Sport MarketingChapter 5 BUSI 252Professor Conrad

Market Segmentation

▪ What it is▪ Why it’s so important▪ State-of-Being▪ State-of-Mind▪ Product Benefits▪ Product Usage

Market Segmentation

Managerial

AnalysisManagerial Actions

Market Segmentation

▪ The process of dividing a large, heterogeneous market ▪ Into more homogeneous groups of people with

similar–Wants–Needs–Demographic profiles▪ To whom a product may be targeted.

National TV Sport Networks in the USA

▪ AFN Sports▪ beIN Sports▪ Big Ten Network▪ CBS Sports Network▪ ESPN▪ ESPN2▪ ESPN Deportes▪ ESPNews▪ ESPNU

▪ Fox Deportes▪ Fox Soccer Plus▪ Fox Sports 1▪ Fox Sports 2▪ GOL TV▪ Golf Channel▪ Longhorn Network▪ MLB Network▪ NBA TV

▪ NBCSN▪ NFL Network▪ NHL Network▪ ONE World Sports▪ Outdoor Channel▪ Pac-12 Network▪ Pursuit Channel▪ SEC Network▪ Sportsman Channel

▪ Tennis Channel▪ TVG Network▪ TVG2▪ The Ski Channel▪ Univision Deportes▪ Willow▪ World Fishing

Network

https://www.revolvy.com/main/index.php?s=List%20of%20sports%20television%20channels&item_type=topic

Market Segmentation Criteria

▪ Identifiability – can the segment be identified or measured in terms of its size and purchasing power?▪ Accessibility – Is it possible to gain access to those

groups of consumers individually without upsetting marketing efforts aimed at other segments?▪ Responsiveness – Will the product match the wants

of the chosen segment and is it worthwhile to breakdown thhe product characteristics and promotional efforts sufficiently to reach a segment?

State-of-Being Segmentation

▪ Generally easier to measure than State-of-Mind–Geographic–Age– Income–Education–Gender–Sexual orientation–Race and ethnicity

State-of-Being Segmentation

▪ https://www.bloomberg.com/news/videos/b/9d1fffa7-6c1b-4d83-b713-d98c25c33805

▪ What are the demographics that Bellator MMA is trying to target?

▪ What marketing activities is Bellator MMA using to motivate consumers to be more interested in the sport of MMA?

State-of-Being Segmentation

▪ https://www.bloomberg.com/news/videos/b/154f1297-ab80-4b96-aa37-8ecd3b521ebe

▪ What are the strategies and tactics that NASCAR is using to broaden its fan base?

State-of-Mind Segmentation

▪ Division by personality traits–AIO = activities, interest and opinions–VALS = values and lifestyles

Take the VALS Survey to see what categories you fall in. Do you agree with the results?

http://www.strategicbusinessinsights.com/vals/presurvey.shtml

Product Benefits Segmentation

▪ Know the difference between feature and benefit

FEATURESWhat the

company puts INTO the product

Thick solesHigh back

Rough treadSpecial laces

BENEFITSWhat the

consumer gets OUT of the

product

ComfortAnkle support

TractionLaces stay tied

Product Benefits Segmentation

▪ NFL core equities–Action and power–History and tradition–Thrill and release–Teamwork and competition–Authenticity–Unifying force

▪ What are the core equities for WV Wesleyan Sports??

Product Usage Segmentation

▪ Heavy, medium and light users▪ Not all consumers consumer at the same rate▪ Levels of consumption–Differ from sport to sport–Differ from age group to age group▪ Keep opportunities for consumers to consume

at many usage levels▪ Generate more from low and medium than from

first-time users

Marketing Segmentation Practice

Marketing Segmentation Practice

▪ How is the PGA segmenting the marketplace?▪ Which consumer segments do you think

the PGA targets? Explain▪ How is consumer segmentation useful to

the PGA?

This Week’s Assignments

▪ Quiz on Chapters 1 – 5 on Friday▪ Blog Post–Find two advertisements for a sport

organizations. They can be print and/or video. For each ad, identify and discuss the state-of-being and state-of-mind segmentation used by the organization.  Discuss for each if you feel the ad does/does not effectively communicate to the intended audience.