1. Market Segmentation

2. Market Segmentation the process of
4.4
Marketing Applications
Market Segmentation the process of
identifying groups of consumers based
on their common needs

3. Market Segmentation Marketing Applications
4.4
Marketing Applications
Market Segmentation
Segmentation is the first step toward understanding consumer groups as it assists in determining target markets, the marketing mix and developing positioning strategies
Segmentation is important because it allows businesses to customize their marketing mix and strategies to meet the needs of the target market

4. Helps Companies To: Marketing Applications Understand consumer groups
4.4
Marketing Applications
Market Segmentation
Helps Companies To:
Understand consumer groups
Determine target markets
Develop positioning strategies
Customize products and marketing strategies

5. Five Bases for Market Segmentation
4.4
Marketing Applications
Five Bases for Market Segmentation
1) Demographic
2) Product
3) Psychographic
4) Benefits
5) Geographic

6. Marketing Applications
4.4
Marketing Applications
Demographic
Psychographic
Geographic
CONSUMER
Benefits
Product

7. Five Bases for Market Segmentation
4.4
Marketing Applications
Five Bases for Market Segmentation
Demographic Segmentation:
Focuses on information that can be measured
Age
Income
Occupation
Gender
Education

8. Demographic Segmentation
4.4
Marketing Applications
Demographic Segmentation
Fans of the PGA and LPGA tours tend to be among the “baby boomer” age demographic (45-64), according to data from Scarborough Sports Marketing

9. Demographic Segmentation
4.4
Marketing Applications
Demographic Segmentation
The 8-13 age group (often referred to as the “tween” market) has provided a powerful demographic for entertainment products for a long time. When pop superstars like Hannah Montana get older, a new pop sensation rises to meet the demand for a new tween idol that appeals to this demographic.
Justin Beiber certainly appears poised to fill that role as his popularity continues to reach new heights as evidenced by the 21 million people following him on Twitter, his 43 million friends on Facebook and the 750 million views of his music video “Baby” on YouTube (it is the most-watched video in YouTube history).

10. Demographic Segmentation
4.4
Marketing Applications
Demographic Segmentation
Since 2000, the number of NASCAR fans earning $100,000 or more has doubled from 7% to 16% of its fan base, and those with incomes of $50,000 or more has risen from 35% to 48%

11. Demographic Segmentation
4.4
Marketing Applications
Demographic Segmentation
According to league data, the average household income for NHL fans is $104,000, highest of the four major sports with Major League Baseball ($96,200), the NBA ($96,000), and the NFL ($94,500)

12. Demographic Segmentation
4.4
Marketing Applications
Demographic Segmentation
According to a 2012 report from Leichtman Research Group, 69% of households in the U.S. have at least one high definition television set, up from 17% in 2006

13. Demographic Segmentation
4.4
Marketing Applications
Demographic Segmentation
A survey by CNBC has found that half of all American households own at least one Apple device, and the average Apple-buying household has a total of three

14. Demographic Segmentation
4.4
Marketing Applications
Demographic Segmentation
Scarborough Research released demographic figures relating to fans of the IndyCar, suggesting 29% of the fan base were “blue collar”, while 37% were “white collar”

15. Demographic Segmentation
4.4
Marketing Applications
Demographic Segmentation
According to a report released in 2013 by the Entertainment Software Association (ESA), 45% of the entire gamer (video game playing) community are women and they comprise 46% of the most frequent video game purchasers
Click here to view a graphic reporting on gamer demographics from USA Today

16. Demographic Segmentation
4.4
Marketing Applications
Demographic Segmentation
According to data from Scarborough Sports Marketing published in a 2011 issue of Sports Business Journal, fans of MMA are 78% male and 22% female

17. Demographic Segmentation
4.4
Marketing Applications
Demographic Segmentation
The Twilight film franchise has created an unusual gender-based demographic. While the primary market is female, the surprise is that the films have appealed to a wide swath of ages in the gender. Overall, 95% of the audience is female, and 45% were 25 or older-which means that a film with teenage characters is almost as popular with adult females as with teens and tweens. In marketing terms, this is a huge success in having the product traverse all ages of the gender being targeted.

18. Demographic Segmentation
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Marketing Applications
Demographic Segmentation
68% of NHL fans have attended college

19. Demographic Segmentation
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Marketing Applications
Demographic Segmentation
Triple A baseball posts its demographic information online for prospective sponsors to review
40% of the fan base earns $46-75k per year
42% of the fan base has an Undergraduate Degree
91% of the fan base has a major credit card
69% of the fan base owns their own home

20. Five Bases for Market Segmentation
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Marketing Applications
Five Bases for Market Segmentation
Product Usage Segmentation:
Reflects what products consumers use, how often they use them, and why
Sports season
ticket holders
Theatre group
ticket coordinators

21. Five Bases for Market Segmentation
4.4
Marketing Applications
Five Bases for Market Segmentation
Psychographic Segmentation:
Grouping consumers based on personality traits and lifestyle
Sports Fans
Music Lovers
Individuals who
enjoy attending
live events

22. Five Bases for Market Segmentation
4.4
Marketing Applications
Five Bases for Market Segmentation
Benefits Segmentation:
Refers to a perceived value consumers receive from the product or service
Season ticket holders
enjoy additional “perks”
such as exclusive
invitations to pre-game
chalk talks with the team’s
coaches

23. Important to Sports Marketers Because:
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Marketing Applications
Five Bases for Market Segmentation
North, South, East and
West Regions of the
United States
Urban and Rural areas
of a particular state
Geographic Segmentation:
Dividing of markets into physical locations
Important to Sports Marketers Because:
Sports consumers are characteristically loyal to particular regions when making buying decisions

24. Selecting multiple segments
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Marketing Applications
Selecting multiple segments
Because many segments may be valid in helping marketers make decisions, marketers often choose to use several segments
Ultimately, a decision is made based on what best fits the organization’s target market

25. Selecting multiple segments
4.4
Marketing Applications
Selecting multiple segments
Young women have played a major factor in the 2013 revival of the Toronto Blue Jays franchise, where the 57% of fans age 18 to 24 are female, representing “one of the fastest-growing segments of our entire demographic slice," according to Toronto's vice-president of marketing and merchandising. Also in the news story from thespec.com, Sportsnet said more women started tuning in as the Jays reeled off wins in June. Viewership for women aged increased by 61 per cent (24,000 to 39,000) and 52 per cent (54,000 to 82,000) for women when compared to May 2013.