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Marketing An Introduction

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FYI Exam Tuesday library 213C Project Single vs. double Due Monday night via e-mail

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What is marketing?

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Marketing Defined

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Why marketing in recreation? Which sector relies on marketing the most? Least? How were programs marketed in internships? Marketing is a function of all staff & not just marketing staff

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How would you describe these products in promo materials?? 1. Youth volleyball league 2. ISU Homecoming events 3. New Marriot Hotel in Uptown Normal 4. Golds Gym Membership 5. Las Vegas 6. Season tickets to Prairie Thunder Hockey

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Outcomes (Benefits) Focus

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InputsProgramsOutputsOutcomes Resources dedicated to the programs and services Financial Human Technological Physical Programs, products & services offered Seniors in organized golf activity Creative art experience for parent & child City beautification Volume of work produced or the number of people served Number of senior golf leagues, # of sr. golfers served # of Parent/child art classes offered; # of art projects done together # of flowers planted Benefits received from participation in the program or service or from buying the product Social interaction with other seniors; improved BMI or health New appreciation for each others interests; exposure to different mediums; increased art appreciation Decreased vandalism in landscaped areas; increased property values Performance Outcome Model

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Outcomes Focus How do people see us?...value parks & recreation as a profession or major?

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Think of your favorite recreation activitynot sleep & pass the grandma test! Why do you like it? What characteristics of it would convince me to participate?

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Types of Outcomes Personal/Individual Wellness Relaxation Social Reduce loneliness Strong families Make friends Economic Preventative health Reduce cost of vandalism Environmental Conservation Environmental rehabilitation Your program???

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Markets & Segmentation What is a market?

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Markets Set of actual and potential buyers Potential markets for????? Textbooks Sporting event tickets Hiking boots Nursing homes Jaguars Is everyone a potential market???

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A few terms

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Mass Marketing Seller mass produces, mass distributes & mass promotes one product to all buyers Examples??? Weaknesses of mass marketing for non- mass products

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Market Segmentation Divides a heterogeneous group into smaller homogenous segments Groups have similar wants & responses Basic to all marketing efforts

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Target Marketing Seller identifies market segments, selects 1 & develops products and marketing mixes for them Marketing Mix product, price, place, promotion (4 Ps) Better than mass marketing. Why? Segmentation criteria (see text)

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FYI Exam 1 ?s Review marketing assignment Sect 4 due 11/8 Third person Headers

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How would you segment a market? Bases of Segmentation

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4 Bases of Segmentation 1. Demographics 2. Psychographics 3. Product usage 4. Product benefits

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Demographics Geography Proximity Closeness associated with involvement Closer to the activity, the higher the participation Ie. Campus recreation, Thai club

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Tennis Academy of Asia

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Demographics Geography Geoclusters Certain areas (ie. zip codes) more prone to respond Areas with a lot of members Pockets of participants See IL map.

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Are there certain geoclusters that are more likely to respond to US Cellular Coliseum? Examples of the size of the circle changing? -Athletics: IWU, ISU, U of I -Amusement park -Local park

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Geoclusters : IU athletics

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Geographic Descriptors for Consumer Markets VariableTypical breakdown Geographic RegionPacific, Mountain, West North Central, South Central, East North Central, South Atlantic, Middle Atlantic, New England City or metro sizeUnder 5,000; 5,000-20,000; 20,000-50,000; 50,000-100,000; 100,000-250,000; 250,000-500,000; 500,000-1,000,000; 1,000,000-4,000,000; 4,000,000 or over DensityUrban, suburban, rural

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Demographics Income Determines lifestyle Influences advertising market for certain products Golf vs. football Where would you advertise these products? Ralph Lauren REI

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Demographics Age One of the most effective variables Consumer needs very predictable at dif ages Age & stage of lifecycle similar Income, education, family lifecycle Different cohorts have different needs & interests How would you describe the Senior Market? Are they a viable market for sport & recreation? Why, why not?

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Demographics Age Mature Market 55+ Stereotyped as inactive & thrifty untrue! Living longer & more active 28% are over 50+. Per capita income is 26% higher than national average Spends 1+ trillion per year on goods & services Buy 41% of new cars; 25% of all toys 80% of the luxury travel markettheir top leisure activity Senior golf tour, discounts

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National Parks Senior Annual Pass - $80/year; $10 for people 65+ or people with disabilitiesfor the life of the individual. Bloomington, IN Twin Lakes Recreation Center

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Demographics Age Youth Market How would you describe the Youth Market? Are they a viable market for sport & recreation? Why, why not?

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Demographics Age Youth Market Influence purchase of $239 billion per year Tweens - Candy, toys & games Teens clothing & apparel Influence 20% of all purchases in US Choose teams, activities & brands earlier Users of the futurePepsi & Coke

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Demographics Age Example youth as a NASCAR target Hook them young & white collar Remove tobacco & move to mainstream sponsors Add kid friendly items

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Carmel Clay Parks & Recreation Dept.

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Demographics Gender Differences between genders in terms of consumption??? Changes in last 10-20 years in genders What is the female influence on the sport & rec market?

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Demographics Gender Gender impact on products Bike frames & seats Smaller golf clubs, tennis racquets, basketballs Ponytail helmets Hiking apparel designed for both genders Business hotels decorations more female friendly appealing to men as well Fitness classes targeting men Separate classes for the non-stereotypical activity Ceramics for men, woodworking for women

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Demographics Gender Female buying powershe-conomy $2 trillion women control $1 trillion - women earn Sign 80% of all checks 94% of home furnishing decisions Initiate 80% of home improvement projects Purchase 85% of all consumer products

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barbara k! crystal-jeweled toolkit Adorned with more than 6000 Swarovski crystals valued at $5000! This set was given as a gift to Oscar nominees for Best Actress and Best Supporting Actress. PRICE $2495.00 barbara k! red toolkit A break from the classic blue, this limited edition set is a real eye-catcher. Makes a great gift for the Holidays, Valentine's Day or anytime! PRICE $79.99

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Demographics Race A group of people who share a genetic make-up which results in biological characteristics that can be used to distinguish 1 group from another Ethnicity Commonalities passed down through history & tradition Historical link, shared religious beliefs, linguistic commonalities, common morals Shared culture

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Demographics Race & Ethnicity Cant divide based on race/ethnicity alone Dont stereotype consumption do research Examples of advertising to different ethnic/racial groups?....

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300 magazines & newspapers in U.S.

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Group09 Buying power % gain since 2000 % of population Market Share White9.12 trillion46.4%72.8%85% African American 910 billion54.3%12.7%8.5% Hispanic978 billion100%16%9.0% Asian508 billion89.3%4.6%4.7% Buying power: total post-tax, personal income of residents that is available to spend on goods and services Growth in African American buying power due to entrepreneurship

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Demographics Sexual Orientation LGBT markets are untapped goldmines Higher income & education Median household income $70,000, 30% over $100,000 $43,318 for heterosexual households 37% have a college degree, 20% have a graduate degree Vs. 28% & 9.4% 91% buy products supporting gay causes

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Demographics Sexual Orientation More discretionary time & money$500 billion WNBA Marketing Director fired for disregarding lesbian target market Travel & tourism capitalizing on this market Key West, Philadelphia, Toronto Cruises Resorts Disney Gay Days

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GroupBuying power % gain since 1990 % of population Market Share White9.12 trillion46.4%72.8%85% African American 910 billion54.3%12.7%8.5% Hispanic978 billion100%16%9.0% Asian508 billion89.3%4.6%4.7% LGBT835 billion-7%-

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LGBT Geoclusters Palm Springs, CA92264 Provincetown, MA02657 Palm Springs, CA92262 Fort Lauderdale, FL33305 West Hollywood, CA90069 San Francisco, CA94131 Dallas, TX75219 Rehoboth, DE19971 Detroit, MI48069 Honorable mention 60657Chicago, IL (Wrigley, Lincoln Park) 60640Chicago, IL (Randolph & Wacker Dr.)

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Demographic Descriptors for Consumer Markets AgeUnder 6; 6-11; 12-19; 20-34; 35-49; 50-64; 65+ Family size1-2; 3-4; 5+ Family lifecycleYoung & single; young, married, no children; young, married, youngest child under 6; young, married, youngest child 6 or over; older married, with children; older married, no children under 18; older single; other IncomeUnder $10,000; $10,000-$15,000; $15,000-$20,000; $20,000- $30,000; $30,000-$50,000; $50,000-$100,000; $100,000+ OccupationProfessional & technical; managers, officials, & proprietors; clerical, sales; craftspeople, foremen; operatives; farmers; retired; students; housewives/husbands; unemployed EducationGrade school or less; some high school; high school graduate; some college; college graduate; post graduate work; post graduate degree RaceAfrican American; American Indian; Asian; Caucasian; Hispanic; other NationalityAmerican; British; French Canadian; German; Italian; Japanese; Australian; Latino Social classLower lowers; upper lowers; working class; middle class; upper middles; lower uppers; upper uppers

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Demographics Psychographics Product Usage Product Benefits

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Psychographics Lifestyle characteristics Values, attitudes, interests, opinions, beliefs

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Lifestyle characteristics ActivitiesInterestsOpinions WorkFamilySocial issues HobbiesHomePolitics Social eventsJobBusiness VacationCommunityEconomics EntertainmentRecreationEducation Club membershipFashionProducts Shopping preferencesFoodFuture SportsMediaCulture How would we use these??

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Psychographics How do we use these? Meijers coupons Shows at Braden Club membership campus, fitness Political affiliation Donations Activities biking, running Professional associations

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Demographics Psychographics Product Usage Product Benefits

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Product Use Use rates - frequency Non-user, first time user, potential user, regular user Hilton Honors program, frequent flyer Maintain opportunities for high, medium, low consumption Cant focus just on members or season ticket holders Have opportunities for occasional users Reserved court time vs. drop-in; single season tickets Low level users may increase use

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Product Use Level of ability Softball classes Basketball full court, half court, fast break/non fast break Runners 5K, 10K, half, full marathon, triathlon Level of specialization Beginner vs. advanced

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Demographics Psychographics Product Usage Product Benefits

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Product Benefits Segmentation Divide by desired benefits What do the following want from a tennis shoe? Marathon runner Avid walker Aerobics

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TARGET MARKET STRATEGIES

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Target Market Strategies Undifferentiated Differentiated Concentrated

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Undifferentiated Market Ignores market segment differences Focuses on what is common w/i the mkt rather than differences Public agencies Segment 1 1 overall marketing plan Segment 2 Segment 3 Segment 4

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Differentiated Market Target several segments with separate mixes Hilton Hotels Doubletree Hampton Inn Conrad Hotels & Resorts Hilton Garden Inn Segment 1 Segment 2 Segment 3 Segment 4 4 specific marketing plans 1 per segment

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Concentrated Market Go after large share of 1-2 markets Used by smaller co. w/ limited resources Put large portion of resources into few markets High risk - segment can change 1 specific marketing plan Segment 1 Segment 2 Segment 3 Segment 4

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Selecting Target Segments Undifferentiated Segment 1 DifferentiatedConcentrated 1 overall marketing plan Segment 2 Segment 3 Segment 4 Segment 1 Segment 2 Segment 3 Segment 4 4 specific marketing plans 1 per segment 1 specific marketing plan Segment 1 Segment 2 Segment 3 Segment 4

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Questions

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Misc slides

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You identify 1 market segment you want to target & develop a marketing plan for it you are using what segmentation approach? 1. Differentiated 2. Undifferentiated 3. Concentrated 4. Commercial

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In order to determine you have a viable market segment you would measure it based on what? 1. Accessibility 2. Sustainability 3. Responsiveness 4. All of the above

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____ are groups of people who are likely to be similar in terms of demographics. They are often identified by zip codes. 1. Critical trade area 2. Psychographics 3. Geoclusters 4. Community

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Your project Sect 4 due 11/11 To date Sect 4 A, B, & D Sect C lifecycle Tips 3 rd person Single space Heads

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Service vs. Product Intangibility Inseparability Cant be separated from creator or provider Produced & consumed at the same time Consumed at production site

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Service vs. Product Heterogeneity/ Inconsistency Cant standardize a service Weather, instructor, location, time of day Cant undergo quality inspection prior to delivery

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Service vs. Product Perishability Services highly perishable Cant be inventoried or stored Campsite not used is a lost experience forever Fluctuating demand Ski resorts, outdoor pools, golf Synchromarketing Trying to smooth irregular demand fluctuations

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Market Segmentation Criteria 1. Sustainable 2. Identifiable 3. Accessibility 4. Responsive 5. Perceived Need

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Market Segmentation Criteria 1. Sustainable Too few not worthwhile Too many like mass marketing Purchasing power Is it worth considering given limited resources University majors CAST, KNR, RPA, TR Cricket fields

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Market Segmentation Criteria 2. Identifiable Can you measure the size of the market? Can you distinguish them from the general population? Basic demographicsmeasurable

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Market Segmentation Criteria 3. Accessible / Reachable Can they be found Obese children HS Drop outs Isolated seniors Can they be communicated with? Above groups Children / adults who dont speak English

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Market Segmentation Criteria 4. Responsive Ability of the programs to meet needs of the segment Responsiveness of the segment to marketing initiatives Use segmentation approach that gets us to a responsive segment 5. Perceived Need May be excluded based on other criteria Need exists for services Low income, obese children, youth at risk

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When the seller mass produces, mass distributes & mass promotes one product to all buyers this is called 1. Target marketing 2. Market segmentation 3. Mass marketing 4. Marketing mix

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When you take a large community and break it into smaller homogenous sections you are doing what? 1. Mass marketing 2. Segmenting the market 3. Targeting the market 4. Manipulating the marketing mix