1. chapter 6
Market Segmentation

2. Objectives
To appreciate the central role of segmentation in the marketing process
To recognize the standard bases of market segmentation in sport

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

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

5. Identifiability, Accessibility, Responsiveness
Identifiability: Can marketer identify a segment?
Accessibility: Can 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?

6. Four Bases of Segmentation
1. State of being
2. State of mind
3. Product benefits
4. Product usage

7. State of Being Where a person lives Income Age Family status
Number of children
Profession
Education
Gender
Sexual orientation
Race and ethnicity

8. Values and Lifestyle (VALS) Typology
Innovators
Thinkers
Achievers
Experiencers
Believers
Strivers
Makers
Survivors

9. Benefits What does the customer want from the experience or product?
Socialization
Excitement
High performance
Entertainment
Affordability
Affiliation
Recognition

10. Product Usage
80–20 rule: 80% of business comes from 20% of the customers.
Repeat business is the key to success (e.g., season-ticket holder vs. single-game attendee).
Serious runner seeks support, shock reduction, and long wear in shoes; casual wearer seeks light and fashionable shoes as regular footwear.

11. User Group Segmentation: Spectator
Unaware: Nonuser
Aware: Nonuser consumer
Media consumer
Light user
Medium user
Heavy user
Defector

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