The Emergence and Evolution of LGBTQIA+ Markets

By Matteo Montecchi, Maria Rita Micheli, Mario Campana, and Hope Jensen Schau

Many LGBTQIA+ consumers still face discrimination in the marketplace, with limited or inaccurate representations of their specific consumption needs. This is detrimental to Diversity, Equality, and Inclusion (DEI) efforts, leaving businesses exposed to long-term reputational damages. Addressing these critical strategic challenges, policymakers and marketers have embarked on a progressive journey of reaching and serving LGBTQIA+ consumers in more meaningful and authentic ways, implementing marketing strategies that genuinely resonate with these individuals and address discrimination.

Set at the intersection of marketing and public policy, our research examines the evolution of LGBTQIA+ consumer marketing from its nascent stages, driven by crisis response, through to a more nuanced engagement with consumer identities, and culminating in the current era of activism. We integrate this evolution in a phasic framework entailing the three phases of crisis, marketization, and advocacy. This framework can be used by marketers and policymakers to understand and invigorate their marketplace strategies, leading to more inclusive marketing and public policy efforts. The phases reflect the societal shifts towards inclusivity and diversity, showcasing how the marketplace has become a canvas for social change.

The journey of LGBTQIA+ marketing tells a compelling story of evolution, from a reactive stance to a proactive acceptance of diversity and inclusion. More specifically, the journey started with a reactive response to a global societal crisis, the HIV/AIDS epidemic, which brought the stigmatized LGBTQIA+ community under the spotlight. While, on the one hand, the crisis further stigmatized the LGBTQIA+ community, on the other hand, it mobilized a series of market actors to find solutions to the spreading epidemic (e.g., developing advertising campaigns on condoms), focusing more on immediate needs than long-term engagement. Overall, while this crisis phase was crucial for raising awareness, it remained limited in scope.

As LGBTQIA+ individuals became more accepted within society, marketing began to recognize LGBTQIA+ consumers as valuable market segments. In this marketization phase, brands mostly relied on stereotypes and broad generalizations of LGBTQIA+ individuals’ consumption habits designed to improve marketing efforts to this lucrative segment.

Today, we find ourselves in a phase of advocacy where targeting LGBTQIA+ consumers with stereotypes and generalizations are no longer enough. Brands are expected to engage in active allyship and advocate for LGBTQIA+ rights. This shift underscores a broader recognition of the influential role businesses play in promoting social justice. Brands should fight against discrimination and foster inclusivity, especially as some identities within the LGBTQIA+ community, like transgender individuals, still face stigmatization and lack widespread support from policymakers.

This progression from crisis response to active advocacy reflects a societal transformation towards inclusivity and diversity. Yet, challenges remain, and the need for vigilance and continued action is clear. Our research shows that marketing has the power to influence perceptions and shape narratives. As we move forward, the evolution of LGBTQIA+ marketing serves as a reminder of the potential for businesses to contribute to a more inclusive society. It is a call to action for businesses, policymakers, and consumers to ensure that inclusivity is not just a marketing trend but a foundational principle. Marketers and policymakers should deepen the understanding of what types of discrimination exist for LGBTQIA+ consumers and families accessing services (e.g., healthcare, housing). Policymakers can be motivated to create targeted policies for individuals in need by recognizing that identifying and addressing stigmatization requires a close alignment between market dynamics and policy approaches.

Overall, the journey of LGBTQIA+ marketing from crisis to advocacy offers valuable lessons on the power of visibility and the importance of continuing to push for equality and inclusion in all facets of society.

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Article Details
From Crisis to Advocacy: Tracing the Emergence and Evolution of the LGBTQIA+ Consumer Market
Matteo Montecchi, Maria Rita Micheli. Mario Campana, Hope Jensen Schau
First published June 7, 2023 Research Article
DOI: 10.1177/07439156231183645
Journal of Public Policy & Marketing

About the Authors

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Matteo Montecchi is a Lecturer (Assistant Professor) in Marketing and the director of the International Marketing MSc (Executive) at King’s Business School. Trained as a marketing researcher, Matteo uses consumer-based insights and theories to inform and direct managerial practice. His research investigates consumers’ and other stakeholders’ interaction with digital technologies and digital brand touchpoints, focusing on how this interaction shapes value perceptions and behaviours. This includes artificial intelligence applications to retail practices, voice-activated commerce, blockchain-enabled transparency, and the diffusion of fake news on social media.

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Maria Rita Micheli is Associate Professor of Strategy at IESEG School of Management in Paris. She obtained her Ph.D. at Rotterdam School of Management-Erasmus University. She has been a research fellow at Kellogg School of Management. Her research revolves around knowledge transfer and innovation, with particular emphasis on how organizations and individuals leverage knowledge to enhance innovation and introduce new paradigms. Her recent research has been published in Organization Science, Journal of Management Studies, Journal of Public Policy & Marketing, and Creativity and Innovation Management.

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Mario Campana is a Senior Lecturer (Associate Professor) in Marketing at the University of Bath School of Management. He obtained his PhD from Bayes Business School (formerly Cass) and has previously worked at Goldsmiths and the University of Bristol Business School. Mario's research interests are centered around consumer research and CCT. His research program focuses on three consumer research domains: materiality, diversity & inclusion, specifically within LGBTQIA+ domains, and alternative economies. His recent work has been published in world-leading journals like the Journal of Management Studies (FT50) and the Journal of Public Policy and Marketing.

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Hope Jensen Schau is a Professor of Marketing at UCI Paul Merage School of Business. Her research focuses on innovation, market-oriented technological mediation, practice diffusion and adoption, collaborative value creation, consumption journeys, and brand building. She published in Journal of Marketing Research, Journal of Consumer Research, Journal of Marketing, Journal of the Academy of Marketing Science, Journal of Public Policy and Marketing, Journal of Retailing, and more. She is President of the CCT Consortium and Associate Editor at Journal of Public Policy and Marketing, and Area Editor for Journal of the Academy of Marketing Science. She serves on the Editorial Review Boards of Journal of Consumer Research, Journal of Marketing, Journal of Advertising, and Academy of Marketing Science Review.