The top three largest minorities in the United States are the Hispanic Americans, African Americans, and Asian Americans. The United States 2000 census indicated the total population as 281. 4 million where the 3 minorities represent approximately 30. 1 percent of the population. The purchasing power for the 3 major minority groups in very important n marketing and is provided in this study (Sfm 2008). African Americans African Americans are the second largest group of minorities and heavily contribute in the national politics, social welfares as well as economy.
The population has increased in number within the various government and states welfares. This helps the group to advance financially according to the joint center for economic studies survey (Dana 2007). The total population of African American consumers is approximately 36. 4 million which relates to approximately 12. 9 percent of the total population in the country. As a result, targeting these consumers and studying their growth impacts on the multiplication of wealth and properties in the country.
A landmark survey conducted in 2008 illustrates increased growth especially in the “mortgage originations, medium household income, and small businesses entrepreneurs and obtaining of degrees in higher education levels” (Sfm 2008). According to census bureau, African Americans have the second highest purchasing power in the minorities with turn over of $532 billion which translates to 73 percent growth as compared to 1990. In the education sector, the number of degrees offered in higher education is hitting three times as much as that of general market.
African Americans have made use of the mortgage system to own house hold houses and around 50% of the household resides in their own homes (Sfm 2008). On entrepreneurship and ownership of small and medium businesses, the rate of expansion is five times as much as white Americans where revenues according to a business study conducted has experienced a 60 percent growth. The average age for African Americans is 30 and around 15 percent earns a household income of more than $50,000. The average house hold income in 2008 was $34,000 (Dana 2007). Availability of income influences the purchasing power of an individual.
A study conducted in 2007 indicate that around 300, 000 African American house holds has a house hold income of above $100,000. This indicates that approximately 1 in every 6 households in the group earns this income (Dana 2007). For the medium households, the group is experiencing 60 percent growth in comparison to the whites’ households. This has helped in offering various opportunities for this minority group with a “mean portfolio size of $115, 000 for each house hold and approximately $57, 500,000 dollars of investment at hand” (Sfm 2008).
With the use of statistics for projection, the investment dollars is expected to multiply to $83,375, 000 in duration of five years and attain a mean of $115,920,000 after a decade (MacInnis 2009). African Americans according to the United States population census represent 12. 1 percent of national citizens. This composes of the of all those who have been born in the country and have resided with their families for more than 300 years as well as those who have immigrated from Africa in the recent past. African Americans represent people from the black race (MacInnis 2009).
On the regional demographics, African Americans are not clustered in limited areas with respect to other minorities. However, the group is the main driver for the markets in most of the cities in the United States. Report from the United States census Bureau indicates that “76 percent of the total population in Detroit, 65 percent in Washington and approximately 62 percent in New Orleans” are African Americans (Sfm 2008). Their population is also evident in various other states including “New York City, Chicago, Philadelphia, Los Angeles, Houston, Baltimore and Memphis.
” For the universities in these states, approximately 78 percent of the students are African American (MacInnis 2009). Extensive migration for the African Americans is being experienced mostly to the south. Various states including Atlanta are experiencing massive economic expansion through the group activities. There are also increased employment opportunities mainly in “Houston, Dallas, Raleigh-Durham and other states from the south” which are attracting the African Americans into the region. The region has also cheap real estate, moderate weather and easily affordable way of live (MacInnis 2009).
Successive marketing in the African American society requires clear understanding of their culture. The group according to a survey is discerning shoppers and is very careful on quality and satisfaction. They are loyal customers and remain in the brands they use thus a good relationship is required. Appearance in advertisement is very appreciative for the group in the utilization of their talents (MacInnis 2009). The internet is another media form that is widely used by the African Americans through the on line commerce.
In investment, the group mainly engages in real estates business and banking sector as opposed to the bonds and stocks which is popular among the whites (Sfm 2008). Hispanic Americans The Hispanic population in the United States the largest minority group and is increasingly growing and thus affecting various sectors. This might be from political to business view. The population for the Hispanics is currently approximately 35. 3 million, approximately 13% of total population according to census department which translates to a percentage growth of 38 percent in comparison to overall population growth of 9 percent (Dana 2007).
The population is projected to reach a high of 96 million by 2050 where they will take a quarter of the total population. Among the Hispanics, approximately 2 million people earn more than $75,000 in every year. The average house hold income in 2008 was $40,800 (Sfm 2008). The population has a huge transactional power of approximately $428 billion. This is expected to reach $600 billion in five years. The Hispanics household income is significant and their mean number of people in every household is 3. 6. This also gives an average age of 26.
As a result, there is need to understand the group’s culture for effective marketing (Dana 2007). Majority of the Hispanics originate outside countries. The dominating countries of origin are “Mexico, Cuba, Puerto Rica, the Dominican republic and various countries in south/central America” (Sfm 2008). The group heavily embarks on their family with much priority hoping to offer the best. Respect of culture with marking of various events is also common with the group. The population like watching sports over the television with professional boxing followed by base ball being the favorite according to a study by MDI (Dana 2007).
The United States census bureau indicates that majority Hispanics, approximately 80 percent reside mainly in five states. However, around 59 percent reside in ten states including “Los Angeles, New York, Miami, San Francisco, Chicago, Houston, San Antonio, McAllen, Dallas, Worth and San Diego” (Sfm 2008). For effective marketing in the group, products relevant to their culture provide a consolidated base and increased number of customers. Products that would address family matters and its importance are also marketable in the Hispanics (Dana 2007).
Language is very important for the Hispanics and they prefer the use of mother language thus advertising of products should be done with Spanish speaking media rather than English speaking media (MacInnis 2009). Creation of friendship and one to one contact with the customers is required due to relationship orientation by the group (Dana 2007). This would also call for recruitment of Hispanic personnel. Considering that around 30 percent of Hispanic population is below 18 years of age customization of vehicles is advisable.
In the universities, approximately 21 percent of undergraduate students are Hispanic (Sfm 2008). Asian Americans Asians represents various nationalities including “Japanese, Chinese, Koreans, and Asian Indians. ” In the United States, Asian Americans total to 11. 9 million which represents 4. 2 percent of the total population. This is projected to get to 35 million by 2050. The Asian Americans have a high purchasing power of approximately $300 billion annually (Louis 2010). Asian Americans have a mean age of 33 years where more than half of population aged 25 and above are married.
The population strongly values their family. The Asians have a multi generational type of house holds with mean of 3. 8 per household (Sfm 2008). Majority speaks their mother language and educate their students on language schools mainly Chinese. Majority of the Asians are entrepreneurs with long working hours with reduced leisure shopping. They are ranked as the lowest group in leisure related activities. Due to their increased hard work, they are the highest income earners in the United States. The average household income for the Asians is was $66,900 in 2008 (Louis 2010).
In the education sector, Asians household have the highest education level with comparison to the various other groups. It was reported that 38 percent of the Asians Americans have a degree certificate (Sfm 2008). Effective marketing in the Asian American population require intensive knowledge as well as preparation in addition to staffing from the group. In the advertising a number of agencies have already been established that specializes in the Asian American markets. Ethnic group members play the advertising procedure thus one requires understanding of community as well as language for excellence.
The strong language preference has led to the growth of Asian media in the United States with increased Asian language television, radio, newspapers, and magazine (Sfm 2008). Asians reside in a few states and this provides n easier communication program for the population. Among the key states where Asian American resides include “California, New York, and Texas” (Louis 2010). They also reside in Los Angeles and San Francisco but in reduced numbers. Filipinos are more so concentrated in Los Angeles whereas the Chinese are in New York City. For the case of San Francisco, the two are concentrated.
The Asian population is also expanding in “Washington, Seattle, Houston and Dallas. This is as a result of technological expansion and other investment gains (Louis 2010). References Dana, L. P. (2007). Handbook of research on ethnic minority entrepreneurship: a co- evolutionary. Massachusetts. Edward Elgar Publishers Louis E. Boone, David L. Kurtz. (2010). Contemporary Business 2010 Update. New York. John Wiley & Sons MacInnis, D. J. , Park, C. W. , & Priester, J. W. (2009). Handbook of brand relationships. New York. M. E Sharpe publishers. Sfm. 2008. Article accessed from http://www. sifma. org/services/hrdiversity/pdf/African. pdf