UNIT 4 – MARKET SEGMENTATION

THE MENU:

Read and discuss the opening TICKET

MARKETING BASICS The Marketing Concept What’s a Market? The Marketing Strategy Formula Marketing Segmentation

OUTCOMES:By the end of UNIT, you will be

able to: Describe what the Marketing

Concept is and why it is important.

List & Describe the components of a Market.

Describe the formula that makes Marketing Strategy work.

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SPORTS AND ENTERTAINMENT MARKETINGSPORTS AND ENTERTAINMENT MARKETINGMarketing Basics Some Key Definitions

Marketing - is the process of developing, promoting, and distributing products to satisfy customers' wants and needs. Additionally, it’s the creation and maintenance of satisfying exchange

relationships

Product – Customer – Consumer –

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SPORTS AND ENTERTAINMENT MARKETINGSPORTS AND ENTERTAINMENT MARKETING

Marketing Mix = The 4 “P”s Marketing mix - describes how a business blends

the four marketing elements Product-what a business offers customers to satisfy

needs (GSI)

Price - the amount that customers pay for products

Place (Distribution) - the locations and methods used to make products available to customers

Promotion - ways to encourage customers to purchase products and increase customer satisfaction

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SPORTS AND ENTERTAINMENT MARKETINGSPORTS AND ENTERTAINMENT MARKETING

The 4 Ps…

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SPORTS AND ENTERTAINMENT MARKETINGSPORTS AND ENTERTAINMENT MARKETING

Satisfying Customer Needs Primary focus Identify customer needs Develop products Operate a business profitably

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SPORTS AND ENTERTAINMENT MARKETINGSPORTS AND ENTERTAINMENT MARKETING

UNIT 4 SLIDE 6

Determine the Target Market

Target market—a specific group of people you want to reach

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SPORTS AND ENTERTAINMENT MARKETINGSPORTS AND ENTERTAINMENT MARKETING

UNIT 4 SLIDE 7

How to Find a Target Market Disposable income-income that can be spent freely

AFTER necessities are paid for (food, taxes, …) Demographics-specific customer information

The Marketing Concept• The Marketing Concept

• Businesses must satisfy customers' needs and wants in order to make a profit.

• 3 components of a MARKET

1. All potential customers

2. Share common needs and wants

3. Have the ability and willingness to buy a product

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The Marketing Strategy Formula

MS = TM + MMMS is Marketing StrategyTM is Target MarketMM is Marketing Mix (4Ps)

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Targeting the right people!! Target Marketing

Focusing marketing decisions on a very specific group of people

Customer vs. Consumer? Customer buys the product Consumer uses the product

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Market Segmentation A group of individuals that share one or more important

characteristics. These characteristics result in similar product or service

needs. Businesses use market segmentation to focus their

marketing efforts.

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Market Segmentation Consumers can be divided into specific, well-defined segments

based on certain characteristics:

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Market Segmentation Geographic Segmentation

Dividing consumers into markets based on where they live. The idea that individuals who live in a certain location might

have the same wants and needs. Can be as large as a country, or as small as a zip code.

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Market Segmentation Demographic Characteristics

age, gender, race, income, and education level. Disposable Income

Money left over after taxes & paying for basic living necessities

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Market Segmentation Psychographics

People’s interests and values. The way you spend your time and your lifestyle choices. Responsible for bowling alleys, sports stores, swimming

pools, religious book stores, etc.

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Market SegmentationProduct Usage

The frequency that a customer uses a product. Marketers communicate differently to consumers based on

frequency of use.

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Market Segmentation Benefits Derived

Divides the population into groups depending on the value they receive from the product or service.

Customer Profile The combination of all the information about a customer

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