1. 15-1 Chapter 15 Segmentation of the Sports Market McGraw-Hill/Irwin©2007 The McGraw-Hill Companies, All Rights Reserved

2. 15-2 Introduction and Review “The Mass Market Is Dead” “One-Size-Fits-All” Strategy is Obsolete Mass Marketing versus Differentiated Marketing

3. 15-3 Differentiated Strategies Marketing Mix Tailored to Each Selected Target Market Not Everyone: –Wants the same products –Shops at the same types of retail facilities –Will pay the same prices –Is motivated by the same promotions

4. 15-4 Market Segmentation As Relevant for Sports Products as It Is for Nonsports Products such as Cars, Fast Food, Restaurants, Beverages, and University Programs

5. 15-5 Target Market Decisions in the Consumer Market Market Segmentation – the Process of Subdividing the Heterogeneous Mass Market into Several Smaller, More Homogeneous Groups of Consumers Target Market – A Market Segment that the Marketer Will Pursue Via the Development of a Tailored Marketing Mix

6. 15-6 Segmentation Criteria in the Consumer Market Demographics Geographics Psychographics Product-Related Variables

7. 15-7Demographics

8. 15-8Demographics

9. 15-9Geographics Urban Versus Suburban –Basketball versus Soccer One Part of Country Versus Another –Skiing versus Golf One Country Versus Another –Cricket versus Baseball

10. 15-10 Psychographics (Lifestyle)

11. 15-11 Product-Related Variables Level of Use –Season ticket buyer versus infrequent buyer Loyalty –Long-term versus new season ticket buyer Benefits Sought –Social outing versus entertainment by athletes

12. 15-12 Sports Fans Criteria Used to Segment the Overall Market of Sports Fans –Involvement –Participation –Social Needs –Identification –Appreciation of Sport –Sex Appeal

13. 15-13 Six Segments of Sports Fans Players Patriots Appreciators Socialites Friends Voyeurs

14. 15-14Players Those Who Play a Sport Are More Likely to be a Fan of that Sport Example: Golfers Are Most Likely Group to Attend or Watch a Golf Tournament on TV

15. 15-15Patriots National Pride – England versus France Regional Pride – New York versus Boston Important Segment for International Competitions such as the Olympics, the World Baseball Challenge, and the World Cup of Soccer

16. 15-16Appreciators Admiration of the Players’ Skills Desire to Witness Excellence Not as Concerned about Who Wins

17. 15-17Socialite Segment Seeks Sports Event Where Interaction with Friends Is Facilitated Tailgating (Boot Parties) Members May Not be Very Knowledgeable of the Sport or Event They Are Attending

18. 15-18Friends Watch Friend or Family Member Compete May Have Limited Knowledge of Sport Important for Minor Sports and Events –High School Sports –Amateur Recreational Sports

19. 15-19Voyeurs Drawn by the Sex Appeal of the Sport or the Individual Athletes Skimpy Attire (Beach Volleyball) Attractive Participant (Anna Kournakova)

20. 15-20 Overview of the Fan Market

21. 15-21 Participation Market Players Rather than Spectators Segmentation Still Important for Marketer Same Four Categories of Segmentation Criteria Can be Applied –Demographics– Geographics –Psychographics– Product-Related Variables

22. 15-22 Aggregate Participation Market Excitement-Seeking Competitors Getaway Actives Fitness Driven Health-Conscious Sociables Unstressed and Unmotivated

23. 15-23 Excitement-Seeking Competitors Prone to Engage in Risky Activities –Bungy Jumping, Extreme Sports Predominantly Male Relatively Young Generally Single

24. 15-24 Getaway Actives Fun with Family and Friends –Skiing, camping, hiking, golf Vacation Prone Social Motives Both Sexes

25. 15-25 Fitness Driven Activities Requiring Strength and Stamina –Running, Aerobics, Martial Arts College Graduates Dominate this Group Predominantly Female

26. 15-26 Health-Conscious Sociables Activities that Foster Good Health –Walking, Light Cardiovascular Exercise Older Participants Predominantly Female

27. 15-27 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

28. 15-28 Sport-Specific Segmentation More Insight than with Segmentation of the Aggregate Participation Market Used to Identify Homogeneous Segments Applicable for Any Participation Activity –Golf, Bowling, Poker, Skiing, Tennis, Hunting

29. 15-29 Segmenting the Golfer Market Different Levels of Playing Ability Different Motives for Playing Different Attitudes toward Practice Differing Frequency of Play

30. 15-30 Five Segments of Golfers –Competitors –Players –Sociables –Aspirers –Casuals Recognizing Different Segments Allows Golf Marketers to Better Satisfy Their Various Groups of Customers

31. 15-31 Closing Capsule “One-Size-Fits-All” Clothing Results in Consumers Wearing Clothes that Don’t Fit 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

32. 15-32 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

33. 15-33 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