1. Chapter 5 Market Segmentation

2. 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.

3. 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]

4. 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).

5. 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

6. 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?

7. Table 5.1

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

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

10. 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.

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

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

13. 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)

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

15. 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.

16. 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

17. ASSIGNMENT
1. VERBAL LIST
2. CHAPTER QUESTIONS