8 Market Segmentation - Lecture notes 3 PDF

Preview

Summary

Walker lecture on market segmentation....

Description

5 Market Segmentation 



What is market segmentation o Identifiability, Accessibility, Responsiveness  Identifiability  Research methods, use electronic media methods  Accessibility  Is it possible to gain access to consumers individually w/out upsetting other market segments?  Responsiveness  Will the product match the wants of the chosen segment?  Is it worthwhile to break down product characteristics and promotional efforts sufficiently to reach a segment? o Segment or niche  Segments: large and prone to competition  Niche: smaller Four bases of segmentation o State of being segmentation (demographics)  Geography  Proximity o The closer a person lives, the more likely they are to become involved  Clusters o Use zip codes to find wealthy areas  Value secondary market radius o More than 50 miles from venue, but within 100 to 150-mile radius  Age  Dofeellearn  Repackage product for youth o Use similar product as for older generation  Education and Income  Income matches w residence and lifestyle  Gender  Women/girls have special needs/wants  Womens/girls sports have benefits distinct from mens  Don’t group women into amorphous category  Sexual Orientation (Gay and Lesbian market)  Must embrace every market every day w/out excluding markets  Race/ethnicity  Minority groups struggle to gain voice, power  Use minority firms, individuals, and icons  recognize diversity and change within minority groups  recognize minority consumer loyalty o State of mind segmentation (psychographics)  Eight segments of population based on resources/primary motivations  Innovators, thinkers, achievers, experiencers, believers, strivers, makers, survivors

5 Market Segmentation



o Product benefits segmentation  Sport product is bundle of benefits; if that doesn’t exist in consumers mind than it doesn’t exist at all  NFL core equities/benefits: action and power, history and tradition, thrill and release, teamwork and competition, authenticity, unifying force o Product usage Segmentation  Marketers concentrate on heavy users of sports product  Not all consumers consume at the same rate  Levels of consumption vary from sport to sport, so importance of usage rates differ from sport to sport  Levels of consumption likely to vary from age group to age group  Don’t depend too heavily on season-ticket sales that occasional users are excluded  Increase in sales volume is more likely to be generated by increased consumption rate of existing users than from increase in first-time users Integrated Segmentation Strategies and Tactics...