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Chapter 13Chapter 13

Segmentation of the Segmentation of the Sports MarketSports Market

Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.

McGraw-Hill/Irwin

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Introduction and ReviewIntroduction and Review

• “The Mass Market Is Dead”

• “One-Size-Fits-All” Strategy is Obsolete

• Mass Marketing Has Given Way to Differentiated Marketing

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Differentiated StrategiesDifferentiated Strategies

• Marketing Mix Tailored to Each Selected Target Market

• Not Everyone:– Wants the same products– Shops at the same types of retail facilities– Can or will pay the same prices– Is motivated by the same promotions

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Market SegmentationMarket Segmentation

• As Relevant for Sports Products as It Is for Nonsports Products such as Cars, Fast Food Restaurants, Beverages, and University Programs

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Target Market DecisionsTarget Market Decisionsin the Consumer Marketin the Consumer Market

• Market Segmentation – the Process of Subdividing the Heterogeneous Mass Market into Two or More Smaller, More Homogeneous Groups of Consumers

• Target Market – A Market Segment that the Marketer Will Pursue via the Implementation of a Marketing Mix Tailored to that Group of Consumers

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Segmentation Criteria Segmentation Criteria in the Consumer Marketin the Consumer Market

• Demographics

• Geographics

• Psychographics

• Product-Related Variables

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DemographicsDemographics

• Drop in Table 13.1 Here

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DemographicsDemographics

• Drop in Figure 13.2 Here

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GeographicsGeographics

• Urban Versus Suburban– Basketball versus Soccer

• One Part of Country Versus Another– Skiing versus Golf

• One Country Versus Another– Cricket versus Baseball

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Psychographics (Lifestyle) Psychographics (Lifestyle)

• Drop in Table 13.2 Here

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Product-Related VariablesProduct-Related Variables

• Level of Usage– Season ticket buyer versus infrequent buyer

• Loyalty– Long-term versus new season ticket buyer

• Benefits Sought– Social outing versus entertainment by athletes

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Sports Fans – Overall Market Sports Fans – Overall Market

• Criteria Used to Segment the Overall Market of Sports Fans

– Involvement– Participation– Social Needs– Identification– Appreciation of Sport– Sex Appeal

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Six Segments of Sports FansSix Segments of Sports Fans

• Players

• Patriots

• Appreciators

• Socialites

• Friends

• Voyeurs

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PlayersPlayers

• Those Who Play a Sport Are the Most Likely to be a Fan of that Sport

• Example: Golfers Are Most Likely Group to Attend or Watch a Golf Tournament on TV

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PatriotsPatriots

• National Pride – England versus France

• Municipal Pride – New York versus Boston

• Regional Pride – East versus West

• Important Segment for International Competitions such as the Olympics, the World Baseball Classic, and the World Cup of Soccer

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AppreciatorsAppreciators

• Admiration of the Players’ Skills

• Desire to Witness Excellence

• Not as Concerned about Who Wins

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SocialitesSocialites

• Segment Seeks Sports Event Where Interaction with Friends Is Facilitated

• Tailgating (Boot Parties)

• Members May Not be Very Knowledgeable of the Sport or Event They Are Attending

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FriendsFriends

• Watch Friend or Family Member Compete

• May Have Limited Knowledge of Sport

• Important for Minor Sports and Events– High School Sports– Amateur Recreational Sports

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VoyeursVoyeurs

• Drawn by the Sex Appeal of the Sport or the Individual Athletes

• Skimpy Attire (Beach Volleyball)

• Attractive Participant (Maria Sharapova)

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Overview of the Fan MarketOverview of the Fan Market

• Drop in Table 13.3 Here

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Participation MarketParticipation Market

• Focus on Players Rather than Spectators

• Segmentation Still Important for Marketer

• Same Four Categories of Segmentation Criteria Can be Applied– Demographics – Geographics– Psychographics – Product-related Variables

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Aggregate Participation MarketAggregate Participation Market

• Excitement-Seeking Competitors

• Getaway Actives

• Fitness Driven

• Health-Conscious Sociables

• Unstressed and Unmotivated

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Excitement-Seeking CompetitorsExcitement-Seeking Competitors

• Prone to Engage in Risky Activities– Bungy Jumping, Extreme Sports

• Predominantly Male

• Relatively Young

• Generally Single

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Getaway ActivesGetaway Actives

• Fun with Family and Friends– Skiing, camping, hiking, golf

• Vacation Prone

• Social Motives

• Both Sexes

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Fitness DrivenFitness Driven

• Activities Requiring Strength and Stamina– Running, Aerobics, Martial Arts

• College Graduates Dominate this Group

• Predominantly Female

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Health-Conscious SociablesHealth-Conscious Sociables

• Activities that Foster Good Health– Walking, Light Cardiovascular Exercise

• Older Participants

• Predominantly Female

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Unstressed and UnmotivatedUnstressed and Unmotivated

• Prone to be Inactive

• Generally Older (Both Sexes)

• Few Activities Appeal to this Segment

• Little Marketers Can do to Induce Activity by Members of this Segment

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Sport-Specific SegmentationSport-Specific Segmentation

• Applicable for Any Participation Activity– Golf, Bowling, Poker, Skiing, Tennis, Hunting

• More Insight than with Segmentation of the Aggregate Participation Market

• Used to Identify Homogeneous Segments of Participants in a Specific Activity

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Segmenting the Golfer MarketSegmenting the Golfer Market

• Different Levels of Playing Ability

• Different Motives for Playing

• Different Attitudes toward Practice

• Differing Frequency of Play

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Five Segments of GolfersFive Segments of Golfers

– Competitors– Players– Sociables– Aspirers– Casuals

• Recognizing Different Segments Allows Golf Marketers to Better Satisfy Their Various Groups of Customers

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Closing CapsuleClosing Capsule

• “One-Size-Fits-All” Clothing Results in Consumers Wearing Clothes that Don’t Fit

• Developing One Marketing Mix For All Consumers Is Just as Ineffective

• Market Segmentation and the Resultant Differentiated Marketing Strategy Provide a Better Fit for Each Consumer

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Closing CapsuleClosing Capsule

• Market Is Segmented Using Relevant Criteria

• Target Markets Are Selected from the Array of Identifiable Market Segments

• A Corresponding Marketing Mix Is Developed for Each Selected Target Market

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Closing CapsuleClosing Capsule

• Segmentation Is Appropriate for:

– The Aggregate Fan Market– The Fans of a Particular Spectator Sport– The Aggregate Participation Market– Participants of a Particular Activity– Buyers of Sporting Goods, Apparel & Shoes– Buyers of Sports-related products such as

souvenirs, lessons, & sports magazines