With the spending power of the LGBTQ+ community at a whopping $800 billion according to Business Insider, companies that make an effort to market to this community have a lot to gain. However, it does take a sincere effort and plan to successfully market to the LGBTQ+ consumer. Trite stereotypes and a lack of understanding of the nuances of the LGBTQ+ community will not lead to success when marketing to this community. Successful marketing to the LGBTQ+ community requires that companies recognize the diversity of this community and are sensitive to the fact that the LGBTQ+ community encompasses diverse individuals who do not always fit the stereotypes placed on them.
The LGBTQ+ community is diverse, made up of individuals from many different backgrounds with a range of beliefs and values. In her article “How Advertising Depicts Gays and Lesbians,” Julia Hanna of the Harvard Business School asserts that the characterization of LGBTQ+ individuals in mainstream advertising is lacking in diversity. She states that companies resort to stereotypes because they are uneducated as to the many different types of people in the LGBTQ+ community. These stereotypes actually turn off the the LGBTQ+ consumer. One way companies can avoid this by using real gay, lesbian and transgender individuals in their advertising, including well known celebrities, which adds authenticity. Another way to avoid stereotyping is to show LGBTQ+ individuals in average, everyday situations. Marketing successfully to the LGBTQ+ community requires accurately portraying that community.
Despite the obvious financial benefit of marketing to the LGBTQ+ community, some companies still do not actively market to LGBTQ+ individuals. According to the huffington post companies such as Chick-fil-a, Urban Outfitters, and Exxon do not support of the LGBTQ+ community. Understandably, many people in the LGBTQ+ community refuse to buy from companies that do not support LBGTQ+ rights. The article “Understanding the Multi-Billion Dollar LGBT Market” points out that members of the LGBTQ+ community are loyal consumers. For example, 70% of LGBTQ+ adults would actually pay more for a product from a company that supports the LGBTQ+ community. Companies that do not support of the LGBTQ+ community not only stand to lose out on the potential positive impact on their business of this great market segment, but may be directly negatively impacted.
Without a doubt, the LGBTQ+ market segment offers tremendous opportunities to businesses that are willing and able to address the needs of these consumers. According to a Gallup, approximately 9 million adults in the U.S. identify as LGBTQ+. And LGBTQ+ consumers have two to four times the buying power per person than other niche groups like Hispanics and African Americans. To market to this group of consumers effectively, companies must be sensitive to the diversity of the LGBTQ+ community and avoid stereotyping the members of this community.
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