Transcript Chapter 1 - NMSU College of Business

Chapter 15
Segmentation of the
Sports Market
McGraw-Hill/Irwin
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©2007 The McGraw-Hill Companies, All Rights Reserved
Introduction and Review
• “The Mass Market Is Dead”
• “One-Size-Fits-All” Strategy is Obsolete
• Mass Marketing versus Differentiated
Marketing
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Differentiated Strategies
• Marketing Mix Tailored to Each Selected
Target Market
• Not Everyone:
– Wants the same products
– Shops at the same types of retail facilities
– Will pay the same prices
– Is motivated by the same promotions
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Market Segmentation
• As Relevant for Sports Products as It Is for
Nonsports Products such as Cars, Fast
Food, Restaurants, Beverages, and
University Programs
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Target Market Decisions
in the Consumer Market
• Market Segmentation – the Process of
Subdividing the Heterogeneous Mass
Market into Several Smaller, More
Homogeneous Groups of Consumers
• Target Market – A Market Segment that
the Marketer Will Pursue Via the
Development of a Tailored Marketing Mix
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Segmentation Criteria
in the Consumer Market
• Demographics
• Geographics
• Psychographics
• Product-Related Variables
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Demographics
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Demographics
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Geographics
• Urban Versus Suburban
– Basketball versus Soccer
• One Part of Country Versus Another
– Skiing versus Golf
• One Country Versus Another
– Cricket versus Baseball
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Psychographics (Lifestyle)
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Product-Related Variables
• Level of Use
– Season ticket buyer versus infrequent buyer
• Loyalty
– Long-term versus new season ticket buyer
• Benefits Sought
– Social outing versus entertainment by athletes
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Sports Fans
• Criteria Used to Segment the Overall
Market of Sports Fans
– Involvement
– Participation
– Social Needs
– Identification
– Appreciation of Sport
– Sex Appeal
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Six Segments of Sports Fans
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Players
Patriots
Appreciators
Socialites
Friends
Voyeurs
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Players
• Those Who Play a Sport Are More Likely
to be a Fan of that Sport
• Example: Golfers Are Most Likely Group to
Attend or Watch a Golf Tournament on TV
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Patriots
• National Pride – England versus France
• Regional Pride – New York versus Boston
• Important Segment for International
Competitions such as the Olympics, the
World Baseball Challenge, and the World
Cup of Soccer
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Appreciators
• Admiration of the Players’ Skills
• Desire to Witness Excellence
• Not as Concerned about Who Wins
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Socialite
• Segment Seeks Sports Event Where
Interaction with Friends Is Facilitated
• Tailgating (Boot Parties)
• Members May Not be Very Knowledgeable
of the Sport or Event They Are Attending
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Friends
• Watch Friend or Family Member Compete
• May Have Limited Knowledge of Sport
• Important for Minor Sports and Events
– High School Sports
– Amateur Recreational Sports
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Voyeurs
• Drawn by the Sex Appeal of the Sport or
the Individual Athletes
• Skimpy Attire (Beach Volleyball)
• Attractive Participant (Anna Kournakova)
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Overview of the Fan Market
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Participation Market
• Players Rather than Spectators
• Segmentation Still Important for Marketer
• Same Four Categories of Segmentation
Criteria Can be Applied
– Demographics
– Psychographics
– Geographics
– Product-Related Variables
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Aggregate Participation Market
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Excitement-Seeking Competitors
Getaway Actives
Fitness Driven
Health-Conscious Sociables
Unstressed and Unmotivated
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Excitement-Seeking Competitors
• Prone to Engage in Risky Activities
– Bungy Jumping, Extreme Sports
• Predominantly Male
• Relatively Young
• Generally Single
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Getaway Actives
• Fun with Family and Friends
– Skiing, camping, hiking, golf
• Vacation Prone
• Social Motives
• Both Sexes
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Fitness Driven
• Activities Requiring Strength and Stamina
– Running, Aerobics, Martial Arts
• College Graduates Dominate this Group
• Predominantly Female
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Health-Conscious Sociables
• Activities that Foster Good Health
– Walking, Light Cardiovascular Exercise
• Older Participants
• Predominantly Female
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Unstressed and Unmotivated
• Prone to be Inactive
• Generally Older (Both Sexes)
• Few Activities Appeal to this Segment
• Little Marketers Can do to Induce Activity
by Members of this Segment
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Sport-Specific Segmentation
• More Insight than with Segmentation of
the Aggregate Participation Market
• Used to Identify Homogeneous Segments
• Applicable for Any Participation Activity
– Golf, Bowling, Poker, Skiing, Tennis, Hunting
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Segmenting the Golfer Market
• Different Levels of Playing Ability
• Different Motives for Playing
• Different Attitudes toward Practice
• Differing Frequency of Play
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Five Segments of Golfers
– Competitors
– Players
– Sociables
– Aspirers
– Casuals
• Recognizing Different Segments Allows
Golf Marketers to Better Satisfy Their
Various Groups of Customers
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Closing Capsule
• “One-Size-Fits-All” Clothing Results in
Consumers Wearing Clothes that Don’t Fit
• Developing One Marketing Mix For All
Consumers Is Just as Ineffective
• Market Segmentation and the Resultant
Differentiated Marketing Strategy Provide
a Better Fit for Each Consumer
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Closing Capsule
• Market Is Segmented Using Relevant
Criteria
• Target Markets Are Selected from the
Array of Identifiable Market Segments
• A Corresponding Marketing Mix Is
Developed for Each Selected Target
Market
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Closing Capsule
• Segmentation Is Appropriate for:
– The Aggregate Fan Market
– The Fans of a Particular Spectator Sport
– The Aggregate Participation Market
– Participants of a Particular Activity
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