This article is part of a larger series that focuses on diversity and fairness in marketing. As a company, we are committed to determining the actions we can take in the fight against racism and injustice, and raising the voice of BPIOC is essential to inspire change.Follow and read other posts in this series here.
This article was written by author and journalist Anyssa Roberts.
In the past two years, I have witnessed dozens of families and individuals celebrating the most gratifying achievement in their lives-paying off debts.
I am a marketing copywriter for Ramsey Solutions, an influential personal finance company in Tennessee. The content I create can both increase sales and improve the lives of viewers. I even followed the financial principles myself and celebrated my debt-free in 2020 as a single black woman with an immigrant background.
Personal finance has made my life better and affected the way I interact with marketing.That’s why I read that black people are Most likely to consume products But yes Lagging behind whites and Latinos financially According to research, peers.Although most Americans report feeling as if they are alive Salary to salaryCompared with white peers, ethnic minorities are most likely to face a persistent gap between rich and poor.
In terms of marketing, we certainly hope that people will buy from us, but we also hope that our products and services can improve the lives of those who use them. But how does this financial difference perform in the black community? As marketers, how can we better support one of our largest consumer groups?
Black purchasing power
Blacks are the main consumers of the American economy, spending more than $1 trillion on goods and services each year.
Cheryl Grace, senior vice president of the Nielsen Community Alliance and Consumer Participation and co-founder of DIS, said: “With a strong purchasing power of 47.8 million and a purchasing power comparable to the GDP of many countries, the African American Americans continue to exceed domestic spending.” The 2019 report.
We dominate as consumers in the beauty and personal care category (a multi-billion dollar industry) and account for 90% of consumers in the ethnic hair care category. According to the Nielsen report, we are also more likely than the general population to say that they “pay extra for products that match the image I want to convey.”
In short, our dollar is very important.
Unfortunately, seeing so many dollars leaving the black community has made us beautiful and broke.
Why are blacks lagging behind their peers financially
The average wealth of a white family is 8 times that of an average black family and 5 times that of a typical Latino family. U.S. Federal Reserve.
Let us look at several reasons why blacks are lagging behind in financial development and wealth accumulation:
Lack of access to resources and financial education
Blacks are more likely to face systemic financial challenges that limit their ability to accumulate wealth. TIAA research found that some examples include fewer financial resources, fewer opportunities to receive employer-funded benefits, and greater income fluctuations. These challenges have limited financial progress and have become worse due to the low level of financial knowledge.
Overall, the financial literacy of American adults is not high.But in one study, black people replied 38% Only 28% of financial literacy questions answered more than half of them correctly.
Low financial knowledge can also affect buying and investment habits.According to TIAA, blacks have a tendency to get rid of assets prematurely or not at all Research learning.
These obstacles hinder sound financial decision-making and good financial management.
Expensive consumption habits
The data shows that black people like to shop, which is not wrong. However, over-reliance on consumer products and services instead of producing them hurts us more than it helps.
Nielsen reports that 52% of blacks find it relaxing to shop in stores, compared to 26% of the total population. About half of black consumers said that they like to shop for new and interesting products.
According to reports, at present, black women lag behind Latino and white women in terms of financial security. A research study Teacher Insurance and Annuity Association of America (TIAA).In their report, they found that 71% of black women and 60% of Latino women have at least one Costly behavior Regarding the use of credit cards. Only 49% of white women have at least one expensive behavior.
The role of marketing in black consumption practice
A Nielsen report pointed out that black consumer spending is greatly affected by advertising.Negro reports 42% More likely than other Americans to respond to mobile advertising. They are also more likely to respond to advertisements on television, radio, and the Internet.
This is good news for our marketing, because it means that our advertising is working; however, when we narrow and examine the big picture of our impact on an already vulnerable community, we must stop and analyze the entire impact.
Expensive cars, clothes, hair, jewelry, and holidays are perfect products and services to market to black communities, but if our marketing department only targets a community to buy their products, and does not consider how they serve that community, then we’ The harm to our customers outweighs the benefits.
Like many people, black people appreciate and almost Require Seeing yourself in marketing, but does our product or service help or hurt? Are we selling false images of success — things that make us want to keep up with Jones instead of living a meaningful and productive life? As I shared before, we want people to buy our products and services, but we should also pay attention to the communities where we market.
So as marketers, how can we better support them?
How marketers can help
As marketers, we don’t have to stand by and watch one of America’s major consumer groups struggle. We can do something. In fact, this is the expectation of us. Nielsen reports that 42% of black adults want the brands they buy to support social causes. This is 16% higher than the total population.
Here are some ways we can support the financial progress of blacks as marketers:
Support and coach black business owners
By training up-and-coming business owners, you can support the growth and expansion of black-owned products. This is important because it helps balance the flow of money in and out of the black community. It also creates more active representatives of black entrepreneurs for the next generation.
Support the expansion of financial knowledge resources in the black community
Financial literacy is the key to the progress of the black community. By sponsoring school financial literacy and entrepreneurial programs in black-populated areas, you are helping to transform and elevate black communities in ways that affect generations.
Oppose systemic racism that causes financial challenges
Racism is malleable and not always as obvious as it was in the era of slavery or Jim Crow.Today, systemic racism affects black people in many ways, including on economic.
Underfunded schools and lack of support for the first generation of college students have compromised people’s access to education that makes people eligible for higher-paying jobs. Unfair recruitment practices and poor employee benefits can also have a negative economic impact on the black community.
By taking a stand, understanding your marketing practices and supporting social causes that have a positive impact on the black community, you are helping to support one of the largest consumer groups in the United States and build a better relationship between you and your customers.
Ansa Roberts Is an award-winning journalist, writer and editor. She has written for USA Today Network, Spruce, Ramsey Solutions, Dave Ramsey, and other marketing and news organizations. Currently, she uses content to help customer-centric brands hone their unique voices and connect with their audiences.
Anyssa is from Trinidad and Tobago, received a bachelor’s degree in journalism from the University of Kentucky, and lives in the Nashville area of Tennessee.
Anyssa is passionate about personal finance and helping people control their money. When she is not writing, she will study small houses, try new cocktails or travel alone.Contact her LinkedIn Or through e-mail. She would love to hear your opinion.
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