what is a representation in business

How To Do Representation in Marketing the Right Way (+ Consumer Perspectives)

Published: November 27, 2023

Welcome to Breaking the Blueprint — a blog series that dives into the unique business challenges and opportunities of underrepresented business owners and entrepreneurs. Learn how they’ve grown or scaled their businesses, explored entrepreneurial ventures within their companies, or created side hustles, and how their stories can inspire and inform your own success.

Representation matters.

We hear this over and over again. And most people agree.

However, not all representation is created equal, and this is important to recognize, especially to ensure your efforts in including more people in your marketing are received positively rather than being met with frustration and skepticism.

As the number of brands embracing inclusive marketing and prioritizing visual imagery that accurately represents their target audience grows, it becomes crucial for marketers to become well-versed in how to do representation in marketing the right way.

When done right, it demonstrates to underrepresented consumers that you’re committed to them and their communities. When done right, representation in marketing makes the people you serve feel seen, supported, and like they belong with you.

Below are what consumers have shared with me in recent years about what is important for them to see in terms of representation.

But first, to make sure we’re on the same page, let’s talk about why representation in marketing is so important.

Why Representation in Marketing Matters

The people you serve need to see themselves and who they aspire to be reflected in the visual imagery your brand puts forth.

When they see themselves, it is a permission slip to take the next step forward with you in your customer journey. When they don’t, many consumers receive the message “this isn’t for me” and go off in search of another option that does make them feel like they belong.

The 2021 State of Representation in Marketing study I conducted revealed that 74% of consumers choose to buy from and engage with a brand as a result of seeing themselves represented in the visual imagery a brand puts forth.

Representation also has the effect of impacting how consumers feel about themselves. In that study, one consumer said they wish brands knew “The damage they do by underrepresentation.” Another consumer said they wished brands knew “How much it can affect someone and their feelings about themselves when they never see themselves represented [in marketing]. Like they are not important.”

These sentiments were present on social media in 2018 when Cosmopolitan UK put plus-size model Tess Holiday on the cover. One woman shared, “If I had seen plus women like me on magazines growing up, it wouldn’t have taken 25+ years to love my body.”

With representation, brands have both power and responsibility to influence not only the way consumers feel about themselves but also how they feel about other people. One study showed that exposure to highlight reels of women’s sports changed attitudes for the better toward female athletes.

French telecom company Orange followed this insight and created an ad in advance of this year’s FIFA Women’s World Cup, highlighting that good representation really can influence perceptions of underrepresented groups, in this case, the skill, competitiveness, and emotion of women’s sports.

As you work to build an inclusive brand that makes more of the people you serve feel like they belong with you, know that taking the time to get representation right will have a significant impact on many, including you and your customers. Embrace these principles to engage in representation the way consumers want you to.

How To Do Representation in Marketing the Right Way

1. representation in marketing includes more than just photos..

The on-ramp for many brands starting with inclusive marketing focuses on making their visuals more representative. But switching up your visuals doesn’t prove that your brand is inclusive.

Consumers will believe you are inclusive when it is representative throughout your brand. In the same study, many consumers shared that they want the brands they engage with and buy from to be holistically representative.

One respondent said, “It’s more than putting someone on an ad. They need to create products that cater to different people. Hire people that are diverse.” Another commented that, “I wish they included more types of people in their campaigns and in their actual companies as senior leaders.”

Another person responded to the research by explaining, “When you choose to represent different types of people, that inclusivity needs to translate into other areas of the brand. The brand also needs to be outspoken politically, have fair hiring tactics, etc., or people will realize that their “representation” is just pandering for sales.”

Here are important areas to focus on concerning representation for your brand.

Take the time to ensure the products you develop showcase, acknowledge, and support the differences of the people your brand serves. For instance, Barbie has said that one in every five of the dolls they develop is Black, which bolsters part of its commitment to “ensure that diversity is represented everywhere” in its products.

Representation matters with the content you create as well. Whether it’s who you include in videos, the guests you feature on your podcast, or even the influencers you work with, build a content plan that allows your target audience to see themselves represented in what you publish.

If you’re seeking more guidance on how to create inclusive and representative content, the episode below can serve as a great guide:

Discover more episodes here

Building representative teams is an important part of demonstrating that your brand is inclusive. Who you pay serves as a strong indicator of both company and brand values. Consumers may question your company’s true commitment to diversity and inclusion if you do not have a representative team.

Having a diverse and representative team not only helps you produce better work but also brings numerous other benefits.

Jerry Daykin is the head of global media at Beam Suntory . During our chat on the Inclusion & Marketing podcast, Jerry told me about a study conducted by the World Federation of Advertisers (WFA), which revealed that the marketing industry at large is grappling with significant challenges in achieving proper representation. “Almost every minority you can name is underrepresented in the industry and also likely to have a worse experience of working in the industry,” he stated. “If the industry was properly inclusive and represented everyone, we probably would make better work.”

That better work comes from allowing individuals within these communities to harness their lived experiences and cultural intelligence, as it informs the development of exceptional products, services, and experiences.

Of course, building a diverse and representative team isn’t necessarily something you can do overnight. It takes time. A way to ensure you can have a team representative of the people you serve in the interim is to hire consultants and contractors to support you as you build and grow.

Ensuring adequate representation exists in your marketing mix is essential, especially to ensure that customers connect with your brand at every touchpoint throughout their customer journey.

Many brands prioritize the inclusion of representative individuals in their photos and videos, whether sourced from stock imagery or custom content, to ensure a genuine reflection of the people they serve. However, another important area to consider is your customer testimonials.

Unfortunately, it isn’t uncommon for people with identities from underrepresented and underserved groups to achieve success at different levels than people from dominant groups. These disparities are often the result of systemic and societal barriers not directly related to the problem your brand solves. Still, these issues do hurt organizational success. This episode of the Inclusion & Marketing podcast covers this topic more in-depth:

2. Representation must tell an accurate narrative.

Too often, the narratives told about people from underrepresented and underserved communities aren’t accurate; they often reflect harmful stereotypes.

As such, as your brand starts to infuse representation of people from marginalized communities into your brand’s awareness and value system, take time to ensure the narrative you’re communicating with that representation is well-aligned with their real-world experiences.

For instance, Meryl Evans, a disability advocate, talked about her frustration with brands that are trying to represent people from the disability community but continue to perpetuate the narrative that people with disabilities can’t function on their own. She wrote a note on LinkedIn , saying, “My fellow deafies and I who prefer sign language would appreciate avoiding the use of photos with the help sign. It infantilizes deaf people like we always need help.”

3. Longevity and intention matters.

Two consumers I chatted with recently expressed their frustration with brands who seemed to have a sense of entitlement about how consumers should respond to brands being more representative with their visual imagery.

One said it felt like the brands were saying, “OK, here you go, here’s a Black person. Come buy our product.” As a Black man, he felt that the actions of the brands did not embody authenticity. To him, it felt like the brands were just changing their imagery, so he’d think the product was for him.

A woman who wears plus-size clothing expressed similar frustrations. She told me that brands launching campaigns representing different bodies can feel gimmicky because it’s a sudden change to their track record. She says, “So now I’m supposed to feel like, ‘Oh, this product is for me’ because all of a sudden I see someone who looks like me?”

As we chatted further, she talked about how, for now, her loyalty remains with the brands that have long represented and served plus-sized people. She did express that if a brand, in its early stages of embracing representation, perseveres in supporting the community consistently over the long term, it has the potential to earn her trust.

Your customers are waiting for you to see them; what will you do next?

By promising to make your brand’s commitments to DEIA representatives throughout all areas of your marketing mix, in time, you will earn the attention, trust, and loyalty of consumers from underrepresented and underserved communities.

By committing to producing marketing, product, and visual content that features imagery representing the people you serve or who they aspire to be, you ensure that they feel seen and validated.

Don't forget to share this post!

Related articles.

How LGBTQ+ Leaders Can Market Themselves and Their Unique Assets

18 Events and Conferences for Black Entrepreneurs in 2024

3 Native Entrepreneurs in Different Sectors

Does Your Language Help or Harm Your Professional Relationships?

Creating a Culture of Inclusion: Revolutionizing Professional Standards

5 Must-Read Books for Building Brands and Wealth by Entrepreneurs of Color

Entrepreneurs of Color on YouTube: How They Market Their Businesses & Monetize Videos

16 Grants for LGBTQ+ Owned Businesses and Entrepreneurs

5 Inspiring Indigenous and Native Entrepreneurs to Know About

10 Business Grants for AAPI Entrepreneurs (+ Where to Find More)

Outline your company's marketing strategy in one simple, coherent plan.

Marketing software that helps you drive revenue, save time and resources, and measure and optimize your investments — all on one easy-to-use platform

How representation can positively impact your business (and the world)

If you ever look at social media or the news (or you just don’t live under a rock), then you’ve noticed a cultural shift is happening. The growing calls for businesses to prioritize equality and representation have gotten louder. But if representation in business is “on trend,” why are companies so slow to meet their customers’ and audience’s demands? The obvious and unfortunate reason is that many companies don’t think representation is a problem they need to address.

However, companies that do recognize the importance of representation in business often have a different problem — they don’t know where to start. That leads to representation becoming just another business objective lost in a sea of to-dos. But diversity isn’t just a box to check in your annual business strategy. Real representation has societal implications that are bigger than any single decision, like remote work, hiring, and quarterly planning. 

To foster inclusivity in a meaningful way, it needs to become a part of a company’s DNA and be reflected in every internal and external decision a business makes. Such efforts are always most effective when a company commits fully to representation and builds it right into their overall business strategy.

Representation in business takes work

Listen, we get it. There’s plenty of disarray and confusion in the world as we’re all still figuring out what post-pandemic life will look like. We’re all tired from that, but our underrepresented friends, co-workers, customers, and family members are downright exhausted.

So, it’s time to get to work. Not just because it’s the right thing to do, but because representation is necessary for the future success of your business and a more harmonious society. If you want your business to scale and grow in a sustainable way, your customers and prospects need to see themselves reflected in your brand. That includes your product as well as the content you create and distribute. 

Don’t believe us? The numbers speak for themselves. Download our Diversity in Video Report for exclusive data, insights, and case studies that examine what your consumers expect from your business today.

Representation in business leads to more efficient ad spend

According to Entrepreneur , 62% of consumers report that inclusivity impacts their perception of a brand. Positive brand perception generates more word-of-mouth, which increases the efficiency of your marketing dollars. Our Diversity in Video Report revealed that 59% of consumers say they’re more likely to trust a brand whose ads feature people who look like them. That means you can appeal to a wider audience by simply including more diverse faces in your marketing efforts.

Improving your brand’s perception starts from within. That means you need to not only focus on inclusive marketing, but also recruit diverse talent, hire and promote equitably, and treat everyone with respect. A truly representative workforce is diverse at all levels of your organization, especially within the leadership team and corporate suite.

Representation in business can differentiate you from your competitors.

A 2019 Google survey in partnership with the Female Quotient & Ispos highlights how diversity can set you apart in a crowded marketplace. The survey found that 71% of LGBTQ+ customers and 67% of Black customers are more likely to notice an ad that they feel represents them. If you don’t capture your audience’s attention, they’ll move on to something else. 

In a competitive business landscape, knowing your audience and marketing to them authentically can make all the difference. “Authentically” is the key word there. Audiences can spot a brand’s disingenuous attempts to seem authentic from a mile away. To avoid simply pandering to your audience, you need to really get to know them. Listen to their feedback and pay attention to their observations. That’s particularly important if they bring a unique perspective as a member of a traditionally resilient community. Carefully consider your audience’s responses and address their concerns to ensure these groups feel genuinely seen and included. Then, before you release your ads to the world, test them. It’s worth the effort to run them by members of underrepresented groups inside and outside of your organization. That will help to reveal any potential blind spots that you should address.

Companies that embrace diversity earn higher financial returns.

If you’re still skeptical, you might be asking yourself, “But how does this impact our bottom line?” This quote from Fortune sums it up quite nicely: “Companies in the top quartile for racial and ethnic diversity are 35% more likely to have financial returns above their respective national industry medians.” 

If you were on the fence, we hope you’re now a believer in the power representation has when businesses take it seriously. And not just because of the financial benefits. Making business decisions through a more inclusive lens gives your company, your advertising, and your workforce the power to change the world for the better. 

Representation really does matter . Audiences tend to absorb unspoken messaging in advertisements. If everybody they see in ads looks, dresses, or speaks exactly the same way, that reinforces stereotypes. In reality, our world is a smorgasbord of different races, backgrounds, body types, sexualities, and more. Excluding any of them only misrepresents the true makeup of our society.

Find out how representation in business can lift up your company — and society as a whole

Download Storyblocks’ free Diversity in Video Report for our analytical deep dive into years of historical user data across our platform. You’ll learn how diversity influences consumer sentiment, understand current market trends, and get tips to produce content that delivers on your consumers’ expectations. 

Editor’s note: We updated this article to include additional information. It was originally published on June 14, 2021.  

Recommended for you

Find Storyblocks music on streaming and social media

Meet Storyblocks’ new AI powered search engine

Introducing Maker Record, the latest feature from Storyblocks

Unsupported browser

This site was designed for modern browsers and tested with Internet Explorer version 10 and later.

It may not look or work correctly on your browser.

• Diversity & Ethics

Why Representation and Diversity Matter for Your Company: Promote Diversity

Today marks the beginning the beginning of Black History Month. To recognize the occasion this year, let's talk about the importance of diversity, equity, and inclusion. 

Our community and surroundings play a large role in how we perceive the world around us. For some, that means that anything is possible. But for others, the world they see has historically been vastly different. 

That’s exactly where representation comes in. Put simply, representation in the workforce refers to having employees of different races, religions, ages, ethnicities, genders, and more. This applies to regular employees as well as leadership and executive roles. 

Minorities need to see others like them in leadership and executive roles if we want to show they're equally valuable and valued. As a result, your workplace will be more diverse and inclusive .

In this guide, we’ll explore why  representation matters in the workplace and in your workforce. We’ll also share practical ways for making your company more inclusive and increasing minority representation. 

Why Representation Matters in the Workplace

When it comes to diversity and representation in the workplace, one thing is certain. Minorities are severely underrepresented, not only in leadership roles but in other higher-level roles as well. 

According to a study titled Being Black In Corporate America , Black adults fill only 0.8% of Fortune 500 CEO roles. Another study from SHRM shows that Asian and Asian-American board members make up 8% of the board member roles in Fortune 500 companies. Hispanic board members make up 4% of board memberships in Fortune 500 companies. 

It’s obvious from the statistics above that this needs to change. By having a diverse workplace, you help turn the tide and make an impact by allowing everyone to have a seat at the table. 

You can also inspire others to follow in the same footsteps. Encourage businesses to take the necessary steps towards embracing diversity and making their companies more inclusive. 

How Diversity and Representation Can Make Your Workplace Even Better

1. Bigger Talent Pool

Hiring people from all backgrounds will give you access to a bigger talent pool. This means you don’t have to worry about not finding the appropriate person for the job. Nor do you have to worry about providing extra training. 

2. Wider Variety of Ideas

A diverse workplace gives you access to a wider variety of ideas. This is because people from different backgrounds will all have different perspectives. Not only will this allow you to look at problems and solutions from different angles, but it'll also lead to unique and original results. 

Bottom line : this access to a wide variety of ideas and solutions will set you apart from the competition, which in turns improves your productivity and profits. 

3. Your Customers Are Likely Diverse

Unless you cater to a small and targeted customer base, chances are your customers are diverse. With a diverse workforce, you can build trust in your brand with a diverse target market. 

Not only will you build trust, but you’ll also be able to understand your customer base better. With a better understanding of your customer base, you can improve your existing offers and develop new ones that take into account customer needs and preferences. 

4. Better Brand Image

Nowadays more than ever, consumers want brands to stand for something. In an era where racial and social injustice is clearly still prevalent, taking a stand (Edelmen Earned Brand Report, 2018) against inequality will inspire your existing customers and turn them into loyal fans. 

On top of that, it can also expand your customer base as loyal and happy customers who often turn into brand champions and ambassadors. Happy customers are more than eager to spread the word about you to everyone they know. 

5. Diversity Helps You Cut Down on Legal and Operations Costs

A diverse and inclusive workplace can help you avoid unnecessary legal fees as well as cut down on operations costs:

• For starters, discriminating against employees based on their religion, race, gender, and more is illegal.  
• Secondly, emphasizing diversity helps you reduce absenteeism and turnover costs. Not to mention it allows you to hire the absolute best talent. 

Three Companies That Have Embraced and Benefited From Diversity

Diverse organizations perform better. Various studies show that companies with higher levels of ethnic diversity see a whopping 15% increase in revenue. Here are three companies that have embraced and benefited from having a diverse workforce:

1. Johnson & Johnson

A well-known brand name in the pharmaceutical and health industry, Johnson & Johnson is a prime example of embracing diversity and representation in their company. Their diversity and inclusion program is overseen by top-level management. They invested significant funds into employee resource groups, mentoring programs, and “Diversity University”.

Their efforts resulted in some awards that rank the company as one of the top inclusive and diverse companies to work for. 

2. MasterCard

At MasterCard , they believe that diversity is more than simply bringing together people with different backgrounds. They believe that diversity helps them be a better team that drives innovation and gets better results.

Thanks to their efforts and initiatives, MasterCard ranks as one of the top 10 companies for diversity. They offer a slew of employee benefits such as transgender surgery coverage in the U.S. and same-sex domestic partner coverage across the globe.

Sodexo provides many services that focus on improving life quality. But what makes the company truly stand out is their commitment to diversity and inclusion .

• The company makes it clear that gender balance is their business. 
• 55% of all staff members in Sodexo are women and 58% of their board members are female as well. The company offers various programs on diversity and inclusion. Plus, they often partner with women-owned and minority-owned businesses. 

Sodexo, like Johnson & Johnson and MasterCard, has received different awards that play a testament to their diversity and inclusion commitment, including the Top 10 Working Mother Best Companies For Multicultural Women 2020 Award .  

9 Ways to Increase Minority Representation in Your Company

Now that we’ve covered why representation and diversity matters, let’s talk about some practical ways to increase minority representation in your company:

1. Recruit for Diversity

The most straightforward and the easiest way to increase minority representation in your company is to recruit for diversity. In other words, hire people from diverse backgrounds, including minorities.

Not only will this make your workplace more inclusive, but it'll also give you access to a wider talent pool and more diverse ideas and strategies as we’ve discussed above. 

2. Provide Equal Benefits and Opportunities

One of the most common problems that minorities face in the workplace is that they often don’t receive the same benefits or opportunities for advancement. 

Prevent that from happening in your company. Make it clear in your company’s rules every employee deserves a fair and equal compensation for their work. 

Another rule that you should institute is that every employee has the opportunity to advance in the company regardless of their cultural background. 

3. Offer Training and Workshops on Diversity and Representation

Recruiting for diversity and ensuring all your employees have equal benefits and opportunities are an excellent start to making your workplace more diverse. But it’s only the beginning as the work doesn’t end at the C-level. Your employees also need to be familiar with your policy of making the workplace more inclusive. 

Make sure everyone in your company is on the same page. Organize diversity training and workshops that address the issues of inclusivity and representation. This tutorial provides some training tips:

Share useful resources and materials that'll help everyone in your company become aware of the problem. Take necessary steps towards improving it. 

4. Listen to All (Employee and Customer) Voices 

No matter the size of your business, it’s safe to assume that your customers include people of diverse backgrounds. As such, it’s important to listen and acknowledge all your customer’s voices. 

But don’t wait for your customers to speak up. Be proactive and ask for their feedback on how you can improve your products and services to cater to their needs better. 

The same principle applies for your employees. Listen to their concerns and suggestions. Actively seek feedback on how you can improve the workplace to be more inclusive. 

5. Start a Mentoring Program 

As you’ve seen from the examples above, there is a huge disparity when it comes to hiring a diverse workforce. Besides, there are also significant disparities in higher education enrollment according to a study from the U.S. Department of Education.

Do your part to help bridge the gap and start a mentoring program that's equally accepting of all mentees, regardless of their heritage and skin color. You can learn more about mentoring in the tutorial below:

6. Support Community Organizations That Are Committed to Diversity

Donating your time or money is always worth a praise. Don’t forget that you have plenty of choice when deciding where your donation will go. Show your advocacy for diversity, equity, and inclusion by supporting community organizations that are committed to diversity. 

Remember that donating time, money or resources isn't the only way to show your support. There are other ways to do it too. For example, you could invite members of those organizations to speak at your company and share diversity resources with your employees. 

Another way to support diversity is to encourage other business owners in your network to show their support for those organizations too.  

7. Partner With Other Businesses That Have a Diverse Workplace

Partner up with other businesses that have a diverse workplace when choosing new vendors or suppliers. Choose to use services and software from companies that promote diversity or have a diverse workforce themselves. 

By doing so you’ll not only show your support for businesses with diverse workforce, but you’ll also show your employees and partners that you encourage diversity in all aspects and areas of your business. 

8. Re-evaluate Your Screening and Hiring Process

The use of screening technologies and software is pretty commonplace nowadays. But you've got to ensure that such technologies aren’t biased, but rather built on data that's fair to all socio-economic groups. 

Don’t be afraid to re-evaluate and test your own screening and hiring process. This will ensure that no discrimination is taking place from the get-go. It'll also ensure that all the applicants get a fair chance at getting the job. 

Learn more about improving hiring practices for diversity in our Diversity Hiring Guide and in these articles:

9. Promote and Support Diversity on Your Platforms

Lastly, don’t stop at your workplace. Go beyond and get active on your social media platforms. Promote diversity, share educational material and resources as well as what you’re doing to make your company more diverse and inclusive. 

By doing so, you’ll champion the way for others and lead by example for other companies, not just in your niche but outside of it too.  

More Articles Celebrating Diversity and Black Business Leaders

Would you like to learn even more about diversity and black business leaders? Take a moment to study the following articles:

Diversity and Representation at Work Has a Long Way to Go

Representation and diversity matters because it’s the right thing to do. It’s also the human thing to do. 

When it comes to your company, there are several benefits from embracing diversity, equity, and inclusion. By promoting diversity and inclusivity, you’ll:

• improve your brand image
• cater to a wider target market
• have access to a bigger talent pool
• be able to come with unique and innovative solutions 

While some progress has been done when it comes to diversity and representation, there’s still much work to be done. The work is far from over. 

Use the tips we shared here on how to promote diversity and inclusion in the workplace to start making your company more inclusive today. 

Why Representation Matters in the workplace

Representation and diversity in the workplace are more relevant than ever. A 2020 study from McKinsey states that companies that have continued to implement diversity and inclusion initiatives have a better likelihood of consistent financial outperformance no matter the economic climate. Any company that wants to succeed in a modern and progressive business landscape stands to gain from a team that represents a range of races, religions, ages, ethnicities, genders, and the like. Here are some top reasons why representation in the workplace matters: 

Creates a more unified and compassionate team

Diversity in a company’s workforce as well as upper management positions fosters representation in various levels of that company. When we can see elements of our social identity reflected in others we can better relate to, and understand, how they perceive the world. Having diversity in multi hierarchical levels of an organization nurtures a deeper compassion that transcends job titles.

Helps to better understand your audience

Unless your target market has a hyper-focus on certain demographics, then it’s more than likely that your customer base is also diverse. Companies representing these demographics can help offer a better understanding of their needs and pain points. With an array of perspectives, organizations can take steps to improve their existing offers and develop new ones. 

Develops more Innovative Ideas

With a wide variety of talent, companies also gain access to more innovative ideas, perspectives, and solutions. A study by the Boston Consulting Group (BCG) has found that companies with more diverse management teams have 19% higher revenue due to innovation than their less diverse counterparts. When a company puts importance on representation, they can leverage these differences into strengths that can help everyone achieve their goal.

Can expand your customer base

Clients and customers are more likely to do business with brands where they see themselves represented. Not only will having more diversity in an organization help to better understand a larger audience, as explained above, it will also attract a larger more diverse customer base. 

Nova works with clients to audit and evolve their existing recruiting and hiring and retention efforts, and our clients see the impact in the continued diversification of their organizations. Your Talent team likely has limited capacity and, like most organizations, is probably up to their ears in open reqs at the moment.  Get in touch to learn how Nova can support their efforts and create more capacity.  

Share This Article

ABOUT US OUR TEAM OUR MISSION OUR PHILOSOPHY OUR APPROACH NOVA'S W ORK ING COMMITMENTS NOVA'S LEARNING JOURNEY NOVA IN THE MEDIA CONTACT US

WORK WITH NOVA

LEARNING CONSULTING CONTENT TOOLS

ARTICLES VIDEOS PODCAST FREE DOWNLOADS

Join The Collective

The nova collective.

1819 W Grand Ave Ste 203 Chicago, IL 60622 [email protected] (866) 383-4463

A business journal from the Wharton School of the University of Pennsylvania

Why Representation Matters in Marketing

May 28, 2024 • 4 min read.

Do TV commercials featuring diverse actors help increase sales? Wharton’s Zhenling Jiang tests this idea in her latest study on mortgage ads.

• Diversity, Equity, & Inclusion

Marketing to minority consumers has been around since the 1950s, when advertising agencies realized the untapped potential in Black consumers who were the second-largest racial group at the time. Advertising has come a long way since then, and so has the emphasis on diversity, equity, and inclusion (DEI). The result is a wider variety of ads that feature minority actors, models, and celebrities enticing minority consumers to buy. But does representation make a difference?

Research from Wharton marketing professor Zhenling Jiang determined that it does — in a big way. Her co-authored study, which examined television commercials for mortgage refinancing, found that as minority representation depicted in the ads increased from 15% to 25%, the advertising elasticity went up 14%. Advertising elasticity measures a campaign’s effectiveness in generating new sales.

Perhaps most surprisingly, the study found that ads with diverse players didn’t just increase sales among minority borrowers. There was a positive effect among white borrowers, too.

Jiang said the study sends a strong signal to brands that their genuine efforts to attract minority customers can pay off in ways they may not expect.

“When we think about DEI, we tend to think we are sacrificing something to feature more diversity. We are making a trade-off,” she said. “But it’s quite the contrary. It’s actually a nice message that they can achieve both higher sales as well as the societal goal of more inclusion and representation.”

The study , “TV Advertising Effectiveness with Racial Minority Representation: Evidence from the Mortgage Market,” was co-authored by Raphael Thomadsen , marketing professor at Washington University in St. Louis, and Donggwan Kim , who earned his doctorate at Washington University in St. Louis and joins the marketing faculty at Boston College this fall.

“We tend to think we are sacrificing something to feature more diversity. We are making a trade-off. But it’s quite the contrary.” — Zhenling Jiang

Representation and the Racial Wealth Gap

Jiang, who focuses on consumer finance topics in her research, said she chose to study mortgage refinancing ads for a very specific reason: the racial wealth gap in the U.S. With home equity as the largest contributor to household wealth, refinancing can be an important mechanism to help Black and Hispanic homeowners — two groups that haven’t always been courted by lenders.

“Mortgages are the most significant financial decision that consumers can make. If they don’t refinance when interest rates are lower, it can be very costly,” she said. “The long-standing racial disparity in the world of consumer finance makes this question more important.”

For the study, the scholars collected loan origination data from 2018 to 2021 that included information on borrower’s race and census tract-level political affiliation. They merged that with TV mortgage advertising data obtained from Kantar Media for the same time period. That data included ad spending and video files. The scholars used a double machine learning model to control for a host of variables, including image and text embeddings, lender, location, and time of year the ads ran.

To test their theory further, they conducted an experiment with participants who were randomly assigned commercials featuring minority or white families. Those who saw ads with minority families said they were more likely to apply for refinancing from that lender.

“The long-standing disparity in the world of consumer finance makes this question more important.” — Zhenling Jiang

Three Reasons Why Minority Representation Matters in Marketing

Jiang and her co-authors think there are three reasons why minority representation works so well in marketing. First, minority consumers feel a sense of connection when they see themselves portrayed in commercials, although racial homophily doesn’t explain the uptake by white consumers. Second, the depiction of minorities reflects the brand’s inclusive values, which could explain why uptake among white consumers was highest for those with liberal-leaning beliefs. Third, it’s possible that ads with diversity stand out to viewers simply because they are less common.

“I don’t have proof for this, but I believe these three things work together to have an overall effect,” Jiang said.

She said the study shows that firms don’t have to overhaul their marketing campaigns or spend a lot more money to reap the benefits. Choosing minority actors instead of white actors costs similarly. Producing different versions of the same ad can also be cost-efficient.

“If you are keeping ad spending the same and shifting the minority share, you are getting a more effective ad,” she said. “From a practical perspective, that is the lever that companies can pull to increase the minority share in ads.”

More From Knowledge at Wharton

The Supreme Court’s Affirmative Action Ruling: One Year Later

Marketplace Dignity: The Hidden Driver of Customer Engagement

Is DEI Going Away? Here’s What Experts Say

Looking for more insights.

Sign up to stay informed about our latest article releases.

DEI - The Importance Of Representation And Participation In The Workplace

Diversity, Equity and Inclusion (DEI) is a term that describes the policies and programs businesses implement to ensure participation and equal representation of diverse groups of people. Although, on the surface, DEI may seem like a “feel-good” initiative, research  shows that promoting equity and expanding diverse viewpoints to all levels of an organization improves profits, team morale, innovation, and more. As an employer, implementing DEI policies and programs must be a focus for your business. However, you must first understand exactly what DEI is.

Diversity involves all of the differences that make people unique. This may include race, gender, sexual orientation, religion, ethinicty, age, mental and physical ability, language, socioeconomic status, or political perspective. While the inclusion of all types of people remains critical, the focus of Diversity in DEI policies and programs lies on groups that have been underrepresented.   

The DEI element of Equity aims to promote the fair treatment, impartiality, and equal opportunity of all members of a business. It acknowledges disparities in opportunities among individuals, and it aims to correct them through support systems. In order to achieve Equity, you must understand and address the root causes of outcome disparities in your organization. 

Inclusion takes Equity a step further. Beyond addressing disparities in opportunities for individuals in a business, it aims to ensure all individuals are encouraged and empowered to offer insight and fully contribute within an organization. Inclusion is achieved when underrepresented groups and individuals are not only given equal opportunity, but actually feel welcomed and invited to participate. 

Now that you understand each individual element of DEI, let’s take a look at some strategies your business can implement to ensure participation and equal representation.

Redefine your hiring strategy  

Hiring a diverse workforce is the first step in ensuring equal representation in your business, and it is also the most important. Before a business can establish any rules or processes to achieve this aforementioned equality, the business itself must first consist of a diverse group of individuals. If you find your business is having trouble reaching candidates of underrepresented groups, it may be time to change your recruiting and hiring strategy. Here are some effective strategies to consider:

1. Audit your past recruitment ads/strategies   By analyzing recruitment methods from the past, you may uncover certain trends that led to a lack of candidates from certain underrepresented groups. For example, a recruiting advertisement that references a song from a popular new artist may not appeal to older candidates. Make changes when necessary, and don’t be afraid to design multiple different ads to appeal to specific groups.

Conducting blind resumes and blind interviews will ensure any kind of bias is eliminated from the recruitment process—even if the bias is subconscious. By “blacking out” all personal information, interviewers will only be able to judge candidates based on their experience and skill sets provided in their resume and their responses to interview questions. 

3. AI-powered candidate screening There are new ways of eliminating bias during the recruitment process such as the use AI technology. By programming a platform that filters candidates based on their skill and experience, candidates will be evaluated in a completely impartial manner. 

4. Offer internships and co-ops to underrepresented groups A great way for your business to increase the representation of underrepresented groups is to offer internships or co-ops to draw interest from up-and-coming candidates before the job search begins. Not only will this lead them to pursue your organization as an employer, but it will provide useful experience and prepare them for a role within your organization. 

Implement education initiatives within your organization  

In order to ensure all members of your organization understand and comply with the DEI initiatives of your company, anti-bias training and other education initiatives should be implemented. In 2018, Starbucks closed its doors to conduct anti-racism and anti-bias education after two African American men were arrested without cause at a Starbucks location. This situation could have been prevented had Starbucks been proactive in their education initiative. Don’t make the same mistake—start now, and start at the leadership level. The top members of an organization set the standard, and it is important that your company has a diverse, proactive leadership team that can hold their subordinates accountable.

After establishing a diverse, proactive leadership team, educate your employees in the areas of diversity, equality, and inclusion, and encourage dialogue throughout the year—these lessons may not remain effective without constant communication. Diversity training should not be a mere formality, but a focus of your organization and a topic that your employee’s should feel comfortable addressing whenever necessary. 

Set SMART diversity goals using people analytics

In order to measure the effectiveness of the aforementioned strategies to ensure participation and equal representation, it is important to set goals—specifically, SMART goals (Specific, Measurable, Achievable, Relevant, and Time-bound). By using people analytics, the method of studying employees’ processes, challenges, and opportunities, you can measure the success of your company in achieving these goals. Certain statistics (regarding underrepresented groups) that can be measured using this process include:

• Labor turnover 
• Employee tenure
• Diversity of gender, age, religion, etc. 

Identify where your company needs improvement, and set goals to not only address the problem, but effectively measure progression. Again, DEI should not merely be an idea or formality, but a focal point of your organization that receives the same attention as other HR initiatives. 

Make recruitment more effective with Datacruit ATS

Want to try Datacruit or need more information?

We’d love to show you what we do. We can get in touch to set up a demo or answer any questions you might have.

* If you want us to contact you

• Savings Management
• FAQ’s

oboloo Articles

Why representation is crucial in any contract: a comprehensive guide.

In today’s world, contracts are an integral part of any business transaction. They help define rights and responsibilities between parties, protect interests, and ensure that agreements are legally binding . However, the success of a contract depends heavily on representation. Without proper representation, a contract can be a recipe for disaster. In this comprehensive guide to procurement contracts , we will explore why representation is crucial in any contract and what it entails. Whether you’re new to the world of procurement or an experienced professional looking to brush up on your knowledge base, this post has got you covered!

The Importance of Representation

Representation is a vital aspect of any contract, as it ensures that each party’s interests are protected. It provides the parties with legal recourse in case of any breach or non-performance. In essence, representation helps to minimize risks and ensure that both parties can rely on the terms agreed upon.

Moreover, representation offers an opportunity for negotiation and clarification between the involved parties. A representative acts as an intermediary between the two sides and can help bridge communication gaps and misunderstandings. This means that having proper representation in a contract can lead to smoother negotiations , resulting in more favorable outcomes for all parties involved.

In addition to this, representation also ensures compliance with relevant laws and regulations. An experienced representative understands the legal requirements specific to different industries and markets. Thus they can help draft contracts that align with these rules while still meeting clients’ needs.

Ultimately, whether you’re signing a procurement agreement or any other type of contract – having proper representation is crucial for ensuring your best interests are met while minimizing risk exposure at every turn!

What is a Contract?

A contract is a legally binding agreement between two or more parties that outlines their obligations and responsibilities. It can be in written or verbal form, but most contracts are documented to avoid misunderstandings.

Contracts can cover various aspects of business transactions , including procurement deals. They may contain terms and conditions that specify payment terms, delivery schedules, quality standards, warranties, liabilities, and dispute resolution mechanisms.

In essence, a well-drafted contract serves as the foundation for any successful transaction by ensuring clarity and accountability among all involved parties . Parties must agree to the terms of the contract before signing it since once signed; both parties have legal obligations they must fulfill.

Understanding what constitutes a valid contract is crucial when undertaking any procurement activities as it ensures fairness throughout the entire process from inception to completion.

What is Representation?

Representation refers to the act of designating someone to act on your behalf in a legal matter. In contract law , representation is crucial as it helps ensure that both parties receive fair and equitable treatment.

In essence, representation allows you to have an advocate who can negotiate terms and conditions on your behalf. This is particularly important when dealing with complex contracts or agreements where one party has significant bargaining power over the other.

A representative can be anyone whom you designate to act on your behalf, including lawyers, agents, or specialized consultants. It’s essential to choose someone who understands the specifics of your industry and has experience negotiating similar types of contracts .

Moreover, representation does not always mean that you will be absolved from all responsibilities under the contract; instead, it simply means that there is someone else working alongside you towards achieving mutually beneficial outcomes .

Ultimately, having proper representation in any procurement process ensures better negotiations and more favorable outcomes for all involved parties.

Who can be a Representative?

In any contract, representation plays a crucial role in ensuring its validity and enforcement. But who can be a representative? Generally, anyone can act as a representative as long as they are authorized to do so by the principal.

A principal is the person or entity that appoints someone else to act on their behalf in the contract . The representative, also called an agent or attorney-in-fact, must have the legal capacity to enter into contracts and make decisions for the principal.

The most common types of representatives include lawyers, agents, trustees, and fiduciaries. Lawyers are often appointed when dealing with complex legal matters such as mergers and acquisitions. Agents are typically used in business transactions where one party represents another in negotiations.

Trustees are commonly used when managing trusts or other financial assets while fiduciaries represent beneficiaries under certain circumstances.

It’s important to note that not all representatives have equal authority or powers. Some may only have limited authority while others may have broad discretion to make decisions on behalf of their principals.

Ultimately, it’s up to the parties involved in the contract to determine who should act as their representative based on their individual needs and goals.

What are the Duties of a Representative?

In any contract, representation plays a key role. A representative is chosen to act on behalf of another party, and it is crucial that they fulfill their duties in order for the agreement to be successful. So, what are the specific duties of a representative?

Firstly, a representative must act in good faith and with loyalty towards the party who appointed them. They are expected to make decisions that align with their client’s best interests while also fulfilling their obligations under the contract .

Secondly, a representative should have an in-depth knowledge of the subject matter at hand. This includes understanding industry-specific terminology and legal jargon related to procurement contracts .

Thirdly, communication skills are essential for representatives. They must effectively convey information between parties and ensure that everyone is aware of any changes or updates regarding the contract .

Representatives must maintain accurate records throughout all stages of the procurement process . This includes documenting negotiations and correspondence between parties as well as keeping track of deadlines outlined in the agreement.

It is vital that representatives take their duties seriously and work diligently throughout every step of procuring goods or services.

What are the Powers of a Representative?

The representative in a contract is given certain powers to act on behalf of the represented party. These powers include the ability to negotiate, enter into agreements, and make decisions regarding the performance of the contract .

One major power that a representative has is the ability to bind their represented party legally . This means that any agreement made by the representative on behalf of their client will be binding and enforceable under law . It’s essential for representatives to understand this power fully before entering into negotiations or signing contracts .

A representative also has the authority to make decisions about changes or modifications to an existing contract . They can renegotiate terms, extend deadlines, or terminate a contract if necessary. However, these powers must align with their duties as outlined in their representation agreement and should always serve in the best interest of their client.

Another critical power that a representative possesses is access to confidential information related to the contract and parties involved. This includes financial statements, trade secrets, intellectual property details among others which they may use solely for purposes defined within his/her mandate while supporting due diligence requirements .

It’s important for both represented parties and representatives themselves alike t0 understand what powers are granted when entering into a contractual relationship . By doing so ensures smooth negotiations without lawsuits while promoting ethical business practices between all stakeholders in procurement contracts

Representation is a crucial aspect of any contract. It ensures that the parties involved are properly represented and their interests are protected. A representative has important duties and powers that can make or break a contract .

If you’re involved in procurement or any other kind of business transaction , it’s essential to have proper representation. Choose someone who is knowledgeable, trustworthy, and experienced in your industry.

Remember that a well-drafted contract with appropriate representation can save you time , money, and headaches down the line. So don’t underestimate the importance of this critical element when entering into any agreement!

Table of Contents

• --> What Does--> --> --> --> table of contents--> <--.
  • --> What--> -->