Chapter 5 Market Segmentation

1. Chapter 5 Market Segmentation C H A P T E R 5 Market Segmentation

2. TERMS SEMENTATION GEOGRAPHIC SEGMENTATION DEMOGRAPHIC SEGMENTATION BEHAVIORAL SEGMENTATION PSYCHOGRAPHIC SEG. TARKET MARKET SEGMENTATION A. Identifiability B. Accessibility C. Responsiveness MARKET POSITIONING Market Segment MARKET

3. 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.

4. 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]

5. 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).

6. 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

7. 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?

8. Table 5.1

9. Four Bases of Segmentation • State of being • State of mind • Product benefits • Product usage

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

11. 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.

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

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

14. 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)

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

16. 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.

17. 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

18. ASSIGNMENT • 1. Terms • 2. CHAPTER QUESTIONS • 1-3, 5, & 6 (Handout)

20. DATES TO REMEMBER FEB. 19TH: Mid-Term Exam available to complete. FEB. 26TH: DUE DAY MARCH 5TH: NO CLASS DURING SPRING BREAK MARCH 12TH: CLASS In Honor of: Black History Month

21. BLACK HISTORY

22. Black History in Sports