Implementing diversity strategies

Abstract

Census data show that the proportion of minorities in the Canadian and American populations will continue to increase. For marketers, minority segments can represent tremendous buying power, especially in Canada where much of the population growth is fuelled by immigration in the skilled worker category (Statistics Canada, 2002). The lack of representation of minorities in advertising represents an unexploited opportunity for business organizations, especially since research shows that minorities prefer to be 'spoken to' through messages that are culturally congruent (Lee, Fernandez and Martin, 2002). In highly competitive markets, a strategy which directs some of the companies' resources to directly targeting these minorities with culturally congruent approaches can result in market share and profit margin increases. Advertising agencies have a critical impact on the kind of advertising reaching the marketplace. Given the scope of the opportunity presented by the growth of minorities and their spending power, it is surprising that so few advertising agencies position themselves as specialists in reaching these segments. Institutional theory (DiMaggio and Powell, 1983) and Economic Detour Theory (Stuart, 1940) provide explanations for the slow pace of change thus far in marketers' attempts to reflect the demographic landscape. Several barriers exist for advertising agencies that do attempt to differentiate themselves, ranging from structural barriers and discriminatory barriers to more process-oriented barriers embedded in the selection mechanisms employed by advertisers choosing an ad agency.

AI-Driven Personalization in eCommerce Advertising

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