For the broadcast company, it is essential to be aware of the targeted population’s composition, characteristics, and interests during the programming preparation. In the case of the Hallmark Channel, the programming they annually used to launch on holidays, such as Christmas or Thanksgiving, was predominantly supported by female viewers between the age of 25-54 (Hallmark Channel). However, the controversy around the LGBTQ-friendly commercial that occurred in December 2019 and rating changes that followed shortly after proved a more complex and specific customer segmentation.
Among the critics of the commercial were two organizations that require increased attention: One Million Moms (1MM) and Gay and Lesbian Alliance Against Defamation (GLAAD). According to the case study (Hallmark Channel), the former organization supported the traditional vision of family values and, thus, disagreed with the commercial showcasing gay marriage. This fact implies that a substantial portion of female Hallmark Channel viewers is comprised of traditionalists, namely Christians and conservatives. Consequently, the latter organization raised its voice against the commercial’s removal from the holiday broadcast. The counter-response alone would not be enough to assume that the channel’s viewers additionally include a large number of LGBTQ members and their supporters. Nevertheless, the channel’s ratings in the following 2020 season remained strong as in the previous years, which confirms the assumption.
The fact of a deeper and more complex segmentation has a direct impact on Hallmark Channel’s positioning strategy. If the company does not consider the interests of specific viewer segments, it might eventually lose them in the competition. However, the strategic decisions should not be made entirely in favor of a chosen segment. The 2019 controversy highlighted quick responses to the broadcast changes; thus, in the long-term strategy development, the company would try to include content for as many viewers’ preferences as possible to retain them.
The most significant influence of LGBTQ community members outside the company lies in their ability to draw public attention to specific matters. In the internet age and general media availability and accessibility, sharing information and spreading awareness becomes relatively easy, especially if it is connected to modern societal and cultural trends. Consequently, the issues related to the topics of social injustice, inequality, or discrimination will be the quickest to spread and acquire attention.
One of the company’s concerns in the face of competition in the market is its reputation. Positive feedback and general trust toward the company’s goods allow for the new customers’ acquisition as well as the old customers’ retention. In this context, public attention to particular problems or issues associated with the company would result in a reputation loss and consequent weakening of a company’s market position. The provided case study showcases a perfect example of the community’s influence on the company’s strategy. Due to the fear of losing its conservative viewers, Hallmark Channel removed the advertisement from its holiday programming lineup (Hallmark Channel). However, after the LGBTQ community’s negative response, the commercial was returned, followed by an apology and exemplification of the company’s diversity and inclusion efforts (Hallmark Channel). The situation might be different if industry and cultural trends favored traditional values more than inclusion and equity; nonetheless, in the given circumstances, the decision to return the advertisement proved correct.
Regarding the LGBTQ influence inside the company, the impact areas include workplace environment and overall performance. If employees belong to the LGBTQ community or sympathize with the ideas of inclusion and equity, they will likely oppose the contrapositive corporate policies, actions, or attitudes. It would result in various distractions from the working process and negatively affect the outcomes. In addition, in the case of corporate partners, careless decisions might lead the company to lose contracts or financial support. Finally, displeased partners or employees might also raise the issue in public, ultimately leading to the consequences mentioned above. Overall, the LGBTQ community possesses substantial leverage in terms of pursuing its goals and ideals.
Hallmark Channel had conducted several management decisions in the provided case study. First, the channel decided to remove the controversial advertisement from the broadcast due to the received complaint (Hallmark Channel). Second, under pressure from the LGBTQ community, it reversed that decision and made associated announcements (Hallmark Channel). Finally, as proof of announced intents, Hallmark adjusted consequent programming lineups regarding diversity and inclusion (Hallmark Channel). In short, Hallmark Channel encountered a problem that can be generalized as an adjustment to the target audience.
In relation to the concept of change, Hallmark showcased its strategic flexibility. If the broadcast had remained static, the controversy that eventually became “a minor hiccup in the past” would have had the potential to grow into a full-scale scandal, resulting in a reputational and viewership loss (Hallmark Channel). The concept of change involves the ability to appropriately adapt to the given circumstances, which perfectly adheres to the “survival of the fittest” law.
The chosen case has a substantial cultural context; moreover, it is the specific cultural difference that caused the controversy in the first place. From the conservative viewers’ perspective, the LGBTQ-friendly commercial undermined family values and, thus, should not be deliberately broadcasted. On the contrary, the contemporary culture of equity and social justice supports the equal treatment of different people’s individuality, thus, allowing and encouraging the display.
Hallmark Channel’s management decisions were influenced by many internal factors, ranging from the concern for viewer number to the expected profit. However, the external environment served as the trigger for the decision-making process. In other words, business does not exist in a vacuum – company’s internal and external environments are intertwined. In order to make correct management decisions, an organization has to respect that relationship and keep the balance between the two.
Diversity and inclusion represent an example of the external environment features that had to be considered in the decision-making process. These concepts imply an increase in public awareness of the diversity existing in society. In particular, the issues of same-sex marriages and workplace discrimination were addressed by the U.S. Supreme Court (Hallmark Channel). Consequently, the decision to remove the advertisement that includes the same-sex couple can be considered an act of “exclusion” or discrimination.
Finally, the need to adjust to the viewers’ preferences is greatly motivated by the company’s concerns for competition. According to the case study (Hallmark Channel), Netflix and Lifetime represented Hallmark’s competitors in the market of holiday programming competitors; in addition, these channels have already incorporated the topics of diversity and inclusion. Consequently, viewers who are not watching Hallmark Channel will probably switch to them. Since LGBTQ awareness has become both a cultural and industrial trend, the intent not to lose in the competition has also influenced Hallmark’s management decisions in favor of expanding their programming lineups.
References
Hallmark Channel, marketing segmentation, and the issue of inclusivity [Course handout]. (n.d.).