Transcript The Fan And Segmentation

Lesson 4.4 –
Market Segmentation
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© 2014 by Sports Career Consulting, LLC
1. Personal Improvement – Better Health
1. Sense of Accomplishment
1. Develops Positive Values, etc.
1. Sport Appreciation
 Enjoy the game and competition
2. Fan Identification with the Team
1. Social Facilitation
 Spend time with others, feel a part
a group
• Diversion from everyday life
• Entertainment Value
• EUSTRESS or Positive Stress
• Economic Value
• Aesthetic Value
• Need for Affiliation
• Family Ties
• Reasonably priced parking and tickets
• Adequate Parking and Access
• Reasonably Priced Food
• Home Team with Winning Record
• Close Score
• Team Star or top 10 player
• Reasonably Priced Souvenirs
• Game that ends in less than 3 hours
• Wide Variety of Snack Foods
Taken from Shank Book
Marketing Applications
LESSON 4.4
Market Segmentation the process of
identifying groups of consumers based
on their common needs
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© 2014 by Sports Career Consulting, LLC
Marketing Applications
LESSON 4.4
Market Segmentation
Helps Companies To:
 Understand consumer groups
 Determine target markets
 Develop positioning strategies
 Customize products and marketing strategies
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Marketing Applications
LESSON 4.4
Five Bases for Market Segmentation
1) Demographic
2) Product
3) Psychographic
4) Benefits
5) Geographic
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© 2014 by Sports Career Consulting, LLC
Marketing Applications
LESSON 4.4
Demographic
Psychographic
Geographic
CONSUMER
Benefits
Product
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© 2014 by Sports Career Consulting, LLC
Marketing Applications
LESSON 4.4
Five Bases for Market Segmentation
 Age
Demographic
Segmentation:
 Income
 Occupation
 Gender
Focuses on information
that can be measured
 Education
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Marketing Applications
LESSON 4.4
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
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© 2014 by Sports Career Consulting, LLC
i.According to knowledgebase.com, the biggest demographic for the artist Shakira is 20-year old women
Marketing Applications
LESSON 4.4
Demographic Segmentation
According to knowledgebase.com, the biggest
demographic for the artist Shakira is 20-year old women
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© 2014 by Sports Career Consulting, LLC
i.According
i.World
Champion,
to knowledgebase.com,
#1 in the world, and
the 17-time
biggest US
demographic
National Tennis
for theChampion
artist Shakira
andisperformance
20-year old coach,
womenBob Litwin, pe
Marketing Applications
LESSON 4.4
Demographic Segmentation
World Champion, #1 in the world, and 17 National
Tennis Champion and performance coach, Bob
Litwin, penned a blog post recommending a
demographic rarely targeted by sporting gear
manufacturers: baby boomers. His rationale? “Baby
boomers want to stay fit, feel younger and have fun.”
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© 2014 by Sports Career Consulting, LLC
i.According
i.World
Champion,
to knowledgebase.com,
#1 in the world, and
the 17-time
biggest US
demographic
National Tennis
for theChampion
artist Shakira
andisperformance
20-year old coach,
womenBob Litwin, pe
Marketing Applications
LESSON 4.4
Demographic Segmentation
“I’d like to see a sports manufacturer,
like NIKE, Adidas or Babolat, create an
influencer marketing campaign where
players 60 and over can share their
stories about growing younger through
fitness. Boomers are growing at a faster
rate than all other age groups combined
and they outspend other generations by
an estimated $400 billion a year. With
health care plummeting and old age
knocking at our doors, it’s time to create
an influencer marketing campaign that
shows baby boomers defeating aging,
getting fit and living brand new stories.”
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© 2014 by Sports Career Consulting, LLC
Marketing Applications
LESSON 4.4
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%
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Marketing Applications
LESSON 4.4
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)
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© 2014 by Sports Career Consulting, LLC
Marketing Applications
LESSON 4.4
Demographic Segmentation
According to a 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
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© 2014 by Sports Career Consulting, LLC
Marketing Applications
LESSON 4.4
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
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Marketing Applications
LESSON 4.4
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”
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Marketing Applications
LESSON 4.4
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
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Marketing Applications
LESSON 4.4
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
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Marketing Applications
LESSON 4.4
Demographic Segmentation
Target retail stores understand that 60% of their shoppers
are women, likely playing a significant role in their decision
to sponsor the 2014 ASAP Women’s Surfing Event In Maui
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Marketing Applications
LESSON 4.4
Demographic Segmentation
68% of NHL fans have attended college
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Marketing Applications
LESSON 4.4
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
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Marketing Applications
LESSON 4.4
Five Bases for Market Segmentation
 Sports season
ticket holders
Product Usage or
Behavioral
Segmentation:
 Theatre group
ticket coordinators
 Individual is either
a User or Non-User
 Season ticket
holder
 Smoker
 Seat Belt
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Reflects what products
consumers use, how often
they use them, and why
Segmentation based on
“Rate of Use”
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Marketing Applications
LESSON 4.4
Five Bases for Market Segmentation
 Sports Fans
 Music Lovers
 Individuals who
enjoy attending
live events
 Cheerleader
 Athlete
 Computer User
 Mini-van Driver
 Retired Person
 Marathon Runner
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Psychographic
Segmentation:
Grouping consumers based
on personality traits and
lifestyle
Segmentation based on
Interests and Activities
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Marketing Applications
LESSON 4.4
Five Bases for Market Segmentation
Season ticket holders
enjoy additional “perks”
such as exclusive
invitations to pre-game
chalk talks with the team’s
coaches
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Benefits
Segmentation:
Refers to a perceived
value consumers
receive from the
product or service
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Marketing Applications
LESSON 4.4
Five Bases for Market Segmentation
 North, South, East and
West Regions of the
United States
 Urban and Rural areas
of a particular state
 Climate Winter Sports
vs Water Sports
Geographic
Segmentation:
Dividing of markets into
area, region, or climates
 Hawaii vs Vermont
 Alaska vs Florida
Important to Sports Marketers Because:
Sports consumers are characteristically loyal to
particular regions when making buying decisions
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Marketing Applications
LESSON 4.4
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
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© 2014 by Sports Career Consulting, LLC
Marketing Applications
LESSON 4.4
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 18-34 increased by 61
per cent (24,000 to 39,000) and 52 per cent
(54,000 to 82,000) for women 25-54 when
compared to May 2014.
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LESSON 4.4
• Athletes have 2 classifications
• Amateur
• An athlete that is not monetarily compensated for performance
• Collegiate Athletes, Olympic Athletes
• 2 questions: Go to College?? or Make Money??
• Professional
• An athlete that is compensated with money for his or her performance
• NBA, NFL, MLB, MLS…
• Sports have 2 classifications
• Organized
• Sport that is controlled by an organizing body
• Official rules of play, participation, controlled
• “Sanctioned” sports
• NCAA, NBA, NASCAR, NFL, Rec. Leagues
• Unorganized
• Sport that is not sanctioned or controlled
• May have Rules of play
• In back yard with friends…
• Turkey Bowl
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LESSON 4.4 REVIEW (ANSWERS)
Marketing
Applications
1) Identify the five bases of segmentation
1- Demographic
2- Behavioral (Product usage)
3- Psychographic
4- Benefits
5- Geographic
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© 2014 by Sports Career Consulting, LLC