Linking Business with Latino Culture

This post is contributed by Diana Lopez, senior at the University of Washington, double-majoring in Law, Society and Justice/Spanish.

Have you ever thought of the difference between approaching a non-Latino and a Latino with a business deal? It is no mystery that Latinos take great pride in our culture and it is no surprise that our culture influences our decisions in making a business deal.

I had the pleasure of attending an event held at the Seattle Chamber of Commerce, entitled “Business and Culture with Hispanic Americans,” last week. This presentation was given by Lauri Jordana, Lourdes Sampera-Tsukada, and David Spencer and was monitored by Lee Mozena. It was held to help those in the Seattle area understand the Hispanic population and give them effective strategies to approach the Hispanic market.

Before we even got into the demographics of the Latino population, Lauri touched on a very important subject: terminology. So what do you call “us”? Latinos, Hispanics, Chicanos, Mexicans? There will never be a time when we all agree on one specific term and that’s because there is no way ALL Latinos can be put into ONE big bucket because they all come from different countries and we have our own culture. The two terms that Lauri broke down were Hispanic and Latino; Hispanic means that their family comes from a Spanish-speaking country, while Latino means they come from Latin America. The main point in understanding the terminology is that in order to approach the Hispanic market you must segment and know your target.

Lauri then explained the demographics of the Hispanic market. With a Latino population of 644,000, Washington is ranked as the 13th state with the most Hispanics. If you’ve ever made a trip east of the mountains you would think that most of these Latinos would be found in that area, however 400,000 reside in the Puget Sound. The Seattle Metro will see a 15% increase from 2007-2012 which also increases Latino buying power. An important thing we must understand is that the Hispanic population in the Seattle area is spread throughout King County and there is no such thing as a “Little Mexico,” which is probably why people have this misconception that most of the Latinos reside in Eastern Washington.

After Lauri broke down the demographics of the Hispanic market, Lourdes then described the Latino culture and what was important to us. If you plan to do business with a Latino/a you must understand that Latinos place great value on their family and their country of origin. There isn’t anything more important to us than trust, respect, and achieving that “American dream.”

• One major difference between doing business with a non-Latino and a Latino is time management. Americans are always on the go and time is very crucial to them, on the other hand Latinos do not place much importance to time because what matters to us is that we establish trust and we feel comfortable with you no matter how long it takes. Therefore, when meeting up with a potential client you must allow extra time for social talk. Latinos love to talk about their family and their culture.
• Plan to offer food and drink.

Make sure to use a very formal language and never relax your attire. Never assume it is okay to talk in spanish but if you are speaking spanish make sure you know the difference between “usted,” which is akin to“sir/madam” and “tú” which is much more informal. You never want to make the mistake of starting off with an informal approach because it could break the deal off.

There are other behavioral differences between an American and a Latino as well.

• Latinos tend to interrupt while someone else is speaking but this is not a form of disrespect.
• They also tend to speak with their hands and there tends to be a lack of personal space because they like the personal contact.

Now do not get me wrong; this does not mean you should invade their personal space and have a lot of personal contact because that might break the deal as well, which is what David talked about.

David has worked with Mexico for several years now. The tips he gave the audience included making sure you greet everyone in the room, and when leaving make sure to say goodbye to everyone as well. He also described how Mexicans are not as comfortable with personal contact and a hug from them means they fully trust you, so when greeting them a simple handshake goes a long way.

Once we had the discussion on Latino culture, they then talked about ways to get your business out into the Latino community.

• Word of mouth is a very important aspect to getting exposure.
• Become involved within the community that you plan to target and create relationships.
• Hiring bilingual Latinos is also important because it creates credibility, opportunities and it increases your staff which in turn can increase your sales.

But most importantly make your clients feel welcomed. Latinos love to feel welcomed and tend to trust you more if you respect our customs and families.

Rebranding Pepsi to Spanish Speakers

Have you heard about what Pepsi is doing in Argentina and Spain?

It's pretty amazing, really. BBDO, its agency, learned that Argentines tend to say "Pecsi" instead of "Pepsi." This is something universally known among Spanish speakers. But the agency was on to something when they leveraged this insight in its marketing to consumers in that country.

Pecsi was born. I even saw a rebranded Pecsi can, but I can't be sure they took it that far.

Now they've pulled a similar trick in Spain. But there, it's "Pesi." The ad is pretty hilarious, showing a famous soccer player pronouncing it the way ... well, the way they do. Pesi. Pecsi. It's just hard to get that second "p" in there for native Spanish speakers. I have friends from other countries who say one or other other--but I don't remember hearing "PePsi" from them, ever. Just like "picsa" (pizza).

So this is key for Pepsi: Learn how your customers are talking about you. Isn't that what social media is all about, when it comes to brands getting involved? This is the same thing, from my perspective. Pepsi shed its corporate image to talk to these consumers in their language. Brilliant, in my opinion.

My caveat here is that I don't believe this approach is something that can be taken on by brands ever category. For example, picture BMW and the version I always heard in Spain, "BMV." (I never understood that, by the way. If someone could please explain, I would very much appreciate it.) I think a premium brand would dilute its strength by succombing to the populace. Brands representing consumer packaged goods on the other hand are different in their natural positioning. They often work their way into serving as everyday nouns, despite trademarking and any other efforts those brands attempt.

But in this case, Pepsi is showing consumers that their way of interacting with the brand is important to the company.

My bet is that Pepsi, or "Pecsi," or "Pesi," has achieved a special appeal to these two national audiences in a way that really resonates.

Click here for the latest article in Ad Age on this topic and to see the spot Pepsi produced for its Spanish audience.

Latina Sororities, nothing like your average

This contribution is written by Yuritzi E. Lozano, who is a senior at the University of Washington, double-majoring in International Studies: Latin America and Spanish with a minor in Diversity.

Latina sororities first made their appearence on universities about 35 years ago, when the first Latina sorority was established at Kean University. Since then many more have been established. Unlike mainstream Greeks--fraternal organizations that must live in specified housing--these sororities are considered non-traditional in that there is no requirement to live in Greek housing.

These developed when colleges and universities experienced an influx of Latino enrollment. A need to support groups and outreach programs were at an all time high, especially that of Latina women in higher education institutions. At the time there were not many social options for these underrepresented groups. Thus, the decision to create a sisterhood which empowered and supported Latinas evolved.

For many of the women that join these sorority it is more than just a social organization, it becomes a support system that they can rely on. Many of the young Latinas that continue on to higher education are often first, second and sometimes third generation and oftentimes have had to move away from home to pursue their academic dreams.

For me it was just like that: I moved to Seattle to attend the University of Washington from a small city in Eastern Washington. As first generation in higher academia I hardly knew anyone, much less about Seattle life. Joining a sorority, for me, was a way of making the UW campus smaller and created a home away from home.

Today university campuses around the nation have many different sororities on their campus. For example, the University of Washington is home to 4 distinct and unique Latina Sororities; Lambda Theta Alpha, Sigma Lambda Gamma, Kappa Delta Chi and Gamma Alpha Omega. Why the need for so many organizations that cater to this specific group? Each Latina sorority formed from the need to embody principles, values, and philanthropies that catered to their specific needs. Every one of the organizations mentioned above provides something different to its members such as community service, leadership skills, diversity, and networking skills.

At the end of the day they all provide a social aspect which allows these women to create a niche.

Latino Empowerment in the State Capitol

This contribution is written by Diana Lopez, who is a senior at the University of Washington, double-majoring in Law, Society, and Justice plus Spanish.

For five consecutive years, Latinos from all over Washington have come to the state capitol to empower themselves by meeting with lawmakers and other policital leaders, including the governor. In fact, the 5th Annual Hispanic/Latino Legislative Day is taking place in Olympia today!

The annual event is held in order to promote Latino participation in civics and provide info sessions on health, housing, education, farm worker rights and economic development. This year's keynote speaker is Gov. Chris Gregoire and free interpreting is provided during education presentations and legislature visits.

Hispanic/Latino Legislative Day is very important to the community because it reaches out to Latinos and provides them with information that may benefit their daily lives; it is also a way for them to have their voices heard. Community leaders and advocates from all over the state of Washington will be giving presentations on education issues and challanges facing the Washington Latino community. The purpose of this event is to unite the Latino voice in support of issues that affect the Latino community and learn about the legislative process.

The Hispanic/Latino Legislative Organization understands the importance of Latinos to attend from all over the state of Washington, therefore, have sponsored two chartered busses to provide transportation, one leaving from Pasco and the other from Wenatchee.

Cinco Años

Wow. I just looked at my calendar and guess what--It's been 5 years since I opened shop.

That's right: Five years ago I purchased my domain and applied for a business license and developed the Conexión Marketing brand and, little by little, I had a business. My early menu of services included marketing communications (collateral and merchandising), public relations and overarching strategies--services based on several in-house positions I'd held over the previous 16 years.

Friends, family and colleagues all asked, "Why are you doing Hispanic marketing in Seattle? Why not Yakima, or L.A.?" Seattle is my home, it's where I want to be--and though the Hispanic market was the fastest-growing cultural minority in our region, no Hispanic marketing firms called Seattle home.

My first clients were such a celebration, and they were such an important daily reminder of the talents and skills and experience that I offer in the area of Hispanic marketing.

Since those first clients, I've been on an amazing journey with this business. We began to partner with a handful of global agencies (and their national accounts) and are still happily helping many of them with Hispanic efforts today. We've even worked with a few local ad agencies on work within Washington State and the Pacific Northwest.

We've worked in advertising as well, with one caveat to our clients: They must be able to provide a positive customer experience for the Latino consumer before advertising commences. We believe in "marketing inside out," meaning, make sure you can truly service this segment before you target it with advertising.

We then made the big move to our downtown office at Third & Union, an important move for so many reasons. Most importantly, we're accessible to many of our clients while enjoying the hustle and bustle of downtown Seattle. (Feel free to schedule a visit!)

But helping local companies understand their need to reach this fast-growing segment in the right way continued to be a barrier, so we produced our own research. Hispanic Consumers in the Puget Sound Region was a first-of-its-kind study that helped local companies visualize the important of the local Latino community. It included much more than demographics; it included primary data on such topics as media consumption, language preference, top-of-mind brands in several categories, and more. This study is still available as a free download at our website. (Note that while most of the information is likely still very pertinent nearly three years later, our local media environment has seen many changes since we published the study.)

This study was an important benchmark for Conexión Marketing and the industry; it put the local Latino community on the map in the minds of marketers doing business in our region.

Since then, we've conducted much more research, mostly through partnerships with local research firms. Learning about Seattle-area Latinos is so essential in order to effectively understand their needs. Ours is truly a different market--unlike any of your "typical" Hispanic markets, and even wildly different from that of Eastern Washington markets.

We branched out with the verticals we've served over the past five years, helping companies in a variety of industries--banking, communications (telecom, broadband, cable), healthcare, insurance, civic efforts, media, retail, and consumer packaged goods.

Another way that our firm has branched out has been to incorporate social media into plans when it makes sense. We've done this for several clients now, and while it's difficult to measure ROI on social media, we have seen that it really does nurture a sense of "community" and that consumers enjoy being able to interact with brands. And we're certain that Latinos here are embracing social media because we see them regularly posting on several sites--including at least two local social media sites developed specifically for Latinos!

So while some companies may be holding back on their marketing budgets until the recession's in the rear-view mirror, other companies are stepping up with effective strategy and messaging and becoming #1 in their category locally, even nationally. That's the power of the fastest-growing cultural segment, nationally and locally.

What will 2010 hold? Hopefully, more of the same! Especially since we're expecting this coming year's Census figures to blow away U.S. marketers. Those of you already on board with Hispanic marketing, kudos! You're getting in while competition's light and media is affordable--so your brand is benefitting in a cost-effective way. Who knows what will happen after Census data is released?

I love my business, and I work with so many wonderful and talented people--our clients, our vendors and partners. A big GRACIAS to our many loyal clients, several whom we've served 4+ years!

And here's to a 2010 full of joy and prosperity for us all.

Javier Cáceres: The Next Guillermo del Toro?

I am so proud of my high school alma mater. Shorewood High School recently took on a challenge by rival Shorecrest to create a music video. And in my humble opinion, SW still rules!

I saw the video on You Tube by way of Twitter, but now after reading Nicole Brodeur's column in The Seattle Times, I am truly blown away.

Javier Cáceres created, with probably hundreds of classmates participating, the most amazing video, "Shorewood Lip Dub." Cáceres conceived this thing, and choreographed it, *backwards*. That's right: Everyone in the video was moving forward but singing backwards, so when he played the video backwards, all students are lip-synching perfectly to the music--but walking, dancing backwards!

The coolest part of all is that Javier Cáceres is a high school senior--from Peru. He came to the States just six years ago with his family. He didn't speak much English then, but now he's a Running Start student with dreams of becoming a director. According to the Times columnist, even Ben Stiller and Ashton Kutcher are tweeting about this genius.

This is the American dream, folks.

Reaching Unbanked Latinos

In celebration of Plaza Bank President & CEO Carlos Guangorena's birthday today, I'd like to write a little about banking and Latinos. In general, immigrants to the U.S. are much less likely to be banked than American-born. In addition, certain minorities are especially unlikely to have a relationship with a banking institition.

The problem with not having that banking relationship is that then it's difficult to establish credit. And we know that, without credit, many things--like home ownership--are simply unattainable. Now sometimes we hear that employers even check credit reports of their candidates to ensure that they're "responsible." Well, not having any credit at all doesn't make a person "irresponsible," it just means they're living outside the societal norm in the United States. And if they come from a place where banks closed and they lost all their savings, you can understand their hesitation. But now, you see, they have limited opportunities.

According to a first-ever federal survey on the topic, minority groups showed to be much less likely than the overall population to have standard banking relationships. In fact, an article in yesterday's L.A. Times reports on the survey: "Nearly 22% of black households were unbanked, as well as 19.3% of Latino households and 15.6% of Native American households. Just 3.5% of Asians and 3.3% of whites did not use banking services." That's an astounding gap.

Excerpt from the article:

"Many Latinos are most comfortable operating in cash," said James Gutierrez,
chief executive of Progreso Financiero in Mountain View, Calif., which focuses
on giving small, short-term loans to Latinos. Instead of having a paycheck put
on hold for several days at a bank, many turn to expensive payday loans for
immediate liquidity. "There's a lot of distrust of banks," Gutierrez said. "But
even though it's convenient for them to operate outside the financial
mainstream, they can't build a credit history, get a small-business loan, build
wealth. You need to give people a staircase upwards."

Here in the Puget Sound region, Plaza Bank was formed, about four years ago, on this very principle. The founders and directors wanted to create an institution that would be accessible, and since many of them were Latino, they created the Pacific Northwest's first Latino bank--with bilingual/bicultural staff, services and materials. They of course welcome everyone to bank there, with business lending and administrative office is right here in downtown Seattle, and a gorgeous retail branch at the Kent Station Shopping Center in Kent. The Bank has been offering not only your typical bank products for consumers and businesses, but also opportunities for financial literacy. This is what sets Plaza Bank apart from the bigger banks. It's a community bank that is truly reaching out.

For the same reason, the organization Bank On Seattle was created a couple of years back. The mission of Bank on Seattle was to make banking accessible to the unbanked--and keep this population from losing all its money through payday loan services. They formed a cooperative of many credit unions and banks, including Plaza Bank. If anyone can provide information describing the organization's current efforts or achievements, that would be great to learn.

As a side note, in our own survey of Puget Sound Latinos two years ago, we learned that 56% of local Latinos are banked (meaning they have a savings account, checking account or both), which makes the Seattle area market very different from the national average.

Sources: Hispanic Consumers in the Puget Sound Region study available FREE at www.conexion-marketing.com; http://www.linkedin.com/redirect?url=http%3A%2F%2Fwww%2Eeveryoneiswelcome%2Eorg%2F&urlhash=JqF9 ; http://www.linkedin.com/redirect?url=http%3A%2F%2Fwww%2Elatimes%2Ecom%2Fbusiness%2Fla-fi-fdic-unbanked3-2009dec03%2C0%2C487549%2Estory&urlhash=Al9R