Marketing
An Introduction
FYI…
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Exam
Tuesday – library 213C
Project
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Single vs. double
Due Monday night via e-mail
What is marketing?
Marketing Defined
Why marketing in recreation?

Which sector relies on marketing the
most? Least?

How were programs marketed in
internships?
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Marketing is a function of all staff & not
just marketing staff
How would you describe these
products in promo materials??
1.
Youth volleyball league
2.
ISU Homecoming events
3.
New Marriot Hotel in Uptown Normal
4.
Gold’s Gym Membership
5.
Las Vegas
6.
Season tickets to Prairie Thunder Hockey
Outcomes (Benefits)
Focus
Inputs
Resources
dedicated to the
programs and
services
Programs
Programs, products &
services offered
Financial
Human
Seniors in organized
golf activity
Technological
Physical
Creative art
experience for parent
& child
City beautification
Outputs
Volume of work produced
or the number of people
served
Number of senior golf
leagues, # of sr. golfers
served
# of Parent/child art
classes offered; # of art
projects done together
# of flowers planted
Outcomes
Benefits received from
participation in the
program or service or
from buying the product
Social interaction with
other seniors; improved
BMI or health
New appreciation for
each other’s interests;
exposure to different
mediums; increased art
appreciation
Decreased vandalism in
landscaped areas;
increased property
values
Performance Outcome Model
Outcomes Focus

How do people see us?...value parks &
recreation as a profession or major?
Think of your favorite recreation
activity…not sleep & pass the
grandma test!
Why do you like it?
What characteristics of it would convince me to
participate?
Types of Outcomes

Personal/Individual
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Wellness
Relaxation
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Social

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Reduce loneliness
Strong families
Make friends
Your
program???
Economic

Preventative health
Reduce cost of
vandalism
Environmental
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Conservation
Environmental
rehabilitation
Markets &
Segmentation
What is a market?
Markets

Set of actual and potential buyers

Potential markets for…?????
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Textbooks
Sporting event tickets
Hiking boots
Nursing homes
Jaguars
Is everyone a potential
market???
A few terms…
Mass Marketing
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Seller mass produces, mass distributes &
mass promotes one product to all buyers
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Examples???
Weaknesses of mass marketing for nonmass products
Market Segmentation

Divides a heterogeneous group into smaller
homogenous segments

Groups have similar wants & responses
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Basic to all marketing efforts
Target Marketing

Seller identifies market segments, selects
1 & develops products and marketing
mixes for them
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Marketing Mix – product, price, place,
promotion (4 P’s)
Better than mass marketing. Why?
Segmentation criteria (see text)
FYI…

Exam 1 ?’s

Review marketing assignment
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Sect 4 due 11/8
Third person
Headers
How would you segment
a market?
Bases of Segmentation
4 Bases of Segmentation
1.
Demographics
2.
Psychographics
3.
Product usage
4.
Product benefits
Demographics

Geography
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Proximity

Closeness associated with involvement

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Closer to the activity, the higher the participation
Ie. Campus recreation, Thai club…
Tennis Academy of Asia
Demographics
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Geography
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Geoclusters
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Certain areas (ie. zip codes) more prone to respond
Areas with a lot of members
Pockets of participants
See IL map….
Are there certain
geoclusters that are more
likely to respond to US
Cellular Coliseum?
Examples of the size of
the circle changing?
-Athletics: IWU, ISU,
U of I
-Amusement park
-Local park
Geoclusters
: IU
athletics
Geographic Descriptors for Consumer
Markets
Variable
Typical breakdown
Geographic
Region
Pacific, Mountain, West North Central, South Central, East
North Central, South Atlantic, Middle Atlantic, New England
City or metro size
Under 5,000;
5,000-20,000;
20,000-50,000;
50,000-100,000; 100,000-250,000;
250,000-500,000;
500,000-1,000,000; 1,000,000-4,000,000; 4,000,000 or over
Density
Urban, suburban, rural
Demographics

Income
 Determines lifestyle
 Influences advertising market for certain
products

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Golf vs. football
Where would you advertise these products?

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Ralph Lauren
REI
Demographics

Age
 One of the most effective variables
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Consumer needs very predictable at dif ages
Age & stage of lifecycle similar

Income, education, family lifecycle

Different cohorts have different needs & interests

How would you describe the Senior Market?

Are they a viable market for sport &
recreation?

Why, why not?
Demographics
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Age

Mature Market – 55+
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Stereotyped as inactive & thrifty – untrue!
Living longer & more active
28% are over 50+….
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Per capita income is 26% higher than national average
Spends 1+ trillion per year on goods & services
Buy 41% of new cars; 25% of all toys
80% of the luxury travel market…their top leisure
activity
Senior golf tour, discounts…
National Parks Senior
Annual Pass $80/year; $10 for
people 65+ or people
with disabilities…for
the life of the
individual.
Bloomington, IN Twin Lakes
Recreation Center
Demographics
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Age

Youth Market

How would you describe the Youth Market?

Are they a viable market for sport &
recreation? Why, why not?
Demographics

Age

Youth Market
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Influence purchase of $239 billion per year
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Tweens - Candy, toys & games
Teens – clothing & apparel
Influence 20% of all purchases in US
Choose teams, activities & brands earlier
Users of the future…Pepsi & Coke
Demographics
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Age

Example – youth as a NASCAR
target
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Hook them young & white collar
Remove tobacco & move to
mainstream sponsors
Add kid friendly items
Carmel Clay Parks &
Recreation Dept.
Demographics
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Gender

Differences between genders in terms of
consumption???

Changes in last 10-20 years in genders

What is the female influence on the sport &
rec market?
Demographics
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Gender
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Gender impact on products
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Bike frames & seats
Smaller golf clubs, tennis racquets, basketballs
Ponytail helmets
Hiking apparel designed for both genders
Business hotels – decorations more female friendly
…appealing to men as well
Fitness classes targeting men
Separate classes for the non-stereotypical activity

Ceramics for men, woodworking for women
Demographics
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Gender

Female buying power…she-conomy
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$2 trillion – women control
$1 trillion - women earn
Sign 80% of all checks
94% of home furnishing decisions
Initiate 80% of home improvement projects
Purchase 85% of all consumer products
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Demographics
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Race
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A group of people who share a genetic make-up
which results in biological characteristics that
can be used to distinguish 1 group from another
Ethnicity
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Commonalities passed down through history &
tradition
Historical link, shared religious beliefs, linguistic
commonalities, common morals
Shared culture
Demographics
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Race & Ethnicity

Can’t divide based on race/ethnicity alone

Don’t stereotype consumption – do
research

Examples of advertising to different ethnic/racial
groups?....
300 magazines & newspapers in U.S.
Group
09 Buying
power
% gain
since 2000
% of
population
Market
Share
White
9.12 trillion 46.4%
72.8%
85%
African
American
910 billion
54.3%
12.7%
8.5%
Hispanic
978 billion
100%
16%
9.0%
Asian
508 billion
89.3%
4.6%
4.7%
Buying power: total post-tax, personal income of residents that is available to
spend on goods and services
Growth in African American buying power due to entrepreneurship
Demographics
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Sexual Orientation

LGBT markets are “untapped goldmines”
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Higher income & education
 Median household income $70,000, 30% over
$100,000

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37% have a college degree, 20% have a
graduate degree

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$43,318 for heterosexual households
Vs. 28% & 9.4%
91% buy products supporting gay causes
Demographics

Sexual Orientation

More discretionary time & money…$500 billion

WNBA Marketing Director fired for disregarding
lesbian target market
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Travel & tourism capitalizing on this market
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Key West, Philadelphia, Toronto
Cruises
Resorts
Disney Gay Days…
Group
Buying
power
% gain
since 1990
% of
population
Market
Share
White
9.12 trillion 46.4%
72.8%
85%
African
American
910 billion
54.3%
12.7%
8.5%
Hispanic
978 billion
100%
16%
9.0%
Asian
508 billion
89.3%
4.6%
4.7%
LGBT
835 billion
-
7%
-
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LGBT Geoclusters

Palm Springs, CA
Provincetown, MA
Palm Springs, CA
Fort Lauderdale, FL
West Hollywood, CA
San Francisco, CA
Dallas, TX
Rehoboth, DE
Detroit, MI
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Honorable mention
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60657
60640
92264
02657
92262
33305
90069
94131
75219
19971
48069
Chicago, IL (Wrigley, Lincoln Park)
Chicago, IL (Randolph & Wacker Dr.)
Demographic Descriptors for Consumer
Markets
Age
Family size
Family lifecycle
Income
Occupation
Education
Race
Nationality
Social class
Under 6; 6-11; 12-19; 20-34; 35-49; 50-64; 65+
1-2; 3-4; 5+
Young & single; young, married, no children; young, married,
youngest child under 6; young, married, youngest child 6 or
over; older married, with children; older married, no children
under 18; older single; other
Under $10,000; $10,000-$15,000; $15,000-$20,000; $20,000$30,000; $30,000-$50,000; $50,000-$100,000; $100,000+
Professional & technical; managers, officials, & proprietors;
clerical, sales; craftspeople, foremen; operatives; farmers;
retired; students; housewives/husbands; unemployed
Grade school or less; some high school; high school graduate;
some college; college graduate; post graduate work; post
graduate degree
African American; American Indian; Asian; Caucasian;
Hispanic; other
American; British; French Canadian; German; Italian;
Japanese; Australian; Latino
Lower lowers; upper lowers; working class; middle class;
upper middles; lower uppers; upper uppers
Demographics
Psychographics
Product Usage
Product Benefits
Psychographics

Lifestyle characteristics

Values, attitudes, interests, opinions, beliefs
Lifestyle characteristics
Activities
Interests
How would we
use these??
Opinions
Work
Family
Social issues
Hobbies
Home
Politics
Social events
Job
Business
Vacation
Community
Economics
Entertainment
Recreation
Education
Club membership
Fashion
Products
Shopping preferences Food
Future
Sports
Culture
Media
Psychographics
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How do we use these?
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Meijer’s coupons
Shows at Braden
Club membership – campus, fitness
Political affiliation
Donations
Activities – biking, running
Professional associations
Demographics
Psychographics
Product Usage
Product Benefits
Product Use
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Use rates - frequency
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Non-user, first time user, potential user, regular user
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Maintain opportunities for high, medium, low
consumption
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Hilton Honors program, frequent flyer
Can’t focus just on members or season ticket holders
Have opportunities for occasional users
Reserved court time vs. drop-in; single season tickets
Low level users may increase use
Product Use
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Level of ability
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Softball classes
Basketball – full court, half court, fast break/non fast
break
Runners – 5K, 10K, half, full marathon, triathlon
Level of specialization

Beginner vs. advanced
Demographics
Psychographics
Product Usage
Product Benefits
Product Benefits Segmentation
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Divide by desired benefits
What do the following want from a tennis
shoe?
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Marathon runner
Avid walker
Aerobics
TARGET MARKET
STRATEGIES
Target Market Strategies
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Undifferentiated

Differentiated
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Concentrated
Undifferentiated Market

Ignores market segment
differences
Segment 1
Segment 2
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Focuses on what is
common w/i the mkt
rather than differences
Public agencies
Segment 3
Segment 4
1 overall marketing
plan
Differentiated Market
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Target several segments with
separate mixes
Hilton Hotels
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Doubletree
Hampton Inn
Conrad Hotels & Resorts
Hilton Garden Inn
Segment 1
Segment 2
Segment 3
Segment 4
4 specific marketing
plans – 1 per
segment
Concentrated Market

Go after large share of 1-2
markets
Segment 1

Used by smaller co. w/ limited
resources
Segment 2
Segment 3
Segment 4
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Put large portion of resources
into few markets
High risk - segment can change
1 specific marketing
plan
Selecting Target Segments
Undifferentiated
Segment 1
Differentiated
Segment 1
Segment 2
Concentrated
Segment 1
Segment 2
Segment 3
Segment 2
Segment 3
Segment 3
Segment 4
Segment 4
Segment 4
1 overall marketing
plan
4 specific marketing
plans – 1 per
segment
1 specific marketing
plan
Questions
Misc slides
You identify 1 market segment you want to target &
develop a marketing plan for it you are using what
segmentation approach?
1.
2.
3.
4.
Differentiated
Undifferentiated
Concentrated
Commercial
In order to determine you have a viable market segment
you would measure it based on what?
1.
2.
3.
4.
Accessibility
Sustainability
Responsiveness
All of the above
____ are groups of people who are likely to be similar in
terms of demographics. They are often identified by zip
codes.
1.
2.
3.
4.
Critical trade area
Psychographics
Geoclusters
Community
Your project


Sect 4 due 11/11
To date

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Sect 4 A, B, & D
Sect C – lifecycle
Tips

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3rd person
Single space
Heads
Service vs. Product

Intangibility

Inseparability

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
Can’t be separated from
creator or provider
Produced & consumed
at the same time
Consumed at
production site
Service vs. Product

Heterogeneity/
Inconsistency



Can’t standardize a
service
Weather, instructor,
location, time of day
Can’t undergo quality
inspection prior to
delivery
Service vs. Product

Perishability
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Services highly perishable
Can’t be inventoried or stored
Campsite not used is a lost experience
forever
Fluctuating demand

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Ski resorts, outdoor pools, golf
Synchromarketing

Trying to smooth irregular demand fluctuations
Market Segmentation Criteria
1.
2.
3.
4.
5.
Sustainable
Identifiable
Accessibility
Responsive
Perceived Need
Market Segmentation Criteria
Sustainable
1.
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Too few – not worthwhile
Too many – like mass marketing
Purchasing power
Is it worth considering given limited resources


University majors – CAST, KNR, RPA, TR
Cricket fields
Market Segmentation Criteria
Identifiable
2.



Can you measure the size of the market?
Can you distinguish them from the general
population?
Basic demographics…measurable
Market Segmentation Criteria
Accessible / Reachable
3.
Can they be found

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Obese children
HS Drop outs
Isolated seniors
Can they be communicated with?

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Above groups
Children / adults who don’t speak English
Market Segmentation Criteria
4.
Responsive


Ability of the programs to meet needs of the segment
Responsiveness of the segment to marketing initiatives

5.
Use segmentation approach that gets us to a responsive
segment
Perceived Need


May be excluded based on other criteria
Need exists for services

Low income, obese children, youth at risk
When the seller mass produces, mass distributes &
mass promotes one product to all buyers this is
called…
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Market
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Mass marketing
Marketing mix
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When you take a large community and break it into
smaller homogenous sections you are doing what?
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Mass marketing
Segmenting the
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Targeting the market
Manipulating the
marketing mix
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