Beyond Sex : Marketing to Gays and Lesbians based on who they are and what they need
Protean Hospitality Partners 80 Cumberland Street
▪
Toronto M5R 3V1
▪
416.967.3337
▪
www,proteanhospitality.com
Laurence Bernstein Laurence is a highly respected strategist and author who founded Bay Charles Consulting Company in 1998. Before that, his career included senior strategic planning positions at several global advertising and research firms, including Young & Rubicam and TBWA Chiat Day and Saatchi & Saatchi He was also a partner at Shiffman & Associates, a Torontobased research and strategy group. Laurence’s experience encompasses research and strategic planning for a broad range of clients, including travel, DMO’s, hospitality, automotive, financial, telecomm, pharmaceutical and retail, among others. A graduate of Cornell University, he is a regular contributor to Marketing magazine and has published articles in numerous business publications. Laurence designed and executed the Canada Gay travel Survey commissioned by the Canadian Gay and Lesbian Chamber of Commerce, and subsequently consulted with DMOs in cities throughout Canada.
He has consulted on brand development and marketing for a number of LGBT not-for-profit and private sector companies in the travel and leisure field, including International Gay and Lesbian Travel Association (ILGTA), Travel Gay Canada, Canadian Gay and Lesbian Chamber of Commerce (CGLCC), etc. He developed the definitive economic description of European Gay Markets on behalf of the International Gay and Lesbian Chamber of Commerce (IGLCC) Laurence has been closely involved in the LGBT community in Canada and the US. He has conducted successful research programs for a variety of major brands and written strategies and business plans directed at this marketplace. He was publisher of Toronto’s original Pink Page Directory and has been active in the community ever since. He has been a keynote speaker on LGBT Marketing Strategies at congresses and conferences in USA, Canada, UK, Netherlands, etc. As of June 2009 he will be presenting regularly scheduled webinars on LGBT Marketing on Business Experts Webinar (businessexpertwebinars.com). He has conducted LGBT travel marketing seminars in conjunction with Travel Gay Canada in numerous Canadian cities.
Contents
1. Getting beyond sex – an introduction 2. Connecting with the LGBT community – a reality check 3. Your business and the LGBT segment – setting the core strategy 4. Travel specific marketing 5. The bottom line
Section 1
Beyond Sex
Beyond Sex
Taking a strategic approach to the LGBT marketplace by understanding your customer’s needs Need versus wants: We want sex We need to have our needs met
Section 2
Reality Check
The Conventional Wisdom
There are gay and lesbian, bisexual and transgendered people They are smarter, richer, nicer than everybody else They buy stuff – generally more than other people They prefer to buy stuff from other LGBT people Failing that, they prefer to buy stuff from brands they believe are “gay friendly” If you “target them” they will buy
The Conventional Wisdom…
…is almost always wrong J. K.Galbraithe
The Truth
LGBT people are subject to the same influences as everybody else ◦ We exist in the same space as everybody else, so that everything we see and do is related not only to how you speak to me as a gay person, but also how you speak to me as a person ◦ We use media in the same way
We don’t want to be “targeted” or “reached” – we want to be engaged, embraced, seduced, surprised, connected with LGBT are not more likely to pay more for commodity products just because the brand is perceived as “gay friendly” ◦ The more involved and expensive the purchase, the less likely we are to pay more for the same thing
Also
We mostly buy stuff for exactly the same reasons as everybody else ◦ We travel for the same reasons ◦ We buy cars for the same reasons ◦ We buy toilet paper for the same reasons
So‌
This means we are just like everybody else?
NOT!!!!!!!!!!!!!!!!!!!!!!
More Truth
But, we also buy some stuff for reasons specifically related to whom we are as LGBT consumers ◦ We buy shaving cream for a number of reasons straight people don’t
And in some cases the needs that are filled by the product – the end experience of the product -- may be quite different ◦ Condoms ◦ White T-Shirts
And in many cases the specifics of the products we buy could be more fine tuned to requirements that are based on being G or L or T ◦ BIG and Tall Store(y)
So‌
What we learned in our research is that gays, lesbians and transgendered people will pay more for products and services that meet their needs as LGBT persons, in functional or emotional ways better than other products
What does this mean
Simply showing up won’t cut it any more Connecting with people takes more than a witty ad – people are not sitting at home waiting to hear from you, they now decide when they want to hear from you and what they want to talk to you about ◦ Are you there when they want to interact with you ◦ Are you giving them different ways of talking to you ◦ Is the subject matter relevant
Most importantly: ◦ If you don’t have a beneficially differentiated product to sell, don’t bother
When it works it’s a beautiful thing:
How the company engages the consumer emotionally policies that reflect commitment to equality practice what they preach
LGBT marketing virtuous circle
Section 3
Setting the Core Strategy
It’s a no brainer
Sell the right stuff to the right people in the right way
Sometimes an ugly duckling can never become a beautiful thing Market Requirements
6 conditions must be in place 1. Large enough, identifiable G/L population 2. G/L consumers are reachable through media channels 3. Political environment does not interfere 4. Social atmosphere in which gays and lesbians are comfortable being themselves 5. Organization that is in every respects diverse and that is prepared to celebrate success in the G/L market 6. Product or service that is or can be contextualized as relevant to gay and lesbian customers because they are gay or lesbian
Are you selling an ugly duckling or a beautiful thing?
Same product – same need ◦ toothpaste, cars, houses, travel
Same product – different functional need ◦ shaving cream, white T-Shirts
Same product – different positional need ◦ clothing, prestige cars
Different products – ◦ services or products that are best enjoyed in an exclusive gay context – adventure travel; clubs; LGBT weddings
Don’t bother – no amount of marketing will result in profitable LGBT strategy
Smart, clever, creative can recontextualize your product into a relevant LGBT product Relevant, meaningful and (LGBT) differentiated experience will build LGBT market and loyalty Develop meaningful, differentiated go-tomarket strategies with focus on LGBT media and intrusive creative
But sometimes ‌
Even in same product-same need category, there may be different attributes that make the product or service more appealing to LGBT customers versus the attributes that appeal to GM customers â—Ś A hotel room is a hotel room, but there are attributes that can be stressed to make it more appealing to gay people â—Ś Gay married couple has very different needs from an insurance plan than straight couple
Is this any different from general market marketing Taking it to market
There are two significant differences between the G/L and GM marketplaces
1. Cultural relevance ď‚– Context is everything ď‚– There must be a valuable link between the way in which products and services are delivered and the context in which they are experienced
2. A second, nuanced level of persuasion is needed: authenticity • Need to establish an unambiguous, authentic sense that the brand respects the G/L consumers for who they really are
The Authenticity “Thing�
General Market Strategy General Market Strategy
Operations Operations
+ Relevant Differentiated Experience
Market Market Strategy Strategy
Motivated General Market Consumer
+ Communications Communications Strategy Strategy Brand
Holistic Brand Activation
Brand Loyalists
The Authenticity “Thing�
LGBT Cultural Link
Operations Operations
+ Relevant Differentiated Experience
G/L Creds: Authenticity, Interest, Involvement
Brand
Market Market Strategy Strategy
Motivated LGBT Consumer
+ Communications Communications Strategy Strategy Holistic Brand Activation
Brand Ambassadors
Protean Segmentation Model™©
The Protean LGBT segmentation model has been developed to explain and harness the anomalies of LGBT society where chronological age,
MBYS Mature in body, young in mind and spirit
YBMS Young in body, mature in mind and spirit
YBYS Young in body, young in mind and spirit
MBMS Mature in body, mature in mind and spirit
•Includes older gay men and lesbians who have not psychologically bought into the aging process and are determined to stay young by behaving young (you’re as young as you behave) •Believe they can (and have) escaped aging by emulating YBYSs
•Younger LGBT people who’s self acceptance as gay relies on creating a semblance of straight normality in their lives •Try to emulate straight normality in their partnership and lifestyle •In many respects look like younger versions on MBMS
•Young people behaving the way young people behave •Date, party, work, build careers (or not), go to school, have sex, crave new experiences and excitement, drink too much occasionally, have as much sex as they can get
•Maturing and mature men and women who are comfortable with who they are, are accumulating wealth (or de-cumulating wealth), have disposable income, looking for sophisticated experiences •Invest, travel, go to restaurants, take lessons, buy cars, adopt families, get married, etc.
Section 4
Travel Specific LGBT Marketing
Types of travel
Vacations
Trips
Party time
• • • • •
Spend time planning Budget in advance Infrequent therefore valuable High involvement/high risk Need information and assurance in advance (make the right decision) • Releases stress built up • Sets them up emotionally/psychically for the future • Frequency governed by time, structure governed by economic factors • Lower involvement/higher frequency • Less emotion vested in outcome • Has a singular and measurable purpose – see a friend/family member; go to an event; see a specific museum; “check something out..” • Frequency governed by economic factors • • • •
Directed at having a partying good time Motivated by social wants Short lead time (usually) Event is the object, peripheral activities (hotel, mode of transport, etc.) not particularly important • Frequency governed by awareness of events and personal wants
Gay travel needs continuum No gay focus
Holiday
No gay focus
Holiday for gays
Total gay obsession
Gay holiday
Sex, drugs and rock and roll
LGBT focused needs segmentation: core needs No gay focus
No gay focus
Total gay obsession
Holiday for gays
Holiday • Affectionate • Exploration (self) and growth • Revitalization • Self actualization
• • • •
Romance Relaxation Adventure Self acceptance
Gay holiday • • • • •
Passion Freedom Self expression Group actualization “
Sex, drugs and rock and roll • • • •
Sex Energy Narcissism In your face
LGBT focused needs segmentation: planning No gay focus
No gay focus
Holiday
Total gay obsession
Holiday for gays
• With a partner • With friends or partner • Preplanned and budgeted • Coordination rather • Inspired by advertising, than planning informed by the • Inspired by activities, internet, assisted by informed by friends travel agents and LGBT press, assisted by the internet and online booking
Gay holiday • With a partner or alone • Impulsive • Inspired by needs, informed by advertising, assisted by gay travel sites
Sex, drugs and rock and roll • Alone or with friends • Spur of the moment (or planned around an event • Inspired by fantasy or events, informed by friends, assisted by online communities
LGBT focused needs segmentation: profile No gay focus
No gay focus
Holiday • Gay and lesbian couples • Mature, GenX and GenY, sophisticated • Conform to MBMS in the Protean segmentation model*
Total gay obsession
Holiday for gays • More lesbians than gays • Mixed ages and levels of sophistication • Conform to MBMS and YBMS
Gay holiday • With a partner or alone • Younger • Conform to YBYS and MBYS
Sex, drugs and rock and roll • Mostly gay • Mostly young, low income, single • Conform to YBYS and MBYS
LGBT focused needs segmentation: gay-itude No gay focus
No gay focus
Holiday
Total gay obsession
Holiday for gays
Gay holiday
• Gay is not an issue when • Need an overt signal of • It’s all about being gay traveling LGBT friendliness • Gay owned and operated • Believe that they behave • Need to feel comfortable or proof conclusive that it in all respects in ways that showing affection in public is the same as gay owned are appropriate and they – as they would at home • Might object to will not stand out as gay • Looking to feel welcomed, supporting non-gay or lesbian not only accepted owned gay holiday • Are concerned only about establishments physical safety • Everything around them • Expect acceptance needs to be LGBT • “We’re here, we’re queer, get over it”
Sex, drugs and rock and roll
• Huh?
Section 5
The Bottom Line
The bottom line
Not all LGBT travelers are the same – there are sub segments, defined by gender, region and age/life stage. As with any other market segment, marketers must understand which sub segment they are targeting and specifically how to meet the experiential needs of these differing groups
The bottom line
Gay, lesbian and transgender travelers, for the bulk of their travel (at least the bulk of their travel that might be profitable for suppliers) behave in every respect the same as general market travelers – including in how and by what they are motivated. ◌ Marketers planning on connecting with LGBT travelers must find specific, differentiated attributes of their product that promise enhanced experiences because the traveler is gay or lesbian ◌ Simply recognizing they are gay and delivering the base level of service and product quality that straight consumers expect every day (e.g. a warm and sincere welcome, polite and unobtrusive service, equal treatment and personal safety) is not enough
The bottom line
Advertising and messaging that says nothing more than “we know there are gay people and we want their business” – no matter how wittily expressed or erotically art directed – will not produce results
Protean Hospitality Partners 80 Cumberland Street
▪
Toronto M5R 3V1
▪
416.967.3337
▪
www,proteanhospitality.com