A few basic, yet fundamental insights related to marketing to Black-American consumers.

1. 1 Marketing to African-American Consumers Black⌃Matters Still © The Hunter-Miller Group, Inc. All Rights Reserved

4. We explored their beliefs, feelings and thoughts about, and usage of hundreds of products and services.

6. Black and African American? Most African Americans have a preference about how they are described and its almost equally split between Black and African American: 44% prefer African American 42% prefer to be called Black Only 11% don’t care 5 BlackAmericaSudy. 2008

7. The Dynamics of Black Consumer Marketing:Why Some Marketers Say No The Latino Boom Language is becoming cultural identifier Pre-Post Civil Rights Mindset Division Growth among Black Immigrants and Black Bi-racials Increased efforts toward Multi-racial marketing The Obama Factor 6

8. 7 Black America Today: It’s Still a Different World

9. Overview Black America is changing. Black Americans are different from, and similar to, each other in meaningful ways. Although African Americans have strong ties to the ‘filter’ of the past, a growing number want to be perceived as part of the diversity of America. To succeed in reaching African Americans, it’s critical to understand what matters and what doesn’t with respect to their identity and Black culture. 8

10. The African-American Filter (The “Filter”) is the most important cultural marketing insight. “The Filter" is a historical and cultural lens by which many African Americans see themselves and their perceptions of how others see them. The “Filter” also explains why most African Americans are overly sensitive about feeling stereotyped, not feeling respected, valued or welcomed. The African-American Filter

11. There are four key “Filter” insights every marketer should understand: Many African Americans… Place a value on being respected. Are hungry for more positive images of Black culture in the media. See more and see differently with regard to marketing communications. Are more divided by attitudes and behavior todaythan ever. Key African-American Attitudinal and Behavioral Insights

12. “Filter” Insight #1:Place a Value on Being Respected During two separate surveys, within two different timelines, Black and White shoppers were asked to share their top reasons for store selection. In both surveys, “Price” was the #1 Answer for both Black and White shoppers. However… Yankelovich, 1995 and Macy’s Customer Satisfaction Survey, 2007 11

13. “Filter” Insight #1:Place a Value on Being Respected Yankelovich, 1995 and Macy’s Customer Satisfaction Survey, 2007 12

14. “Filter” Insight #2: Hungry for positive images Most African Americans are dissatisfied with the way Black culture is portrayed in the media. Only 29% of African Americans say mainstream media portrays them in a positive light. 88% believe Black men have not been portrayed more fairly in the media since the election of President Obama 86% of Black women feel advertisers need to do a better job understanding them 13 13 BlackAmericaStudy.com 2008, Essence Study on Black Men in the Age of Obama 009, Lattimer Communications . 2009

15. “Filter” Insight #3. See more, and see differently African Americans have a tendency to seek out positive images and notice stereotypes more often than mainstream consumers. 14

18. “Filter” Insight #4:African Americans are not the same African Americans have never been a homogenous market. But they have never been as different as they are today. In fact, the Black America Study identifies 11 segments of African Americans and reveal how they are reallydifferent. 16

19. Black America Study’s 11 Segments and Segment Sizes BlackAmericaSudy. 2008 17

20. Why invest in Black consumer marketing if they are buying my brand? Because they will buy more! 18

21. 19 19 Companies Who Are Winning Big

23. Action: Include ethnic business partners early and often

24. Engage as business partners not vendors

25. Trust as full partners in and during the process

26. Own the relationship; don’t use general market agency as a buffer

27. Invest in relevant research

28. Utilize adequate marketing spending:

30. ‘Get’ Black Culture Look deeper into traditions Be Authentic Celebrating Black culture is not just about “kumbaya” themes. All imagery doesn’t have to be uplifting, but it should be respectful. Humor is an effective way to increase recall, but it should not be based on racial ridicule or stereotypes Do your research Follow same principles of general market planning 22

31. 23 …it’s an experience and an opportunity!

32. 24 24 24 Thank You! Pepper Miller President The Hunter-Miller Group, Inc. 6745 S. Wabash Avenue, Suite 2 Chicago, IL 60637-3922 P: (773)602-1620 F: (773)483-9101 pepper@huntermillergroup.com www.huntermillergroup.com BLOG: adage.com/bigtent Twitter: twitter.com/nsightguru