McGraw-Hill/Irwin Chapter 13 Segmentation of the Sports Market

Introduction and Review

• “The Mass Market Is Dead” • “One-Size-Fits-All” Strategy is Obsolete • Mass Marketing Has Given Way to Differentiated Marketing 13-2

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 13-3

Market Segmentation

• As Relevant for Sports Products as It Is for Nonsports Products such as Cars, Fast Food Restaurants, Beverages, and University Programs 13-4

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 13-5

Segmentation Criteria in the Consumer Market • Demographics • Geographics • Psychographics • Product-Related Variables 13-6

Demographics

• Drop in Table 13.1 Here 13-7

Demographics

• Drop in Figure 13.2 Here 13-8

Geographics

• Urban Versus Suburban – Basketball versus Soccer • One Part of Country Versus Another – Skiing versus Golf • One Country Versus Another – Cricket versus Baseball 13-9

Psychographics (Lifestyle)

• Drop in Table 13.2 Here 13-10

Product-Related 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 13-11

Sports Fans – Overall Market

• Criteria Used to Segment the Overall Market of Sports Fans – Involvement – Participation – Social Needs – Identification – Appreciation of Sport – Sex Appeal 13-12

Six Segments of Sports Fans

• Players • Patriots • Appreciators • Socialites • Friends • Voyeurs 13-13

Players

• Those Who Play a Sport Are the Most Likely to be a Fan of that Sport • Example: Golfers Are Most Likely Group to Attend or Watch a Golf Tournament on TV 13-14

Patriots

• National Pride – England versus France • Municipal Pride – New York versus Boston • Regional Pride – East versus West • Important Segment for International Competitions such as the Olympics, the World Baseball Classic, and the World Cup of Soccer 13-15

Appreciators

• Admiration of the Players’ Skills • Desire to Witness Excellence • Not as Concerned about Who Wins 13-16

Socialites

• 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 13-17

Friends

• Watch Friend or Family Member Compete • May Have Limited Knowledge of Sport • Important for Minor Sports and Events – High School Sports – Amateur Recreational Sports 13-18

Voyeurs

• Drawn by the Sex Appeal of the Sport or the Individual Athletes • Skimpy Attire (Beach Volleyball) • Attractive Participant (Maria Sharapova) 13-19

Overview of the Fan Market

• Drop in Table 13.3 Here 13-20

Participation Market

• Focus on Players Rather than Spectators • Segmentation Still Important for Marketer • Same Four Categories of Segmentation Criteria Can be Applied – Demographics – Psychographics – Geographics – Product-related Variables 13-21

Aggregate Participation Market

• Excitement-Seeking Competitors • Getaway Actives • Fitness Driven • Health-Conscious Sociables • Unstressed and Unmotivated 13-22

Excitement-Seeking Competitors • Prone to Engage in Risky Activities – Bungy Jumping, Extreme Sports • Predominantly Male • Relatively Young • Generally Single 13-23

Getaway Actives

• Fun with Family and Friends – Skiing, camping, hiking, golf • Vacation Prone • Social Motives • Both Sexes 13-24

Fitness Driven

• Activities Requiring Strength and Stamina – Running, Aerobics, Martial Arts • College Graduates Dominate this Group • Predominantly Female 13-25

Health-Conscious Sociables

• Activities that Foster Good Health – Walking, Light Cardiovascular Exercise • Older Participants • Predominantly Female 13-26

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 13-27

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 13-28

Segmenting the Golfer Market

• Different Levels of Playing Ability • Different Motives for Playing • Different Attitudes toward Practice • Differing Frequency of Play 13-29

Five Segments of Golfers

– Competitors – Players – Sociables – Aspirers – Casuals • Recognizing Different Segments Allows Golf Marketers to Better Satisfy Their Various Groups of Customers 13-30

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 13-31

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 13-32

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 13-33