Transcript Lesson 4.4 - Slides

Lesson 4.4 –
Market Segmentation
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© 2010 by Sports Career Consulting, LLC
Marketing Applications
LESSON 4.4
Market Segmentation the process of
identifying groups of consumers based
on their common needs
Copyright
© 2010 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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© 2010 by Sports Career Consulting, LLC
Marketing Applications
LESSON 4.4
Five Bases for Market Segmentation
1) Demographic
2) Product
3) Psychographic
4) Benefits
5) Geographic
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© 2010 by Sports Career Consulting, LLC
Marketing Applications
LESSON 4.4
Demographic
Psychographic
Geographic
CONSUMER
Benefits
Product
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© 2010 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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© 2010 by Sports Career Consulting, LLC
Marketing Applications
LESSON 4.4
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
the 16 year old’s popularity is reaching new heights as
evidenced by the 4 million people following him on
Twitter, his 8 million friends on Facebook and the nearly
250 million views of his music video on YouTube.
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© 2010 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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© 2010 by Sports Career Consulting, LLC
Marketing Applications
LESSON 4.4
Demographic Segmentation
According to a study released in August of 2010
from the Cable & Telecommunications Association
for Marketing, 65% of American homes reported
owning an HDTV
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© 2010 by Sports Career Consulting, LLC
Marketing Applications
LESSON 4.4
Demographic Segmentation
In 2009, 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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© 2010 by Sports Career Consulting, LLC
Marketing Applications
LESSON 4.4
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.
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© 2010 by Sports Career Consulting, LLC
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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© 2010 by Sports Career Consulting, LLC
Marketing Applications
LESSON 4.4
Five Bases for Market Segmentation
Product Usage
Segmentation:
 Sports season
ticket holders
 Theatre group
ticket coordinators
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Reflects what products
consumers use, how often
they use them, and why
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Marketing Applications
LESSON 4.4
Five Bases for Market Segmentation
 Sports Fans
Psychographic
Segmentation:
 Music Lovers
 Individuals who
enjoy attending
live events
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Grouping consumers based
on personality traits and
lifestyle
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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
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
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© 2010 by Sports Career Consulting, LLC
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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© 2010 by Sports Career Consulting, LLC
Marketing Applications
LESSON 4.4
Blank Slide Available
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LESSON 4.4 REVIEW (ANSWERS)
Marketing
Applications
1) Identify the five bases of segmentation
1- Demographic
2- Product usage
3- Psychographic
4- Benefits
5- Geographic
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© 2010 by Sports Career Consulting, LLC