Segmentation, Targeting, and
Positioning in Sport
Chapter 5
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OBJECTIVES
• To learn the importance and advantages of identifying target
markets.
• Understand the role of segmentation, targeting, and
positioning (STP) in the marketing process.
• Understand (STP) and be able to apply each to any market
of interest.
• To be aware of the many potential bases of segmentation to
divide markets into groupings.
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2
STP
S - How can we break our market down into homogenous
reachable groups?
T – Which of these groups should be commit our resources
to reach?
P – How to we want the selected target(s) to perceive our
offering versus the offerings of our competition?
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3
MARKET SEGMENTATION
Market Segmentation:
the delineation of a customer, fan, spectator, participant, or b2b
group/groups with needs and wants which the marketing function of the
sport organization has successfully satisfied.
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SEGMENTATION
5 ASPECTS OF SEGMENTATION IN SPORT MARKETING:
1.
Wide product application
2.
Broad reach
3.
Efficient reach
4.
Timing
5.
Segment boundaries
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5
SEGMENTATION
Criteria for effective segmentation:
1.
Responsiveness
2.
Measurability
3.
Accessibility
4.
Substantiality
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SEGMENTATION
The Six Question Segmentation Process:
Three Steps
1.
Identification of total market
2.
Bases of segmentation
a) Sensitivity
b) B2C & B2B
3.
Segment-by-segment analysis
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SEGMENTATION
Segment-by-Segment Analysis
1.
Who are they?
2.
What do they want/need?
3.
When do they want/need it?
4.
Where do they get it?
5.
Why do they want/need it?
6.
How do they go about getting it?
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8
TARGETING
Offers three ways to target markets:
1. Undifferentiated Targeting
2. Differentiated Targeting
3. Concentrated Targeting
The 80/20 rule:
80 percent of revenues comes from 20 percent of customers.
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TARGETING
Using Segmentation Grid for Targeting:
Step 1:
Assessing Size, Reach, Profitability, and Measurability.
Step 2:
Selecting Target Markets
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POSITIONING
• Involves looking for that place in the minds of your target
markets where you can fit your product.
• Hole in market - A niche or a particular segment whose
needs and/or wants have not been adequately met.
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11
POSITIONING
Effective positioning is built on 3 stages:
1.
Asses a given market segment and determine where each
offering is currently positioned.
2.
Do background research to determine important dimensions that
lead to this positioning.
3.
Select a position for the product to occupy the mind of the target
market segment.
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POSITIONING
Perceptual Map:
The map helps display the location of the product in the minds of
consumers in the target market of interest.
High Quality
Low
Price
High
Price
Low Quality
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13
CANADIAN TARGETS
Common target marketing in Canadian sport:
• Aboriginal Canadians
• Canadian women
• Young Canadians
• Official language groups
• Paralympic athletes
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Questions?
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