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 the willingness to purchase a product– Have the financial means to make a purchase

Marketing Terms

• Target market – group of very 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

Marketing Terms

• Mass marketing – single marketing plan to reach all consumers (Everybody!)– Anyone can use or benefit from these products– Appeal to many types of customers using one

marketing plan– No specific customers are targeted– Ex: bottled water, foods, soda, phones

Advantages/Disadvantages of Mass Marketing

• Advantages • Communicate a broad

message to a large audience• Produce one product for

everyone• Less promotional cost• Less work

• Disadvantages • Single message may not

reach enough customers• Product may not appeal

to everyone• Lost sales opportunities

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

– Businesses 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

Advantages/Disadvantages of using Market Segments

• Advantages• Distinctive/Identifiable• Accessible/Actionable

– Easy to get to• Measurable/Definable• Substantial

– Large enough to make a difference

• Stable – Will be around long enough

for marketing to work

• Disadvantages• Wrong market• Can’t reach them• No real data• Bad forecasts or

information• Fads

Niche Marketing• Niche Marketing is marketing directed

towards a small underserved group– “the forgotten”– Can have great results

• Examples: Fisker Karma Hybrid Supercar

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

The importance of target markets • Provides them with a group of potential or existing

customers in which to communicate–Match the good or service with customer needs–Who is buying?–What do they buy? –Why do they buy?

• Importance:– the more you know the better your product can satisfy those

specific needs

The importance of target markets

• Develop a specific marketing mix –Differences in customer wants and needs– Increased sales and profits from each

targeted market –Make sure the customers you are targeting

have the willingness (want) and ability (disposable income) to purchase

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

Geographic Market Segmentation

• Region: by continent, country, state, city, neighborhood or street

• Size of metropolitan area: segmented according to size of population

• Population density: often classified as urban, suburban or rural

• Climate: according to weather patterns common to certain geographic regions

Psychographic Market Segmentation

• Activities • Interests• Opinions• Attitudes• Values• Lifestyles• What a person likes to do

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