SEM1 3.01 A - Market Planning

1. SEM1 3.01A - Market Planning PE – Select target market appropriate for product/business to obtain the best return on marketing investment PI – Describe the nature of target marketing in sport/event marketing

2. Terms • Market – includes the group of all potential customers who share common needs • Target market – group of very specific customers that a company desires to have as consumers • Mass marketing – single marketing plan to reach all consumers – Ex: bottled water • Marketing segments – groups of unique individuals that share common characteristics • Market segmentation – dividing the entire market into smaller groups that share common characteristics & to create a target market – niche market would be an example

3. The importance of target markets to SEM & why is it increasing • Provides them with a group of potential or existing customers in which to communicate • About their good or service to match, understand & satisfy customer needs – (leads to customer retention too!) • Who is buying, what do they buy and why do they buy – the more you know the better your product can satisfy those specific needs

4. The importance of target markets to SEM & why is it increasing • Develop a specific, targeted marketing mix • Reflect differences in customer tastes & their needs • Increased sales & profits from each targeted market & more opportunities for growth • Make sure the customers you are targeting have the willingness and ability (disposable income) to purchase

5. Describe advantages & disadvantages of using Market Segments • Advantages • Distinctive/Identifiable • Accessible/Actionable • Easy to get to • Measurable/Definable • Substantial • Large enough to make a difference • Stable • Will be around long enough for marketing to work • Disadvantages • Wrong market • Can’t reach them • No real data • Bad forecasts or information • Fads

6. Describe advantages & disadvantages of Mass Marketing • Advantages • Less confusion • To implement • To customers • Less promotional cost • Less work • Strategic thinking • Manual hours • Disadvantages • Single message may not reach enough customers • May not keep pace with new trends • Lost sales opportunities • Harder and more costly to gain a new customer than to retain an old one

7. Quiz Preview • #1 What type of marketing sales services to females 18-35 who snowboard? • Geographic • Industrial • Target • Undifferentiated • #5 Which of the following phone apps would best suit NBA fans? • Racquets of Glory • Slam Dunk Challenge • Punt, Pass, Kick Challenge • Gran Turismo • #7 A journalist from the PGA wrote an article on a young upcoming golf sensation. What publication would most likely publish this article? • Tennis Today • ESPN The Magazine • Golf Digest • The Surfer

8. Market Research Assignment Find 5 products or services of your choosing: Identify the target market (age range, % of male/female, % of ethnicity, income level, family size) How is the company reaching their target markets? (mass marketing, market segments, market segmentation, or combinations) Create in PowerPoint and submit to Edmodo due by end of class

9. Trends to smaller market segments 1950’s - Mass Marketing 1960’s Market Segments 1970’s Niche Marketing 1980’s Mass Customization 1990’s Micro-Marketing 2000’s E-Marketing

10. Demographic Market Segmentation • Age • Generation • Baby-boomers (‘46 – ’64) • X (‘65 – ’76) • Y (‘77 – ’93) • Z (‘94 – ’04) techies • Gender • Family size • Family life cycle • Income • Disposable & Discretionary • Occupation • Education • Ethnicity • Nationality • Religion • Social Class

11. Geographic Market Segmentation • Region: by continent, country, state, city, neighborhood or street • Size of metropolitan area: segmented according to size of population • Population density: often classified as urban, suburban or rural • Climate: according to weather patterns common to certain geographic regions

12. Psychographic Market Segmentation • Activities • Interests • Opinions • Attitudes • Values • Lifestyles • What a person likes to do

13. Behavioral Market Segmentation • Behavior towards a product • Benefits sought by the customer • Usage Rate – how often do they purchase? • Brand Loyalty – they expect something • User status – potential, first-time or regular • Readiness to buy – urgency • Occasions like holidays, birthdays & events that stimulate purchases

14. Quiz Preview • #2 Which of the following is a factor that sports and entertainment marketers consider when targeting customers for a specific event • personalities • demographics • expectations • affiliations • #3 Which of the following is most likely to be a target market for Disney on Ice? • Male/Female 12-18 • Female 5-17 • Male/Female of all ages • Male/Female 3-12 • #4 The promoters of an extreme-sports weekend would most likely target which of the following • professional athletes • older men, ages 40-50 • business executives • young men, ages 12-34

15. Unit 3 Project Part 1 You are the Marketing Coordinator for one of the following: Theme Park (i.e. Carowinds, Six Flags, Busch Gardens, Disney World, Sea World, etc) Cinema (i.e. Carmike, Regal, AMC, etc) Emphasize 2013 Summer Movies You are to coordinate all advertising efforts for the upcoming 2013 Summer Season. Your first task is to identify your target market: Slide 1: Define the Target Market of your Theme Park or Cinema What are the Demographics of your Target Market? (age, race, gender, family size, income level) What are the Geographics of your Target Market? (region, size of metropolitan area, population density, climate) What are the Psychographics of your Target Market? (activities, interests, opinions, attitude, values, lifestyle) Slide 2: Choose one specific event at your Theme Park/Cinema (i.e. Particular Ride or Specific Movie) and further define your Target Market for that specific event. What are the Demographics of your Target Market? (age, race, gender, family size, income level) What are the Geographics of your Target Market? (region, size of metropolitan area, population density, climate) What are the Psychographics of your Target Market? (activities, interests, opinions, attitude, values, lifestyle) Complete in PowerPoint and submit to Edmodo by the end of class.