Ethno Marketing targeting - Turkish people in Germany


Research Paper (undergraduate), 2008

45 Pages, Grade: 2


Excerpt

Table of Contents

Executive Summary

Preface

1 Introduction

2 Project assignment

3 Ethno Marketing
3.1 Definition and History of Ethno Marketing
3.2 Ethno Marketing in Germany
3.3 Ethno Marketing for Turks in Germany today

4 STP- Strategies
4.1 Market segmentation
4.2 Market segmentation applied to Turks in Germany
4.2.1 Geographical characteristics
4.2.2 Demographic criteria
4.2.3 Psychographic criteria
4.2.4 Behavioural criteria
4.3 Targeting
4.3.1 Targeting applied to Turks in Germany
4.3.2 Selected target group
4.4. Positioning
4.4.1 Ay Yildiz positioning
4.5 Marketing Mix Ay Yildiz

5 Recommendation

Bibliography

Internet sources:

Appendix

Executive Summary

Ethno marketing, a strategy that analysis the consumerism and buying behaviour of ethical minority groups, in order to appealing marketing concepts that target those minority groups. The strategy that is a normal course of life for companies in countries like the USA, the roots of ethno marketing, but it is virgin soil for German companies.

The hugest migrant group in Germany are the Turks with an approximate number of 2,4 million. This group of migrants, which is very consume orientated one, spents more than 12 million euro/year, 97% of their money available is spent for consumptional manners. The size of Turkish households, with an average of 4 persons, is high compared to German ones. But lots of people within a household equates to a high energy demand, huger cars, higher amount of alliments etc. Moreover, do Turks like to make regular phone calls to their families and friends in Turkey. These and other facts are showing a great chance for German companies in order to obtain a higher market share and can increase their profit contribution when targeting those additional new segments. Especially industries like energy providers, car manufacturers, telephone networks, fashion industries and many others can definitly profit from the huge family sized target group.

The Lab One agency and the company GIM accomplished an elaborate study, named “Lebenswelten Deutschtürken 2002”, concerning Turkish peoples Lifestyle and Values in order to bridge the gap of unexisting data in that area.

E Plus discovered the high potential of the Turks in Germany and introduced the brand Ay Yildiz. Ay Yildiz together with its special developed SIM card, does directly communicate to the target group. The offer is simple, one SIM card featuring fixed and cheap prices for phone calls and SMS not only on the German mobile network, but also to the Turkish one. Ay Yildiz provides its customers with an affordable SIM card (19,95 €) that includes a starting balance of 10 €, without any contractual obligations. Moreover, all advertisements have been created in the Turkish language, spots are recorded with popular Turkish actors, appealing the emotional recognition level of the Turks. A 24/7 customer service hotline (provided with both German and Turkish language), Turkish speaking employees, Turkish languaged advertisements as well as a Turkish languaged voice mail service polishs the whole product offer.

Ay Yildiz understood the Turkish community. They designed their concepts while considering the importance of the Turkish culture, as well as their target groups habits, values, wishes etc. As markets get saturated increasingly and the number of migrants is increasing steadily, German companies should pay attention and not ignore their greatest and loyal customer group- The Turks in Germany.

Preface

Within the scope of the remaining course of study between the internship and bachelor theses, the Individual Topic does provide the students of the Fontys Internationale Hogeschool Economy, to decide for any subject to specialize on and to elaborate it independently. This is why this report at hand does discusses the challange of effective ethno marketing targeting the hugest migrant group in Germany- The Turks.

The report is not addressed to a certain target group. Anyone, interested in the process of applying ethno marketing targeting Turkish people in Germany is invited to read it. Special knowledge is not required for reading and understanding the report. Moreover, difficult aspects as well as theoretical backgrounds will be explained, in order to make this report comprehensible, irrespective the level of knowledge in this subject. In the first place, the report is written for the tutors of the Fontys Internationale Hogeschool Economie in Venlo as they have to evaluate and mark the whole report.

I would like to express my gratitude to my tutor Mrs Martina Hoffmann, as has been the one guiding me through this project and supported me throughout the writing perio. Mrs. Hoffmann has always been prepared to answer my questions and gave me feedback concerning my project. Thank you very much for your effort.

Pinar Sözer Nettetal, 18th November 2007

1 Introduction

Germany is a country with a high number of migrant groups. More than 8% of Germany´s residents are foreigners[1]. With a number of more than two million Turkish migrants reflect the hugest group of aliens within the German borders. However, does the German Economy ignore around 3 % of Germany´s total population. Only a few companies did realize the high potential of this potential customer group, the other companies with more than two million euro annual turnover do strictly ignore Turks.

This is why this report at hand is going to reflect the high potential of this segment as it will describe how to implement ethno marketing applied to Turks in Germany effectively. The report is structured clearly, starting with a general definition and history of ethno marketing will be given. The following chapter will first discuss the necessary theoretical background on segmenting, targeting and positioning strategies. This is followed by applying the STP-Strategy by means of the successful introduced ethno marketing strategy of Ay Yildiz Kolay Kart, a SIM Card especially developed for Turks in Germany. The segmentation process of the STP, will be conducted on the basis of geographic, demographic, psychographic and behavioural criteria. The psychographic segmentation will describe a segmentation process that has been carried out by the Agency Lab One and the company Gesellschaft für Innovative Marktforschung (GIM) in 2002. After the segmentation, the report will describe the target group for the SIM card, resulting from the previous segmentation process. The positioning of “the Kolay Kart” will be described next. Subsequently, the Marketing Mix, namely the product, price, promotion and place, Ay Yildiz did apply will be described further. Finally, a recommendation concering the introducement of ethno marketing for the Turkish community will be stated.

2 Project assignment

The following extract of the report gives the reader a detailed problem definition and analysis as well as a statement of goals, occurring while implementing ethno marketing strategies for the Turks in Germany.

Problem definition

More than 2 Million inhabitants with Turkish roots in Germany, more than 700,000 households, 69 % of them between the ages of 15-65 years, 2070 euro income monthly and more than 12 billion euros spent annualy. All these data are ignored by the German economy. Germany is a country still draging behind a marketing strategy totally normal in other countries like the Netherlands or the USA. The Turks in Germany are personating a high potential for German companies but only a few did realise this fact or are interested in Turks.[2]

Assignment definition and aim

The assignment for this report has been to describe the Turkish target group and present the effectiveness of targeting this migrant group by implementing the STP Strategy. The report analysis the Turkish community, as well as giving information about their culture, attitudes, values, consume behaviour etc., in order to provide German companies the background information of this minority group, convince and inform them about the huge potential the Turks provide if companies would try to bridge the gap in the market.

Implementation Plan

The accomplishment of the assignment will start with the market segmentation which is the first step belonging to the STP strategy. Important to mention at this place is that in order to conduct a market segmentation, a product has to exist, on which the segmentation is based on. For that reason any steps applied will be based on a product called the “Kolay Kart” from Ay Yildiz, a mobile network provider especially developed for Turks in Germany. A significant segmentation based on criteria as the geographic, demographic, psychographic and behvioural will be applied. Moreover, after the conduction of the segmentation, the target group will be defined, which is followed by the product positioning concept of Ay Yildiz. The next part will introduce Ay Yildiz marketing mix that contains the product, price, place and promotion. Finally, the report will give a final recommendation for German companies that decide on applying ethno marketing targeting the Turkish community in Germany.

3 Ethno Marketing

3.1 Definition and History of Ethno Marketing

Ethno marketing is the donation for an analysis of the consumerism and buying behaviour of ethical minority groups and is developing and appealing marketing concepts significantly designed to those target groups.[3] Thus, Ethnical marketing can be defined as target group specific marketing that analyses and segments the needs of persons through ethnical, religious and cultural relevant parameters.[4] The major focus within the ethno marketing is to win those migrant groups as a new customer segment, while providing them a culture or nationalitiy specific offer created in their native language.[5]

Ethno Marketing has its roots in the United States, as the marketing experts discovered the high potential of target group specific marketing for their huge ethnic groups in the 1970´s. Their marketing activities are especially focusing on the hispanic-, afro- and chinese americans as they are making up one quarter of the US population and are likely to represent 60 % of the US population in 2050. Today, ethno marketing is a important self-evident strategy not only in the United States but also in countries like the Netherlands and France.[6] Particularly within the direct marketing via telephone, mail or the internet companies are placing emphasis on the usage of the customers native language.

3.2 Ethno Marketing in Germany

Although the migrants in Germany are capturing a contingent of 7.5 Million people which is a percentage of 8.9 or a net migrant rate of 2.18 migrants/1,000 population[7], German Companies, beside a few small agencies, are still not active in ethno marketing. The amount of migrants in Germany as 2,400,000 Turkish people, 2,300,000 Russians, 660,000 Yugoslavs, 620,000 Italians, 360,000 Greeks and others like Spains, Portuguese, Polish People etc.[8] are that high, that it is absurd not to make use of specified marketing for those migrants. (see illustration 1, appendix page 29)

3.3 Ethno Marketing for Turks in Germany today

Only a less number of German companies did realize the high potential and started to focus on the Turks living in Germany.

The Turkish community is the hugest migrant group in Germany with 2,400,000 people. Why does the German economy ignore such a high potential? In 2001, the German ad budget has amounted to 30 milliard Euro but the budget for Turkish ad only amounted to 50 million that year. With 2,4 million Turkish migrants, which create more than 700,000 Turkish households, with lots of TVs, fridges, cars, washingmashines etc. this group is a valueable target group, more companies should focus on. The Turks in Germany are spending 12 millard Euros annualy, but the German companies are still ignoring these potential loyal customers.[9]

4 STP- Strategies

Companies that did decide on ethno marketing within their strategic marketing, have to apply the segmentaion process, which is broken into three elements: the market segmentation, targeting and positioning.[10] This chapter will provide the theorie behind the STP first, followed by the appliance of the STP for the “German-Turks”. First, the “German-Turks” market will be segmented by relevant factors as the geographical criteria, demographic criteria etc, next the most attractive segment group for the Ay Yildiz SIM card will be defined, followed by the positioning of the card.

4.1 Market segmentation

The market segmentation is the first step within the STP-strategy. According to Meffert the market segmentation is the fragmentation of a total market, concerning their market reaction, of internally homogenous and among each other heterogenous sub-groups (market segments) as well as the processing of one or more of these segments.[11]

Several advantages for a company to segment are given. First there is meeting the customers needs more effective, as a determined marketing mix for each segment offers customers within this certain segment superior solutions for their needs. Next, the segmentation helps companies to improve their profits as it “allows an organization to gain the best price it can in every segment, effectively raising the average price and increasing profitability.”[12] Moreover, segmentation can provide advantages like leadership within a certain segment, retaining customers and one important advantage the focus on marketing communications. The marketing communication provides the option to identify media channels that can explicitly reach the aimed target group.[13]

However, in order to generate the segmentation process, several requirements need to be fullfilled. In order to identify groups of customers with similar needs, segmentation criteria have to be established. Those segmentation criteria have to meet the following requirements:

Abbildung in dieser Leseprobe nicht enthalten

Geographical Segmentation:

The geographical segmentation contains the macro and microgeographical segmentation. The macrosegmentation segments world regions/countries, states and cities, whereas the micro segmentation distinguishes the neighborhoods, streets, density and climate.

Demographic Segmentation:

The demographic segmentation criteria are in general variables like age, gender, Family size, Family life cycle, Income as well as socio-economic criteria like occupation, education, religion, race, generation and nationality.

Psychographic segmentation:

The psychographic criteria contains attitudes, values, lifestyle and personality

Behavioural segmentation

The behavioural segmentation category involves benefits, occasions, use of media, price behaviour, Attitude Toward the Product, User Rates, Loyalty Status, Readiness Stage, usage and purchase occasion[14]

4.2 Market segmentation applied to Turks in Germany

According to the previously described segmentation areas, the following sub chapter, will apply the segmentation process on the Turkish people in Germany, in order to define the target group for the SIM card from Ay Yildiz.

4.2.1 Geographical characteristics

Population

The hugest migrant group in Germany are the Turkish migrants with a number of 2,4 million. Compared to migrants of other countries, the Turks are building the majority of foreigners with an proportion of 28% of the whole number of aliens in Germany.[15] However, does this number exclude those Turkish migrants that did already become German nationals. The approximate number of People of Turkish descent is among 450,000 and 500,00.[16]

Place of residence

Turkish people are often confronted with the preconception of building ghettos and secluding themselves, however, this prejudice is not reality as statistical data proof.

Turks are predominantly living in large cities like Berlin with 120,000 Turkish citizens, Cologne with 90,000, Hamburg with 80,000, Duisburg with 60,000 and Munich with 50,000. Northrine Westphalia is hosting approximatly 850,000 turkish citizens, followed by Baden-Wuerttemberg with 426,000, Bavaria with 320,00 and Hesse with 257,000.[17] Confutative to the preconception, statistics proofed that in 2002, 62% Turks used to live in residential areas with preponderant German neighbours, 21% with preponderant Turkish neigbours and 17% with both, German and Turks.[18]

Turkish migrants tend to live in huge cities like Berlin, Cologne etc. Researches allocated that 60% of them are living in large cities with a population of more than 500,000. Only two percent of them are living in small cities with less than 5,000 residents.[19]

According to the Wissenschaftszentrum Berlin für Sozialforschung, the popularity of huge cities emerged due to the appraisal that the degree of acceptance and tolerance of migrants seems to be more distinctive in big cities as it does in smaller ones, as well as the high possibility of social network building.[20] (see illustration 2, appendix p 29)

4.2.2 Demographic criteria

Age structure, duration of stay and ecesis

Interesting within the age structure of Turkish people in Germany is that the contingent of young people is significantly high. 76 % of the Turks are between 14 and 49 years old, whereas the fraction of Germans within this age frame does only amount to 56%. Moreover, 47 % of the Turkish people are younger than 25 years old, compared to those 16 % that are older than 50 years old.[21] (see illustration 3, appendix page 30) A main reason for the huge amount of young Turks living in Germany is that within the 1960´s preferential young Turks immigrated to Germany and started to built families, additionally the birth rate of Turkish people is superior than that of Germans.[22] Coming to the distribution of Turkish gender, statistics showed that 54 % male and 46% female Turks do live in Germany. Between 1963 and 1972, majoritarian Turkish male migrants relocated from Turkey to Germany. After 1973, the number of females increased as the male Turks started their family reunion or married Turkish females in Turkey, which then moved to Germany.[23]

According to the “Lebenswelten Deutschtürken 2002” study, more than 84% of the Turks being asked, do live in Germany for more than 11 years now. The average amounts to 19,4 years.[24] In dependence on statistical data of the “Zentrum für Türkeistudien”, approximately 400,000 Turks in Germany did already become German nationals, which is can be seen as an evidence for their intentions of staying in Germany. Almost 20% of people asked did already applied for a naturalization and 30% do plan to get German nationals.[25] (see illustration 4, page 30 and 5, appendix page 31)

Household, family life cycle, residence situation

Turkish people do often live within households with an average of four persons, which is high compared to average German households with 2,2 persons.(see illustration 6, appendix page 31)Additionally, the fraction of Turkish single households is significantly low as it lies at 16%, compared to Germans with 50%. Another interesting fact is that 92 % of Turks between the age of 26- 60 years are married and do have at least one or two children, the remaining Turks are either divorced or widowed, but almost all of the divorced and widowed ones did return to their parents house or do live with other family members.[26] Important to mention is that it is usual that not only children under the age of 18 years do live with their parents, but also “children” above 18 years that are not married yet. It does not matter whether these “children” above 18 years are male or female, it is just a matter of custom that unwedded children do stay at their parents house until they get married. The only exemption in here is when those unmarried children do study somewhere else than their parents house and it is unavoidable to live somewhere else.The great number of persons living in a turkish household and the low proposal of four to five room accomondations do lead to narrowed housing conditions.

While a typical German person has a average available living space of 40 qm, a Turkish one has to get along with 25 qm. Most Turks do live within 3 or four room apartments. A central problem in here is that still 20% of them have to live without a central heating system. Around 40% do have a balcony or patio, an own garden is luxery that only every 7th Turk is able to enjoy.[27] A main problem within the residential situation is not that the Turkish community is not able to pay higher rentals for huger appartments, but it is the fact that they are still facing discrimination when trying to get a domicile. More than 30% did report about problems concerning discrimination when seeking for domiciles.[28]

[...]


[1] Kraus-Weysser, Ugurdemir-Brincks, 2002, Ethno Marketing, Türkische Zielgruppen verstehen und gewinnen, p.25

[2] Kraus-Weysser, Ugurdemir-Brincks, 2002, Ethno Marketing, Türkische Zielgruppen verstehen und gewinnen p.37

[3] Kraus-Weysser, Ugurdemir-Brincks, 2002, Ethno Marketing, Türkische Zielgruppen verstehen und gewinnen, p.63

[4] Kraus-Weysser, Ugurdemir-Brincks, 2002 Ethno Marketing, Türkische Zielgruppen verstehen und gewinnen, p.12

[5] C. Valiente, T. Yetgin Ethno-Marketing für die deutschtürkische Zielgruppe, p.103

[6] C. Valiente, T. Yetgin Ethno-Marketing für die deutschtürkische Zielgruppe, p.103

[7] https://www.cia.gov/library/publications/the-world-factbook/geos/gm.html#People,author unknown, req.on November 13th 2007

[8] C. Valiente, T. Yetgin, Ethno-Marketing für die deutschtürkische Zielgruppe, p.25

[9] C. Valiente, T. Yetgin Ethno-Marketing für die deutschtürkische Zielgruppe, p.26

[10] strategic marketing planning and control, drummond, p. 43

[11] Meffert, H. (2000) (tr): Marketing: Grundlagen martkorientierter Unternehmensführung, p.181, Orginaltext:„Marktsegmentierung ist die Aufteilung eines Gesamtmarktes in bezüglich ihrer Marktreaktion intern homogene und untereinander heterogene Untergruppen (Marktsegmente) sowie die Bearbeitung eines oder mehrerer dieser Marktsegmente“.

[12] strategic marketing planning and control, drummond, p. 44

[13] strategic marketing planning and control, drummond, p. 44

[14] Marketing, P.Runia, F. Wahl, O.Geyer, C. Thewißen, p. 88

[15] Kraus-Weysser, Ugurdemir-Brincks, 2002, Ethno Marketing, Türkische Zielgruppen verstehen und gewinnen, p.57

[16] C. Valiente, T. Yetgin, Ethno-Marketing für die deutschtürkische Zielgruppe, p.55

[17] Kraus-Weysser, Ugurdemir-Brincks, 2002, Ethno Marketing, Türkische Zielgruppen verstehen und gewinnen, p.33

[18] C. Valiente, T. Yetgin, Ethno-Marketing für die deutschtürkische Zielgruppe, p.57

[19] C. Valiente, T. Yetgin, Ethno-Marketing für die deutschtürkische Zielgruppe, p.58

[20] C. Valiente, T. Yetgin, Ethno-Marketing für die deutschtürkische Zielgruppe, p.58

[21] C. Valiente, T. Yetgin, Ethno-Marketing für die deutschtürkische Zielgruppe, p.58

[22] C. Valiente, T. Yetgin, Ethno-Marketing für die deutschtürkische Zielgruppe, p.58

[23] C. Valiente, T. Yetgin, Ethno-Marketing für die deutschtürkische Zielgruppe, p.61

[24] C. Valiente, T. Yetgin, Ethno-Marketing für die deutschtürkische Zielgruppe, p.60

[25] Kraus-Weysser, Ugurdemir-Brincks, 2002, Ethno Marketing, Türkische Zielgruppen verstehen und gewinnen, p.56

[26] Compagnon Markfortschungs-Institut GmbH & CO. KG, p. 13

[27] C. Valiente, T. Yetgin, Ethno-Marketing für die deutschtürkische Zielgruppe,, p.57

[28] Bundesministerium für Arbeit und Sozialordnung, 2002, author unknown, p. 46

Excerpt out of 45 pages

Details

Title
Ethno Marketing targeting - Turkish people in Germany
College
Fontys University of Applied Sciences Venlo
Grade
2
Author
Year
2008
Pages
45
Catalog Number
V111548
ISBN (eBook)
9783640095995
File size
1518 KB
Language
English
Tags
Ethno, Marketing, Turkish, Germany
Quote paper
Pinar Sözer (Author), 2008, Ethno Marketing targeting - Turkish people in Germany, Munich, GRIN Verlag, https://www.grin.com/document/111548

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