Sports and Entertainment Marketing Marketing and Strategy Council Rock School District Mr. Sherpinsky

 Demographics: The study of characteristics of groups of human beings in terms of statistics.  Objective characteristics of consumers such as age, income, education, sex or occupation.  A demographic is what most marketing activities focus on, as it is easiest to describe.

Psychographic Analysis A technique that investigates how people live, what interests them, what they like-- also called lifestyle analysis because it relies on a number of statements about a person's activities, interests and opinions. (How they “behave”) Psychographic Segmentation Dividing markets into segments on the basis of consumer life styles.

Psychographic Analysis A technique that investigates how people live, what interests them, what they like--also called lifestyle analysis because it relies on a number of statements about a person's activities, interests and opinions. (How they “behave”)

 Geographic segmentation tries to divide markets into different geographical units: these units include:  Regions: Counties or major metropolitan areas  States: perhaps categorized by size, development or membership of geographic region (East v. West, North v. South)  City / Town size: e.g. population within ranges or above a certain level  Population density: e.g. urban, suburban, rural, semi-rural  Climate: e.g. Northern, Southern

 The simplest way to define a market is to think of a market as consisting of all the people or organizations that may have an interest in purchasing a company’s products or services.  In other words, a market comprises all customers who have needs that may be fulfilled by an organization’s offerings.

 Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs for the relevant goods and services.  Subsets may be divided by criteria such as age and gender, or other distinctions, such as location or income.  Marketing campaigns can then be designed and implemented to target these specific customer segments.

 Analyzing consumer lifestyles (psychography) means examining the way people live rather than where they live (geography) or their age, income, or occupation (demography).  Lifestyle analysis is based upon a person's activities, interests and opinions.

 Demographic data  SWM, MWF (male / age)  Earn a certain income  Occupation is computers, education, sales or…  Have one child, no child  Graduated college, no college, advanced degree  Psychographic data  Conservative with spending  Value driven rather than price driven  Aversion to debt  Value efficiency and privacy  Early majority but not always a technology optimist

 A niche market is the subset of the market on which a specific product is focusing.  So the market niche defines the specific product features aimed at satisfying specific market needs  It is also a smaller market segment. ▪ For example, sports channels like STAR Sports, ESPN, STAR Cricket, and Fox target a niche of sports lovers.STAR SportsESPNSTAR CricketFox

Demographics & Psychographics have an important place in marketing research  Increase the effectiveness of a promotional campaign by:  Targeting the appropriate audience ▪ Reaching only those who could or will buy your products  Focusing the message on their needs ▪ Using images, text, and specific messaging to heighten connectivity to consumers  Selecting the appropriate media ▪ Selecting the right method or combination of methods to find our target audience using the least amount of resources

 What is a Baby Boomer anyway?  The common definition is that people born between 1946 and 1964 are considered "Baby Boomers.“  Also called, Me Generation, Boomers, Baboo, and Love Generation

 Generation X can technically be defined as the generation following the Baby Boomers.  Gen-Xers were born between 1965 & 1977 now ranging in age from 35-47, as of 2012 and judged by characteristics assigned to them by the media.  Also known as the Baby Bust, Slackers, Why me Generation, and Latch-key Generation  The media has singled out America's youth as representative of Gen-X: "underemployed, overeducated, intensely private and unpredictable”

 Also known as the Millennials or the Echo Boomers, “Why Generation”, Net Generation, Gen Wired, Next Generation, and Nexters  Chiefly the children of baby boomers and new immigrants, a demographic behemoth born roughly between 1977 and 1994, age 18-35, as of 2012  The Millennials have already shown themselves to be big spenders.  Debt to Income Ratios: 20:1

Gen Z also known as Tweens, Baby Bloomers, and Generation 9/11  Born after 1994 and are less than 18 years old, as of  Newest Generation  Not yet fully defined  Oldest of this group is Tweens (11-17)

 People’s interests and values  How you spend your time  Lifestyle research  Valuable in establishing market segments  Often influences ▪ Purchases ▪ Housing, Vehicles ▪ Location (Where you choose to live) ▪ Recreation time (What do you do with free time)  Responsible for coffee shops, book stores, sports venues, home décor, and healthcare  Used to develop segments from the mass market

When we look at the Psychographics of a consumer, we study the consumers shopping trends based on social and psychological characteristics. Specifically:  Attitudes  Values  Lifestyles

 Attitude: How do people feel about certain things… Optimistic vs. Pesimistic White Collar vs. Blue Collar DIY vs. Hiring out help Basic vs. Luxury Debby Downer vs. Sammy Sunshine

 Values: How consumers think about certain things… Religion: Religion practiced: Orthodox? Family: Traditional or Untraditional Work Ethic: Live to work or work to live? Food: Organic or Not? Education: What is expected? High School, College, Apprenticeship? Money: Spend, Save, or Invest…

 Lifestyle : How consumers live Family: Single, DINKs, Married w/Kids, Empty Nesters Vehicle: Bike, Automobile, Mass Transit Body-types: Athletic, Plastic, Voluptuous, Overweight, Losing that LAST 5 pounds… Vacation: Camping/Mountains, Beach/Shore, Travelers, Amusement Parks, Vegas, Global, Family.

 Mass marketing is a market coverage strategy in which a firm decides to ignore market segment differences and appeal the whole market with one offer or one strategy.  It attempts to sell a product to a wide audience.  The idea is to broadcast a message that will reach the largest number of people possible. ▪ Traditionally mass marketing has focused on radio, television and newspapers ▪ Opposite of Niche Marketing ▪ Examples: Chewing Gum and Light Bulbs

Step 1 The dishwasher breaks, creating a Want Step 2 Set Criteria: new or used? What kind do I want? How much can I spend? Step 3 Product search: various “Places” are investigated Step 4 Decision is made: the best deal is selected Step 5 Purchase made Step 6 Purchase is evaluated

Thorndike’s Law of Effect  States that: Consumers are motivated to buy products that produce positive events and to avoid products that produce negative events ▪ Motivation is affected by how good or how bad a product or service is (Product) but also by (Place) factors such as crowded stores, parking problems, noise, salespeople, etc Consumer Motivation to purchase Pain: economic and emotionalPleasure: economic and emotional

Primary Motivation  Consumers are inspired by one of three primary motivations: ideals, achievement, and self-expression.  Consumers who are primarily motivated by ideals are guided by knowledge and principles.  Consumers who are primarily motivated by achievement look for products and services that demonstrate success to their peers.  Consumers who are primarily motivated by self-expression desire social or physical activity, variety, and risk.

What Is Behavioral Marketing?  Behavioral marketing targets consumers based on their behavior on Web sites, rather than purely by the content of pages they visit.  Behavioral marketers target consumers by serving ads to predefined segments or categories. These are built with data compiled from clickstream data and IP information. ▪ Example: A user visits several travel category pages on a particular site, for example. She's then served airline ads. In most cases, the ads are served through a run-of-site (ROS) placement. ▪ The user's behavior is the key, not the placement.

 Contextual advertising is a form of targeted advertising for advertisements appearing on websites or other media such as browsers.  Advertisements are selected and served by automated systems based on the content displayed to the user.  A contextual advertising system scans the text of a website for keywords and returns advertisements to the webpage based on those keywords

 The term and approach are commonly attributed to three (3) basic principles to which an advertisement should conform: 1. Attract a reader, so that he will look at the advertisement and start to read it; 2. Interest him, so that he will continue to read it; 3. Convince him, so that when he has read it he will believe it.  If an advertisement contains these three qualities of success, it is a successful advertisement.

 A = Attention:  A = Attention: the headline or main image catches the readers' attention and excites them. The headline should either reveal or conceal a common interest. Consider a concern that a large percentage of the target market has and use that as the theme of the headline.  Examples ▪ 1) FARM FRESH EGGS SOLD HERE! ▪ 2) HOW TO BURN OFF BODY FAT, HOUR-BY-HOUR ▪ 3) THE MOST EXPENSIVE MISTAKE OF YOUR LIFE  I = Interest:  I = Interest: Interest is created by giving the potential customer multiple benefits that will enhance their life.

 D = Desire:  D = Desire: Build desire by making the product irresistible. Include things like attractive images, free bonuses, guarantees, endorsements. Build urgency into every offer.  Example: "Order now in the next 72 hours and you will get this free bonus.“  A = Action:  A = Action: The sales piece must have a call to action. The customer should be invited to buy. The customer should be aware that it is easy for them to buy (as many payment methods as possible).

 EXAM Next Class  35 Questions