Multicultural marketing, also known as ethnic marketing, is a strategic approach in marketing aimed at specific ethnic audiences distinct from the majority culture within a country, often referred to as the "general market." This practice leverages the unique cultural attributes of ethnic groups—including language, traditions, celebrations, and religious practices—to effectively communicate with and persuade these audiences. In multicultural societies like the United States, marketers utilize cultural and ethnic diversity to develop targeted consumer segments. This entails tailoring marketing initiatives directly to the cultural insights and preferences of diverse consumer groups.

Multicultural marketing strategies acknowledge and cater to the diverse perceptions, motivations, and beliefs among consumers from different cultural backgrounds. By integrating cultural norms from various ethnicities, businesses enhance the visibility of their products or services, demonstrating a genuine appreciation for cultural diversity (De-Mooij, 2015). Success in multicultural marketing requires a deep understanding and respect for these cultural nuances, enabling businesses to engage effectively with diverse markets globally (Wilkinson & Cheng, 1999).

In contrast, international marketing focuses on analyzing national-level data to understand market dynamics across different countries. International marketers assess factors such as gross national income per capita, education levels, media accessibility, retail infrastructure, and product preferences at the national scale (De-Mooij, 2015). This approach incorporates cultural values at the national level to discern variations in consumer behavior, which are often influenced by cultural factors rather than purely economic considerations.

Cultural values in international marketing are typically evaluated through primary and secondary data sources. Primary data involves direct assessments via surveys or experiments, while secondary data includes scores on national cultural dimensions. Individual-level studies further refine this understanding by collecting and analyzing data at the individual level, which is then aggregated to measure national cultural tendencies and their impact on consumer behavior (Demangeot et al., 2015).

Multicultural marketing strategies, also known as "ethnic marketing" or "cross-cultural marketing," employ distinct techniques to engage with ethnic markets. The term "ethnic market" refers to cultures distinct from the dominant culture in a company's local context. Effective multicultural marketing involves recognizing and embracing the traditions, beliefs, values, norms, language, and religious practices of target ethnic groups. This customization allows marketers to tailor their strategies to meet the specific needs and preferences of diverse cultural segments.

Multiculturalism was regarded as a problem, in Australia attempts were made to reduce cultural heterogeneity by restricting immigration to white Europeans (Wilkinson & Cheng, 1999). This idea was swiftly abandoned. Other issues included adapting to the customs and traditions of new countries, tensions between ethnic communities of historical origins (Wilkinson & Cheng, 1999). Recently the focus has shifted onto the benefits of multiculturalism, and how it can potentially increase domestic and international brand recognition (De Mooij, 2015).

Economical, political, and social suggestions of this cultural mix cannot be ignored and has become widely recognised, for example the Australian Broadcasting Commission in 1995 took a significant step in ensuring that several cultures were taken into consideration and allowed for the best television programs to be sourced from around the world to cater to the needs of different cultural groups, airing programs from Asia and Europe, this directly influenced its ratings and achieved larger audiences (Wilkinson & Cheng, 1999). Various other types of products and services have been developed or adapted for the multicultural domestic market. For example, Chtaura Dairy products introduced Middle Eastern recipes for their dairy products.

Multicultural marketing did not increase in general society until the late 1960s where the potential of the ethnic market was first addressed. (Rugimbana & Nwankwo, 2003). Since then, multicultural marketing has slowly developed and the 1990s hit a peak when businesses began to recognize the value of targeting the ethnic market. Large companies such as Coca-Cola have invested in a multicultural marketing scheme, after realizing the potential of the ethnic market for the growth of their business. (Rugimbana & Nwankwo, 2003).