2. Company
Research & Information Collection
Company Mission & Goals
Consumer Competitor Climate
Segmentation
Target Market Decisions
Sport Marketing Mix Decisions & Strategies
Marketing Management Strategies
Implementation – Management – Evaluation – Adjustment
The Sport Marketing Management Model
PriceProduct Place Promotion
3. Important Statistics
• World population – 7 billion
• USA population – 311 million
(might reach 404 million by 2050)
• USA population shifting from a majority Euro-white
population to a society characterized by several
groups:
• Hispanic – now the largest minority population at over 15%; is
still fastest-growing
• African American – expected to grow from 12.8 to 14%
• Lesbian & Gay – Third-largest minority—estimated at 10%
• Asian – now the fourth-largest minority
• Many others
4. • Marketing professionals must monitor the
population and must shift marketing theories and
models to fit consumer markets.
• New marketing strategies are emerging
to keep pace with the changing
demographics in the United States.
• Segmentation is used by the marketing
professional to target specific groups (target
markets) and their characteristics and behaviors.
5. Segmentation and its Uses
•Segmentation—using one factor/variable selects
members from a group that share a particular
characteristic
– Specialization—Using segmentation, a company
can select one or more markets in which to
specialize in order to meet the subject’s needs.
– Dividing the whole into parts—puts things into order
– Understanding consumer groups, determining target
markets, and informing marketing mix and
positioning strategies.
– Monitoring changes in the segments.
6. The Segmentation Process
1. Select a market or industry.
2. Select one or more segmentation bases.
3. Select specific variables for bases.
4. Identify and define each segment.
5. Select one or more as target markets.
6. Develop marketing mix strategies.
7. Defining a Viable Segment
Identifiability: segments must be identifiable and
measurable.
Substantiality: segments must be of a size large enough
to justify marketing mix attention.
Accessibility: segments must be reachable with the
customized marketing mix.
Responsiveness: segments must respond to a marketing
mix customized to that segment.
9. Demographic Variables
• Age
• Gender
• Relationship Status – changes over a lifetime
• Income – discretionary vs. disposable income
• Occupation
• Education
• Race
• Nationality
11. Consumer Decision-Making Process
All are affected and influenced by personal and social
factors.
1. Problem Recognition
2. Information Search
3. Evaluation of Alternatives
4. Purchase
5. Post-purchase Behavior
12. Product Usage and Benefits
• A consumer needs a product to satisfy a need or
desire. The product is the tool for the consumer to
perform certain functions and realize certain
benefits.
• Examples:
Softball Bat: Tool to hit a softball. Benefit: improve hitting percentage, etc.
Go to a WNBA game: Tool to be entertained; to seal a business deal.
Benefit: have fun; transact business.
Go to the fitness center: Tool to lose weight, get in shape, or other.
Benefit: same.
Subscribe to ESPN Magazine: Tool to keep up with sports news. Benefit:
same.
13. Business Consumers
• Types of business consumers: manufacturers, resellers,
retailers, sports governing bodies, institutions, media sports
enterprises
Business to Business (B2B) marketing involves the marketing
of products to individuals and organizations for purposes
other than personal consumption. These consumers
typically acquire products and services for purposes of
manufacturing, production, resale, operations,
enhancement of a company’s position, or other business
related reason.
• Segmenting business consumers is similar to segmenting
end consumers.
14. Bases for Business Segmentation
• Geographic Location
• Customer Type
• Customer Size (can be volume)
• Product Use
• Purchase Criteria (price, quality,
reputation, delivery)
15. SPORT INDUSTRY
SEGMENTATION: BY PRODUCT
AND BUYER TYPE
Sport Performance Segment:
Sport performance as offered to the
consumer as a participation or
spectatorial product
Sport Production Segment:
Those products needed or desired for
the production of, or to influence the
quality of, sport performance
1. Outfitting Products
a. Equipment
b. Apparel
2. Performance Production Products
a. Fitness Trainer
b. Medical Care
c. Sport Facilities
d. Governing Bodies and
Officials
1. Athletics
a. Amateur Sport
b. Professional Sport
2. Private Business Sport
3. Tax-supported Sport
4. Membership Supported Sport
Organizations
5. Non-profit Sport Organizations
6. Sport Education
7. Fitness and Sport Firms
1. Professional Merchandising Products
2. Promotional Events
3. The Media
4. Sponsorship
a. Single Event Sponsorship
b. Multiple Event Sponsorship
c. Single Team Sponsorship
d. Individual Sponsorship
e. Circuit or League Sponsorship
5. Endorsement
a. Individual Endorsement
b. Team Endorsement
c. Full Organization
Endorsement
d. Nonspecific Sport Use
Sport Promotion Segment:
Those products offered as tools used
to promote the sport product
SPORT INDUSTRY
All sport and related products – goods,
services, places, people, and ideas –
offered to the customer
16. Positioning the Sport Product/Business
• Positioning is the
process by which
marketers try to create
an image or identity in
the minds of their target
market for its product,
brand, or organization.
• It is how potential buyers
see the product, and is
expressed relative to the
position of competitors.
The Positioning Process
•Identify market
preferences.
•Identify current
positioning strategy.
•Does the current strategy
match the market
preferences?
•Develop positioning
strategy.
