Market Segmentation What is target marketing and what has caused sports businesses to increase this marketing tactic? In what ways do sport marketers segment a market? How does a consumers socioeconomic status play a significant role in how sport marketers implement marketing tactics? Explain target marketing A MARKET is a customer or potential customer who has an unfulfilled desire and is FINANCIALLY ABLE AND WILLING to satisfy that desire. Businesses strive to meet the needs and wants of their customers. When sellers offer one- size-fits-all products that will appeal to the ENTIRE MARKET. A GROUP OF CUSTOMERS THE BUSINESS SEEKS TO ATTRACT. The same person can be included in more than one Target Market Women make up 44 percent of NFLs Fan base. Divide markets and primarily notice CATEGORIES or specific groups with common interests Marketers tailor their product price place and promotion activities to the segments they target Customers are not influenced by mass marketing because they areDISCERNING: (the skill of having good judgement.) with product purchases. WAYS TO SEGMENT A MARKET. Marketers divide their markets by grouping customers according to their similarities not their differences. Customers may be similar in their occupations or hobbies. Economic and sociological measure of a persons income, education, and occupation. education, and jobs, marketers can determine what different customers are likely to buy. 1) Better educated individuals, for instance, are more likely to demand higher quality products. 2) High-income customers have more money to spend on such products as expensive jewelry, vacation packages, and cars. Age (Teen, young adult, senior) Generation (Gen. X or Gen. Y) marital status (single, married, divorced) family size (no kids, 1-2 kids) marketers want to know where customers fit in the day-to-day buying routine. 1) Are customers buying baby shoes, walkers, or running equipment? 2) Do they need retirement-planning assistance, car-pooling opportunities, or diaper-cleaning services? When marketers categorize customers by where they are in life, they can quickly find out their needs and what to do to meet them. baby boomer is a person who was born during PostWorld War II baby boom between 1946 and About 74 Million people.PostWorld War II baby boom The financial security of this market offers continuing opportunities for marketers of travel and luxury products. 80% of luxury travel and 48 % of all luxury car purchases are made by boomers Generation X are the 44 to 50 million Americans born between 1965 and Members of Generation X are largely in their 30s and early 40s. More ethnically diverse and better educated than the Baby Boomers. Over 60% of Generation X attended college. Is the demographic cohort following Generation X. There are no precise dates for when Generation Y starts and ends. From the early 1980s to the early 2000s.cohort Generation X With numbers estimated as high as 70 million, Generation Y (also known as the Millennials) is the fastest growing segment of todays workforce. Thats you!!!! division or group of people or things regarded as having particular shared characteristics. Segmenting the market based on physical and social characteristics such as: Age (18- 25) Gender (Females) Income ($35,000 - $45,000) Ethnic background (Hispanic, Caucasian, African-American) Marital Status (Single, married, divorced) Education (high school, 4-year degree, Masters, Ph.D.) Occupation (Teacher, Engineer, Nurse) 58a fca3abdf1b.pdf58a fca3abdf1b.pdf forward/2010/02/20/2010-american- movie-goer-consumer-report/forward/2010/02/20/2010-american- movie-goer-consumer-report/ Segmenting the market based on values, attitudes and lifestyles. Example: People interested in professional football. Segmenting a market based on where a person lives. Geographic segmentation can refer to local, regional, national or global markets. Example: A small local store will segment to the small town like Matthews. While big companies like Nike, market internationally. Behavioral segmentation divides markets into groups based on what they are looking for in a product and why they buy the product. Occasions like holidays, birthdays & events that stimulate purchases 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 Demographics Psychographics Geographics Behavioral