SEM1 3.01

• PI – Describe target marketing in sport/event marketing

Marketing Terms

• Market – the group of all potential customers who share common wants and needs – Ex: People that play video games

• Consumers in a Market:– Have the desire to make a purchase– Have a willingness to purchase a product– Have the financial means to make a purchase

Marketing Terms• Mass Marketing – single marketing plan to

reach all consumers (Everybody!)

– Ex: bottled water, foods, soda, phones

Mass Marketing

• Advantages • One message to a large

audience• One product for everyone• Less promotional cost• Less work

• Disadvantages • Single message may not

reach enough customers• Product may not appeal

to everyone

Marketing Terms

• Target Market – group of specific customers that a company desires to have as consumers– Have specific characteristics– Ex: BOYS that play video games

• Target Marketing – Businesses identify and select customers with similar wants and needs– Make products, goods, and services for these customers– Aim all advertising and marketing efforts at these

customers

Importance of target marketing • Potential Customers:– Who is buying?– What do they buy? – Why do they buy?

• Match the good or service with customer needs– Satisfy wants and needs

• Sports Marketing:– Targets those with disposable income

Target Marketing?

Target Marketing?

Marketing Terms

• Market Segmentation – dividing the entire market into smaller groups that share common characteristics

– What? . . . Creates a target market– Why? . . . Not all consumers are alike• Different wants, needs, and reasons for buying

– Focus products and marketing to a specific group

Marketing Terms

• Marketing Segments – groups of unique individuals that share common characteristics

People Who Play Video Games

Yellow: All video gamesBlue: Sports GamesRed: Role Playing GamesGreen: Military Games

Types of Market Segmentation

• Demographic– Based on consumer statistics and characteristics

• Geographic– Based on where the consumers live and work

• Psychographic– Based on what consumers do and like

• Behavioral– Based on why consumers buy a product

Demographic Market Segmentation

• Age• Generation– Baby-boomers (‘46 – ’64)– X (‘65 – ’76)– Y (‘77 – ’93)– Z (‘94 – ’04) techies

• Gender• Family size• Family life cycle

• Income– Disposable &

Discretionary • Occupation• Education• Ethnicity• Nationality• Religion• Social Class

Demographic Examples

Geographic Market Segmentation

• Location

• Size of Population

• Climate and Weather

Geographic Examples

Psychographic Market Segmentation

• Activities • Interests• Lifestyle• What a person likes to

do.

• Ex: Buying golf clubs because you enjoy playing golf

Psychographic Examples

Behavioral Market SegmentationBased on consumer behavior towards a product

• Benefits sought http://www.youtube.com/watch?v=trUrPbSKEZE

– What will the product do for me?• Usage Rate

– How often do they purchase?• Brand Loyalty• User status

– Potential, first-time, or regular buyer• Readiness to buy http://www.youtube.com/watch?v=3Wwo7PjI9aU

– Have to have it now!• Special Occasions http://www.youtube.com/watch?v=vRlerzla1CY

– Holidays, birthdays & other events that stimulate purchases

Behavioral Examples

Niche Marketing• Marketing directed towards a small

(underserved) group– Can have great results

• Examples:

Fisker Karma Hybrid Supercar

Lefties OnlyThe Specialty Shop for Left-Handed Golfers and baseball players.

http://www.youtube.com/watch?v=6RvyFFjP7RE