For some companies, the Asian-American market is like a rich vein of gold just a few yards below a miner’s feet. Numbering some 12 million, Asian-Americans are the fastest-growing ethnic group in the U.S., have the highest median household income of any buying group (an average of $55,000), and, by 2009, are expected to spend $528 billion annually on products and services. It’s a mother lode, yet it can seem miles out of reach. With a host of barriers — culture and language among them — many marketers have been gun-shy about trying to gain a foothold in this lucrative demographic. Here’s how to stake your claim:

Learn the secrets for creating a business development strategy that turns prospects into new customers in a recession. Download your free copy of Proven Ways for Getting New Customers without cost or obligation.

1. Trash the stereotypes. As their buying power suggests, Asian-Americans as a group are a long way from the stereotypical immigrant often portrayed in movies and other media. “There’s a perception that Asian-Americans are disadvantaged,” says Saul Gitlin, executive vice president of Kang and Lee Advertising, a multicultural marketing and communications firm in New York. “The truth is they exceed every other group in almost every kind of socioeconomic indicator.”

2. Provide product education. However accomplished, Asian-Americans who have lived in the U.S. a short time may not possess the depth of product knowledge of other consumers. “A few years ago, we did focus groups with immigrants on Allstate Insurance,” Gitlin says. “They kept asking, ‘What’s Allstate?’ Unless a company has a significant presence in an immigrant’s country of origin, you’ll need greater product education.”

3. Consider the native language. Although Asian-Americans as a group are quick to embrace English, media — both broadcast and print — in native tongues retain a strong appeal. But that’s not consistent across the board. Chinese-Americans, for example, respond very positively to the use of Chinese language in marketing, while people of Indian heritage prefer English.

4. Target via online advertising. Asian-Americans are leaders in Internet use, with 70 percent going online regularly, according to the Pew Internet and American Life Project. Once in cyberspace, they’re likely to make a buying decision. “They buy products online at roughly double the rate of other Internet users,” says Peter Koeppel, president of Koeppel Direct in Dallas.

5. Don’t overlook direct mail marketing. Ninety percent of -Asian-Americans open and read direct mail, according to Koeppel. “They seem to be much more interested in what they’re receiving than other ethnic groups,” he says.

6. Emphasize heritage. Asian-Americans value heritage. Consider Tiger Beer, a popular Asian brand that emphasizes its rich history in its U.S. marketing efforts. “We’ve kept in mind the same world-class quality brew their grandfathers, fathers and they themselves will come to rely on,” says Vivien Teo of New York–based Vroom Media Group, which markets Tiger domestically.

7. Promote longevity. If a product or service has been around for a while, it will likely resonate with Asian-American buyers. “They often equate the prestige of a brand with longevity,” Teo says. “Companies with a solid history should market themselves as being here today for the new generation of consumers and growing with them tomorrow.”

8. Follow Asian marketers’ leads. Many Asian-Americans are still very much influenced by the experimental, edgy marketing of their parents’ countries. “The integrated marketing strategies used in these countries are rather aggressive and mostly portray a lifestyle of the fast lane,” Teo says. “Whatever message used should appeal to that aspect.”

9. Know where to focus your efforts. Asian-Americans tend to settle in concentrated groups. More than half this market lives in three states — California, New York and Texas. Additionally, the population is concentrated in heavily metropolitan areas such as Los Angeles and San Francisco.

10. Beware cultural snafus. No matter the potential, cultural and social barriers can often prove problematic when marketing to Asian-Americans. As a point of caution, Gitlin cites one Western ad spot that won countless awards. It depicted a female executive who, thanks to technology, can take her daughters to the beach while attending to business. The reaction of Asian-American focus groups: “Where’s the father?”

Permalink: http://www.stepbystepmarketing.com/?p=380