1. Segmentation of the Sports Market
Chapter 6

2. Introduction and Review
“The Mass Market Is Dead”
“One-Size-Fits-All” Strategy is Obsolete
Reality: Mass Marketing Has Given Way to Differentiated Marketing in Essentially Every Industry, Especially for B2C Products

3. Differentiated Strategies
Marketing Mix Tailored to Each Selected
Target Market
Not Everyone:
Wants the same products
Shops at the same types of retail facilities
Can or will pay the same prices
Is motivated by the same promotions

4. Market Segmentation
Is as Relevant for Sports Products as it is for Nonsports Products such as Cars, Fast Food Restaurants, Beverages, and University Programs

5. Target Market Decisions in the Consumer Market
Market Segmentation – the Process of Subdividing the Heterogeneous Mass Market into Two or More Smaller, More Homogeneous Groups of Consumers
Target Market – A Market Segment that the Marketer Will Pursue via the Implementation of a Marketing Mix Tailored to that Group of Consumers
Often need to reiterate the point that not every identified market segment is designated as a target market – consider Curves Gym as an example.

6. Segmentation Criteria in the Consumer Market
Demographics
Geographics
Psychographics
Product-Related/Behavioral Variables

7. Demographics

8. Demographics
Note that the title of this magazine is Golf for Women. (This publication folded July 2012 after 20 years.) (

9. Geographics Urban Versus Suburban One Part of Country Versus Another
Basketball versus Soccer
One Part of Country Versus Another
Snowboarding versus Golf
One Country Versus Another
Cricket versus Baseball

10. Psychographics (Lifestyle)

11. Product-Related/Behavioral Variables
Level of Usage
Season ticket buyer versus infrequent buyer
Loyalty
Long-term versus new season ticket buyer
Benefits Sought
Social outing versus entertainment by athletes

12. Segmenting the Fan Market – An Aggregate Perspective of the Spectator Sports Market
This Perspective Is an Overview of Spectators in General – NOT Fans of a Particular Sport
Based of Motivation for Attending
11 Market Segments Have Been Identified
Vary in Importance When Considering Different Sports
This overview is not sport specific, but it can be applied that way. But, different segments will take the lead when looking at individual sports. For example, while the voyeur is of paramount importance (despite its small base in the aggregate market) for beach volleyball, the player segment may be most important for bowling or curling. At the same time, any sport is likely to appeal to multiple segments. Ryder Cup fans may be players, appreciators, avid fans, socialites, patriots or reluctant spectators (or any of the other five). BUT at this time, it is IMPERATIVE that you stress that this typology is based on motives for attending any sports event – thus it looks at the aggregate market.

13. Eleven (11) Identified Market Segments for the Aggregate Market
Socialites
Avid Fans
Situational Fans
Entertainment-Seeking Fans
Patriots
Friends
Reluctant Spectators
Appreciators
Novelty Fans
Players
Voyeurs
Left column first – from most common (Socialites) to least common (Voyeurs)

14. Socialites Status, Tradition, Peer Interaction, Socialization
Largest Segment of Sports Fans (Spectators)
Relevant for Many Spectator Sports
World Cup of Soccer, Super Bowl, - Social Interaction
Is Driver for Young Fans to Attend Minor Events
Not just about major global events; any opportunity to socialize may be seized by members of this segment, even kids.

15. Avid Fans Hard Core Fans
Love the game, team, event, one of the competitors
High Economic Value Due to Frequency of Attending

16. Situational Fans Uncontrollable Variable Exerts Influence Streak
Weather
Promotion
Free Tickets

17. Entertainment-Seeking Fans
Alternative Leisure Activity
Spectator Sport Is One Option
Entertainment beyond the Sport at the Venue

18. Patriots Municipal Pride – New York versus Boston
Regional Pride – North versus South (Big 10 v SEC)
National Pride – England versus France
Examples: Important Segment for International Competitions such as the Olympics, the World Baseball Classic, and the World Cup of Soccer
USA versus Russia in 2016 Summer Olympics was viewed with considerable interest by patriots from both countries. The same can be said for the patriots rooting for their teams in the 2015 World Cup of Rugby final featuring Australia and New Zealand (won by the New Zealand All Blacks).

19. Friends Watch Friend or Family Member Compete
May Have Limited Knowledge of Sport
Important for Minor Sports and Events
Examples: Fans of High School and Amateur
Recreational Sports

20. Reluctant Spectators Rather Be Elsewhere Not Really Fans per se
Matter of Circumstances
Date; Fund-raising event; Class Outing; Family

21. Appreciators Admiration of the Players’ Skills
Desire to Witness Excellence
Not as Concerned about Who Wins
Example: Fan who watches a Golf Tournament to
Witness those Who Play a Difficult Game Very Well

22. Novelty Fans Looking for Something Unusual – Out of the Ordinary
A New Experience
A New Venue
An Excuse to Travel

23. Players
Those Who Play a Sport Are the Most Likely Individuals to be Fans of that Sport
Example: Golfers Are Most Likely Group to Attend or Watch a Golf Tournament on TV

24. Voyeurs
Drawn by the Sexuality of the Sport - May be the Individual Athletes
Smallest of the 11 Segments
Skimpy Attire (Beach Volleyball)
Attractive Participant (Maria Sharapova)
Example: Fan of Olympic Swimming Team
Smallest overall (just over 1%), but may be hugely important segment for some sports such as beach volleyball.

25. Overview of the Aggregate Spectator Sports Fan Market
Looked at Spectators Regardless of the Sport that they Favor or Attend
11 Segments Identified
Other Smaller Niches Have Been Identified
Can Apply to Specific Sports such as NFL or Premier League
Our Attention Now Shifts to the Participation Market

26. Participation Market Focus on Players Rather than Spectators
Segmentation Still Important for Marketer
Same Four Categories of Segmentation Criteria Can be Applied
Demographics – Geographics
Psychographics – Product-related/Behavioral Variables
Young v old golfers (seniors; juniors); Hawaii v Colorado (surfing; snowboarding); risk takers v risk averters (base jumping; bowling); frequent v infrequent players (casual v avid golfer)

27. The Participation Market
Why Do They Play? (Why Do You Play?)
Personal Improvement
Appreciation of the Sport
Social Interaction

28. Segmentation of the Aggregate Participation Market
Looks at Participants in General
Does NOT Focus on any Individual Sport
Motivation-Based Typology – So Focus Is on Why They Play
Nine (9) Market Segments Identified
Similar to typology created for aggregate fan market – it is based on why they participate in sports, not why they participate in a particular sport such as running.

29. Nine (9) Market Segments for the Aggregate Participation Market
Leisure & Enjoyment Seekers
Fitness-Driven Individuals
Excitement-Seeking Competitors
Health-Conscious Sociables
Stress & Mental Relief Seekers
Convenience-Oriented Participants
Occupational Goal Achievers
Novelty Participants
Unstressed & Unmotivated Individuals
First column down – from most prevalent to least.

30. Leisure & Enjoyment Seekers
They Just Want to Have Fun
Largest of the Nine Segments
Nature & Family are Key Drivers Motivating Participation

31. Fitness Driven Focus Is on Personal Improvement
Activities Requiring Strength and Stamina
Running, Aerobics, Zumba, Pilates, P90x, Martial Arts
Want to Look Good as Well as Feel Good

32. Excitement-Seeking Competitors
Prone to Engage in Risky Activities
Bungy Jumping, Base Jumping, Extreme Sports
Motivated by Competition with Others
Personal Challenge

33. Health-Conscious Sociables
Activities that Foster Good Health
Walking, Light Cardiovascular Exercise
Personal Improvement Is Significant Motivation
Social Aspects also Important
Older Women Tend to Populate this Segment
Rigor of the activity separates members of this segment from those in the fitness driven segment.

34. Stress and Mental Relief Seekers
More Gentile Activities
Alone or as Part of a Group
Outdoor Activities Important
Reduce Stress in Daily Lives
Break the Monotony

35. Convenience-Oriented Participants
Often Spontaneous Decision to Participate
May be Based on Convenience of the Venue
Routine; Reluctant to Change that Routine
Perhaps Solitary

36. Occupational Goal Achievers
Those Who Earn Living Playing Sport
Professional Athletes
Non-professionals Who Earn Money in Competitions
Organized – Bowling Tournament
Unorganized – Pool Player Challenging Another With a Wager
Those Who Use Sport to Entertain Prospects
Salesperson taking customer to Play Golf

37. Novelty Participants Something Out of the Ordinary New Experience
Kick golf is a great example – kicking a soccer ball into a (larger) hole on a golf course.

38. Unstressed and Unmotivated
Prone to be Inactive
Generally Older (Both Sexes)
Few Activities Appeal to this Segment
Little Marketers Can do to Induce Activity by Members of this Segment

39. Overview of Aggregate Participant Market
Previous Discussion Focused on Motivations
Nine (9) Market Segments Identified
Other Criteria such as Demographics Can Be Effective
Segmentation Important for Specific Sports
Golf, running, bowling, free weights, football, etc.

40. Sport-Specific Segmentation
Applicable for Any Participation Activity
Golf, Bowling, Poker, Skiing, Tennis, Hunting
More Insight than with Segmentation of the Aggregate Participation Market
Used to Identify Homogeneous Segments of Participants in a Specific Activity

41. Segmenting a Participation Market – the Golfer Market
Different Levels of Playing Ability
Different Motives for Playing
Different Attitudes toward Practice
Differing Frequency of Play
This is part of an actual study by the textbook author that appeared in Sport Marketing Quarterly.

42. Five Segments of Golfers
Competitors
Players
Sociables
Aspirers
Casuals
Recognizing Different Segments Allows Golf Marketers to
Better Satisfy Their Various Groups of Customers

43. Closing Capsule “One-Size-Fits-All” Clothing Results in Many Consumers
Wearing Ill-Fitting Clothes
Developing One Marketing Mix For All Consumers Is Just as Ineffective
Market Segmentation and the Resultant Differentiated
Marketing Strategy Provide a Better Fit for Each Consumer

44. Closing Capsule Market Is Segmented Using Relevant Criteria
Target Markets Are Selected from the Array
of Identifiable Market Segments
A Corresponding Marketing Mix is Developed for Each
Selected Target Market

45. Closing Capsule Segmentation Is Appropriate for:
The Aggregate Fan Market
The Fans of a Particular Spectator Sport
The Aggregate Participation Market
Participants of a Particular Activity
Buyers of Sporting Goods, Apparel & Shoes
Buyers of Sports-related products such as souvenirs, lessons, & sports magazines