find information on ethnic marketing south of the border. This may seem paradoxical since the United States is considered a melting pot that presumably discourages cultural preservation while Canada is viewed as a mosaic of cultures that actively promotes diverse cultural expression.

Why is it that American marketers invest more in understanding the impact of ethnicity on consumer behavior than their Canadian counterparts? Part of the explanation relates to demographic differences between the two countries and the respective importance they attribute to certain expressions of identity. In the United States there are two very large ethno-racial groups (in Canada we use the term visible minorities) with such substantial numbers that they almost inevitably influence any nation-wide marketing campaign. South of our border the African American and Hispanic populations each account for over 35 million people. Some believe that companies that are unable to grab a share of ethnic markets will find themselves catering to the fringes of the consumer population.

In terms of identity, on a national scale Canadian marketers have traditionally thought more in terms of language considerations and how best to appeal to the country’s English and French speakers all the while taking into account the consumer’s age, gender and other relevant characteristics. Until the 1970’s the vast majority of Canadian immigrants were of European origin, thus rendering skin color less of a factor in the country’s marketing strategies. Over the past few decades the sources of immigration in Canada have evolved and an influx of non-European immigrants has resulted in a substantial shift in the country’s demographic make-up. The size of certain visible minority communities is increasingly becoming an inescapable reality for those that wish to reach consumers in this country.

Between 2006 and 2017 the population of Canada is expected to grow by ten percent (from 32 to 35 million) but more than 80% of that growth will come from the Chinese, South Asian, Black, Filipino, Arab and other visible minority groups. Over that period the Chinese and South Asian populations will increase by 40% and 50% respectively each rising above 1.8 million people. Additionally, with a 25% increase the Black population will exceed one million, a 35% increase in the Filipino population will see it top the half-million mark and with a 60% rise, the Arab population will surpass 400,000. As the average age of these groups is lower than that of other Canadians, they will constitute a growing share of Canada’s younger consumers. By 2017 visible minorities will represent the majority of the population of Vancouver and shortly thereafter this will also be the case for Toronto’s population. Moreover such communities are significantly younger than the rest of the population and they will be at the very forefront of the country’s consumer growth.

Given its multidimensional character, ethnicity is one of several factors that may influence consumer attitudes and behavior. Not understanding ethnicity in this way risks leading marketers to define their target segments too narrowly. Several failed marketing campaigns have shown that simply because some people have labeled themselves as ethnics does not mean that effective marketing will occur by simply targeting them as such. Ethnic groups are not homogeneous. The Latin American category includes several ethnic groups as does the Asian origin population. Schumann et al. contend that Asian American ethnic groups should be considered as separate entities when marketers consider their targeting strategies. When targeted as one group there is a considerable risk of developing ineffective strategies. Studies of Asian American consumer choices have documented differences in consumption-related activity including media choice, store patronage, use of information sources, and so on.

It is increasingly vital for marketers to understand the differences and similarities in attitudes and behaviors between and within groups. Ethnic identification can influence attitude and behavior but very often age, gender and income amongst other factors diminish if not completely trump ethnic attachment. It is critical to look at when and where ethnicity intersects with such things as age and gender in determining consumer decisions. While it is important not to underestimate the importance that ethnicity plays in consumer choices it is also essential not to overestimate its role amongst the various factors that influence such choices. In short, it is important to comprehend the conditions in which ethnicity becomes relevant.

Marketing to communities on the basis of ethnic identification is complex and regrettably there is not considerable research in Canada to guide us in this regard. It is essential marketing that such groups be identifiable, measurable and substantial. A Toronto firm, Solutions Group recently investigated media use among ethnic groups and concluded that advertising dollars may not be going to where they’re supposed to so as to activate diverse audiences (Solutions Group, 2006) Author of the study, Kaan Yigit says that “in markets like Toronto and Vancouver, we are talking about people in the number of millions who advertisers may be missing out." Yigit conducted the survey in English, French, Cantonese, Mandarin, Punjabi, Hindi, Urdu, Spanish and Italian because traditional media measurements, conducted in Canada's official languages, are becoming inadequate in their ability to provide an accurate read of diverse audiences.

The survey found English-language newspapers are read by half of the Chinese respondents and 57 per cent of the South Asians. English radio reaches 44 per cent of South Asians and 53 per cent of Chinese. English TV is watched by 74 per cent of South Asian and 65 per cent of Chinese audiences. Chinese and South Asians are particularly heavy consumers of ethnic media, with three quarters of the respondents in each group reporting having accessed one ethnic radio, TV or newspaper in the past seven days. Fifty-two per cent of the people surveyed said, "I rarely see advertising messages intended for me." Canada’s evolving ethnocultrual and ethnoracial composition has also resulted in shifts in the language knowledge of the population. In 2001 in Canada, outside of Quebec, it is Chinese languages that are spoken in as many homes as the French language. And there are not an insignificant number of Canadians who are most effectively reached in languages other than English and French.

Still, in Canadian Business Online (November 22, 2005), Charlotte Riley contends that: “…there's more to ethnic marketing than just submitting an existing campaign to the multicultural media. Companies often make the mistake of simply translating their existing campaign into different languages instead of targeting campaigns to specific ethnic groups.” She adds that recent immigrants to Canada are far more sophisticated consumers, better educated and have more spending power than is the case previously. Riley believes the savvy marketer must not only understand the ethnicity of his customers, but also embrace their cultural customs and sensitivities.

But underlying this premise is the idea that ethnic marketing requires knowledge of individual ethnic communities which is a daunting task in country where there are an estimated three hundred such groups. Surely such knowledge is helpful, but is it realistic for marketers to individually target such a sizeable number of groups and/or develop knowledge about each of them? Clearly an option is targeting the larger and “less mixed” groups. However the real challenge to successful marketing is to identify approaches that bridge or appeal to shared interests and characteristics of several ethnic groups. As an example in terms of celebrity endorsement the messenger may be an individual with whom many ethnic community members can identify. It is important to consider the strength of ethnic identity of both messengers and audiences.

In studies of white and visible minority audiences American researchers reveal that the former are less affected by the skin color or background of an endorser while the visible minority audiences were more likely to be influenced by ethnoracial background (Del Vecchio and Goodstein, 2004). Marketers are cautioned, however, in selecting an endorser whose primary appeal is to a particular ethnic group, as it might risk alienating the non target market audience that may view an advertisement. Hence in the United States the broad appeal of a golfing champion like Tiger Woods who possesses multiple identities makes him a widely sought after endorser.

There remains considerable research to be conducted in the area of ethnic marketing. First it is necessary to define the ethnic market, second to determine under what conditions ethnic identity becomes relevant to consumers and third what strategies cut across group boundaries. Market research in this regard is not disconnected from the studies on the identity of Canadians conducted by social scientists. Clearly, greater cooperation between researchers from a variety of disciplines can enrich our knowledge and ability to address the demographic revolution which the country is currently and will continue to undergo.