Transcript Target Market

1.03 - Market Segmentation
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What is target marketing and what has
caused sports businesses to increase this
marketing tactic?
In what ways do sport marketers segment a
market?
How does a consumer’s socioeconomic
status play a significant role in how sport
marketers implement marketing tactics?
Explain target
marketing
A
MARKET is a customer or
potential customer who has an
unfulfilled desire and is
FINANCIALLY ABLE AND WILLING
to satisfy that desire.
 Businesses strive to meet the needs
and wants of their customers.
When
sellers offer
one-size-fits-all
products that will
appeal to the entire
market.
A
GROUP OF CUSTOMERS
THE BUSINESS SEEKS TO
ATTRACT.
 The same person can be
included in more than one
Target Market
Women make up 44 percent of
NFL’s Fan base.
 Divide
markets into
CATEGORIES or specific
groups with common
interests
 Marketers
tailor their product,
price, place, and promotion
activities to the segments with
which they wish to work.
Customers are not influenced by
mass marketing because they
are…DISCERNING - (Able to
understand something that is
complex.) with product purchases.
Explain the ways to
segment a market.
Marketers divide their markets by
grouping customers according to their
similarities—not their differences.
 Customers may be similar in their
occupations or hobbies.
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Economic and sociological measure of a
person’s income, education, and occupation.
education, and jobs, marketers can determine
what different customers are likely to buy.
1) Better educated individuals, for instance,
are more likely to demand higher quality
products.
2) High-income customers have more money
to spend on such products as expensive
jewelry, vacation packages, and cars.
 Age
(Teen, young adult, senior)
 Generation (Gen. X or Gen. Y)
 marital status (single, married,
divorced)
 family size (no kids, 1-2 kids)
 marketers want to know where
customers fit in the day-to-day
buying routine.
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1) Are customers buying baby shoes, walkers,
or running equipment?
2) Do they need retirement-planning
assistance, car-pooling opportunities, or
diaper-cleaning services?
When marketers categorize customers by
where they are in life, they can quickly find
out their needs and what to do to meet them.
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baby boomer is a person who was born
during Post–World War II baby boom between
1946 and 1964. About 74 Million people.
The financial security of this market offers
continuing opportunities for marketers of
travel and luxury products.
80% of luxury travel and 48 % of all luxury
car purchases are made by boomers
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Generation X encompasses the 44 to 50
million Americans born between 1965 and
1980.
Members of Generation X are largely in their
30’s and early 40’s.
More ethnically diverse and better educated
than the Baby Boomers.
Over 60% of Generation X attended college.
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Is the demographic cohort following
Generation X. There are no precise dates for
when Generation Y starts and ends. From the
early 1980s to the early 2000s.
With numbers estimated as high as 70
million, Generation Y (also known as the
Millennials) is the fastest growing segment of
today’s workforce.
Discuss ways that a
market can be
segmented.
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Segmenting the market based on personal
characteristics such as:
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Age (18- 25)
Gender (Females)
Income ($35,000 - $45,000)
Ethnic background (Hispanic, Caucasian,
African-American)
Education (high school, 4-year degree,
Masters, Ph.D.)
Occupation (Teacher, Engineer, Nurse)
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http://www.mpaa.org/Resources/3037b7a458a2-4109-8012-58fca3abdf1b.pdf
http://www.experian.com/blogs/marketingforward/2010/02/20/2010-americanmovie-goer-consumer-report/
 Segmenting
the
market based on
values, attitudes and
lifestyles.
 Example: People
interested in
professional football.
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Segmenting a market based on where a person
lives. Geographic segmentation can refer to local,
regional, national or global markets.
Example: A small local store will segment to the
surrounding area like a town, while big companies
like Nike market Internationally.
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Behavioral segmentation divides markets
into groups based on what they are looking
for in a product and why they buy the
product.
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Behavior towards a product
Benefits sought by the customer
Usage Rate – how often do they purchase?
Brand Loyalty – they expect something
User status – potential, first-time or regular
Readiness to buy – urgency
Occasions like holidays, birthdays & events
that stimulate purchases
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Demographics
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Psychographics
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Geographics
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Behavioral
 dealing
with things sensibly
and realistically in a way that
is based on practical rather
than theoretical
considerations.
 "a pragmatic approach to
politics"