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Segmentation and Segmentation and Consumer BehaviorConsumer BehaviorSport MarketingSport Marketing

Fall 2005Fall 2005

Dr. SuttonDr. Sutton

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Segmentation & Segmentation & Consumer BehaviorConsumer Behavior

Segmentation defined:Segmentation defined: Dividing a large, heterogeneous market into Dividing a large, heterogeneous market into

more homogenous groups of people who more homogenous groups of people who have similar interests or desires, have have similar interests or desires, have similar demographic characteristics or similar demographic characteristics or profiles or behave in similar fashionprofiles or behave in similar fashion

THINK THINK smallsmall

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Segmentation & Segmentation & Consumer BehaviorConsumer Behavior

When should the market be segmented?When should the market be segmented? IF THE SEGMENT CAN:IF THE SEGMENT CAN: Be identified or measured in terms of its size Be identified or measured in terms of its size

and purchasing powerand purchasing power Be accessed or reached by the marketerBe accessed or reached by the marketer Be presumed to be responsiveBe presumed to be responsive

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Segmentation & Segmentation & Consumer BehaviorConsumer Behavior

Responsiveness refers to :Responsiveness refers to : Whether or not the product will match the Whether or not the product will match the

needs and wants of the consumerneeds and wants of the consumer Whether or not the segment is significant Whether or not the segment is significant

enough (size and potential ROI) to merit the enough (size and potential ROI) to merit the efforteffort

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Segmentation & Segmentation & Consumer BehaviorConsumer Behavior

Types of Segmentation:Types of Segmentation:1.1. Consumer’s State of Being Consumer’s State of Being

(Demographics)(Demographics) GeographyGeography IncomeIncome GenderGender AgeAge EthnicityEthnicity EducationEducation

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Segmentation & Segmentation & Consumer BehaviorConsumer Behavior

Types of Segmentation:Types of Segmentation:1.1.Consumer’s State of Being (Demographics)Consumer’s State of Being (Demographics)

Marital statusMarital statusSexual orientationSexual orientationHousehold sizeHousehold size

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Segmentation & Segmentation & Consumer BehaviorConsumer Behavior

Types of Segmentation:Types of Segmentation:2. Consumer’s State of Mind (Psychographics)2. Consumer’s State of Mind (Psychographics)

Consumers may be divided by personality traits Consumers may be divided by personality traits (Values and Life Style Options – VALS), (Values and Life Style Options – VALS), attitudes, opinions, preferences, and perceptionsattitudes, opinions, preferences, and perceptions

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Segmentation & Segmentation & Consumer BehaviorConsumer Behavior

3. Product Usage Segmentation3. Product Usage Segmentation 80/20 Rule80/20 Rule Frequency EscalatorFrequency Escalator Frequent Flyers/CompadresFrequent Flyers/Compadres Avid golfersAvid golfers Season Ticket holdersSeason Ticket holders Non-peak skiersNon-peak skiers

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Segmentation & Segmentation & Consumer BehaviorConsumer Behavior

4. Benefits Segmentation4. Benefits Segmentation What does the consumer expect to receive What does the consumer expect to receive

in exchange for his choice/purchase?in exchange for his choice/purchase? AccessAccessLocation/proximityLocation/proximityDurabilityDurabilityPremiumsPremiumsMilesMiles ValueValue

1010

Segmentation & Segmentation & Consumer BehaviorConsumer Behavior

4. Benefits Segmentation4. Benefits Segmentation What does the consumer expect to receive What does the consumer expect to receive

in exchange for his choice/purchase?in exchange for his choice/purchase? EnjoymentEnjoymentValidationValidationStatusStatusRecognitionRecognitionReciprocityReciprocity????????????????????????????????????????????????????????????????

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Segmentation & Segmentation & Consumer BehaviorConsumer Behavior

Do we always act like we look?Do we always act like we look? Do our values reflect who we are?Do our values reflect who we are? NFL season-ticket holders vs. NBA NFL season-ticket holders vs. NBA

season ticket holdersseason ticket holders Pro sport fans vs. college sports fansPro sport fans vs. college sports fans Trading-UpTrading-Up