1. Fundamentals of
Sport Marketing
Chapter 5
Segmentation, Target Marketing, and
Positioning in Sport Business 11

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
Figure 3.3 The Sport Marketing Management Model

3. 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
Figure 3.3 The Sport Marketing Management Model
Info on the 4 Cs is used
for Segmentation &
Target Market Strategies
Info on the 4 Cs is used
for Segmentation &
Target Market Strategies
And, this information
informs the segmentation,
target marketing, and
positioning strategies
And, this information
informs the segmentation,
target marketing, and
positioning strategies

4. ► 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 Black
► African American – expected to grow from 12.8 to 14%
► Lesbian & Gay – Third largest minority - estimates are at 10%
► Asian – now the fourth largest minority
► Many others
Think about this……..

5. Some Population Information
Important for Sport Business (Table 5.1)
► The first billion in world population took from the dawn of humanity until 1830.
The second billion took only 100 years -- from 1830 to 1930. The population
crossed 7 billion in 2011 and the United Nations predicts it will cross 8 billion in
2023, a rapid growth rate.
► The population of the USA is aging rapidly. In 2020 that number is expected to
be 65 million. Most of them will have one year of retirement for every year of
work.
► Children under the age of 18, who were 34% of the population in 1970, will be
only 25% of the population in 2020.
► At the present growth rate of 1.1% per year, the United States' population will
double to about 560 million in about the next 60 years, if current immigration
and related trends continue. Each year over 3 million people are added to the
U.S. population
► Language is important. There are more that 100 languages spoken in the
school systems of New York City, Chicago, Los Angeles, and Fairfax County,
Virginia.
► Minority shoppers account for more than 30% of the economy

6. Some Population Information Important
for Sport Business (Table 5.1)
► The United States population increased by nearly 30 million from 2001
to 2010, a 9.7% growth rate
► Despite the recession, 75% of teens are receiving the same or more
spending money from 2009 to 2010.
► In 2010, 30% of the world population is using he internet on a regular
basis but 78% of the people here in the United States are connected to
the web. Additionally some 66% of those users have purchased
something online
► The average American spent just 8 hours reading educational books in
2009 but 121 hours playing video games according to the census
bureau.
► Inhabitants of American cities are exposed to an average of 5000
advertisements each day. This figure has nearly tripled in the last 30
years.
► USA ranks third largest in population in 2011 at 311 million and is
expected to rank third in 2050 with a population of 404 million.

7. ► Today, a marketing professional MUST monitor
the population and must shift marketing theories
and models to fit the 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.

8. The object of market segmentation is
to develop useful data about a
particular group.
Segmentation using one factor/variable
selects members from a group that
share a particular characteristic, while
multiple factor/variable segmentation
selects for a variety of characteristics.
The latter method is increasingly
popular as the culture becomes more
multi-faceted.

9. Purposes of
Segmentation
1) Primary purpose is specialization. Using
segmentation, the company can select one or
more markets on which to concentrate and
specialize in meeting that segment’s needs.
2) To divide the whole into parts – puts
things into order
3) First step toward understanding consumer
groups, determining target markets, and
informing marketing mix and positioning
strategies.
4) To monitor changes in the segments.

10. Segmentation
In sport business, segmentation involves dividing consumers and the
industry into relatively similar segments for varying purposes. It is the first
step toward understanding the consumer, determining target markets, and
informing marketing mix and positioning strategies.
1) Sport Consumer Market Segmentation:
the division of total markets into relatively homogeneous segments.
2) Sport Industry Segmentation:
the division of the sport industry into relatively homogeneous segments.
3) Sport Business Segmentation:
the division of sports businesses into similar segments.

11. Segmentation
NOW........ How do you DO segmentation?

12. Figure 5.1 The Segmentation ProcessFigure 5.1 The Segmentation Process

14. Segmentation Criteria
Standards to use to determine if a segment is
viable
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.

15. Segmentation Bases
Variables used for segmenting markets
► Segmentation bases are variables (factors) used
to divide a total market (population) into segments.
► The sport marketing professional must identify
bases that produce a RIGHT mix of identifiability,
measurability, substantiality, accessibility, and
responsiveness in that segment.
► Markets can be segmented using one or more
bases. Some examples: gender, income, age.

18. Variables Category N % Cumulative %
Household Income Above $200,000
$150,000-199,000
$100,000-149,000
$80,000-99,000
$60,000-79,000
$40,000-59,000
$20,000-39,000
Below $20,000
59
37
101
131
151
168
147
67
6.9
4.3
11.7
15.2
17.5
19.5
17.1
7.8
100.0
93.1
88.8
77.1
61.9
44.4
24.9
7.8
Gender Male
Female
533
328
61.9
37.1
100.0
37.1
Ethnicity Caucasian
Hispanic
African American
Asian
Others
617
103
62
23
46
71.7
12.0
7.2
2.7
6.4
100.0
28.3
16.3
9.1
6.4
Marital Status Married
Single
Divorced
Widowed
Others
460
291
46
14
50
53.5
33.8
5.3
1.6
5.8
100.0
46.5
12.7
7.4
5.8
Education College Graduate
High School Graduate
Advanced Degree
School Student
College Student
Others
270
189
129
114
73
86
31.4
22.0
15.0
13.2
8.5
10.0
100.0
68.7
46.7
31.7
18.5
10.0
Occupation Professional
Management
Sales
Technical
Education
Skilled Worker
207
141
75
59
59
39
24.0
16.4
8.7
6.9
6.9
4.5
100.0
76.0
59.6
50.9
44.0
37.1
One example of
demographics
from a study
N = 861

19. Another example
of demographics
from a study

20. Demographics -
Personal Income
Disposable Income – money, after taxes, at your
disposal.
Discretionary Income – money, after necessities, to
be used at your discretion.
For example, look at the
Dome studies handouts in
the. “Economic Factors”
sections.

25. More to know – household and life choices over the lifetime

26. Demographics: Race and EthnicityDemographics: Race and Ethnicity

27. Now… how do you use your
segmentation and target
market information to
develop marketing
strategies?
Take a look at some examples…. > > >

28. Key Findings About Black Consumers Strategies for Sport Marketers
1. The Black consumer market is a challenging segment
with many cultural nuances that influence their thoughts and
behaviors.
Involve individuals with expertise in the Black consumer
market in the designing of marketing strategies.
2. Black consumers have unique media consumption
patterns.
Use Black media outlets (particularly Black radio) to
promote events.
3. Blacks respond more favorable to culturally based
approaches of marketing communications.
Advertisements and promotional messages should contain a
theme and content that offer a reference point for Black
audiences.
4. Blacks often seek a means of identifying with
organizations as they decide whether or not to support their
businesses.
Engage in activities that allow Blacks to find a self-reference
link to identity with the organization.
5. Black consumers often have an allegiance to patronize
Black businesses.
Conduct business with Black vendors to provide
organizational needs and involve them as corporate
sponsors.
6. Black consumers often seek a cultural experience in their
leisure activities.
Amend the product/service with extensions that are
culturally salient to Black consumers.
7. Black consumers are socially conscious individuals. Demonstrate a respect for the Black community through
socially responsible/cause-related marketing.
8. Black consumers may have personal and structural
difficulty accessing the existing channels of distribution.
Distribute tickets through outlets that are easily accessible
to Black consumers. Also, find creative ways of exposing
the product to the Black communities.
9. Sport behaviors are often a result of socialization
occurring during childhood.
Invest in programs to include Black youths to nurture their
involvement.
10. Just as any other community, the Black community also
has opinion leaders.
Form a support group of Black constituents from various
realms of the community to serve as staff multipliers.
Example: Black Consumers and Marketing (Table 5.8)

34. You can see…..
….segmentation information is used
in a number of ways to inform
decisions and strategies that will
enhance success for the company.

36. Some Psychological Factors Used in
Segmentation
Table 5.14
Personality: values, beliefs, habits
Physiological: food, drink, sleep, shelter
Psychological: affiliation, beauty, belonging, curiosity, esteem,
independence, love, motive
Lifestyle: household style, parent style, importance of life comfort,
culture, financial resources, occupation and education, community
Desire for: acceptance, achievement, comfort, fame, happiness,
identification, prestige
Freedom from: anxiety, depression, discomfort, fear, harm, pain,
sadness
More to know – basic human psychological characteristics…

37. Maslow’s Hierarchy of Needs (1954)
Self-actualization Needs
self-fulfillment, self-expression
Esteem Needs
self-esteem, self-respect, recognition
Social Needs
love, appreciation, fun, belonging
Safety Needs
security, freedom from pain
Physiological Needs
food, water, shelter
More to know and understand about your consumer – the
basic human needs (Table 5.15)
Psychographics

38. More to know -- SPORT SPECIFIC: Why do people play sports

39. Geographics – One Example of One Use of GeographicsGeographics – One Example of One Use of Geographics

40. Purchase Behavior
How does your consumer make a
decision about whether or not to
buy?
By knowing HOW your consumer makes
a decision, you can make plans and
strategies to influence it.

41. A typical consumer decision-
making process (Table 5.19)
All are affected and influenced by personal and
social factors.
Step 1 – Problem Recognition
Step 2 – Information Search
Step 3 – Evaluation of Alternatives
Step 4 – Purchase
Step 5 – Postpurchase Behavior

42. WHY DO PEOPLE ATTEND SPORTS EVENTS ?!?
Knowing What Factors Affect Attendance
Helps the Sport Business Make Important
Marketing Decisions

44. Product Use & 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.

45. Undifferentiated targeting
strategy
Niche targeting strategy
Multi-segment targeting
strategy
Selection of Target Market(s)
young
old
race
income
address
gender
Baby boomers
ability
Sports fans

46. Sport Business Consumers
► Manufacturers
► Resellers, Retailers
► Sports Governing Bodies
► Institutions
► Media Sports Enterprises
Some Types…
But wait – there’s more!!!! You and your
company might have business consumers.

47. Business Consumer Segmentation
► Some consumers are businesses. Hence, business-to-
business (B2B) marketing.
► 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.

48. Bases for Business Consumer
Segmentation
► Geographic Location
► Customer Type
► Customer Size (can be volume)
► Product Use
► Purchase Criteria (price, quality,
reputation, delivery)

49. What else do you need to know?
Industry Segmentation
and
Product Segmentation

50. The Larger Picture….
Industry Segmentation
► What is this industry?
► What is included?
► How can one make sense of such a ginormous
industry?!?!? :)
How does one
navigate around and
within such a large
industry?
How big is it?
How fast does it grow?
How do I find
my way?
How do I
guide my
business?
Some ways to segment
the industry > >

52. The Sport Industry and its
Segments (Figure 5.11)
► As divided by product function in the Pitts, Fielding & Miller Sport Industry
Segmentation Model (1994)
Sport
Participation
Sport
Production
Sport
Promotion
Let’s look at the
model > >

54. 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
The Sport Industry
Segment Model
Pitts, Fielding, & Miller (1994)
Based on the
product’s function

55. Now that we have a
target market, how is
this information used
to position the
business for
competitive
advantage?

56. Positioning the Sport Product or Sport
Business
What is positioning?
-- 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 the 'relative competitive
comparison' their product occupies in a given market as
perceived by the target market.
More simply, a product's position is how potential buyers see
the product, and is expressed relative to the position of
competitors.
One significant use of target marketing is…..

58. Road Atlanta
Road Atlanta is recognized as one the
world’s best road courses. Our multi-
purpose motor sports facility is situated on
750 park-like acres in the rolling hills of
Northeast Georgia. Road Atlanta is located
35 miles north of Atlanta and just minutes
away from Chateau Elan, a 4-Star resort
offering guests comfort and amenities such
as three championship golf courses and a
European-style Spa. The facility is utilized
for a wide variety of events, including
professional and amateur sports car and
motorcycle races, racing and driving
schools, corporate programs and testing for
motorsports teams.
360˚ Sports Academy LLC
360˚ Sports Academy is dedicated to
developing student-athletes into leaders.
We endeavor to empower student-athletes
to be the best they can be. The overall
takeaway from 360˚ Sports Academy is a
holistic, life-building and applicable
experience that will benefit all participants
on many levels and empower the next
generation of leaders. 360˚ Sports
Academy offers a full spectrum of training
programs for student-athletes and their
parents. The topics, treated in-depth and
addressed by subject matter experts, range
from test-taking strategies, finance basics,
health and wellness, and
presentation/interview skills, to sports-
specific athletic and game insights,
techniques and drills.
Table 5.25 Examples of Positioning Statements

59. Table 5.26 Examples of Positioning Statements: Multiple Target MarketsTable 5.26 Examples of Positioning Statements: Multiple Target Markets
Red Rocket Jet Ski Company
Overall Positioning Statement:
Red Rocket Jet Skis has the best selling
line of PWCs on the market today. Our
PWCs are rated highest for ease of use,
durability, reliability, fuel efficiency, and
fun.
Business Target Market:
Our line of working jet skis are all you
need for emergency, rescue, or waterway
control. Our jet skis are built tough to give
you more years of service and
dependability, ready to serve in the line of
duty when you need them. Traditionally or
custom rigged, your company can have a
fleet of the most rugged and dependable jet
skis on the water today.
Recreational Target Market:
The Rocket is built with your fun in mind!
No company offers the variety of jet skis
that we do. No matter what your fun
requirements, we’ve got the jet ski for you -
fun, fast, and safe.
Red Rocket Jet Ski Company
Overall Positioning Statement:
Red Rocket Jet Skis has the best selling
line of PWCs on the market today. Our
PWCs are rated highest for ease of use,
durability, reliability, fuel efficiency, and
fun.
Business Target Market:
Our line of working jet skis are all you
need for emergency, rescue, or waterway
control. Our jet skis are built tough to give
you more years of service and
dependability, ready to serve in the line of
duty when you need them. Traditionally or
custom rigged, your company can have a
fleet of the most rugged and dependable jet
skis on the water today.
Recreational Target Market:
The Rocket is built with your fun in mind!
No company offers the variety of jet skis
that we do. No matter what your fun
requirements, we’ve got the jet ski for you -
fun, fast, and safe.
Big Valley Indoor Soccer Club
Overall Positioning Statement:
Big Valley is the most flexible indoor
soccer facility in the city. For any of your
needs - practice, fun, or competition - Big
Valley is here with the best.
Business Target Market:
We offer the best practice facility for soccer
or field hockey in the area. Just call and talk
to our friendly staff today and schedule your
practice. And if you need the coaching
room, just let us know! We have a fully
equipped coaching room just waiting for
you and your team - the place where you
can plan your winning strategy.
Recreational Target Market:
The best soccer fun in town! Looking to
play indoor soccer for fun? Or is your team
looking for some serious competition? We
have both! Every session includes
recreational and competitive divisions. We
also have age-group divisions from under-6
to 40-plus. Register your team today - the
next league starts soon.
Big Valley Indoor Soccer Club
Overall Positioning Statement:
Big Valley is the most flexible indoor
soccer facility in the city. For any of your
needs - practice, fun, or competition - Big
Valley is here with the best.
Business Target Market:
We offer the best practice facility for soccer
or field hockey in the area. Just call and talk
to our friendly staff today and schedule your
practice. And if you need the coaching
room, just let us know! We have a fully
equipped coaching room just waiting for
you and your team - the place where you
can plan your winning strategy.
Recreational Target Market:
The best soccer fun in town! Looking to
play indoor soccer for fun? Or is your team
looking for some serious competition? We
have both! Every session includes
recreational and competitive divisions. We
also have age-group divisions from under-6
to 40-plus. Register your team today - the
next league starts soon.

60. Competitor
Research & Analysis
Mission
Consumer Company Climate
Segmentation
Target Market
Decisions
Sport Marketing Mix Decisions & Strategies
PriceProduct Place Promotion
Marketing Management Strategies
Implementation – Management – Evaluation Adjustment
Sport Marketing
Management Model
Segmentation
leads to target
market
decisions

61. Competitor
Research & Analysis
Mission
Consumer Company Climate
Segmentation
Target Market
Decisions
Sport Marketing Mix Decisions & Strategies
PriceProduct Place Promotion
Marketing Management Strategies
Implementation – Management – Evaluation Adjustment
Sport Marketing
Management Model
Info on the 4 Cs is
used for
Segmentation &
Target Market
Strategies
And, this info leads
to marketing mix
decisions and
strategies

62. End ! ! ! ! !
Chapter 5 Segmentation,
Target Marketing,
and Positioning
End ! ! ! ! !
Chapter 5 Segmentation,
Target Marketing,
and Positioning
Questions ? ? ? ?Questions ? ? ? ?

63. End