Market segmentation
The process of dividing a large, heterogeneous market into more homogeneous groups of people who have similar wants, needs, or demographic profiles, to whom a product may be targeted
state of being, state of mind, product benefits, product usage
four bases of segmentation
state of being
Geography, age, income, education, gender, sexual orientation, race and ethnicity
state of mind
assumes that consumers may be divided by personality traits; by lifestyle characteristics such as attitudes, interests, and opinions; and by preferences and perceptions. Innovators, thinkers, achievers, experiencers, believers, strivers, makers, survivors
Product Benefits
Socialization, excitement, high performance, entertainment, affordability, affirmation, recognition
product usage
how much is used
Specialize, focuses on those most likely to buy, meets wants and needs without exhausting resources, provides product, price, promotion, place, and PR in the right way.
What are the benefits of segmenting a market?
identifiability
Can the marketer identify a segment?
Accessibility
Can the marketer access the segment?
Responsiveness
will the segment be responsive to marketing efforts in terms of wants and needs, and is it worth targeting the segment?
80-20 rule
80 percent of business comes from 20 percent of the customers.
indentifiability, accessibility, responsiveness
What are the three most critical components that a marketer needs to examine to segment a market effectively?
product extensions
Memories, novelties & fantasies, fan/player photo opportunities, rules and technique seminars, video and computer displays, THINGS THAT ENHANCE THE EXPERIENCE- coaches, tickets, luxury boxes, programs, music, mascot
Fans
Why is sport unique
What does product development include
Generation of ideas, screening and implementation of ideas (refinement of the product concept, market and business analysis, development of the actual product, market testing, and commercialization)
Sport marketers must be careful how they promote fan behavior as part as the event experience, because unruly fans can poison the atmosphere and incite violence
Major challenges for sport marketers?
product positioning
refers to how marketers attempt to create or change the perception of the product in the consumers' minds.
Game form, players, fan behavior, apparel, venue
What are the components of the core event experience or game presentation?
constant reinvention and reconfiguration
What makes one product distinctive from another and attractive in the consumers' minds?-
Differentiation, product development, product position, brands and branding
what is sport product strategy?
brand equity
Name recognition or awareness, strong mental or emotional associations, perceived brand quality, strong customer loyalty
introduction, growth, maturity, decline
What are the stages of product life cycle?