Chapter 5 Market Segmentation

Market Segmentation Defined The process of dividing a large, heterogeneous market into more homogeneous groups of people who have similar wants, needs, or demographic profiles, to whom a product may be targeted.

TARKET MARKET Target markets are groups of individuals that are separated by distinguishable and noticeable aspects. Target markets can be separated by the following examples: segmentations - addresses (their location climate region) demographicsomic segmentation - (gender, age, income, occupation, education, household size, and stage in the family life cycle) Psychograph-segmentation - (similar attitudes, values, and lifestyles) Behavioral-segmentation - (occasions, degree of loyalty) product-related segmentation - (relationship to a product)[2]

MARKET POSITIONING identifying and attempting to occupy a market niche for a brand, product or service utilizing traditional marketing placement strategies (i.e. price, promotion, distribution, packaging, and competition).

Purpose of Segmenting Specialize Focus on those most likely to buy Meet wants and needs without exhausting resources Provide product, price, promotion, place, and public relations in the right way

Identifiability, Accessibility, Responsiveness Identifiability: Can the marketer identify a segment? Accessibility: Can the marketer access the segment? Responsiveness: Will the segment be responsive to marketing efforts in terms of wants and needs, and is it worth targeting the segment?

Table 5.1

Four Bases of Segmentation State of being State of mind Product benefits Product usage

State-of-Being Segmentation Geography Age Income Education Gender Sexual orientation Race and ethnicity

State-of-Mind Segmentation (continued) State-of-mind segmentation assumes that consumers may be divided by personality traits; by lifestyle characteristics such as attitudes, interests, and opinions; and by preferences and perceptions.

State-of-Mind Segmentation (continued) Values and lifestyle (VALS) typology Innovators Thinkers Achievers Experiencers Believers Strivers Makers Survivors

Product Benefits Segmentation What does the customer want from the experience or product? Socialization Excitement High performance Entertainment Affordability Affirmation Recognition

Product Usage Segmentation Sport marketers need to understand that their consumers can be segmented based on how much they use the product. Common divisions include heavy, medium, and light users. 80-20 rule: 80 percent of business comes from 20 percent of the customers. Repeat business is the key to success (e.g., season- ticket holder versus single-game attendee). (continued)

User Group Segmentation: Spectator Unaware: nonuser Aware: nonuser consumer Media consumer Light user Medium user Heavy user Defector

Integrated Segmentation Strategies After consumer data is collected, it must be assimilated into the sport marketers’ overall strategy. Collating or merging data takes work but paints a more detailed picture of consumers, which in turn allows marketers to make better strategic decisions.

Use of Database in Segmenting State of being State of mind Usage Benefits Manipulated to specify approach to different segments (promotions) General letter versus invitation to personal sale

ASSIGNMENT 1. VERBAL LIST 2. CHAPTER QUESTIONS