1. Copyright © 2009 Nelson Education Ltd. All rights reserved. Segmentation, Targeting, and Positioning in Sport Chapter 5

2. Copyright © 2009 Nelson Education Ltd. All rights reserved. 2 OBJECTIVES To learn the importance and advantages of identifying target markets.To learn the importance and advantages of identifying target markets. Understand the role of segmentation, targeting, and positioning (STP) in the marketing process.Understand the role of segmentation, targeting, and positioning (STP) in the marketing process. Understand (STP) and be able to apply each to any market of interest.Understand (STP) and be able to apply each to any market of interest. To be aware of the many potential bases of segmentation to divide markets into groupings.To be aware of the many potential bases of segmentation to divide markets into groupings.

3. Copyright © 2009 Nelson Education Ltd. All rights reserved. 3 STP S - How can we break our market down into homogenous reachable groups? T – Which of these groups should be commit our resources to reach? P – How to we want the selected target(s) to perceive our offering versus the offerings of our competition?

4. Copyright © 2009 Nelson Education Ltd. All rights reserved. 4 MARKET SEGMENTATION Market Segmentation: the delineation of a customer, fan, spectator, participant, or b2b group/groups with needs and wants which the marketing function of the sport organization has successfully satisfied.

5. Copyright © 2009 Nelson Education Ltd. All rights reserved. 5 SEGMENTATION 5 ASPECTS OF SEGMENTATION IN SPORT MARKETING: 1.Wide product application 2.Broad reach 3.Efficient reach 4.Timing 5.Segment boundaries

6. Copyright © 2009 Nelson Education Ltd. All rights reserved. 6 SEGMENTATION Criteria for effective segmentation: 1.Responsiveness 2.Measurability 3.Accessibility 4.Substantiality

7. Copyright © 2009 Nelson Education Ltd. All rights reserved. 7 SEGMENTATION The Six Question Segmentation Process: Three Steps 1.Identification of total market 2.Bases of segmentation a)Sensitivity b)B2C & B2B 3.Segment-by-segment analysis

8. Copyright © 2009 Nelson Education Ltd. All rights reserved. 8 SEGMENTATION Segment-by-Segment Analysis 1.Who are they? 2.What do they want/need? 3.When do they want/need it? 4.Where do they get it? 5.Why do they want/need it? 6.How do they go about getting it?

9. Copyright © 2009 Nelson Education Ltd. All rights reserved. 9 TARGETING Offers three ways to target markets: 1.Undifferentiated Targeting 2.Differentiated Targeting 3.Concentrated Targeting The 80/20 rule: 80 percent of revenues comes from 20 percent of customers.

10. Copyright © 2009 Nelson Education Ltd. All rights reserved. 10 TARGETING Using Segmentation Grid for Targeting: Step 1: Assessing Size, Reach, Profitability, and Measurability. Step 2: Selecting Target Markets

11. Copyright © 2009 Nelson Education Ltd. All rights reserved. 11 POSITIONING Involves looking for that place in the minds of your target markets where you can fit your product.Involves looking for that place in the minds of your target markets where you can fit your product. Hole in market - A niche or a particular segment whose needs and/or wants have not been adequately met.Hole in market - A niche or a particular segment whose needs and/or wants have not been adequately met.

12. Copyright © 2009 Nelson Education Ltd. All rights reserved. 12 POSITIONING Effective positioning is built on 3 stages: 1.Asses a given market segment and determine where each offering is currently positioned. 2.Do background research to determine important dimensions that lead to this positioning. 3.Select a position for the product to occupy the mind of the target market segment.

13. Copyright © 2009 Nelson Education Ltd. All rights reserved. 13 POSITIONING Perceptual Map: The map helps display the location of the product in the minds of consumers in the target market of interest. High Quality Low Quality High Price Low Price

14. Copyright © 2009 Nelson Education Ltd. All rights reserved. 14 CANADIAN TARGETS Common target marketing in Canadian sport: Aboriginal Canadians Aboriginal Canadians Canadian womenCanadian women Young CanadiansYoung Canadians Official language groupsOfficial language groups Paralympic athletesParalympic athletes

15. Copyright © 2009 Nelson Education Ltd. All rights reserved. Questions?