Marketing An Introduction
FYI… • Exam • Tuesday – library 213C • Project • Single vs. double • Due Monday night via e-mail
Why marketing in recreation? • Which sector relies on marketing the most? Least? • How were programs marketed in internships? • Marketing is a function of all staff & not just marketing staff
How would you describe these products in promo materials?? • Youth volleyball league • ISU Homecoming events • New Marriot Hotel in Uptown Normal • Gold’s Gym Membership • Las Vegas • Season tickets to Prairie Thunder Hockey
Inputs Programs Outputs Outcomes Resources dedicated to the programs and services Financial Human Technological Physical Programs, products & services offered Seniors in organized golf activity Creative art experience for parent & child City beautification 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 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?
Personal/Individual Wellness Relaxation Social Reduce loneliness Strong families Make friends Economic Preventative health Reduce cost of vandalism Environmental Conservation Environmental rehabilitation Types of Outcomes Your program???
Markets &Segmentation What is a market?
Markets • Set of actual and potential buyers • Potential markets for…????? • Textbooks • Sporting event tickets • Hiking boots • Nursing homes • Jaguars Is everyone a potential market???
Mass Marketing • Seller mass produces, mass distributes & mass promotes one product to all buyers • Examples??? • Weaknesses of mass marketing for non-mass products
Market Segmentation • Divides a heterogeneous group into smaller homogenous segments • Groups have similar wants & responses • Basic to all marketing efforts
Target Marketing • Seller identifies market segments, selects 1 & develops products and marketing mixes for them • 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 • Sect 4 due 11/8 • Third person • Headers
How would you segment a market? Bases of Segmentation
4 Bases of Segmentation • Demographics • Psychographics • Product usage • Product benefits
Demographics • Geography • Proximity • Closeness associated with involvement • Closer to the activity, the higher the participation • Ie. Campus recreation, Thai club…
Demographics • Geography • Geoclusters • 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
Demographics • Income • Determines lifestyle • Influences advertising market for certain products • Golf vs. football • Where would you advertise these products? • Ralph Lauren • REI
Demographics • Age • One of the most effective variables • 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 • Age • Mature Market – 55+ • Stereotyped as inactive & thrifty – untrue! • Living longer & more active • 28% are over 50+…. • 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 • 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 • Influence purchase of $239 billion per year • 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 • Age • Example – youth as a NASCAR target • Hook them young & white collar • Remove tobacco & move to mainstream sponsors • Add kid friendly items
Demographics • 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 • Gender • Gender impact on products • 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 • Gender • Female buying power…she-conomy • $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 • Race • 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 • Commonalities passed down through history & tradition • Historical link, shared religious beliefs, linguistic commonalities, common morals • Shared culture
Demographics • Race & Ethnicity • Can’t divide based on race/ethnicity alone • Don’t stereotype consumption – do research • Examples of advertising to different ethnic/racial groups?....
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 • Sexual Orientation • LGBT markets are “untapped goldmines” • Higher income & education • Median household income $70,000, 30% over $100,000 • $43,318 for heterosexual households • 37% have a college degree, 20% have a graduate degree • 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 • Travel & tourism capitalizing on this market • Key West, Philadelphia, Toronto • Cruises • Resorts • Disney Gay Days…
LGBT Geoclusters • Palm Springs, CA 92264 • Provincetown, MA 02657 • Palm Springs, CA 92262 • Fort Lauderdale, FL 33305 • West Hollywood, CA 90069 • San Francisco, CA 94131 • Dallas, TX 75219 • Rehoboth, DE 19971 • Detroit, MI 48069 • Honorable mention • 60657 Chicago, IL (Wrigley, Lincoln Park) • 60640 Chicago, IL (Randolph & Wacker Dr.)
Demographics Psychographics Product Usage Product Benefits