Ethnic Marketing Theory, Practice and Entrepreneurship Routledge Studies in Marketing Series

Together with the development of transformative technologies that epitomize globalization, the ongoing movements of people across borders and other socio-economic pressures are creating a fast-changing business environment that is difficult for business to understand, let alone control. Dominant social expectations that immigrants should seek to adopt an assimilationist socialization path towards the host country?s mainstream are contradicted by minority ethnic group resilience. There is no evidence that these groups naturally disappear within the cultural and behavioural contexts of their adopted countries. Since ethnic minority consumers cannot be expected to assimilate, then they maintain some significant degree of unique ethnicity related consumer characteristics that convert into threats and opportunities for business. The inherent socialisation process also provides opportunities for ethnic entrepreneurship and for proliferation of ethnic minority business.

Following from the extensive examination of scholarly perspectives of ethnic marketing theory, there is an acknowledged and marked divide between theoretical exhortations and what is done in practice, a relative oversight of the implications of mixed embedded markets, and a propinquity to overlook the crucial role played by ethnic entrepreneurship and ethnic networks. Opportunity valuations are difficult to enact due to a lack of intelligence about ethnic markets. Variable sentiment about the future of ethnic marketing links to different predictions on how the drivers of globalization will impact on the acculturation paths of ethnic minorities.

Keeping a focus on the ethnic group as the unit of analysis, combining ethnic marketing and ethnic entrepreneurship theories provides intelligence about contemporary ethnic marketing and practice perspectives. The ultimate objective is to reduce the theory-practice divide through the development of a collaborative framework between business and scholars that converts into theory-in-use.

CHAPTER 1: ISSUES IN ETHNIC MARKETING THEORY, PRACTICE AND ENTREPRENEURSHIP

Conceptual ambiguity

What is ethnic marketing? Definitional differences

Ethnic marketing issues

Other issues identified by researchers

Causes of a gap and approaches to reconciliation

• Recognising the gap

On the need for pragmatism or theory-in-use

Pragmatism in ethnic marketing theory

Summary

• The path ahead

References

CHAPTER 2: ETHNICITY, ETHNIC GROUPS AND ETHNIC IDENTITY

The meaning and relevance of ethnicity

Basis for defining ethnicity

We are all ethnic – or are we?

Meaning and centrality of ethnic groups

• Ethnic groups as social networks
• Ethnic group heterogeneity

The interlinking of ethnic identity with the ethnic group

Development of ethnic identity

Ethnic identity, consumer behaviour and the ethnic group

Summary

References

CHAPTER 3: ACCULTURATION, THE ETHNIC GROUP AND ETHNIC CONSUMER BEHAVIOUR

What is Acculturation?

• Acculturation Phases
• Indicators of Acculturation
• Acculturation Forces

Choice of Acculturation Path

• Individual Acculturation

Inter-generational differences

Acculturation and ethnic identity

Acculturation and consumer behaviour

Acculturation and Ethnic Group dynamics

• The Acculturation Process in a Culturally Diverse Country

Summary

References

CHAPTER 4: RATIONALE FOR ETHNIC MARKETING FOCUS ON AGGREGATES OF MINORITY ETHNIC GROUPS

General requirements for effective market segmentation

Pan-ethnicity

• What is panethnicity?
• Marketing reasons for aggregating ethnic groups

Homophily and ethnic group formation

Homophily and the choice of suppliers to the ethnic community

An EMIC approach to creating panethnic segments

• When ethnic groups can be aggregated

A Framework for Assessing Panethnic Segments

• The framework

Summary

References

CHAPTER 5: PERSPECTIVES ON ETHNIC LOYALTY

Interactions between ethnic consumers, groups and businesses

• Dealing with intra-group heterogeneity

Loyalty drivers

• Developing loyalty

Cultural affinity / shared ethnicity and switching costs

Switch motivations

Summary

References

CHAPTER 6: articulatinG ethnic marketing with ethnic entrepreneurship

From immigrant to ethnic minority consumer

From ethnic minority consumer to ethnic entrepreneur

Socialisation and entrepreneurship

Recognition of ethnic minority business by ethnic communities

From ethnic marketing to marketing by ethnic minority businesses

References

CHAPTER 7: UNDERSTANDinG ethnic entrepreneurship

Conceptualising ethnic entrepreneurship

Drivers and impediments in the creation of ethnic minority business

• The ethnic enclave theory
• The middleman minority model
• The disadvantage theory
• The cultural theory

Ethnic minority business’ creation and consolidation

Business opportunity structures

Group characteristics

Ethnic strategies and the typical ethnic minority businesses

Ethnic groups as natural incubators for ethnic businesses

References

CHAPTER 8: ethnic minority business growth, demise and failure

Interactive model

Social embeddedness theory

One model doesn’t fit all

Mixed embeddedness theory

Mixed embeddedness: the norm and a potential barrier to growth

Considering growth capabilities and the role of the co-ethnic minority group

Ethnic minority business and the acculturation process

Growth and demise

Summary

References

CHAPTER 9: ethnic NETWORKS AND THE ADOPTION OF RELATIONAL STRATEGIES

Preferred suppliers, ethnic networks and minority ethnic markets

Ethnic networks as relational drivers

Networks imply relational imperatives

Decision to adopt a relational marketing approach

Relationship between consumers and preferred suppliers

• Loyalty to preferred suppliers
• Switching preferred suppliers

Relationships, networks and competitive advantage

Implications for consumer groups not bound by ethnicity

Conclusion

References

CHAPTER 10: ETHNIC ENTREPRENEURSHIP AND THE MARKETING MIX

Theory, practice, strategy and the segmentation dilemma

A view of the gap between theory and practice

Business opportunities and ethnic minority business

Objectives, strategies, and tactics

Ethnic minority business’ objectives, strategies and tactics

Outgrowth threshold

Ethnic minority business customer portfolio

Why adopting an ethnic sensitive relational marketing strategy?

Relational embedding of ethnic sensitive tactical activities

Summary

References

Vignette: An alternative view of ethnic minority business

CHAPTER 11 : product, price, place, physical evidence and process

The product element: Considering tangibility and perceived risk.

Approach to the discussion of the tactical ethnic marketing mix.

• Product.
• Price.
• Place.
• Physical evidence.

Conspicuous commitment for the long-term.

• Process.

References

CHAPTER 12: PROMOTION AND PERSONALISATION

The promotional element

Serving anyone that comes through the door

Marketing communications and minority co-ethnic groups

The challenges of a dynamic environment

Understanding communication as information processing activity

The value proposition

Typical tactical activities

• Language
• Media
• Message

Effective ethnic communication - more than just language

Intra-ethnic group segmentation: communicating in ‘portinhol’

Communicating to reduce perceived risk

• Word-of-mouth
• Grassroots / Viral marketing

Relational communications for ethnic loyalty

• Co-ethnic business to business cooperation

The personalisation element

Simultaneity / inseparability as vehicle for responsiveness and personalization

Conclusion

References

CHAPTER 13: PEOPLE, ETHICS AND SOCIAL RESPONSIBILITY

Ethnocentrism within national boundaries

Dealing with cultural distance

• Cultural distance is not all about language
• Language preference matters

Typical tactical activities deployed by ethnic minority businesses

The choice of people to employ

• Employing family members
• Employing co-ethnic staff (other than family members)
• Employing staff that share their ethnicity with the target market
• Using ethnic networks for recruiting consumers and suppliers

Ethnic sensitivity skills training

• Management training and skills acquisition

People tactics for competitive advantage

Ethnic minority business: Ethics and social responsibility

• Statement of Ethics, AMA

Disadvantage, vulnerability and poor business practices

Exposure to ICT based structural change

Flexibility and evolutionary dynamism

Summary

References

CHAPTER 14: ENVIRONMENTAL FORCES, ethnic MARKETING AND ETHNIC ENTREPRENEURSHIP

The Political Environment

Ethnicity, migration and the future of ethnic marketing

Implications from differences in immigration policies and acculturation

Longstanding countries of immigration

Australian Migration Policy Sketch

• Current Policy towards Permanent Immigration
• Australian Multicultural Policy

Canada, New Zealand and the USA

• USA

Past Major Emigration Countries

Germa

• German policies facilitating/hindering multiculturalism
• France
• United Kingdom

The potential for ethnic marketing in other environments

• South Africa

Conclusion

References

Guilherme D. Pires, PhD, is an Associate Professor at the Newcastle Business School, Faculty of Business & Law at University of Newcastle, Australia. He is a Trustee for the Business & Economics Society International and serves on the editorial board of various scholarly journals.

John Stanton, PhD, is an Adjunct Associate Professor (Marketing) in the School of Business, Western Sydney University, Australia.