Chapter 4

Question 1

What is market segmentation and what is it for?

Answer 1

It is a vital step in marketing strategy, it’s used to identify groups of potential buyers.

Question 2

What is the target market?

Answer 2

“Audience segment’ of buyers.

Question 3

What are three market segmentation strategies?

Answer 3

1. By default: not everyone will want, you focus on those who do!
2. Adaptive: differences exist among consumers- strategy can be tailored, or adapted to respond to the motives or berlefits sought by various customer segments
3. Creative: there is no single way or method to segment a population- be creative!

Question 4

What questions can you ask during the process of segmenting consumer
audiences?

Answer 4

1. What are the descriptive characteristics of our customers?
2. What benefits do our customers seek?
3. What behaviors do our customers exhibit?
4. How can we reach and engage our customers?

Question 5

What are the descriptive characteristics used in segmentation?

Answer 5

Demographics, sociological characteristics, sociodemographic characteristics

Question 6

What are examples of demographic characteristics?

Answer 6

Age, sex, place of residence, religion, educational level, marital status

These characteristics help in understanding the basic profile of a population.

Question 7

What are sociological characteristics?

Answer 7

Membership in organizations, household status, interests, values, social groups

These traits are more objective and help in understanding social influences.

Question 8

Define sociodemographic characteristics.

Answer 8

Combination of sociological and demographic characteristics

Includes age, ethnicity, sex, socioeconomic status, marital status, and family size.

Question 9

Why do we use descriptive characteristics in the segmentation process?

Answer 9

They are easy to understand, easy to measure, and have adequate sources of secondary data

These factors contribute to effective market segmentation.

Question 10

What are the motivations for purchase?

Answer 10

1. Desire to identify with sport/event
2. Fulfilling your needs (especially the 3 top needs from Maslow’s Hierarchy of Needs - social needs, esteem needs and self-actualization)

Social needs - friendships, intimacy & family
Esteem needs - freedom, recognition, self-confidence, attention and competence
Self-actualisation - achieving full potential, seeking happiness

Question 11

How can understanding desired benefits help in marketing?

Answer 11

It can be used to identify market segments

By knowing what benefits customers seek, businesses can tailor their marketing strategies to specific groups.

Question 12

Are purchases more often planned or spontaneous?

Answer 12

Most purchases are planned, but some are impulsive

Question 13

What influences customer behaviors?

Answer 13

Psychographic variables, including:
* Personal values
* Opinions
* Attitudes
* Lifestyles
* Hobbies
* Interests

Question 14

What are psychographic variables also referred to as?

Answer 14

They are also referred to as IAO variables - Interest, Activities, and Opinions.

Question 15

What is the difference between learning about descriptive characteristics and learning about benefits sought from purchase?

Answer 15

Learning about descriptive characteristics tells us more about who customers are. Learning about benefits sought from purchase explains why customers buy.

Question 16

How can we divide the targeted audience based on the regularity of them using offered products?

Answer 16

We can divide them into heavy, moderate, light users, and non-users.

Question 17

What does the 80/20 rule say about the usage rate?

Answer 17

The 80/20 rule states that a large majority of consumption typically occurs among a small minority of customers.

Question 18

What questions must be answered to reach/engage targeted customers?

Answer 18

1. Where can we find the targeted audience?
2. What are the communication touch points for interaction? What is the best way to engage them?
3. What kind of media is the most appropriate and cost effective?

Question 19

What is a communication touch point?

Answer 19

Possible opportunities for interacting with customers and prospects, whether using call centers, salespeople, direct contact in shops/shows, company websites or e-mail.

Question 20

Which Product Offering Decisions are impacted by Segmentation?

Answer 20

1. Ticket sales
2. Experiential events
3. Licensed merchandise
4. Sponsorships
5. Media content

Question 21

What can be improved about ticket sales to increase purchases?

Answer 21

1. Appeal to light users: attempt to advance their relationship with the brand.
2. Expand geographic footprint: Tap new markets by securing media partners, establishing retail locations, and using experiential events to connect with people in outlying areas.
3. Appeal to motivations of buyers: Using marketing to help buyers understand how their needs can be met.

Question 22

What is experiential marketing?

Answer 22

Experiential marketing is the act of creating unique, face-to-face branded experiences.
Instead of just sending a message to your audience- digitally or otherwise - you’re creating an opportunity to interact with your brand in person.

Question 23

What are the main characteristics of experiential marketing?

Answer 23

• Enduring and impactful
• Involve customers
• Create memorable associations
• Differentiator for a business
• Implements audience segmentation

Question 24

How does marketing segmentation influence licensed merchandise?

Answer 24

Marketing segmentation licensed merchandise can:
• Target highly involved fans
• Target new demographic segment (e.g., younger generation)
• Target new geographic segment (new country)
• Target new channel segment (e.g., new products licensing)

Question 25

How does marketing segmentation influence sponsorship?

Answer 25

Marketing segmentation allows companies to focus on: • Targeting specific demographic segment (e.g., expanding appeal among a specific age or income group) • Targeting specific geographic segment (e.g., entering a new local, regional, or national market) • Targeting specific lifestyle segment (e.g., appealing to people with active lifestyles such as bicyclists or runners)

Question 26

How does marketing segmentation influence media content?

Answer 26

It creates segmentation options for media content like: • Fantasy sports (e.g., FIFA, Yahoo Fantasy Sports): Attract casual fans to increase their involvement with a sport • Social networks (e.g., websites, media groups): Target avid fans to give them a virtual gathering place to interact with fellow fans • Sports news and programming: Offer content based on sports of interest in a rather narrow geographic area through niche media outlets

Question 27

For what purpose can segmentation options for media content be used?

Answer 27

Segmentation options for media content can be used to escalate involvement of casual fans or reinforce high-involvement fans' relationship with sports.