I know I have talked about
marketing segmentation in a previous blog, but my interest in this has
increased throughout this class as well as my marketing 409 class. In this blog
I will dig deeper into the bases of Marketing Segmentation. I will identify the
meaning of segmentation, the purpose of segmentation, and the demographic
statistics for marketing segmentation in college sports.
Market segmentation, as defined in
class is dividing large groups of consumers into smaller groups based on
similar wants and needs. After dividing consumers into groups, you can develop
a marketing mix for this specific group. The purpose of segmenting is
specialization, concentrating on specific customer needs, and developing
promotions for specific groups of people. Market segments are created by dividing
groups based on four factors: demographics, psychographics, behavior, and a
hybrid segment. Each is truly important in developing the right marketing mix
for the right group of consumers. The one I will focus on is demographics. “Demographics
are data used to refer to selected population characteristics, used by the
government, in marketing, and in opinion research” (this definition is from
getbrandwise.com). There are many different aspects when talking about
demographics in marketing segmentation. These aspects include age, gender,
ethnicity, income, family life cycle, and geographic locations.
For this particular blog I did some
research on the demographic characteristics of college sports fans. Most of the
information I am going to present came from the Learfield Sports website. The age demographics for college sports had
little variation; in fact the range had a difference of only 8%. The highest
category was from ages 45-54 at 20%. Ages 18-24 was the group with the lowest
amount of fans of college sports, at 12%. This number is very shocking to me. I
figured that this category would be the highest due to the fact that these are
the ages you attend college, and have an allegiance toward a specific
university. I would think many universities
also sell discounted students tickets, which should increase the amount of fans
at this level. Gender, another aspect of
demographics, is also important when looking to segment the market. Males make
up 60% of college sports fans, while females make up 40%. These numbers are
expected and are not very surprising when looking at the gender of college
sports fans. I think that male fan numbers are so high due to the competitive
nature of males as well as the greater number of males in collegiate athletics.
Ethnicity also had an interesting
breakdown in percentages of people who are fans. The highest group, at 80%, was
whites and the lowest group was Asian fans, at 3%. Only 13% of African
Americans are fans of college sport. 13% seems kind of low to me due to the
fact that a majority of athletes playing sports at the collegiate level are
African Americans. The fourth aspect of demographics is income. Most fans of
college sports are in the range of people who make 0-49 thousand dollars annually.
The next highest percentage of fans is people who make 100 thousand or more.
The two lowest categories were the ones that I would have thought would have
been the highest. The people with the least amount of time and money have the
biggest percentage of fans of collegiate sports. Family life cycle is another
basis for looking at demographics. There were two different statistics for
family life cycle, if you were married and were a fan and how many children you
had. 59% of college sport fans are married. I think this statistic could be
skewed and a little confusing. It is not clear if they are currently or were
married at one time. Another aspect that needs to be looked at is what percent
of Americans are married. The only statistic I could find on this was from the
year 2000, when 57% of Americans were married. For parents with children, 30%
of fans have one to two children where only 8% have 3 or more children. This I
would think is mainly due to the amount of extra time parents have. If they
have more children they have less time to pay attention to sports, and if they
have less children they have more time for sports. The last aspect of
demographics is geographic location. I could not find accurate data for this
aspect. The best data I could find was on fans of just college football. The
data gathered showed that most football fans were in the West and Midwest, both
at 57%. I think this data looks odd in the first place because I find football
to be much bigger in the south, than anywhere else. If you added all sports
into the equation, I think you would find a greater shift of fans in the East
due to the number of basketball schools along the east coast.
Demographics are just one way to
determine how to segment the market. It is important to look at all the aspects
and characteristics of market segmentation. Taking all factors into
consideration helps you develop the best possible marketing strategies and
mixes to reach the needs of all consumers.
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