copyright © 2009 nelson education ltd. all rights reserved. segmentation, targeting, and...

Copyright © 2009 Nelson Education Ltd. All rights reserved.

Segmentation, Targeting, Segmentation, Targeting, and Positioning in Sportand Positioning in Sport

Chapter 5Chapter 5

2Copyright © 2009 Nelson Education Ltd. All rights reserved.

OBJECTIVESOBJECTIVES

• To learn the importance and advantages of identifying To learn the importance and advantages of identifying target markets.target markets.

• Understand the role of segmentation, Understand the role of segmentation, targeting, and targeting, and positioning (STP) in the marketing process.positioning (STP) in the marketing process.

• Understand (STP) and be able to apply each to any market Understand (STP) and be able to apply each to any market of interest.of interest.

• To be aware of the many potential bases of segmentation to To be aware of the many potential bases of segmentation to divide markets into groupings. divide markets into groupings.


STPSTP

S S - How can we break our market down into homogenous - How can we break our market down into homogenous reachable groups?reachable groups?

TT – Which of these groups should be commit our resources – Which of these groups should be commit our resources to reach?to reach?

PP – How to we want the selected target(s) to perceive our – How to we want the selected target(s) to perceive our offering versus the offerings of our competition?offering versus the offerings of our competition?


MARKET SEGMENTATION

Market Segmentation: Market Segmentation:

the delineation of a customer, fan, spectator, participant, or b2b the delineation of a customer, fan, spectator, participant, or b2b group/groups with needs and wants which the marketing function of the group/groups with needs and wants which the marketing function of the sport organization has successfully satisfied. sport organization has successfully satisfied.


SEGMENTATION

5 ASPECTS OF SEGMENTATION IN SPORT MARKETING:5 ASPECTS OF SEGMENTATION IN SPORT MARKETING:

1.1. Wide product applicationWide product application

2.2. Broad reachBroad reach

3.3. Efficient reachEfficient reach

4.4. TimingTiming

5.5. Segment boundariesSegment boundaries


SEGMENTATION

Criteria for effective segmentation:Criteria for effective segmentation:

1.1. ResponsivenessResponsiveness

2.2. MeasurabilityMeasurability

3.3. AccessibilityAccessibility

4.4. SubstantialitySubstantiality


SEGMENTATION

The Six Question Segmentation Process: The Six Question Segmentation Process:

Three StepsThree Steps

1.1. Identification of total marketIdentification of total market

2.2. Bases of segmentationBases of segmentation

a)a) SensitivitySensitivity

b)b) B2C & B2BB2C & B2B

3.3. Segment-by-segment analysisSegment-by-segment analysis


SEGMENTATION

Segment-by-Segment Analysis Segment-by-Segment Analysis

1.1. Who are they?Who are they?

2.2. What do they want/need?What do they want/need?

3.3. When do they want/need it?When do they want/need it?

4.4. Where do they get it?Where do they get it?

5.5. Why do they want/need it?Why do they want/need it?

6.6. How do they go about getting it?How do they go about getting it?


TARGETING

Offers three ways to target markets:Offers three ways to target markets:

1.1. Undifferentiated TargetingUndifferentiated Targeting

2.2. Differentiated TargetingDifferentiated Targeting

3.3. Concentrated TargetingConcentrated Targeting

The 80/20 rule:The 80/20 rule:

80 percent of revenues comes from 20 percent of customers.80 percent of revenues comes from 20 percent of customers.


TARGETING

Using Segmentation Grid for Targeting:Using Segmentation Grid for Targeting:

Step 1:Step 1:Assessing Size, Reach, Profitability, and Measurability.Assessing Size, Reach, Profitability, and Measurability.

Step 2: Step 2: Selecting Target MarketsSelecting Target Markets


POSITIONING

• Involves looking for that place in the minds of your target Involves looking for that place in the minds of your target markets where you can fit your product. markets where you can fit your product.

• Hole in market - A niche or a particular segment whose Hole in market - A niche or a particular segment whose needs and/or wants have not been adequately met.needs and/or wants have not been adequately met.


POSITIONING

Effective positioning is built on 3 stages:Effective positioning is built on 3 stages:

1.1. Asses a given market segment and determine where each Asses a given market segment and determine where each offering is currently positioned.offering is currently positioned.

2.2. Do background research to determine important dimensions that Do background research to determine important dimensions that lead to this positioning.lead to this positioning.

3.3. Select a position for the product to occupy the mind of the target Select a position for the product to occupy the mind of the target market segment.market segment.


POSITIONING

Perceptual Map:Perceptual Map:

The map helps display the location of the product in the minds of The map helps display the location of the product in the minds of

consumers in the target market of interestconsumers in the target market of interest. .

High Quality

Low Quality

High Price

Low Price


CANADIAN TARGETS

Common target marketing in Canadian sport:Common target marketing in Canadian sport:

• Aboriginal CanadiansAboriginal Canadians

• Canadian womenCanadian women

• Young CanadiansYoung Canadians

• Official language groupsOfficial language groups

• Paralympic athletesParalympic athletes

copyright © 2009 nelson education ltd. all rights reserved. segmentation, targeting, and...

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