1. chapter 6 Market Segmentation

2. Objectives To appreciate the central role of segmentation in the marketing process To recognize the standard “bases” of market segmentation in sport

3. A Lesson From Curling The closer you are to the target, the more you will score.

4. Market Segmentation The process of dividing a large, hetero- geneous market into more homogeneous groups of people, who have similar wants, needs, or demographic profiles, to whom a product may be targeted. Hetero = Different Homo = Same You want to take a group that has many differences and divide it into how it is the same.

5. The Market Segment of Children

6. Repackaged for a New Segment

7. 4 Purposes of Segmenting Specialization – provides focus and direction for producer Focus on the “most likely to buy” – work smarter Meet wants and needs without exhausting resources – more efficiency, more profits Provide product, price, promotion, place, and public relations in the right way – can make marketing mix more effective to bottom line

8. The Segment of Collectors: Beanie Baby’s and Bobble Heads

9. Identifiability, Accessibility, Responsiveness Baseball and Bobble Heads Identifiability: Can marketer identify a segment? Beanie Baby's and Bobble heads Accessibility: Can marketer access the segment? A commercial, newspaper ad Responsiveness: Will the segment be responsive to marketing efforts in terms of wants and needs, and is it worth targeting the segment? 10,000 collectors will come to the game

10. Segment or Niche? After the movie Dodgeball came out the NADA website went from 2000 hits a month, to 4000 a day. Rubber ball sales went up. Formal and Informal tournaments skyrocketed. Segment or Niche?

11. 4 Four Bases of Segmentation 1.Consumers’ “state of being” demographics 2.Consumers “state of mind” psychographics (attitudes, opinions, desires, needs = point of connection) 3.Product benefits – You will be “better” in some way for buying/using/ experiencing 4.Product usage – Light users or heavy users of products

12. Consumer “State of Being” (Demographics) Where a person lives (Geography – proximity) Income (many sports are income related) Age ( Family status Number of children Profession Education (similar to income) Gender Sexual orientation Race and ethnicity

13. Consumers’ State of Mind Values and Lifestyle (VALS) Personality Traits Innovators Thinkers Achievers Experiencers Believers Strivers Makers Survivors Attitudes Interests and Opinions

14. Product Benefits Action/power History/Tradition Thrill/Release Teamwork/Competition Authenticity Unifying Force What does the customer want from the experience or product? The NFL has identified these benefits of their product:

15. Product Usage 80–20 rule: 80% of business comes from 20% of the customers. Repeat business is the key to success (e.g., season-ticket holder vs. single-game attendee). Serious runner seeks support, shock reduction, and long wear in shoes; casual wearer seeks light and fashionable shoes as regular footwear.

16. User Group Segmentation: Spectator Unaware: Nonuser Aware: Nonuser consumer Media consumer Light user Medium user Heavy user Defector – used to be a user, now is not

17. Use of Database in Segmenting The 2004-05 Miami Heat Added $11 of revenue for every dollar spent on marketing database Tracked fan state of being Tracked fan state of mind Tracked usage rates Tracked product benefits Manipulated marketing strategies to different segments (segmented promotions)