Load Out

Back to Facility Manager Contents

Back to Home

Since the Johnson administration embraced affirmative action in 1965, the topic has stirred debate on diversity and the role of corporate America. The issuance of United States Executive Order 11246 was aimed to “correct the effects of past and present discrimination.”

Then, as well as today, affirmative action legislation is regarded by many as being both discriminatory and divisive. Others believe it is an effective way to redress “unfair”biases.The ebb and flow of public controversy over affirmative action has done little to address more tangible, day to day issues relating to the changing demographics of the country, the value of diversity in the workplace and the impact on the bottom line.

For a moment, consider the legislative impacts of affirmative action on diversity. In limited terms, our focus has been steered towards diversity in hiring and conducting diversity training in the workplace. Hopefully, we do not look at diversity in hiring or diversity training because “it is the right thing to do. ”We should look at these areas of diversity because your employees and your customers demand it. Not to say that the moral and social reasons for hiring folks who accurately reflect the demographics of your community are not important. Yes, the demographics of our communities are changing, as well as the demographics in the marketplace.

So, as we fast forward the diversity topic to the here and now, here are some preliminary questions you should be asking yourself:

What does diversity mean to you?
How do you define success within your organization?
What are your strengths as a company with respect to diversity?
What does your company look like today, versus five or 10 years ago?
Who are the future managers and leaders in your company?
Does your customer look different today, versus five or 10 years ago?
Do you resemble the community you serve?
Do you resemble your customers?

As a facility manager, you may be confident in the notion that you have a fantastic facility and an excellent portfolio of services. The harsh reality is that bigger, brighter, fancier, new facilities are being built every year. Stadiums, arenas and convention centers, to name a few, bid against one another for the same business in their market niche. If one facility upgrades the others must make similar improvements to remain competitive.

A small sampling on the convention side of the market revealed that in 2003, new conference facilities and expansions across the nation resulted in a total of 4.8 million square feet of new exhibit space. Meeting planners and show promoters know what new venues are coming on line so they are now in stronger bargaining positions.

This competitive environment is evident in all markets, from the big cities to the smaller second and third tier cities. That being said, it is not the facility or the services that will necessarily be successful for the long term. It is who you market your facility to and how you sell it that will define your success in the near future.

Diversify Your Marketing Plan Effectively determining how the market reacts to your facility and services is critical. Certainly every facility manager, promoter and supplier to the industry has done due diligence in crafting a traditional marketing plan, performing a competitive analysis of the marketplace and looking at an array of statistical reports that define market trends.

Historically, marketing plans will find a niche/segment and adapt a product or service to that market. More often than not today’s marketing plans in our industry overlook nontraditional market segments that accurately reflect the demographics of the here and now. The biggest mistake made today in corporate America is assuming that a diverse or heterogeneous company will know how to market and sell to a diverse or heterogeneous target market.

Simply put, it is essential not only to maintain a diverse workplace, but also to diversify your marketing plan. Dust off your current marketing plan and take a glance at your key market segments. In addition to the traditional markets, have you targeted specific ethnic groups that represent your community? Have you targeted gay and lesbian groups? Have you focused on people with disabilities (outside of ADA requirements)? Do you have sales collateral printed in languages other than English?

Do your catering menus reflect the tastes and dietary requirements of any emerging ethnic markets in your community? Is your web site interactive and user friendly? Are any of your advertising placements, both print and electronic, targeted for non-traditional media outlets? The challenge is to find the large emerging market niche that has an unfulfilled need, and adjust your marketing strategies to meet or exceed the needs of that market.

Shifting Demographics Data from the U.S. Census Bureau in 2000 painted a clear picture of a nation of increasingly varied people with unique cultural nuances. The country is changing more quickly than most people imagined. According to Census 2000 figures African Americans are now the second largest ethnic group in the country. They make up 12.9 percent of the U.S. population at a total of 34.7 million people. There are 3.7 million African American households with annual incomes of at least $50,000 and 1.4 million African American households with annual incomes in excess of $75,000. African Americans comprise the largest buying power group at $572.1 billion. (Total U.S. buying power is expected to reach $7.1 trillion.)

Latinos (or Hispanics) now surpass African Americans as the largest minority group in the United States. As an ethnic group Latinos can be white, black, Asian or any combination. Latinos now comprise 13.2 percent of the total U.S. population at a total of 35.3 million people. Mexican Americans are the largest ethnic group among U.S. Latinos representing 7.3 percent of the population at 20.6 million people. Estimates of the buying power of Latinos range from $273 billion to $445 billion. Santiago and Valdes Solutions, a Latino market–research firm, estimates that Latino purchasing power will reach $630 billion by 2005.

Asian Americans comprise the third largest minority group in the United States, making up 3.6 percent of the population with 11.9 million people. According to the U.S. Census Bureau, household income for Asian Americans was $10,000 above that of Caucasians in 2000. Asian American consumer spending topped $255 billion in 2001.

The total number of gay, lesbian, bisexual and transgender people in the United States is estimated to be between 13 million and 17 million. Surveys by public relations firms and research firms consistently find that there are about 15 million self-identified gays and lesbians nationwide. It has been estimated the median combined household income of gay couples is $65,000, nearly 60 percent higher than the 1999 U.S. median income of $40,800.

On the whole, people with disabilities are often ignored as a targeted market, but that segment accounts for 54 million people, comprised of people of all ethnic backgrounds, cultures and ages. They represent the largest minority subgroup in the United States. Of nearly 70 million families in the United States, more than 20 million families have at least one member with a disability. Additionally, according to research conducted in 2000 by Harris Interactive, four out of 10 people with disabilities are online and spending twice the time logged on than their non-disabled counterparts.

Perhaps the snapshot of demographic data presented thus far has not created a compelling reason for you to diversify your marketing efforts. More empirical data is available that better illustrates the trends in demographic changes in the country. Despite the somewhat fuzzy math, I can offer the question, what color is your money? Take a look at your ongoing “status quo” marketing and sales initiatives. Does your marketing plan target any of the emerging groups with the greatest spending power? Are you working towards capturing your market share of business, based on current statistical data?

Corporate diversity efforts are about money and the bottom line. We should all embrace this work because in the long term it will save money, help retain good people, hopefully exceed the expectations of existing customers and perhaps win a few new ones. If your organization does not resemble the community it serves, how can you begin to enter the emerging markets and provide those new customers with opportunities to use your venues and related services? If those potential customers feel unrecognized, and are made to feel “different” surely they will not feel comfortable in booking your facility, attending events in your venue and giving up their hard earned dollars.

Organizations that value diversity, not only in their workplace, but also in the marketplace, will be leaders in the industry. Those organizations who choose to ignore diversity and revise their marketing portfolio will suffer at the expense of the competition. What color is your customer’s money?

[Sources: U.S. 2000 Census Report; A Syracuse University, Opus-Comm. Group, GSociety Study; Harris Interactive Study, National Organization on Disability 2000]

Eddie “T.L.” Tadlock is general manager of the Lynnwood (WA) Convention Center, scheduled to open in April 2005. He can be contacted at etadlock@lynnwoodpfd.com.