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chapter
6
Market
Segmentation
Objectives
• To appreciate the central role of
segmentation in the marketing process
• To recognize the standard bases of market
segmentation in sport
Market Segmentation
The process of dividing a large, heterogeneous market into more homogeneous
groups of people, who have similar wants,
needs, or demographic profiles, to whom a
product may be targeted
Purpose of Segmenting
• Specialize
• Focus on the most likely to buy
• Meet wants and needs without exhausting
resources
• Provide product, price, promotion, place,
and public relations in the right way
Identifiability, Accessibility,
Responsiveness
• Identifiability: Can marketer identify a
segment?
• Accessibility: Can marketer access the
segment?
• Responsiveness: Will the segment be
responsive to marketing efforts in terms of
wants and needs, and is it worth targeting
the segment?
Four Bases of Segmentation
1. State of being
2. State of mind
3. Product benefits
4. Product usage
State of Being
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Where a person lives
Income
Age
Family status
Number of children
Profession
Education
Gender
Sexual orientation
Race and ethnicity
Values and Lifestyle (VALS) Typology
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Innovators
Thinkers
Achievers
Experiencers
Believers
Strivers
Makers
Survivors
Benefits
What does the customer want from the
experience or product?
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Socialization
Excitement
High performance
Entertainment
Affordability
Affiliation
Recognition
Product Usage
• 80–20 rule: 80% of business comes from
20% of the customers.
• Repeat business is the key to success (e.g.,
season-ticket holder vs. single-game
attendee).
• Serious runner seeks support, shock
reduction, and long wear in shoes; casual
wearer seeks light and fashionable shoes as
regular footwear.
User Group Segmentation: Spectator
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Unaware: Nonuser
Aware: Nonuser consumer
Media consumer
Light user
Medium user
Heavy user
Defector
Use of Database in Segmenting
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State of being
State of mind
Usage
Benefits
Manipulated to specify approach to different
segments (promotions)
• General letter vs. invitation to personal sale