Morgan Moeller
Week 10 Assignment
HHPS 525: Sports Marketing
March 29, 2015
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1. What is market segmentation? Provide some examples of how sports marketers segment
the sports participant market (those who play) and the sports spectator market (those that
watch)?
According to Matthew Shank and Mark Lyberger (2014) market segmentation is defined
as identifying groups of consumers based on their common needs. This is a way for
marketers to specifically reach specific populations with whom they believe they will
have the most success at selling their goods and services. In order to effectively achieve
this identification process smaller and more specific groups need to be formed in order to
properly distribute data that marketers collect. These groups are labeled as demographic,
socioeconomic, psychographic, geographic, behavioral, and benefits.
Within the demographic
Marketers segment the sports participant market, which is those that play, by identifying
the product to be sold. Once the product is in place, marketers then go down the list of
“common bases for segmentation of consumer marketers” (Shank & Lyberger, 2014).
Depending on the sport, marketers may want to start big and work to the finer details.
Obviously if they are marketing to the sports participant market then age and
psychographic aspects have been assumed. The next step is to narrow the field and
determine the gender and ethnic background. Once that is established, the following basis
of identification within the big picture would be the region and physical climate. In
different regions of the world, populations have varying interests. Take for example,
Mexico. It is a well – known fact that soccer is a dominant sport and a common sport to
be played among the Hispanic population. So, for marketers it would be a safe
assumption to target this population heavily with soccer gear. After identifying a region
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and country marketers can use city to determine the specific product to be advertised such
as a professional sports team.
On the other hand, marketers segment the sports spectator market quite similarly by using
the same tactics to narrow down the target population. In the instance of sports spectators
the actual products marketed and the medium in which they advertise are quite specific.
Marketers may target an older population by choosing to advertise luxurious boxes or
convenient seats to major sporting events in magazines such as AARP. Marketers sell the
experience to sports spectators and they offer to sell the action to sports participants.
2. You are hired as the director of sports marketing for a new minor league hockey
franchise in the Dallas – Fort Worth area, an area that already has an NHL team. Describe
how you would segment, target, and position your new franchise.
Once hired as the director of sports marketing for a new minor league hockey franchise in
the DFW area, I would first research other franchises similar to mine that have succeeded
in the area and have established a great organization. Assuming that my minor league
hockey team is a farm team for the Dallas STARS, the team that I would really take a
look at would be the Frisco Rough Riders. The Rough Riders have had a lot of success by
marketing a family friendly atmosphere that is accessible and affordable. In addition, it is
known to many DFW Texans that the Rough Riders are a farm tea for the Texas Rangers.
This makes the franchise more valuable to consumers because they have invested and
supported up and coming Rangers before they played in the major leagues. To segment
my consumers I would identify the socioeconomic, demographic, and psychographic
bases to truly determine the type of folks that would most likely enjoy a hockey game.
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Since hockey is typically a violent sport I would focus my attention and target a
population between the ages of 18 and 35 with an emphasis on males and those with no
children. This population would be ideal because they are easily reached through social
media which is a free marketing tool. However, if my facility was set up with family
friendly areas, attention would also be turned to them and reached through commercial
time on kid’s channels or Saturday morning television. Much like the positioning
approach the Rough Riders take as an extension of the Rangers, I would position mine in
the same manner (if it were). I would also try and market the experience as a low cost
option in comparison to going to a STARS game at the American Airlines Center.
3. Describe the family life cycle and how it is used as a strategic tool when segmenting
sports markets. What stage of the family life cycle are you currently in? How does this
affect your sports participation or spectator behavior?
The family life cycle, developed in the 1960’s, is a model to describe how individuals
progress through various stages of life. However, according to the text on page 230 it is
stated that “today, the traditional family life cycle is no longer relevant” due to a higher
percentage of divorces and disjointed homes (Shank & Lyberger, 2014). Today, a modern
version of the family life cycle is used as a major marketing tool for strategy. In a way,
the modern family life cycle has given sports marketers more options. The modern cycle
still divides groups based upon age but there are more options within those age groups
now more than ever. Shank and Lyberger (2014) claim that major sporting events have
returned to the trend of appealing to families once again by having lower price nights and
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alcohol free zones. This approach is considerably a win – win because it accommodates
many populations within the cycle.
Currently, I am in the young and single category of the family life cycle. This means that
I am more likely to be involved in physical activities that require moderate to high
exertion. In turn, I am more likely going to experience advertisement that is thrilling,
offering freedom, and adventure. In addition to the adrenaline one may receive,
marketing that promotes actual socialization and social media involvement is commonly
used. This targeting will likely be positioned through social media, which would work.
Although, since I am female I will probably not be hit as hard as my male friends. These
efforts will probably get me involved in sports participation and spectatorship if the price
is right. If the price is right, it is safe to say that I would be doing these things with a
group of friends.
Reference
Shank, M. D., & Lyberger, M. R. (2014). Sports marketing: A strategic perspective.
Routledge.
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