SEM PI – Describe target marketing in sport/event marketing

Marketing Terms Market – the group of all potential customers who share common wants and needs – Ex: People that play video games Consumers in a Market: – Have the desire to make a purchase – Have the willingness to purchase a product – Have the financial means to make a purchase

Marketing Terms Target market – group of very specific customers that a company desires to have as consumers – Have specific characteristics – Ex: BOYS that play video games Target Marketing – Businesses identify and select customers with similar wants and needs – Make products, goods, and services for these customers – Aim all advertising and marketing efforts at these customers

Marketing Terms Mass marketing – single marketing plan to reach all consumers (Everybody!) – Anyone can use or benefit from these products – Appeal to many types of customers using one marketing plan – No specific customers are targeted – Ex: bottled water, foods, soda, phones

Advantages/Disadvantages of Mass Marketing Advantages Communicate a broad message to a large audience Produce one product for everyone Less promotional cost Less work Disadvantages Single message may not reach enough customers Product may not appeal to everyone Lost sales opportunities

Marketing Terms Market segmentation – dividing the entire market into smaller groups that share common characteristics – What?... Creates a target market – Why?... Not all consumers are alike Different wants, needs, and reasons for buying – Businesses focus products and marketing to a specific group

Marketing Terms Marketing segments – groups of unique individuals that share common characteristics People Who Play Video Games Yellow: All video games Blue: Sports Games Red: Role Playing Games Green: Military Games

Advantages/Disadvantages of using Market Segments Advantages Distinctive/Identifiable Accessible/Actionable – Easy to get to Measurable/Definable Substantial – Large enough to make a difference Stable – Will be around long enough for marketing to work Disadvantages Wrong market Can’t reach them No real data Bad forecasts or information Fads

Niche Marketing Niche Marketing is marketing directed towards a small underserved group – “the forgotten” – Can have great results Examples: Fisker Karma Hybrid Supercar Lefties Only The Specialty Shop for Left-Handed Golfers and baseball players.

The importance of target markets Provides them with a group of potential or existing customers in which to communicate – Match the good or service with customer needs – Who is buying? – What do they buy? – Why do they buy? Importance: – the more you know the better your product can satisfy those specific needs

The importance of target markets Develop a specific marketing mix – Differences in customer wants and needs – Increased sales and profits from each targeted market – Make sure the customers you are targeting have the willingness (want) and ability (disposable income) to purchase

Demographic Market Segmentation Age Generation – Baby-boomers (‘46 – ’64) – X (‘65 – ’76) – Y (‘77 – ’93) – Z (‘94 – ’04) techies Gender Family size Family life cycle Income – Disposable & Discretionary Occupation Education Ethnicity Nationality Religion Social Class

Geographic Market Segmentation Region: by continent, country, state, city, neighborhood or street Size of metropolitan area: segmented according to size of population Population density: often classified as urban, suburban or rural Climate: according to weather patterns common to certain geographic regions

Psychographic Market Segmentation Activities Interests Opinions Attitudes Values Lifestyles What a person likes to do

Behavioral Market Segmentation 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