Dividing to Conquer: The Power of Market Segmentation

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Sufficient information of a target market is a vital factor in ensuring that businesses design products and undertake marketing strategies that meet the needs of the consumers. Different market segments are characterized by varying consumption habits and product preferences due to cultural diversities across societies. Considering the United States consumer market, analyzing and determining the business potential of the various minority target markets requires an in-depth study. This paper will embark on market research of the Hispanic, African and the Asian Americans in the country to assess the viability of designing products and approaching the given segments.

African Americans

Total numbers in the United States  

            43,000,691 (Black Demographics, 1)

Percent of the total U. S. population

            13.3% (Black Demographics)

Rate of growth

            0.9% (Pew Research organization, 1)

Average household size

            3.28 (ESRI, 7)

Average age

            33.34 years (Overflow Solutions, 1)

% with college degrees

            52.9% (U.S. Census Bureau, 2)

Average or median income levels

            $35,481 (Black Demographics, 1)

Geographic location(s) –


(New Geography, 2)

Top ten African American Metro areas

(New Geography, 2)

Bottom ten African American metro areas

(New Geography, 3)

Brands that have higher than average purchase/usage for African Americans         

 (Market Wired, 1)

Best media to use to target each group          

            Broadcast and cable networks (Market Wired, 1)

Asian Americans

Total numbers in the U.S.      

            18,205,898 (U.S. Census Bureau, 1)

Percent of the total U. S. population

            5.7% (U.S. Census Bureau, 1)

Rate of growth

            3% (Pew Research Organization, 1)

Average household size

            3.51 (ESRI, 7)

Average age

            36.5 (Overflow Solutions, 1)

% with college degrees

            70% (U.S. Census Bureau, 2)

Average or median income levels

            $66,000 (Pew Research Center, 1)

Geographic location(s)

Asian Population per state

(Asia matters for America Matters for Asia, 1)

Asian Location by Metro areas

 (U.S. Census Bureau, 2)

Brands that have higher than average purchase/usage for Asian Americans




Chase Bank

Southwest Airlines

(AsAmNews, 1)

Best media to use to target each group          

            Broadcast and cable network (Nielsen, 1)

Hispanic Americans

Total numbers in the United States   

            57.5 million (U.S. Census Bureau, 1)

Percent of the total U. S. population

            17.8% (U.S. Census Bureau, 2)

Rate of growth

            2% (Pew Research organization, 1)

Average household size

            3.87 (ESRI, 7)

Average age

            28.4 years (Overflow Solutions, 1)

% with college degrees

            36.8% (U.S. Census Bureau, 2)

Average or median income levels

            $45,148 (Pew research organization, 1)

Geographic location(s) –

States with largest Hispanic population

(Pew Research Centre, 1)

Top ten Metro areas inhabited by Hispanic Americans

(Pew Research Centre, 1)

Brands that have higher than average purchase/Usage Hispanic Americans  



AT & G




 (Business 2 Community, 1-6)

Best media to use to target each group          

            Radio, newspaper, and magazines (Forbes, 1)

Analysis of Business Potential for American Minority Groups

African American

The African American community in the United States of America presents a great business potential for investors in the consumer products industry. The population of the African Americans which represents a 13.3% of the United States population is a substantial market segment that can translate into profits if a business ventures in products that appeal to the group. While the 0.9% annual growth of the population is relatively low, businesses ought to capitalize on product loyalty to ensure sustainable sales both in short and the long-run within the African American market.

The African American community is depicted as highly moved by big brands. Businesses targeting the African have to ensure that they invest in brand-building to appeal to the given target market. The distribution of the population, average income and the size of households of the African American society are relatively average thus presenting the investors with an opportunity to be successful in business with the group as the primary target.

Asian Americans

While the Asian Americans represent the smallest percentage of the American population among the three major minority groups, the community has the highest average per capita income and education level. The median income of $66,000 depicts that Asian Americans have the highest purchasing power which allows them to consume more products relative to the entire United States population. The community is also presented as still preserving the traditional Television viewership which allows businesses to reach out to the society conveniently.

The brand preference of the Asian Americans indicates that the community prefers economic and affordable brands as seen in the case of Toyota, Honda and Southwest Airlines. Investors targeting the Asian Americans ought to ensure that they produce affordable products with the marketing inclined towards cable TV networks.

Hispanic Americans

The Hispanic population has the highest population volume among the minority groups in the United States. The large market presented by the community is a great opportunity for investors targeting the society to make substantial sales and sustain the business. However, the community is depicted as relatively not inclined towards big brand products which depict the group as a great business potential for start-up and small investment ventures.

The Hispanic society in the United States has a low proportion of the population with at least a college degree education. Education has a great influence on choice and preference of products which affect the consumption pattern of the market. The Hispanic Americans are also depicted as inclined towards a preference for the consumer products as seen in the popularity of Wal-Mart and McDonald’s Brands.

Work Cited

AsAmNews. (2013). Media Post: Which Brands Attract Loyalty from Asian Americans?. (online). Available at https://asamnews.com/2013/08/28/media-post-which-brands-attract-loyalty-from-asian-americans/. Accessed on February 11th, 2018.

Asia matters for America matters for Asia. (2018). Asian Population – US & State Data. (online). Available at http://www.asiamattersforamerica.org/asia/data/population/states. Accessed on February 11th, 2018.

Black Demographics. (2018). African American Population report. (online). Available at http://blackdemographics.com/. Accessed on February 11th, 2018.

Business 2 Community. (2014) 6 Brands That Succeed At Understanding Hispanic Marketing. (Online0 available at https://www.business2community.com/marketing/6-brands-succeed-understanding-hispanic-marketing-01030311. Accessed on February 11th, 2018.

ESRI. (2012). Minority Population Growth— The New Boom. (online). Available at http://www.esri.com/library/brochures/pdfs/minority-population-growth.pdf2012. Accessed on February 11th, 2018.

Forbes. (2013). Seeking To Reach Hispanic Shoppers? Traditional Media Influences This Consumer Group's Purchase Decisions. (online) available at https://www.forbes.com/sites/prospernow/2013/06/28/seeking-to-reach-hispanic-shoppers-traditional-media-influences-this-consumer-groups-purchase-decisions/#56c6eb3732d2. Accessed on February 11th, 2018.

Market Wired. (2012). African-Americans Show More 'Love' to Brands Than Caucasians. Available at http://www.marketwired.com/press-release/african-americans-show-more-love-to-brands-than-caucasians-1691165.htm. Accessed on February 11th, 2018.

New Geography. (2011). The Shifting Geography of Black America. Available at http://www.newgeography.com/content/002371-the-shifting-geography-black-america. Accessed on February 11th, 2018.

Nielsen. (2013). Significant, Sophisticated And Savvy: The Profile Of The Asian American Shopper. (Online). Available At Http://Www.Nielsen.Com/Us/En/Insights/News/2013/Significant-Sophisticated-And-Savvy-The-Profile-Of-The-Asian-American-Shopper.Html. Accessed on February 11th, 2018.

Overflow Solutions. (2016). What is the Median Age in the US by Race?. (online). Available at http://overflow.solutions/demographic-data/what-is-the-median-age-in-the-us-by-race/. Accessed on February 11th, 2018

Pew Research Center. (2018). Numbers, Facts and Trends Shaping Your World. (online). Available at http://www.pewhispanic.org. Accessed on February 11th, 2018.

U.S. Census Bureau. (2016). Quick Facts. (online). Available at https://www.census.gov. Accessed on February 11th, 2018.

September 18, 2023


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