Principles of Marketing: Analysis of African American, Asian American, and Hispanic American Consumer Trends

This report analyzes the demographics, consumer trends, and market research of African American, Asian American, and Hispanic American populations in the United States. It also identifies potential business opportunities for each group.

RUNNING HEAD: Principles of Marketing 1
Principles of Marketing
(Student Name)
11/23/2018

Principles of Marketing 2
Table of Contents
Introduction.............................................................................................................3
Part I.......................................................................................................................3
AFRICAN AMERICAN.............................................................................................3
ASIAN AMERICAN.................................................................................................4
HISPANIC AMERICAN............................................................................................6
Part 2 - Analysis of Business Potential for Each Group...........................................7
African American..................................................................................................7
Asian American....................................................................................................7
Hispanic American...............................................................................................8
Bibliography/Citations.............................................................................................8

Principles of Marketing 3
Student Name
Date
Class
Minority Research Paper
Introduction
The United States of America has one of the strong economies. It is the home to
different races as well as people around the world. The country represents
various dynamic cultures as well as with different lifestyle that the inhabitant
holds. It is important to look into various aspects of marketing approach as well
as consumerism in business in the country. The following report will highlight the
demographics of the African, Asian as well as Hispanic Americans who are settled
in the USA. In the report there will discussion on the analysis of consumer trends
as well as market research of the 3 minority group in the United States of
America.
Part I
AFRICAN AMERICAN
Total numbers in the U.S
 46.8 million (Source: United States Census Bureau1)
Percent of the total U. S. population
 14.60 % (Source: United States Census Bureau2)
Rate of growth
 15 % by 2016 (Source: United States Census Bureau3)
Average household size
 3.2 people per family are the average household size (Source: Dilemma4)
Average age
1 United States Census Bureau, Newsroom (01 January 2016) < https://www.census.gov/newsroom/facts-
for-features/2016/cb16-ff01.html>
2 Ibid
3 Ibid
4 Dilemma, U.S. Census- Release Date (10 January 2017) https://dilemma-x.net/2017/01/18/u-s-census-
release-date-january-10-2017-african-american-population-statistics/

Principles of Marketing 4
 31 years (Source: Dilemma5)
% with college degrees
 18 % African Americans has bachelor degree as well as advanced degrees
(Source: Dilemma6)
Average or median income levels
 $38,000 (Source: Dilemma7)
Geographic location(s) – metro, states, etc
 The Geographic locations are explained in below points:
 Maryland- 30.1 %
 Georgia 31.4%
 Alabama- 26.4 %
 North Carolina- 21.6 %
 District of Columbia – 50.7 %
 Mississippi- 37.3 % (Source: WorldAtlas8)
Brands that have higher than average purchase for each group
 General Motors, Google, Lexus, Tide, Pampers, Menthol, Oreos, Campbell
Soups, Kool lights, Levi’s, Wal-Mart, Gap (Source: Alderton9).
Identify specific products which have above average usage for each group
 Most of the population of African Americans spends extra amount on basic
products and drinks, personal health, perfume as well as on beauty
products (Source: Alderton10).
Best media to use to target each group
 African American newspaper, broadcasting and magazines are the
effective media tool to reach out maximum customers (Source: Alderton11)
ASIAN AMERICAN
Total numbers in the U.S
5 Ibid
6 Ibid
7 Ibid
8 WorldAtlas, 10 States with the Largest African-American Populations (2018)
https://www.worldatlas.com/articles/us-states-with-the-largest-relative-african-american-
populations.html
9 Matt Alderton, Marketing to African-American Consumers (22 February 2017) <
https://www.business.com/articles/marketing-to-african-american-consumers/>
10 Ibid
11 Ibid

Principles of Marketing 5
 17.32 million (Source: Pew Research Center12)
Percent of the total U. S. population
 5.6 % (Source: Pew Research Center13)
Rate of growth
 46 % (Source: Pew Research Center14)
Average household size
 The average household size is 3.98 members in which contain two or more
adult or on that embraces both grandchildren as well as grandparents
(Source: Pew Research Center15)
Average age
 35.4 years (Source: Pew Research Center16)
% with college degrees
 72 % population of Asian Americans have Bachelor Degree (Source: Pew
Research Center17)
Average or median income levels
 $73,060 (Source: Pew Research Center18)
Geographic location(s) – metro, states, etc
 The Geographic Locations are:
 California- 16 %
 New Jersey- 10%
 Nevada- 10%
 Washington- 10 %
 Hawaii- 56% (Source: United States Census19)
Brands that have higher than average purchase for each group
 The population of Asian American buy high quality products such as:
 Avenue
12 Pew Research Center, Factank (08 September 2017) <
http://www.pewresearch.org/fact-tank/2017/09/08/key-facts-about-asian-americans/>
13 Ibid
14 Ibid
15 Ibid
16 Ibid
17 Ibid
18 Ibid
19 United States Census, Library (14 March 2017)
https://www.census.gov/library/visualizations/2017/comm/cb17-ff07_aapi.html

Principles of Marketing 6
 Costco
 Ross Dress for Less
 Neiman Marcus
 Macy’s
 Saks Fifth
 Nordstrom
 Babies ‘R’ US (Source: Campbell20)
Identify specific products which have above average usage for each group
 The specific products are fruits, grains, vegetables, baby products which
include baby food and diapers (Source: Campbell21)
Best media to use to target each group
 The use of ethnic print and social media is an effective tool to target Asian
Americans (Source: Campbell22)
HISPANIC AMERICAN
Total numbers in the U.S
 57.5 Million (Source: United States Census Bureau23)
Percent of the total U. S. population
 17.8 % (Source: United States Census Bureau24)
Rate of growth
 2% (Source: United States Census Bureau25)
Average household size
 The average household size is 3.87 people in which 48 % of Hispanic are
married-couple households (Source: United States Census Bureau26)
Average age
 34.4 years (Source: United States Census Bureau27)
% with college degrees
20 Alexia Fernandez Campbell, Business (24 August 2016) <
https://www.theatlantic.com/business/archive/2016/08/the-overlooked-consumer-group-with-billions-
to-spend/497105/>
21 Ibid
22 Ibid
23 United States Census Bureau, Newsroom (31 August 2017) https://www.census.gov/newsroom/facts-
for-features/2017/hispanic-heritage.html
24 Ibid
25 Ibid
26 Ibid
27 Ibid

Principles of Marketing 7
 15.3% population of Hispanic Americans have Bachelor Degree (Source:
United States Census Bureau28)
Average or median income levels
 $45,000 (Source: United States Census Bureau29)
Geographic location(s) – metro, states, etc
 The Geographic Locations are:
 Colorado
 Arizona
 Illinois
 Colorado
 California
 Florida
 New York
 Texas
 New Jersey
 New Mexico (Source: Infoplease30)
Brands that have higher than average purchase for each group
 The brands which are highly purchased are:
 Fanta
 Winfrey
 American Red Cross (Source: Bishop31)
Identify specific products which have above average usage for each group
 Hair care, baby food, dried vegetable as well as women’s fragrances
(Source: Bishop32)
Best media to use to target each group
 Electronic media, radio, television are an effective tool to target Hispanic
consumers (Source: Bishop33)
Part 2 - Analysis of Business Potential for Each Group
28 Ibid
29 Ibid
30 Infoplease, Hispanic Americans By the Numbers (23 November 2018)
https://www.infoplease.com/hispanic-americans-numbers
31 Elli Bishop, Business 2 Community (07 October 2014) <
https://www.business2community.com/marketing/6-brands-succeed-understanding-hispanic-marketing-
01030311>
32 Ibid
33 Ibid

Principles of Marketing 8
African American
The person of African Americans greatly depends upon the needs as well as
preferences of multicultural consumers. In the current scenario, the African
Americans consist of over 45 million of individuals which are accounting to over
15% of the US population. Most of the populations of African Americans are
settled in District of Columbia which is accounted as 50.7 %. The purchasing
power of African Americans not greatly affected the economy of the country. As
comparison to other Americans, the spending habits of African Americans are
less due to the reason that that their income medium is only 66% of the all-
household medium.
Despite to the low income, the African Americans contributed in purchasing to
any products and services. The overall purchasing power of African Americans
was more stable through the great recession that other Americans. The smart
companies also target African Americans for their products because the
purchasing power of African Americans is expected to reach $1 trillion by 2010,
approximately 64 % of African Americans spend their income more on products
which they remark as the best. Due to the expectation of increase in overall
population of African Americans in US from 34 million in 2000 to 42 million by
2020 will lead high market potential for the low as well as average price products
because of their purchasing power habits.
Asian American
The total number of population of Asian Americans is approximately 17.32 million
which are accounted as 5.6 % of total population of US. It has been estimated
that 46% of population increased in the county which is the growth rate of Asian
Americans. The population of Asian Americans is mostly settled in New York with
the number of 1.868 million people. The Asian Americans are branded conscious.
Their purchasing power is quit high as they are status conscious too. The Asian
Americans consumers are growing at fast pace than the common population with
sustaining their income as well as rates of education are higher as comparison to
any other group.
Asian Americans have continued to maintain their profits as tech-enable
influencers with the unlimited potential. The buying power of Asian Americans
consumers is grown exponentially to $986 billion which are up 257% since 2000,
versus 97% for the total US. The Asian Americans are tend to purchase a
branded items as a socioeconomic status marker. As they are more attracted
towards premium as well as luxurious products, the market of Asian Americans
are potential for luxurious products due to the reason they mostly prefer the
expensive items as comparison to other population of US.
Hispanic American
The Hispanic population in United Sates of America has a highest minority
segment which will continue to grow rapidly. In recent, the population of Hispanic
is 52.5 million which are accounted as 17.28 %. The growth rate till 2017 is 2 %.

Principles of Marketing 9
The pollution of Hispanic is mostly located in California with the number of 15.2
million.
The buying power of Hispanic is large as comparison to other Americans in USA.
It has been analyzed that the buying power of Hispanic rose from $495 billion in
2000 to $1.4 trillion in 2016. It is accounted as 10 % of total U.S buying power in
2016. The market of Hispanic in US is larger than the GDP of Mexico as well as
bigger than the economies of all 14 countries in the world. The market of
Hispanic has great potential to grow. The population of Hispanic maintains their
income which tends to increase their purchasing power. Most of the companies
target Hispanics for their product. in the recent research, it has been analyzed
that the business of Latinos have has increased from $345 billion in 2007 to $486
in 2015. The increase trend represent that there is great potential of Hispanic
Americans business which are ever to grow further
Bibliography/Citations
Statista, The statistics Portal (2018)
https://www.statista.com/topics/3806/hispanics-in-the-united-states/
WorldAtlas, 10 States with the Largest African-American Populations (2018)
https://www.worldatlas.com/articles/us-states-with-the-largest-relative-african-
american-populations.html
Alderton Matt, Marketing to African-American Consumers (22 February 2017) <
https://www.business.com/articles/marketing-to-african-american-consumers/>
Bishop Elli, Business 2 Community (07 October 2014) <
https://www.business2community.com/marketing/6-brands-succeed-
understanding-hispanic-marketing-01030311>
United States Census Bureau, Newsroom (01 January 2016) <
https://www.census.gov/newsroom/facts-for-features/2016/cb16-ff01.html>
Campbell Alexia Fernandez, Business (24 August 2016)
<https://www.theatlantic.com/business/archive/2016/08/the-overlooked-
consumer-group-with-billions-to-spend/497105/>
Dilemma, U.S. Census- Release Date (10 January 2017)
https://dilemma-x.net/2017/01/18/u-s-census-release-date-january-10-2017-
african-american-population-statistics/
United States Census, Library (14 March 2017)
https://www.census.gov/library/visualizations/2017/comm/cb17-ff07_aapi.html
United States Census Bureau, Newsroom (31 August 2017)
https://www.census.gov/newsroom/facts-for-features/2017/hispanic-heritage.html
Pew Research Center, Factank (08 September 2017) <
http://www.pewresearch.org/fact-tank/2017/09/08/key-facts-about-asian-
americans/>

Principles of Marketing 10
Infoplease, Hispanic Americans By the Numbers (23 November 2018)
https://www.infoplease.com/hispanic-americans-numbers