Abstract

This case discusses about the target marketing strategies of New York-based information technology major IBM Corporation (IBM), directed toward the LGBT community. The company pitched its products to the LGBT customers by using advertisements targeted at them. The target marketing strategies included advertising in gay publications, online marketing, sponsoring events and conferences supporting LGBT people, etc. It also set up an LGBT sales team dedicated to serve the LGBT customers. The company extended its LGBT diversity initiatives to its suppliers by choosing to do business with vendors belonging to the LGBT community. Experts felt that with the increasing competition, mainstream marketers like IBM were targeting this niche segment since LGBT customers were affluent, educated, and had more disposable income than other customers. Moreover, they felt that the risk of alienating the existing mainstream customers outweighed since LGBT customers were more loyal toward a brand.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Analyze the marketing strategies of IBM for targeting the LGBT segment
• Discuss the benefits in targeting a niche segment
• Examine the risks involved in targeting a niche segment
• and Appreciate IBM’s diversity initiatives directed toward its employees and its suppliers.

Keywords

Market segmentation, Targeting, Consumer behavior, Lesbian, gay, bisexual, and transgender people, LGBT, Target marketing, LGBT advertising, Online marketing, Sponsorships, LGBT sales team, Niche segment, Purchasing power, Brand loyal, Disposable income, Early adopters, Purchase decision, Diversity, Diversity training, Gender identity, Sexual orientation, Supplier diversity, Human rights campaign, Corporate equality index, Equal employment opportunity, IBM