Jodi Harris: Over the last few weeks, both Lexus and Infiniti announced creative initiatives specifically targeting the African-American audience, both using an arts or music focus. What do you think is happening in that market right now that makes this the right time to target this market for big-ticket, luxury purchases?
Erin Patton: Well, I think it is really a confluence of a few things. For starters, the urban market has matured. You've seen the emergence of Hip Hop's Generation X, now aged thirty-plus, which has accumulated a great deal of wealth. And, luxury and high-end items do a couple of things for consumers.
One, they validate and reinforce status, which is an integral component of the DNA of urban consumers. Perhaps, no other "badge" signals status for urban consumers more profoundly than the vehicle one drives. More importantly, though, as the urban market has evolved and certain aspirations have become realized, these items become a reflection of that lifestyle as well as specific tastes and preferences of distinct, urban market segments-- in this case, a luxury segment.
As the urban market has matured, a real opportunity has been created in [the luxury] category because it speaks to the affinity this consumer has displayed for high-end, luxury items over time, combined with refined tastes and a true understanding of value and a higher propensity to spend to have an item first.
Secondly, we're in a digital age, and certainly this particular audience is active online. Interactive brand marketing and viral marketing are key vehicles for having real-time engagement and a customized experience, which is what most brands are looking to have with consumers, relative to their particular insights, needs and preferences. So, you are really talking to a captive audience.
Finally, as I alluded to, I think it speaks to the future paradigm of segmentation-- particularly within the African-American market and the broader urban market now, as it has transcended race. There are some unique nuances reflective of each of those particular segments. In the case of the Lexus and Infiniti campaigns, I think they have been able to identify a very target-rich segment and reach them in a compelling way. The music form -- a fusion that speaks to a contemporary urban lifestyle, with [the independent label] Hidden Beach and [musician] Mike Phillips, fused with a Hip-Hop vibe -- is very much key to their background, experience and evolution.
Harris: So, this market is going to be very receptive to these particular messages, based on the use of this kind of media as the method of delivery?
Patton: Yes, absolutely. And beneath that are great opportunities in terms of content and rich media. You can take behind-the-scenes footage or partner with record labels or other outlets to provide tailored content from existing campaigns, promotions or sweepstakes and drive it directly to the desktop to give the consumer a unique, brand experience that is also culturally relevant… those are just a few topline examples.
Then there are emerging and new technologies such as podcasts and blogs which speaks to the innovator and early adopter mindset of this segment. It is really all about identifying your audiences -- and the segments -- and connecting with them in real ways. Interactive is a great way to do this.
Harris: Do you see any particular challenges for auto marketers trying to reach the multicultural market in these channels, or in any other media delivery methods?
Patton: Not really. I think, in some cases, brands may be looking to prioritize in certain markets or audiences, focusing on reaching each kind of demographic independently. Sometimes, there can be challenges with respect to budget allocation. But, interactive is a solution to that as well because it is a fairly cost effective and measurable medium.
But, I think you begin to see brands really look to capture broader segments -- even within certain channels, and interactive being one of them -- so, maybe they're shifting away from a pure demographic, and to a psychographic where you really have an even greater critical mass within segments. That is maybe an area where some brands are struggling while others are beginning to see it as an opportunity.
Brad Berens: Erin, do you have a sense of whether the urban community that we are talking about differs from the broader community in this country in terms of their adoption levels for things like podcasting, blogs or RSS? Is it largely coextensive with the sort of overarching cluster of communities that we have in this country or are there actual differentials that we can point to?
Patton: Maybe in terms of rate of adoption when mapped over the technology life cycle, but that is more of an issue of exposure and outreach than acceptance of the technology and its inherent value. First, though, in terms of market definition, I don't think there are many differences in terms of the urban audience -- as I define it -- and the general market, because it really is an urban psychographic that is evolving, which is marching to the beat of the innovators and early adopters who, ultimately, wield significant influence over mainstream behavior and adoption, particularly in the automotive category and also with respect to technology.
Urban consumers are intrinsically early adopters. Many industries have come to realize this and capitalize on it in areas such as footwear, apparel, premium liquor brands and, recently, automotive. However, technology brands for the most part haven't cleared the strategic hurdle of being able to identify urban consumers as key early adopters for certain technologies that will help them "cross the chasm" into the early majority. So, I think the only difference may just be not being a part of that software development team that works with these new technologies or is exposed to it in its early stages and ultimately actively marketed to. And, I think that will change as well, with certain exposure to the technology which will fuel their innate, early adopter attitude around interactive technology and wanting to use it as a tool and conduit for self-expression, empowerment and connectivity. As it becomes that much more accepted and as certain folks with an urban mindset are on the forefront of advancing those technologies -- or creating new ones -- I think that will create a sizeable shift in the paradigm.
But, the adoption is a little bit behind what you would call the general market, especially at the agency level. There are not as many agencies that are focused on this whole interactive space-- though there are certainly a few who are doing a good job. But, I think you will start to see more market entry into this space by the traditional agencies as well as emerging agencies such as Imagine That in the case of the Lexus. So, I think that factors into it as well.
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