PI – Describe target marketing in sport/event marketing SEM1 3.01 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 a 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!) Ex: bottled water, foods, soda, phones

Mass Marketing Disadvantages Advantages Single message may not reach enough customers Product may not appeal to everyone Advantages One message to a large audience One product for everyone Less promotional cost Less work

Marketing Terms Target Market – group of 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 Potential Customers: Who is buying? What do they buy? Why do they buy? Match the good or service with customer needs Satisfy wants and needs Sports Marketing: Targets those with disposable income

Target Marketing?

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

People Who Play Video Games 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 and work 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 Location Size of Population Climate and Weather

Geographic Examples

Psychographic Market Segmentation Activities Interests Lifestyle 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 http://www.youtube.com/watch?v=trUrPbSKEZE 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 http://www.youtube.com/watch?v=3Wwo7PjI9aU Have to have it now! Special Occasions http://www.youtube.com/watch?v=vRlerzla1CY 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. http://www.youtube.com/watch?v=6RvyFFjP7RE