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 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

Mass Marketing Advantages Communicate one 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

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

Importance of target marketing Provides a group of potential or existing customers with which to communicate – Who is buying? – What do they buy? – Why do they buy? Match the good or service with customer needs – Easier to satisfy specific needs More effective to promote to those that can and will purchase the product

Target Marketing?

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 – 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

Types of Market Segmentation Demographic – Based on consumer statistics and characteristics Geographic – Based on where the consumers live Psychographic – Based on what consumers do and like Behavioral – Based on why consumers buy a product

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

Demographic Examples

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

Geographic Examples

Psychographic Market Segmentation Activities Interests Opinions Attitudes Values Lifestyles What a person likes to do. Ex: Buying golf clubs because you enjoy playing golf

Psychographic Examples

Behavioral Market Segmentation Based on consumer behavior towards a product Benefits sought – What will the product do for me? Usage Rate – How often do they purchase? Brand Loyalty User status – Potential, first-time, or regular buyer Readiness to buy – Have to have it now! Special Occasions – Holidays, birthdays & other events that stimulate purchases

Behavioral Examples

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