The Hispanic market.

Did you know that one out of every 50 Hispanics in the United States lives in the Los Angeles metropolitan area? Were you aware that currently 10% of the U.S. population is Hispanic, by the year 2020 it will climb to over 15%. Did you know that over 40% of Los Angeles County's population is Hispanic, representing 64-billion dollars in buying power. The Hispanic market is too big to ignore.

On March 16, 1995 at the UCLA Faulty Center, the Los Angeles Chapter of the American Marketing Association (AMA) will explore this fascinating and growing segment of the U.S. population at its 16th Annual Hispanic Marketing Seminar, entitled "Changing Currents". Some of the topics that will be addressed include myths and stereotypes of the Hispanic market, as well as the ramifications of such recent legislative acts as NAFTA and Proposition 187. The three keynote presenters are: Monica Lozano, editor and associate publisher of La Opinion; Carl Kravetz, president of Kruz/Kravetz; Dr. Andrew Erlich, president of Erlich Transcultural Research; and Marcelino Miyares, president of Tamayo-Miyares.

The Los Angeles Hispanic market is the largest in the country with 5.3 million Hispanics residing in the Los Angeles Demographic Metropolitan Area (DMA) - accounting for 35% of the population. By 1998, the Hispanic population in the Los Angeles basin will increase an additional 15% to 16.1 million people.

Spanish is by far the primary language. It is the language Hispanics prefer to receive their news, information, and entertainment. Here in the hotly competitive Los Angeles radio market, the number 1 radio station is KLAX - all Spanish.

An interesting feature of the Hispanic population is household formation and birthrates. Hispanic women show the highest birth rate of any group, with over 95 births per 1,000 women. The next highest is Black with less than 70, while non-Hispanics is around 35 per 1,000 women (U.S. Bureau of the Census 1992). With such a large birth rate, the median age of Hispanics is nearly 10 years younger than non-Hispanics. Hispanic households are growing at a rate of 5% a year, compared to the U.S. average of 1.6%. This is largely attributable to the fact that 70% of all heads of Hispanic households are immigrants. The average size of the Los Angeles Hispanic household, with a Spanish-dominant adult, is 5.2 people, compared to a general market household size of 3.5 people.

According to the U.S. Department of Commerce, Bureau of the Census (March 1993), the real median money income of Hispanic families rose by 11.4% between 1982 and 1989. However, given the differences in occupational distributions, it is not surprising that the median earnings for full-time Hispanic males is less than that for non-Hispanics White males, The Median earnings of Hispanic males in 1992 ($20,054) was about 63% that of non-Hispanic White males ($31,765), while the median earnings of Hispanic females ($17,124) was about 78% of non-Hispanic White females ($21,930).

Although Madison Avenue and the advertising industry as a whole have not been quick to respond to these chances in the marketplace, there are signs that they recognize the importance of this segment of the population, particularly in Southern California. Thirty-seven percent of advertising dollars spent in the top 10 Hispanic Markets in 1993 was spent in Los Angeles; and 44% of all dollars spent in Hispanic print was spent in Los Angeles. The aggregate buying power of U.S. Hispanics equals $206 billion.

The future of the Hispanic market will be an identifiable minority, that will be pressing in numbers to be the majority. Given the cultural and language features, it will be a market testing ground for international efforts. The Hispanic market is becoming more informed, critical and demanding. With improved and expansion of media resources, the Hispanic market will play an even greater role in our regional economy in the years to come.

Steven D. Turner is present of the Slaton Marketing Group, a management consulting firm located in Century City. Mr. Turner is also Vice President of the Los Angeles Chapter of the American Marketing Association - a non-profit trade organization consisting of marketing professional in the Los Angeles region.

Romulo De Leon is president of Paramount Enterprises, an import/export consulting firm, specializing in the development, expansion and facilitation of goods and services to Central and South America countries.