I’m pleased to add another Q&A to our list today with a three-parter with our friend Tom Roth, President of Community Marketing, Inc. in San Francisco. Many of you may already be familiar with Tom’s organization from our many posts on their work. CMI is the “global leader in gay tourism marketing” and has a 15-year track record of experience and expertise in the industry that is now growing to include additional segments of the marketplace. I recently asked Tom to share his thoughts on some of the basics of LGBT marketing and his views on trends and future developments in the industry.
Tom’s replies are really comprehensive, and might serve as a primer of sorts for marketers involved in our community. To make it easier for you to use this Q&A that way, we’ve divided it into three distinct parts and will run one each day for the next three days. The first part looks at commonly held assumptions and common mistakes. The second part identifies specific things to consider in developing programs to reach our communities. The third part highlights three trends Tom believes will shape the future of marketing to our communities.
Enjoy!
Ben Finzel: What are the most commonly held assumptions about the LGBT market that you hear from new and potential clients?
Tom Roth: One of the most common assumptions is that marketers already reach the LGBT community via their existing mainstream marketing initiatives. It’s true, of course. Gays and lesbians read the New York Times, Newsweek and People, for example, as much as anyone, if not more. However, when this assumption leads them to believe that they don’t need to engage in LGBT-dedicated messaging in LGBT media, it’s misguided. Gays and lesbians want to see themselves in ads, and in their own community’s media.
Along parallel lines, another potentially costly assumption is that marketers can use their existing (i.e. straight) creative and collateral and be impactful in the LGBT market. Unfortunately, even with a maturing LGBT market, we still see evidence of this in leading gay media: A marketer will place their mainstream ad in a gay magazine. We’ve facilitated about 100 focus groups and advisory board meetings among gay and lesbian consumers over the past year alone. These exercises have proven, time and again, that mainstream impressions directed to gay and lesbian eyes have a neutral influence, at best. In fact, many have indicated that seeing such creative gives them a negative impression of the marketer, and delivers an effect opposite to what was intended. The marketer is considered insensitive, naive, unprepared, or plain stupid.
A decade ago, it was enough for a marketer to simply “show up” in a gay magazine, and instantly earn brand loyalty and related new business. They didn’t need dedicated creative, or they could use lame art and be forgiven. Now, however, with so many market leaders pushing the envelope with award-winning creative concepts and offers, it takes far more ingenuity to be noticed. Where several years ago there was one “gay friendly” brand to choose from in an industry segment (one airline, one vodka, one car company…), now well-funded competitors are meeting head-to-head in the same media. It’s more important than ever to express creativity, and rise above the increasing clutter. The LGBT market is one safe place with where marketers can pull the stops and try cutting edge concepts, and they should take advantage of it. Go ahead and have fun with your designs. But not too much fun. Some ads are so artsy-over-the-top with design that they aren’t effective at communicating the basic message.
Finally, don’t make the assumption that “gay” is all-inclusive. Many marketers and marketing professionals alike refer to “the gay market,” but really, there is no gay market. There are gay markets, lesbian markets, and a plethora of communities within these communities that present vast opportunities when appropriately addressed. Assuming (as many have) that an image of a young white male will do the trick in all instances is to be way off the mark. Again referring to our focus groups, we have found that ads highlighting solitary images of single (or coupled) young white males don’t even appeal to most young white males. It is better to assume that this is a proudly diverse community of all ages, races and genders, and work diligently to represent this in your LGBT marketing.
Ben Finzel: What are the most common mistakes that marketers make in trying to reach the LGBT market?
Tom Roth: Many potential clients approach us hesitantly, explaining that they are reluctant to enter the LGBT market for fear of making mistakes. Minor mistakes and faux pas come and go, but that should not stop a marketer from entering the market and enjoying fabulous success. Because the “gay market” represents a slice of the entire world’s population, nearly every preference and interest is represented. Therefore, virtually every product or service can make headway in the gay marketplace. Just keep in mind the assumptions noted above.
There’s just one serious mistake, really: Lack of preparation. With proper preparation, almost any appropriate presentation of products or services can appeal to LGBT market, or at least most segments of the LGBT market.
Based on our nearly 15 years of market specialization, Community Marketing has identified “three steps to LGBT market success” for our clients:
1. Market intelligence. Gather and study as much data as you can about your prospective markets, and learn about the sensitivities, preferences, motivations, etc. of those markets. We use a mix of intelligence-gathering approaches with our clients. Depending on the client and the desired markets, these may include regional, national or international surveys; focus groups in target markets; exit or field surveys; customer satisfaction surveys; and advisory boards. Only with this information will the marketer be prepared to make educated decisions about what to market, how, to whom, and with what message or offer.
Research also helps evaluate market size/feasibility/potential, and establishes a base line against which the marketer can measure success. It’s often difficult to determine how well a campaign is actually doing, because a majority of LGBT consumers prefer to remain anonymous (for many, varied reasons). That reality makes it a challenge to measure success with the usual coupons or tracking codes, which gay men and lesbians are averse to using. You could be generating significant new business but not know it, and may then loose heart (and your budget) by making incorrect assessments. Surveying for a base line and then conducting follow-ups has been a far more accurate way of measuring results against goals.
2. Positioning & Preparation. Positioning is an important step, to determine where your product or service fits into an increasingly competitive market space, and how to message your value proposition. Again, it may have been enough to just “show up” several years ago. No more. You need to rise above the noise. Take a look through popular LGBT publications to see how other companies, perhaps including your competition, are representing themselves. Then do better.
Equally important is, simply put, preparation. This exercise involves taking an assessment of your own internal policies and best practices. Gay and lesbian consumers are acutely aware of corporate policies and practices that are usually overlooked by the mainstream, and this influences their purchasing preferences. Examples: Don’t even take your first step toward the LGBT marketplace until you have ensured equality in your hiring practices, and in your company’s treatment of its gay and lesbian employees. Be sure you have earned the gay marketing buy-in at all company levels, from top execs to the line staff who will interact with your LGBT customers (retail sales reps, receptionists, customer service agents, etc. as appropriate). Sensitivity training may be important in certain circumstances. Dedicating resources to well-matched LGBT charities should be considered. These days, no gay or lesbian consumer will take a major corporation seriously if it does not have a high HRC index rating indicating that it’s genuine about serving the LGBT community.
Also: Look at your consumer offers. Are they equal, as well? Avis made a meaningful statement when it promoted its “no extra fee” for same-sex partners to drive a rented car, equal to their policy for married heterosexual couples. These may seem like small issues but they can be leveraged into important messages of inclusion.
It’s simply a waste of resources to invest in marketing but then not deliver on the explicit or implied, “we’re gay friendly!” promise. Ensure a good, solid start with proper preparation. You’ll enjoy results much sooner, and for a lot longer than otherwise. This is the firm foundation on which to build a successful plan.
3. Marketing Planning. Unfortunately this is the “first step” for most marketers, but it ought to be the final one. Marketing planning should to be based on market intelligence. Otherwise, what are you selling? To which targeted LGBT markets? With what message and imagery? In which media? Clearly, without this information marketers are shooting in the dark. Launching a campaign, without the benefit of survey and focus group insight is, in fact, research; it’s just a far more shot-in-the-dark, time-consuming and budget-burning way of going about it. Better: Make educated decisions. Build a powerful plan that includes a variety of approaches (see below), based on your market research findings, your positioning, and your corporate citizenship strengths.
Ben Finzel: Come back tomorrow for advice from Tom on developing and conducting marketing programs.
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