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Promotions Project: Target Marketing
Charity Abiemo
Liberty University
BUSI 612: Marketing Promotions
Week Three
Dr. George Young
16 July 2023
Author Note
Charity Abiemo
I have no known conflict of interest to disclose.
Correspondence concerning this article should be addressed to Charity Abiemo
Email: cabiemo@liberty.edu
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Segmentation and Target Marketing
Theory of Segmentation
According to (Marketing Promotions, 2023), target marketing occurs after the
market segmentation process of dividing the groups into meaningful smaller markets.
Target marketing focuses on a group that seems most worthy of investing time to
develop. Once the segmentation has been completed and the company is aware of the
general population where it will market its product, now the company must narrow the
segmentation even further, if possible, depending on the product, to know the direct
consumer it needs to focus on to achieve its goal and gain profit. Doing so means the
company would have to target a particular set of groups amongst the segments to focus
their attention. That means the company will target the market to reach the intended
group. The industry is made of many different pieces of equipment, to suit the needs of
their consumers. With that, the company can use the equipment’s usage to identify the
percentage of usage for each piece of equipment. This will help identify where the
customer’s desires and goals lie as each piece of equipment has its function of which
part of the body their workouts affect.
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Treadmills
29.2%
Ellipticals and step machines
26.2%
Free weights
10.7%
Hydraulic equipment
9.4%
Exercise bikes
11.7%
Functional trainers
5.9%
These numbers can help with targeting for the industry to zone in on the group
they wish they can have an impact on with whatever available programs and resources
there may be.
Targeting and Segmenting
(Levin, 2022), states that consumers, men, and women between the ages of 1854, utilize the gym the most. Due to this equipment's nature and safety reasons, we can
rule out children below 14 in our segmentation. The best-segmented group will be the
15 -65 demographic. Believing that the majority, after 65 years, tend to do more walking
or stretching exercises versus using gym equipment. This group can also be broken
down into age, income, and education groups to help target the right group to focus on.
Age: With the 15-65 age segmented group, how many in that group are active and how
many times per week, what are they doing to meet their physical training goals, where
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do they currently go to achieve that goal, and most of how satisfied they with are or in
their current situation. In further segmentation, the gym industry can segment into
(Jilbee, 2023). People have various reasons why they desire to stay fit. The younger
generation's decision may be either following an idol or just wanting to look good. For
the aging community, it could be due to health reasons or the same as the younger
generation maintaining their youthful appearance as the body takes a different tone as
they age. Per doctors ' advice, some may need exercise to reduce a health issue.
To achieve these goals, these individuals must purchase their equipment or have
a membership at the gym. According to the (Weir, 2020), "From a stroll through a city
park to a day spent hiking in the wilderness, exposure to nature has been linked to a host
of benefits, including improved attention, lower stress, better mood, reduced risk of
psychiatric disorders, and even upticks in empathy and cooperation." The problem is what
outdoor consumers do when nature gets involved, and they cannot enjoy these walks or
runs outdoors. The industry must determine its market fitness to know how and where to
market it. That is where the gym industry seizes the opportunity to make it clear in their
marketing to be available for the consumer anytime, any day, anywhere when nature
cannot. Encouraging and building the consumer's motivation is vital to successful target
marketing. For consumers looking to improve their appearance because of being
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overweight noticeable or not, a small amount of encouragement can go a long way.
(Cross, 2014) notes that going to the gym can be very uncomfortable for some
consumers. Many gyms are specific target gyms that help customers with their specific
needs. There are gyms for those who want to lose weight and ones for those who want
to maintain or gain muscles. (Cross, 2014).
"While you may find a method that works well for a while, you should always have
a range of backup tactics to experiment with if your results begin to plateau. (Glofox,
2023). Since everyone is not built the same and it takes some longer to reach their
physical goal than others, it is crucial to adhere to this advice to help everyone meet their
intended goals. Having a variety of programs will give the customers options to choose
from, and if one does suit them after trying, the option to switch programs will also entice
them to know and feel they are not alone in their journey. Another opportunity is to offer
an app to customers that would help them track their calories and keep up with or maintain
their goals. (Reddy, 2020) states, first, a company must look at segmenting the groups
for this product usage. The industry would therefore need to target a. people who want to
improve their health. b. people who want to improve their appearance fall in the same
category as the previous. Desire to change appearance will lead to a change and
improvement in health and vice versa. c. people who want to improve their performance
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d. people recovering from illness and, e., people with a disability. All these groups can be
placed in one target segment because, in a nutshell, they all have the same
characteristics and end state: improving their current condition physically, mentally, and
emotionally by doing what is necessary through available means.
To keep up with the customers and their needs and help them with goals, Glofox,
2023, states that having a marketing mix will help to engage the customers. A marketing
mix such as social media, offers or referrals, hosting of events, and being proactive. Once
a target has been identified, a wellness program must be created to welcome them and
achieve new members. This wellness program can include but is not limited to; gym
membership offers, fitness programs, and challenges; these could include a 5k marathon
train-up, nutrition programs, weightless programs for those who are trying and have tried
on their own but could not lose the stubborn weight and challenging them to reach the
goals they have set for themselves. At a new gym opened in Orleans, Ontario, Canada,
"Promoting extreme weight loss is not the focus, but rather their focus is getting people
healthy, and one of the side effects is weight loss". Such is an excellent incentive for
anyone looking to lose weight, knowing the gym is 100% dedicated to their need. It would
keep them coming back and even invite others to join them. "Nowadays, gyms have
become important spaces for physical activity worldwide. However, to the best of our
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knowledge, the experiences of obese gym users have not been a central focus in the
qualitative research on weight stigma. However, some studies include gyms as a part of
other physical activity settings." (Argüelles, Pérez-Samaniego, & López-Cañada, 2022).
Lack of physical activities, partly due to COVID-19, caused this sedentary lifestyle
for many and increased health issues. (Soekmawati, Nathan, Victor, & Pei Kian, 2022).
That is why the weight loss gym can become more than what it is because it removes the
stigma from those overweight attending regular gyms. Although this weight stigma
sometimes leaves a lasting negative result, another promotion program could be using
supplements (Nagar, 2020). "Although supplement consumption is widespread for
various reasons, it has been trendy among gym-goers, athletes, and professional trainers,
who use supplements to build muscle, gain strength, or prevent illnesses during training".
As supplements have become popular, many consumers still do not want to rely on
supplements. The nutrition program can be beneficial in this area to teach and train how
to live and eat healthy natural ingredients to contain the nutrients from the supplements.
What many do not know or know but need reminding is the risks associated with these
supplements. Therefore, It will benefit the gym's nutrition program to point out some of
these issues and teach and train its members. (Druker, & Gesser-Edelsburg, 2017).
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Segmentation is critical in an industry that needs to reach its customer base's core.
While the goal is targeting, segmenting is the first step in achieving its target marketing.
As there are many groups to segment gym and exercise equipment usage customers, it
is ideal to ensure the correct segmentation happens for better analysis and selecting the
exact target. Once the target is identified and selected, the industry must decide which
marketing avenue it will use to approach its target. As noted in previous chapters, five
approaches could be chosen for this target marketing. Ones the target has been
chosen, it is now time to focus on informing and persuading them that the industry's
product is what they need and what they have been waiting for. Advertising, Personal
Selling, Public Relations, Sales promotion, and Direct Marketing, each of these
marketing tactics is a great way to achieve the industry's goal. However, with these
products and services, as only some use them, it will be best for the industry to limit its
promotional strategy to sales promotion, direct marketing advertising, and maybe public
relations. As the promotion will play a huge part in attracting new customers, it will be
imperative for the industry to use this method in full force to complete its goal in
conjunction with personal sales and advertising. These promotional elements will create
an excellent advertisement for the customer, which can be publicized via social media.
Since COVID-19, social media has become of the outlets for finding consumers for
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many businesses and has not disappointed. Social media is a less expensive way to
gain customers than advertisements on TV or radio stations.
Any form of advertising and Promotions can be costly, if not financially, than
personnel. Some promotions and even teaching and training classes could take away
some employees leaving the gym short-manned for a day or two, depending on how long
the program runs. With that, employers must weigh the cost to gain and not lose. All
promotions aim to direct traffic to the gym and direct orders for equipment purchases for
those who prefer to have their own. That can also be done even after the promotion using
the right platform and the right message content that goes straight to the point so
consumers are not turned off at first glance. Finding the right platform is essential, as
each has advantages and disadvantages. Therefore, employers must make responsible
decisions in applying the marketing metrics to meet the company's goal or intent.
Analysis
(Marketing Promotions, 2023), states that it is essential for the industry to offer
value products so the customer understands how the product will meet their needs. That
is called positioning. Because as mentioned previously, advertisements are to go straight
to the point for reasons such as cost, the customer's interest, and attention span. A
marketing mix focusing on the four Ps of marketing will drive success.
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Research has shown that the demographic of gym and exercise equipment users
varies vastly and can be broken down into various categories and segments. Consumers
can be broken down by geographic location, demographic, psychographic, and
behavioral segments. These segments can be divided even further, such as the
demographic segment, which can be divided into age, generational group, gender, family
and household, race and ethnicity, income, occupation, education, social class, and
geodemographic. (Marketing Promotions, 2023). This shows the variety of groups that
depend on consumers that the industry must consider when planning its target marketing
and positioning. Having a well-planned and executed promotion and advertising, utilizing
all necessary promotion mixes and tactics that give the customers what they want to see
and hear, will greatly impact the promoting gym and the gym equipment industry. As there
are many reasons why many utilize the gym, and others prefer to be in the comfort of
their home, it is essential to note that just as depicted in (Marketing Promotions, 2023),
there are vast differences between the generational groups that need to be catered to as
well amongst may the many reasons why many go to the gym with hopes of finding a
solution for their illness, physical appearance concerns or to maintain a healthy body.
With a growing revenue of $53.1m in 2023 and an estimated growth of $58.1m by
2028, the impact of the gym and the gym equipment on society is enormous and will
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remain as the generations age and these same concerns linger from generation to
generation. External competition may prove a challenge to the gym industry. There may
be competition for the consumer's leisure time, but this can be overcome by good
advertising. (O’Malley, 2023).
The below percentages show the growth margin of the gym equipment industry
as of 2005. 2020 and 2021 show a high rise in domestic demand as it was during the
COVID-19 pandemic and many resorted to homegrown manshift gyms therefore buying
their equipment because they have all the time to exercise. Numbers dropped in 2022
when everyone was returning to work and adjusting to their new life schedules. But
things began to rise again as consumers are beginning to settle into their new lifestyles.
- Industry Ratios - Industry Data (% change) - Industry Data (Value)
Year
Import
Domestic penetration
Revenue IVA Establishments Enterprises Employment Exports Imports Wages
Demand
into the
($m)
($m)
(Units)
(Units)
(Units)
($m)
($m)
($m)
($m) manufacturing
sector (%)
2005
3,580
844
392
380
10,447
676
2,081
597
4,985
25.4
2006
3,640
803
374
361
9,636
673
2,186
570
5,153
26.5
2007
3,325
767
365
351
9,003
680
2,093
517
4,739
26.4
2008
3,284
657
343
330
8,761
738
2,249
512
4,795
26.7
2009
2,341
533
289
277
6,462
607
1,688
388
3,422
25.8
2010
2,176
515
261
251
5,580
691
2,148
348
3,633
28.2
2011
2,339
506
274
265
5,707
746
2,106
350
3,699
28.8
2012
2,273
524
270
260
6,142
776
2,192
367
3,689
29.0
2013
2,354
573
286
275
5,943
813
2,074
375
3,615
28.7
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Year
Import
Domestic penetration
Revenue IVA Establishments Enterprises Employment Exports Imports Wages
Demand
into the
($m)
($m)
(Units)
(Units)
(Units)
($m)
($m)
($m)
($m) manufacturing
sector (%)
2014
2,304
553
293
282
5,966
872
2,281
359
3,714
29.5
2015
2,261
549
294
284
6,028
864
2,481
371
3,877
30.7
2016
2,292
554
290
279
5,866
816
2,517
378
3,993
30.8
2017
2,130
488
284
273
6,266
833
2,701
377
3,999
31.3
2018
2,137
553
283
272
6,268
846
2,879
363
4,170
31.8
2019
2,202
568
280
269
6,294
795
3,034
367
4,441
32.0
2020
2,182
560
278
266
6,258
606
4,624
360
6,200
32.6
2021
2,269
581
282
269
6,434
677
6,471
371
8,063
33.3
2022
2,233
573
279
267
6,375
525
3,110
367
4,818
33.8
2023
2,241
575
278
266
6,396
560
4,181
368
5,861
34.3
The historic data proves that the gym industry just like any other company has its
highs and lows but, as the chart shows, it has many highs than lows and will continue to
grow if the consumer demand remains, and the market does not inflate. Once inflation
happens, consumers will be forced to choose or reconsider their lifestyles and set
priorities. That leaves the consumer to look for other means to acquire the equipment of
their choice to make other things happen especially if they have families. With the demand
(O’Malley, 2023). Competition remains as the import and export values are battling
against each other. The U.S. gym industry's competition remains with that of overseas
suppliers such as China and Taiwan who offer lower costs for their equipment. These
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companies and their low price offer a threat to the gym industry as globalization is high
having risen and continue to rise.
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References
Argüelles, Pérez-Samaniego, V., & López-Cañada, E. (2022). “Do you find it normal to
be so fat?” Weight stigma in obese gym users. International Review for the
Sociology of Sport., 57(7), 1095–1116.
https://doi.org/10.1177/10126902211056867
Cross C. (2014). Gym exclusively for overweight people comes to Canada. CMAJ :
canadienne, 186(2), 101. https://doi.org/10.1503/cmaj.109-4682
Druker, I., & Gesser-Edelsburg, A. (2017). Identifying and assessing views among
physical ly-active adult gym members in Israel on dietary supplements. Journal of the
International Society of Sports Nutrition, 14(1), 3737. https://doi.org/10.1186/s12970-017-0194-7
Levin. (n.d.). (2022). How to determine the target market for a fitness gym.
WoodWardAvenue.
https://woodwardavenue.org/how-to-determine-the-target-market-for-a-fitnessgym/
Marketing Promotions, (2023). Liberty University
Nagar, K. (2020). An examination of gym supplement choice: Using the modified theory
of planned behavior. Journal of Food Products Marketing, 26(7), 499520. https://doi.org/10.1080/10454446.2020.1817827
O’Malley, M. (2023). Industry market research, reports, and Statistics. IBISWorld.
https://www.ibisworld.com/
Reddy, N. K. (2020, November 19). Beauty Salon Industry Analysis. Small Business –
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Chron.com. https://smallbusiness.chron.com/beauty-salon-industry-analysis70660.html
Soekmawati, Nathan, R. J., Victor, V., & Kian, T. P. (2022). Gym-Goers’ SelfIdentification with Physically Attractive Fitness Trainers and Intention to
Exercise. Behavioral Sciences, 12(5). https://doi.org/10.3390/bs12050158
Weir, K. (2020). Nurtured by nature. Monitor on Psychology.
https://www.apa.org/monitor/2020/04/nurtured-nature