REC215 Study Guide - Quiz Guide: Janel Mccarville, Baby Boomers, Cluster Analysis
5 Jun 2018
School
Department
Course
Professor
REC 215: Marketing Recreation and Sport Services
Quiz #2 Study Guide
Target market definition
：
A target market is the identification of groups of people with common
characteristics toward which an organization’s marketing efforts are geared
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轮
传
动
的
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Steps in establishing the organization’s target market(s)
1. Separate the current consumers into distinct market segments.
2. Separate the overall market into distinct market segments.
3. Select the market segments that the agency wants to target.
4. Identify if these potential target markets are worthy of becoming the
agencies target markets.
Characteristics of a good market segment
▫ substantial
the segment must be large enough to justify marketing
efforts, budget
▫ Measurable
the segment’s characteristics must be determined
▫ Accessible
the segment must be reachable through communication
channels
The market segmentation process
• Market assessment (internally: is it worthy it?)
• Market identification (shortlist of potential market we tend to
persuade)
• Market selection (are they relevant..)
Variables used in segmentation
• Geographic variables
▫ Where do they live and work?
• Demographic variables
▫ Who are they?
• Psychographics variables
▫ What do they think and want?
• Benefit variables (needs and interests)
▫ What do they want in a leisure experience?
• Behavioral variables
▫ What do they do? How do we reach them?
• Syncographic variables (season, time)
▫ When are they available?
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find more resources at oneclass.com
Approaches to market segmentation – post hoc and a priori
• Post hoc or taxonomies methods of segmentation (e.g. a satisfaction
survey of consumers)
Involves analyzing primary data collected from a large
sample of customers, on a variety of variables
The preferred method of analyzing this large data is:
▫ Cluster Analysis
Classifies consumers into homogeneous clusters
People within each cluster share similar characteristics,
however, the clusters are different from each other
Clusters can be named creatively
• A priori market segmentation (e.g., standard industrial classification
groups, values and life styles – VALS classification system).
Identifying the target market – key questions to ask
• Which target market(s) are _sustainable_? Are they _fragmented_?
• Which target market(s) have the highest probability of _successes_
and the least _competition_?
• Which target market(s) have the greatest need for our expertise?
Which target market(s) can we most effectively serve based on
_existing_ resources?
• Which target market(s) are _reachable_?
• Which target market(s) can we _allocate_ resources?
• Which target market(s) most effectively assist in reaching our overall
agency _goals_? Which target market(s) support our _mission_?
Popular leisure service agency market segments
• Seniors
• Women
• Gay, Lesbian and transgender
• Teens
• Persons with disabilities
• Baby Boomers
Value of target marketing
• More specific and _effective use_ of marketing resources (e.g. budget,
time expertise)
• Greater impact on overall agency effectiveness
• Clearer understanding of markets needs, wants and desires
• Enhanced ability to identify competitive advantages, establish
positioning
• More strategic approach to agency development
Limitations of market segmentation
• It is difficult to segment markets _correctly_
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find more resources at oneclass.com
• It is difficult to identify the most appropriate variables to use to
segment the group
• Agencies can select a market segment that is not viable
• It is difficult to define the size of the market
• There is an expense to analyzing segments and fear that an agency
may not be doing it correctly
• Agencies do not gain full leadership support for developing a
segmented versus mass market approach
• Agencies _do not fully understand_ the concept
Key findings from the Johnson Tew, Havitz, and McCarville (1999) survey of Ontario
municipal leisure service agencies
• To whom are your services directed? (60 agencies)
▫ 5% said all programs were targeted to individuals or to
specifically defined groups
▫ 65% said some programs were targeted whereas others were
developed for the community at large
▫ 30% said all programs and services were developed for
“everyone” in the community
• How were participant groups described? (target markets N = 155)
▫ 36% were described using a single demographic variable (such
as seniors, youth, women)
▫ 28% were described using one demographic and one
behavioural variable (such as female fitness participants)
▫ 23% were described using one behavioural variable (usually an
activity) such as hockey, soccer, etc.
▫ 10% were described using two demographic variables (middle-
aged men)
▫ 3% were described using geographic variables
(neighbourhoods)
▫ None were described in social psychological terms or in terms
of benefits sought
Profile of the Canadian Curler (You do not need to know every detail of the profile. Just
have a sense of the three main segmentation variables used in the study).
• Demographic
• Behaviouristic
• Psychographic
Brand positioning definition
• The perception people have of your leisure/recreation agency in
relation to other leisure/ recreation agencies
• The “place” a program/ service occupies in a customer/ client’s mind
in comparison to competitors’ program/ services
• The goal is to occupy a clear, distinct, and favorable place in the mind
of the customer/ client.
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
A target market is the identification of groups of people with common characteristics toward which an organization"s marketing efforts are geared. Accessible the segment must be large enough to justify marketing efforts, budget the segment"s characteristics must be determined the segment must be reachable through communication channels. The market segmentation process: market assessment (internally: is it worthy it?, market identification (shortlist of potential market we tend to persuade, market selection (are they relevant) Where do they live and work: demographic variables. What do they think and want: benefit variables (needs and interests) What do they want in a leisure experience: behavioral variables. How do we reach them: syncographic variables (season, time) Approaches to market segmentation post hoc and a priori: post hoc or taxonomies methods of segmentation (e. g. a satisfaction survey of consumers) Involves analyzing primary data collected from a large sample of customers, on a variety of variables. The preferred method of analyzing this large data is:
