Multiculturalism is redefining what it means to be American today. Acculturation levels, language of preference, and country of origin make for unique sub-groups within the U.S. Hispanic market. The biggest mistake that a company can make is to view it as homogeneous. This market is comprised of subcultures from over 20 countries in Central and South America, including Spain and the Caribbean.
So, is it Hispanics or Latinos? It’s a question that people have struggled to answer when deciding what to call this growing group (which is now the second largest consumer market in the USA).
It is important to understand that “Hispanic” or “Latino” refers to an origin or ethnicity, not a race.
“Hispanics” refers to language, whether you or your ancestry came from a country that speaks Spanish. This term was adopted in 1970 during the Nixon administration for political purposes.
“Latinos” refers to geography, people from South and Central America as well as Spanish speaking people from the Caribbean living in the USA. This term was adopted in the 2000 census as a more inclusive way to include mixed races known as “mestizo” or “mulato” in Central and South America.
So which reference should you use? According to a new Pew Research Center report, 50% of this target says they have no preference for either term. However, among those who do care, “Hispanic” is preferred over “Latino” by a ratio 2:1.
The reality is that when you ask somebody, “What are you?” They will answer that they are Puerto Rican, Mexican or Argentinean, for example. They identify themselves and have a strong association with their country of origin or where their parents are from. Even the U.S Hispanics will tell you, “I am American but my mum is from Perú and my dad from Puerto Rico,” for example. So, the heritage is very important to them.
Whether they speak Spanish or English, what keeps them together as a strong group is a very defined culture that comes from motherland Spain taught by the Catholic church. Also, they share one language, Spanish, plus the ambition to succeed in this land of opportunities. They want to fulfill the American dream.
In the marketing world, culturally relevant marketing plans are critical as the population becomes more diverse and the buying power of U.S. Hispanics is increasing 50% to $1.5 trillion by 2015.
Make no mistake; the integration of generations, acculturation, and diverse countries of origin has created a complex culture that requires experience and research to understand this U.S. Hispanic market. The success of a Hispanic communication campaign also relies on the flexibility of corporate American executives to embrace this initiative. Remember, it is a companywide effort, not the sole responsibility of the marketing director. Changes need to be made on a variety of levels.
According to the Nielsen report “State of Hispanic Consumers,” the Hispanic population will increase 167% by 2050. Opportunity is growing. Rapidly. The time to act is now. The question is: Are you ready to grow your business?
