Advantage Communications, Inc. Selected as Strategic Partner to General Motors

LITTLE ROCK, AR – January 23, 2012 – Advantage Communications, Inc., Little Rock-based advertising, marketing and public relations agency, has been selected to execute creative services for General Motors (GM) in support of its Minority Dealer Development (MDD) Program. As a strategic partner, Advantage Communications, Inc. will work with GM representatives to develop the re-design, theme and content framework for the MDD INFORM communications platform.

Since 1972, GM has provided training opportunities to qualified minorities to help develop them to become future dealers. GM was the first US automaker to institute a formal minority dealer initiative in the industry. Through Minority Dealer Development, General Motors has created a program where potential minority dealer candidates can learn the business, and current minority dealers have access to resources to help them grow their businesses.

"Advantage Communications demonstrated that they understand what we are trying to accomplish through our program communications," commented Marina Shoemaker, Director of Dealer Development and the GM Minority Dealer Development Program. Their approach is refreshing, very creative and we look forward to developing this partnership with them."

“We are simply humbled to be a partner to such a prestigious organization as General Motors,” said Michael Steele, President and CEO of Advantage Communications, Inc. “For years, our agency has advocated for the development and enhancement of career opportunities within minority communities. The GM Minority Dealer Development program is the epitome of diversity initiatives working at its best. We look forward to not only spearheading the redesign of the MDD communications platform but building an added-value partnership with the GM family.”

For more information, contact Advantage Communications at 501.374.2220.

One Step Forward ... Two Steps Back

By: Michael Steele, President and CEO 
Advantage Communications, Inc.

For years, I’ve been a proud innovator of multicultural marketing. In fact, I can remember when this discipline initially birthed itself upon the shoulders of consumer equality pioneers such as D. Parke Gibson, author of the legendary $30 Billion Negro and $70 Billion in the Black: America’s Black Consumers. Mr. Gibson was a revered pillar amongst African American and business communities as he was not shy about voicing his expertise on the need to diversify corporate America. As a result, he essentially revolutionized the art of marketing. 

Beyond Mr. Gibson, several advocates have spoken up on behalf of diverse audiences including Hispanics (now the largest ethnic consumer segment), Asians and the LGBT community – all in keeping with the need to adhere to diversity in the marketing arena. 

At its early inception, multicultural marketing was centered on speaking to the needs of diverse communities, which were at the time called “Special Markets” or “Market Development”. As time progressed, several organizations and corporations witnessed substantial growth within these consumer markets and began to realize that such growth could greatly affect their bottom line. 

Today, multicultural audiences represent billions of dollars in total consumer spending. According to The Buying Power of Black America, “In 2009, black households spent an estimated $507 Billion in 27 product and services categories.” (See chart to left.) 

As of 2010, black buying power equated to nearly $836 Billion. Hispanic consumers also hold significant spending power. According to a whitepaper published by Mercury Media entitled The Power of the Hispanic Consumer, “By 2017, the Hispanic consumer’s disposable income will have grown 76% to $1.83 trillion.” 

I would be remiss to not mention that the Asian market is also growing at a rapid pace in its current and forecasted purchasing power. According to a 2009 Selig Center report, “Asians’ buying power will reach nearly $700 billion in 2014, when their percentage of the population will only spill a little over 5 percent.” (See chart to right.)

Understanding this power of multicultural consumer spending, today’s marketers are more comfortable in the multicultural marketing space. I even applaud modern-age CEOs/CMOs as they appear to understand the importance of multicultural marketing to their respective businesses and brands. However, what they fail to understand and remain confused about is how to manage multicultural marketing as a successful, functional group within their organizations.

This confusion was further uncovered by a recent survey conducted by AdAge amongst chief marketing officers, senior VPs of marketing and other manager/directors from a variety of consumer-based disciplines. The high-level results were discussed in an article entitled “Marketers: We Don’t Get How to do Diversity.” And by the way, I can’t think of a more appropriate title!

The article noted, “While 84% of the marketers believe multicultural marketing is ‘critical to my business,’ almost 40% said they don’t know the financial value of multicultural groups to their companies.”

Wow…

I interpret this statement to be a transparent void in understanding how to establish and maintain Return-On-Investments (ROIs). But, is this not the basic measurement for success for any and all marketers? Of course it is, and this responsibility lies with the CMOs. It’s nowhere near realistic to invest if executive leadership doesn’t understand ROIs. Herein lies a significant portion of the problem with multicultural marketing. While CEOs/CMOs may understand the percent of volume attributed to diverse consumers, they do not understand the ROI potential nor can they quantify the impact of targeted marketing campaigns.

During my career with The Coca-Cola Company, I oversaw the multicultural marketing group and worked on a series of consumer categories that held a disproportionate share of ethnic consumption. I took pride in establishing my department to the same level of value as the other departments. By this I mean we set measurable objectives, quantifiable strategies as well as ethnic profit & loss statements (P&Ls) – all of which were put in place to hold our department accountable for results. The same process that worked for me several years ago can work for today’s multicultural marketers.

Another significant portion of the problem with multicultural marketing is the fact that CEOs/CMOs struggle in understanding how to structure the multicultural marketing department to be most effective and generate optimum profits.

A recent demonstration of this struggle was the announcement that certain multinational organizations have pushed the responsibility of multicultural marketing down to the brand level in an attempt to force accountability or quantify the business. In reality, however, what this process has done is deemed multicultural marketing a lower priority– internally (particularly amongst executive leadership) and externally. This may not have been an intentional effect, but the truth is that these segments are now at risk of serious stalling or even complete demise.

These CEOs/CMOs have failed the multicultural community and their own companies in not understanding the economic impact these consumers have on shareholder equity. At my agency, Advantage Communications, we live and breathe the disciplines of successful multicultural marketing management.

Here are five “musts” we’ve coined for managing multicultural marketing for our clients: 

 

• Multicultural marketing must require 100% commitment, 100% of the time. The same level of commitment that is dedicated to other disciplines within an organization should be exhibited for multicultural marketing. 
• Multicultural marketing must be managed via executive leadership – not junior personnel. Let’s remember… key business decisions should be made from the top down, not the bottom up! 
• Executive leadership must understand that relegating multicultural marketing is abdicating their responsibility for capturing every consumer dollar available for their respective businesses and brands. 
• Multicultural marketing must not be viewed as a percent of a brand marketer’s compensation plan but rather a business segment. 
• Multicultural marketing must be treated like profitable, consumer segments such as the youth, aging or gender-based markets. Just as business forecasting and analytical teams support these business segments, such should be the case for multicultural marketing. This is the avenue to demonstrate results. 

With all this said, I’m sure many of us have heard that one of the reasons these companies lack structure in multicultural marketing is because they cannot find qualified human capital to manage this discipline. Over the years, large corporations have hired highly assimilated minorities that have not done their due-diligence for these markets.

The minorities that are fortunate to enter into corporate America via multicultural marketing or similar ethnic disciplines only do so with the intention of moving up the corporate ladder. In other words, their “brown” positions are simply conduits for general market opportunities they seek to reach. As a result, no one is truly taking ownership of multicultural marketing.

What they fail to realize is that qualified talent can often be found right in the backyard of their own corporations or within their multicultural agency relationships. They must simply put forth the effort to secure talent and not wait for it to knock at their front door.

Over the years, my associates have had the opportunity to assist several of our clients in effectively structuring their multicultural marketing groups to optimize value, including the use of P&L statements by segments. We keenly understand that multicultural marketing is a discipline that can be applied not only across the country but internationally as well.

On this note, I must say I find it amazing that some CMOs appear to better understand multicultural marketing internationally but fail us domestically. Throughout my tenure with The Coca-Cola Company, I had the privilege of traveling to many countries. In these markets, CMOs spearheaded efforts to adopt culturally-relevant product offerings to meet the needs of diverse consumers. Why not do this in the states? The same basic philosophies apply no matter where you are! Marketing is marketing in the United States and abroad.

So, here’s a fact: Multicultural marketing is a complex discipline. However, knowledge is power. If you’re interested in learning how you may better structure your multicultural marketing group for success, we are the solution.

Simply Smart Marketing

How to Speak to the Needs of the Multicultural Segment

By: Michael Steele, President and CEO 

Advantage Communications, Inc.

Despite what some may say…marketing IS here to stay. However, marketing goods and services has been and continues to remain under assault by a battery of educated professionals that have lost their way. While I’ve never disputed the value of a strong education, I have seen a precipitous decline in “new-age” marketers being well acquainted with the very basics of Marketing 101. I anticipate part of this decline is a result of our ever-changing, dynamically diverse consumer marketplace.

We now live in an age where consumers have become immensely smarter and savvy with their decision-making for goods and services. The implications of this increase in knowledge demonstrate that marketers must become smarter with their marketing assets.

In previous years, it appeared as though the majority of marketing agencies refused to hire minorities. Such practices created a void in the breadth of services and capabilities marketing agencies could have provided to speak to growing targeted audiences – which were most often African American, Hispanic, Asian and the LGBT community. In today’s terminology, we have deemed these audiences as diverse or “multicultural.”

Today, several agencies are attempting to address this void by implementing changes to attract and retain minorities – but some say it’s still no easy feat. According to Bill Gray, co-CEO of Ogilvy North America, “Hiring minorities, particularly mid-and senior-level employees, into the business is tough for several reasons. You’ve got to have senior, visible minorities who can act as validation that the industry has opportunities.” (source:adage.com). Nevertheless, we know this void must be aggressively addressed.

According to the 2010 Census data, nearly 40% of the total United States population is African American or Hispanic American, an increase of nearly 17% from the 2000 Census. This speaks volumes to the need for marketers to truly understand to whom they are speaking. Marketing consumer goods and services, in particular, requires a solid understanding of the needs of the consumer audiences as well as those things that will most closely resonate with their culture and socioeconomic status. Consumer goods marketing to diverse audiences must answer the question, “What’s in it for me?”

Upon gaining such consumer learnings, a marketer is equipping himself/herself to be sufficiently prepared for the development of successful tactics and programs. However, before cascading learnings into tactical execution, it is essential that objectives and strategies are set. Too often, it appears as though our young marketers simply ignore this vital step. Of course, it is more fun and exciting to develop advertisements and facilitate flashy programs. I understand this. But I continue to stress to my associates at Advantage Communications, Inc., that you must allow your objectives and strategies to set the tone for your tactics – never the inverse. I ask my associates “What good is an idea without a goal?”

Many of you are familiar with the concept of SMART objectives – specific, measurable, achievable, realistic and time-oriented. This concept still reigns true today. We would all love to change the world overnight, but that’s not realistic. Objectives must satisfy each of the elements of the SMART concept. With this, complementary strategies may be developed to assure objectives will be successfully accomplished.   

My point to marketers, particularly those within the multicultural spectrum, is this - we can no longer rely on hanging signs with brown faces in ‘certain’ neighborhoods or simply having a presence in minority-targeted media outlets and events as a means to encourage minorities to consume our clients’ products. Now is the time for us to be more strategic in our efforts. However, strategy is built on the foundation of knowledge and in this case, what you may have learned in business school is not enough.

Today, we must focus our efforts on both above - and below-the-line program activation. In other words, we must be integrated versus adjunct in our work. What does this look like? I see it as a simple model of “conversion”. Essentially, our job is to convert positive brand imagery (which should equate to a consumer’s personal identification with the brand) to transactions – without exception.  

I’ve noticed that today’s multicultural advertising agencies consider themselves to be industry leaders in marketing to African American, Hispanics, Asians, and other groups. However, at Advantage Communications, Inc. we not only consider ourselves to be multicultural experts but also specialists in targeted marketing or market segmentation. What some may misconstrue is that the word “targeted” implies reaching ethnic groups solely. This is not the case at our agency. We utilize market segmentation to identify targeted audiences by:    

•  Ethnicity
• Age
• Gender
• Geography
• Sexual Preference
• Consumer Trends and Habits
• Economic Status
• And More!

Diversity is our niche.

Several marketing giants such as McDonald’s and Nike also understand and utilize targeted marketing strategies to reach consumers of all types. In fact, they openly target minority consumers without hesitation as they can easily represent the differences between profits and declines. These are simply segments that cannot be ignored. Marketers must understand that the monolithic – or one message for all approach - is no longer effective. Our consumers need multiple messages disseminated via multiple mediums.

We as minorities have very different consumption behavior and cannot always be reached via the same methods as the majority population. It just doesn’t work for us. We tend to use products differently, view and consume media differently, behave differently and soon will become the majority! Obviously, the key word here is “difference.”

So allow me to ask this question, Are your communications plans suffering from a bad case of what I call “monolithitis”? 

The “Super-Sizing” of America

By: Michael Steele, President and CEO 

Advantage Communications, Inc.

Since our inception in early 2000, Advantage Communications, Inc. has taken great pride in our approach to not being your “traditional” group of marketers. We consider ourselves to be a different type of agency in that we specialize in speaking to the needs of ALL consumers. Additionally, we have established ourselves as both domestic and international communications gurus. Our “sweet spot”, however, is health communications as it pertains to addressing public health challenges and advocating constructive behavior modifications.

To name just one example of our success in the realm of public health, Advantage Communications, Inc. has been and remains a long-standing pioneer in the fight against minority tobacco consumption. But now, we’ve come to realize we’re on the brink of a new tobacco… a public health issue that is currently affecting many Arkansans and citizens of the United States, particularly minorities …one that will continue to plague us if we do not adopt an aggressive approach for social and physiological change…one that can be fought, but the first step is acknowledgment.

The name? OBESITY.

Why is it that so many of us feel as though we’re invincible or somewhat immune to certain aliments and illnesses? Look at the facts. African Americans and Hispanic Americans are disproportionately affected by diabetes, high cholesterol, heart disease, colon cancer, prostate cancer, and now obesity -- which largely contributes to many of these illnesses. Understanding there are several intangible factors (such as hereditary and/or genetic dispositions) that may influence why one person is affected by an illness and another of a similar demographic profile is not, we must also understand that some factors we do control. Eating is one of these factors. 

Below are just a few of the startling statistics we found from the Office of Minority Health about the impact of the obesity epidemic on African Americans and Hispanic Americans:

• African American women have the highest rates of being overweight or obese compared to other groups in the U.S. About four out of five African American women are overweight or obese. 
• In 2007, African Americans were 1.4 times as likely to be obese as Non-Hispanic Whites. 
• In 2003-2004, African American children between ages 6-17 were 1.3 times as likely to be overweight than Non-Hispanic whites. 
•  From 2003-2006, Mexican American women were 30% more likely to be overweight, as compared to Non-Hispanic Whites. 
• In 2007, Hispanic adults were 50% less likely to engage in active physical activity as Non-Hispanic Whites. 

Beyond these statistics, a 2009 press release from the Centers for Disease Control and Prevention stated, “Blacks had 51 percent higher prevalence of obesity, and Hispanics had 21 percent higher obesity prevalence compared with whites.” Dr. William H. Dietz, Director of CDC′s Division of Nutrition, Physical Activity, and Obesity said, “If we have any hope of stemming the rise in obesity, we must intensify our efforts to create an environment for healthy living in these communities.”

With the increasing diversity of the U.S. population – soon to be more than half the total population over the next few years – comes a tax. The tax is a disproportionate incidence of obesity closely aligned with minority growth rates. Of course, this is not to say minorities are the only groups affected by obesity. Yet, we continue to feel the heavy burden.

According to a 2010 New York Times article entitled “A Shift Toward Fighting Fat”, The Robert Wood Johnson Foundation, the nation’s largest private funding source for fighting smoking, has pledged to spend $500 million in five years to battle childhood obesity. Just as the Robert Wood Johnson Foundation has risen to the occasion to “face the fat”, such must also be the case for the communications and media industry.

We know African Americans, in particular, consume more television in late night, daytime and primetime on average than all other U.S. homes. We control how, when and where messages are positioned so why would we not want to use this type of power to positively educate minorities? The communications industry is essentially driving the increase of obesity amongst all populations but disproportionately against minorities.

On the other hand, I also know several of my counterparts depend on the obesity-fueling industry of fast food as their life line. In fact, many of the larger multicultural agencies manage diversity accounts for McDonald’s, Burger King, Wendy’s and the like. However, my agency is ready to take a stand against this revenue-generating, yet fatal industry. We’re ready to stop blaming obesity on the personal choices of one person to the next and say it is our fault for not advocating healthier ways of living to our own people.

We see this not so much as a challenge but an opportunity to rise above common stigmas about minorities involving our overindulgence in junk foods and lack of exercise. Many of us prove this to be untrue in the ways we live our lives, but many still do not know. It is our job to let them know.

Understanding the number of obese minorities will not decrease overnight, it will take a collective effort to make a difference. I challenge each of my fellow marketers to join me as we push the needle on a topic that is affecting each of us in one way or another. I challenge each of them not to abandon their fast-food clients but instead bring a new level of innovation to the marketing of their products and services. I challenge each of them to use the multicultural segment as a means to secure healthier lives for our children and their children.

Join Me.

The "Brown" Age

By: Michael Steele, President and CEO 
Advantage Communications, Inc.

It’s no secret that the U.S. minority population has steadily increased over the last several years. Nor is it a surprise that minorities are projected to become the majority by 2042, with the nation projected to be 53 percent minority in 2050, according to a 2008 U.S. Census Bureau press release. The real surprise, however, is that the innovative marketing and communications industry has not quite grasped the implications of this forecast. According to an Advertising Age 2009 White Paper entitled, “New U.S. Census to Reveal Major Shift: No More Joe Consumer”, “the message to marketers is clear: No single demographic, or even handful of demographics, neatly defines the nation. There is no such thing as “the American consumer”. 

It is even more important - now than ever - to understand that a new paradigm is upon us and its name is “market segmentation”. As one of the fastest-growing, multi-cultural, advertising, marketing and public relations agencies located in the mid-south, Advantage Communications, Inc. has not only accepted but whole-heartedly embraced this paradigm. Our expertise has been built on our efficiencies to generate buzz, alter attitudes and perceptions and drive consumers to action specifically in diverse markets. This is the environment in which we live and to effectively communicate, we must first understand this new America. 

To this end, here are just a few things we KNOW:

• The idea that “one message for all” will suffice is no longer the case. Consumers want to feel as though messages are targeted directly to them to satisfy their needs, address their concerns, fill a personal void, or the like. 
• Minority populations (especially African American, Asian and Hispanic) have a higher propensity to consume messages that are disseminated through targeted outlets or those designed to address the nuances of these cultures. 
• The use of culturally-relevant images, language and other concepts is well-received among minorities as they are perceived as being “personable”, realistic or easily relatable. 
• Appealing to cultural nuances, social norms and lifestyle situations is essential in penetrating the inner thoughts and emotions of minority consumers. 
• Advertising recall is often higher among minorities than their non-minority counterparts when skewed to their cultural nuances. 
• As it pertains to African Americans, they are more responsive to messages delivered by models and spokesperson that look like them. 

So what exactly is the term “market segmentation”? Although it may not be defined in commonly-utilized reference tools, the concept is simple. Market segmentation is first recognizing the multiple segments within the marketplace and then tailoring messages to fit identified needs.

Make no mistake about it… There are several companies and businesses that do understand the need for targeted marketing and many of their efforts have proven successful. Such large restaurant chains as McDonald’s and Burger King have demonstrated their capabilities to tailor messages to target audiences while also appealing to the general market. According to a November 2009 article in Advertising Age entitled, “Ethnic Insights Form Foundations of McDonald’s Marketing,” McDonald’s marketing strategy is framed by its knowledge of ethnic markets. Neil Golden, CMO of McDonald’s USA, states, “Ethnic segments are leading lifestyle trends.” The article goes on to explain that not only is the ethnic segment a trendsetter, but also largely comprises of McDonald’s total customer base. Approximately 40% of McDonald’s customers are of Hispanic, Asian and African American descent.

Other large corporations, such as The Coca-Cola Company, the company wherein I worked more than 15 years as a marketing executive, has also embraced the idea of market segmentation. With its commitment to providing quality beverage services to all consumers, The Coca-Cola Company understands that in order to encourage consumption of its products, it must spark interest within the consumer. This interest is sparked through the message delivery – hence the need to tailor the message specifically to the audience in which it will be received.

I believe the key to market segmentation is understanding your target audience. We live in a world where trends are here today and gone tomorrow. It is essential to understand the demographics and psychographics of those whom we seek to target. It’s almost impossible to address a need if we do not first know what it is. To this end, I continually encourage my associates of Advantage Communications, Inc. to conduct extensive research on industry trends, competitive advantages, population data, etc. Additionally, we are no strangers to referring to targeted publications such as Diversity, Inc., Target Market News, Multicultural Marketing News and Black Enterprise Magazine for the latest news and trends within our multi-faced marketplace.

In pressing forward to the new era of marketing i.e., “The Brown Age”, I encourage my fellow communications professionals to adapt to their environments. Although efficiently and effectively tapping into diverse markets may seem tedious at surface view, it is a step in the direction toward innovation. And as smart marketers, isn’t this a step we’re ready to take?