Transcript SEM 1.07

TARGET MARKETING & MARKET
SEGMENTATION
ADVERTISING MEDIA IN S/E INDUSTRIES
TARGET MARKET - DISPOSABLE INCOME
 Disposable income is the amount of $$$s people
have to spend, or dispose of, AFTER they have paid
their taxes; also called discretionary income.
 Appealing to customers who have disposable
income is an important part of target marketing in the
SEM industry because the products associated with
this industry are NOT necessary for life. They are the
types of goods and services that people buy after
they pay for the necessities.
DISPOSABLE INCOME
 For example, people pay for housing and food
before they consider whether they can afford to
attend a professional baseball game, play a round of
golf, or buy a new tennis racquet. If people do not
have the money to spend on these products, they
will not buy them.
 Therefore, target marketing should include
appealing to potential customers who have
disposable income as well as an interest and desire
to buy sports and entertainment products.
TARGET MARKET - DEMOGRAPHICS
 Demographics are the physical/social characteristics
of the populations and includes info. such as age,
gender, income, education, etc.
 Demographics is an important factor to consider when
targeting customers for a specific event because
different types of events appeal to different people.
Certain groups of people are more likely to attend one
type of event than another.
TARGET MARKET - DEMOGRAPHICS
 For example, an event that appeals to senior citizens
might not appeal to teenagers, or an event that appeals
to women might not appeal to men. For an event to be
successful, the right demographic group needs to be
targeted.
SATISFY CONSUMER’S WANTS
 Wants are desires for something. Sports/entertainment events
must satisfy the wants of consumers in order to be successful. If
consumers are not interested in the event, are not willing to pay
the price of admission, or do not like the location, they will not
attend.
 Event marketers must make sure that they understand what
consumers want in order to plan sports/entertainment events
that will be successful. If events are successful, they usually earn
profits and generate favorable press.
 Events do NOT need to promote popular causes in order to be
successful because consumers usually attend events to be
entertained.
TARGET MARKET - NICHE
 A niche market is a smaller group of the target
market that a business can select to market goods
and services.
 Demographics are characteristics such as age,
gender, income, and education. They do NOT
include being sports-minded or living in Orlando.
TARGET MARKET – YOUNG MEN
 Extreme sports are most popular among young men, ages
12 to 34. Those events would appeal to that age group and
bring in revenue from a coveted market segment.
 Promoters of an extreme-sports weekend event would
develop promotions to appeal to young men in that age
group.
 Professional athletes, older men, and business
executives are less likely to be interested
in participating in extreme sports.
MARKET SEGMENTATION
 Is the division of a total market into smaller, more
specific groups. Sport/event marketers often segment
markets on the basis of psychographics, which
considers factors such as lifestyles.
 Lifestyle characteristics include how people spend
their $$$$s and what they do in the. g, hobbies).
Hobbies might include participeir spare time (ating in
certain sports such as biking, skiing, and swimming.
MARKET SEGMENTATION
 Demographic segmentation considers various physical
and social characteristics of the market—age, gender,
income, and education. (Fashion shows for ladies)
 Geographics segments a market on the basis of
location. (Surf boards for Florida Coast)
ADVERTISING - ENDORSEMENT
 An endorsement is approval by a reputable external
source. If a company pays an athlete to appear in an
advertisement, it is a celebrity endorsement.
 Endorsements are a form of advertising because the
celebrity is promoting a product. Endorsements are a
common form of advertising in the sport/event
industry.
 For example, an ad for NIKE featuring
Tiger Woods is an endorsement.
PROMOTIONAL MESSAGES
 Broadcast is promotional media such as radio and
television.
 A testimonial is a statement by an identified user of a
product proclaiming the benefits received from the
use of a product.
 Promotion is a marketing function needed to
communicate information about goods, services,
images, and/or ideas to achieve a desired outcome.
PROMOTION - SIGNAGE
 Businesses that want to create associations with
certain sports often place advertising messages on
stadium scoreboards, dasher-boards, and banners.
These forms of advertising are highly visible to
spectators attending the sporting event.
 By placing large banners in the stadium, advertisers
not only have event-long spectator exposure to their
names and products, but exposure to a broadcast
audience if the game is televised.
PROMOTION - SIGNAGE
 For example, if a business pays to place a banner on an
outfield fence during a televised baseball game, the
television audience has an opportunity to see the
banner several times. Tide sponsors a racing team.
It has been determined televised races offer the
most exposure for a product/service due to the #
of laps made by a car.
 Repetitive or long-term exposure increases
the business's chances of making associations
with the sport or team and itself.
OTHER PROMOTION OPTIONS
 Other options such as opt-in e-mail, contests and
newspaper ads may create positive associations;
however, they often reach a smaller audience and
with limited exposure opportunities.
ADAPT MESSAGES FOR EACH MARKET
 When a performer enters a foreign market, s/he must
understand the culture and customs of the market.
Because the performer wants to sell his/her services to
these untapped markets, s/he does not want to
OFFEND potential customers with inappropriate
language or translations, symbols, attire, etc.
ADAPT MESSAGES FOR EACH MARKET
 Therefore, the performer needs to make sure that the
promotional messages do not offend each market
that the performer is trying to attract, which may
involve adapting or changing those messages.
REVIEW
32. An important part of target marketing in the
sports/entertainment industry involves appealing
to potential customers who have
A.
 B.
 C.
 D.

Past experience
Athletic ability
Leisure time
Disposable income
32. An important part of target marketing in the
sports/entertainment industry involves appealing
to potential customers who have
A. Past experience
 B. Athletic ability
 C. Leisure time
 D. Disposable income

33. Which of the following is a factor that
S/E marketers consider when targeting
customers for a specific event:
A.
 B.
 C.
 D.

Personalities
Demographics
Expectations
Affiliations
33. Which of the following is a factor that
S/E marketers consider when targeting
customers for a specific event:
A.
 B.
 C.
 D.

Personalities
Demographics
Expectations
Affiliations
34. What should a S/E event do in
order to be successful?
A. Earn maximum profits
 B. Generate favorable press
 C. Satisfy consumer wants
 D. Promote popular causes

34. What should a S/E event do in
order to be successful?
A. Earn maximum profits
 B. Generate favorable press
 C. Satisfy consumer wants
 D. Promote popular causes

35. Males between the ages of 18-35 who
are sports-minded and live in Orlando,
Florida is an example of a:
A.
 B.
 C.
 D.

Niche market
Demographic characteristic
Sponsor
Marketing Mix
35. Males between the ages of 18-35 who
are sports-minded and live in Orlando,
Florida is an example of a:
A.
 B.
 C.
 D.

Niche market
Demographic characteristic
Sponsor
Marketing Mix
36. The promoters of an extreme-sports weekend
event would most likely target which of the
following markets:
 A. Professional athletes
 B. Older men, ages 40 to 50
 C. Business executives
 D. Young men ages 12 to 34
36. The promoters of an extreme-sports weekend
event would most likely target which of the
following markets:
 A. Professional athletes
 B. Older men, ages 40 to 50
 C. Business executives
 D. Young men, ages 12 to 34
37. When a sports marketer considers factors
such as lifestyles and interest levels, she/he is
segmenting a market on the basis of:
 A. Gender
 B. Demographics
 C. Geographics
 D. Psychographics
37. When a sports marketer considers factors
such as lifestyles and interest levels, she/he is
segmenting a market on the basis of:
 A. Gender
 B. Demographics
 C. Geographics
 D. Psychographics
82. What form of advertising involves a
company paying an athlete to appear in a
television commercial or newspaper ad?
 A. Endorsement
 B. Testimonial
 C. Promotion
 D. Broadcast
82. What form of advertising involves a
company paying an athlete to appear in a
television commercial or newspaper ad?
 A. Endorsement
 B. Testimonial
 C. Promotion
 D. Broadcast
83. A business wants to create or emphasize
positive associations between a specific sport and
itself. What type of advertising media should the
business consider using?
 A. Stadium signage
 B. Opt-in e-mail
 C. Contest
 D. Newspaper
83. A business wants to create or emphasize
positive associations between a specific sport and
itself. What type of advertising media should the
business consider using?
 A. Stadium signage
 B. Opt-in e-mail
 C. Contest
 D. Newspaper
84. When a performer expands into
international markets, an important
consideration for his/her promotional efforts is
that it is often necessary to
 A. Assume that literal language translations
are acceptable
 B. Use the same advertising strategies with
all markets
 C. Develop different brands for each market
 D. Adapt promotional messages for each market
84. When a performer expands into
international markets, an important
consideration for his/her promotional efforts is
that it is often necessary to
 A. Assume that literal language translations
are acceptable
 B. Use the same advertising strategies with
all markets
 C. Develop different brands for each market
 D. Adapt promotional messages for each market