1.03 - Market Segmentation

1. 1.03 - Market Segmentation

2. Objective AExplain target marketingObjective BExplain the ways to segment a market.

3. 1.03EssentialQuestions • What is target marketing and what has caused sports businesses to increase this marketing tactic? • In what ways do sport marketers segment a market? • How does a consumer’s socioeconomic status play a significant role in how sport marketers implement marketing tactics?

4. Objective A Explain target marketing

5. What is a Market? • A MARKET is a customer or potential customer who has an unfulfilled desire and is FINANCIALLY ABLE AND WILLING to satisfy that desire. • Businesses strive to meet the needs and wants of their customers.

6. MASS MARKETING • When sellers offer one-size-fits-all products that will appeal to the entire market.

7. Target Market • A GROUP OF CUSTOMERS THE BUSINESS SEEKS TO ATTRACT. • The same person can be included in more than one Target Market

8. NFL Targeting Women Women make up 44 percent of NFL’s Fan base.

9. Market Segmentation • Divide markets into CATEGORIES or specific groups with common interests

10. Market Segmentation • Marketers tailor their product, price, place, and promotion activities to the segments with which they wish to work.

11. Segmenting is on the Increase Customers are not influenced by mass marketing because they are…DISCERNING - (Able to understand something that is complex.) with product purchases.

12. Objective B Explain the ways to segment a market.

13. Market Segmentation • Marketers divide their markets by grouping customers according to their similarities—not their differences. • Customers may be similar in their occupations or hobbies.

14. SOCIOECONOMIC STATUS • Economic and sociological measure of a person’s income, education, and occupation. • education, and jobs, marketers can determine what different customers are likely to buy. • 1) Better educated individuals, for instance, are more likely to demand higher quality products. • 2) High-income customers have more money to spend on such products as expensive jewelry, vacation packages, and cars.

15. LIFE STAGE • Age (Teen, young adult, senior) • Generation (Gen. X or Gen. Y) • marital status (single, married, divorced) • family size (no kids, 1-2 kids) • marketers want to know where customers fit in the day-to-day buying routine.

16. LIFE STAGE • 1) Are customers buying baby shoes, walkers, or running equipment? • 2) Do they need retirement-planning assistance, car-pooling opportunities, or diaper-cleaning services? • When marketers categorize customers by where they are in life, they can quickly find out their needs and what to do to meet them.

17. GENERATIONS

18. Baby Boomer • baby boomer is a person who was born during Post–World War II baby boom between 1946 and 1964. About 74 Million people. • The financial security of this market offers continuing opportunities for marketers of travel and luxury products. • 80% of luxury travel and 48 % of all luxury car purchases are made by boomers

19. Generation X • Generation X encompasses the 44 to 50 million Americans born between 1965 and 1980. • Members of Generation X are largely in their 30’s and early 40’s. • More ethnically diverse and better educated than the Baby Boomers. • Over 60% of Generation X attended college.

20. Generation Y or Millennials • Is the demographic cohort following Generation X. There are no precise dates for when Generation Y starts and ends. From the early 1980s to the early 2000s. • With numbers estimated as high as 70 million, Generation Y (also known as the Millennials) is the fastest growing segment of today’s workforce.

21. Objective B Discuss ways that a market can be segmented.

22. Demographics • Segmenting the market based on personal characteristics such as: • Age (18- 25) • Gender (Females) • Income ($35,000 - $45,000) • Ethnic background (Hispanic, Caucasian, African-American) • Education (high school, 4-year degree, Masters, Ph.D.) • Occupation (Teacher, Engineer, Nurse)

23. Movie Attendees Demographics • http://www.mpaa.org/Resources/3037b7a4-58a2-4109-8012-58fca3abdf1b.pdf • http://www.experian.com/blogs/marketing-forward/2010/02/20/2010-american-movie-goer-consumer-report/

24. Psychographics • Segmenting the market based on values, attitudes and lifestyles. • Example: People interested in professional football.

25. Geographics • Segmenting a market based on where a person lives. Geographic segmentation can refer to local, regional, national or global markets. • Example: A small local store will segment to the surrounding area like a town, while big companies like Nike market Internationally.

26. Behavioral Segmentation • Behavioral segmentation divides markets into groups based on what they are looking for in a product and why they buy the product.

27. Behavioral Market Segmentation • Behavior towards a product • Benefits sought by the customer • Usage Rate – how often do they purchase? • Brand Loyalty – they expect something • User status – potential, first-time or regular • Readiness to buy – urgency • Occasions like holidays, birthdays & events that stimulate purchases

28. Create Your Target Person • Demographics • Psychographics • Geographics • Behavioral

29. prag·mat·ic • dealing with things sensibly and realistically in a way that is based on practical rather than theoretical considerations. • "a pragmatic approach to politics"