SPTE 380 1st Edition Lecture 6 Outline of Last LectureMarket Research in the Sports IndustryChapter 4 Market Research in the Sport Industry (pg. 88)Objectives• To become aware of the various sources of data and information available within the sport industry and how businesses go about obtaining or collecting data• To understand which business functions benefit the most from data-driven decision making• To understand how the sport industry uses market research methodologies in daily business activities through case study examplesSport Market Research• Within the sport industry, market research is defined as the provision of insight and information on sports fans culled from a variety of data sources.• Ex: Wrangler’s used market research by surveys (primary) and demographics of Austin (secondary/quantitative)Sources of Information• Syndicated data are data that have been collected, organized, and repackaged for consumption.• Ex: Marketing to Retirees Strategy- getting retirees to attend event Tactics- newspaper – U.S. Census– Demographic profiling (data provided by syndicated research companies)– Audience measurement (e.g., Nielsen or Arbitron)– Broadcast exposure (e.g., Joyce Julius or Repucom)– Custom research uses customized methodology and collection of data for use by a specific source.– Custom research produces primary data, that is, data not already collected and available for usage.– Custom research of consumers falls in one of two categories:• Quantitative data or qualitative data• Methods of custom research data collection:– Quantitative surveys (online, intercepts, telephone, direct mail)– Qualitative interactions (in-depth interviews, focus groups, ethnography)– Other qualitative sources (social media, business-to-business research)Online Surveys• BenefitsThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute. Demographic profiling– Readily available access– Readily available survey-design software– Can target specific participants– Quick access to data• Drawbacks – Limited to e-mail address access– Can be blocked by potential participants– May produce relatively low response rates• Intercepts• Intercepts target consumers in a specific location, such as those attending a sport venue.• Tips for effective intercept data collection: – Employ objective, unbiased staff in unbranded attire.– Employ an adequate number of interviewers.– Keep the questionnaire short.– Have the staff use a sampling scheme. Telephone• Use as a data collection technique has dropped off dramatically in recent years (e.g., do not call list).• Participants’ phone numbers are often easier to access than e-mail addresses.• Can use random digit dialing (RDD).Direct Mail• Has declined in popularity.• Requires additional labor to input data after responses are mailed.• Response rate is often low. • Offers respondents assurance of confidentiality.In-Depth Interviews• Helps extract deeper and more detailed data.• Can be cost effective depending on organization’s objectives.• Interviewer should use a discussion guide.• Location of interview can affect responses.• Best to use third-party or neutral discussion leader.Focus Groups• Typically include between 5 and 12 participants.• Groups should have high level of homogeneity.• Focus groups allow observation of nonverbal cues.Ethnography• In-depth observations of participants.• In sport marketing, ethnography may include observation of spectators before, during, or after an event.• Can be time intensive to conduct.• Must build trust with participants.Users of Sport Market Research• Professional sport leagues• Professional sport properties (teams)– Measure things such as ticket prices, fan satisfaction, and sponsorship effectivenessSponsors– Challenges involved in measuring effectiveness– Must identify baseline metrics or key performance indicators before conducting research and analysisPerforming the Right Research• Many sport organizations undervalue or do not commit adequate resources to market research efforts.• Identify the business objective at hand.• Let the objective define methodology, never vice versa.• Plan as much as possible.• Have a sense of budget before moving forward.• Search out a research partner, not just a supplier.Current Lecture:Chapter 5: Market SegmentationObjectives• To appreciate the essential role of segmentation in the marketing process in order to match the right product offer to the correct target• To recognize the standard bases of market segmentation in sportMarket Segmentation Defined• The process of dividing a large, heterogeneous market into more homogeneous groups of people who have similar wants, needs, or demographic profiles, to whom a product may be targetedPurpose of Segmenting• Specialize• Focus on those most likely to buy• Meet wants and needs without exhausting resources• Provide product, price, promotion, place, and public relations in the right way• Identifiability, Accessibility, Responsiveness• Identifiability: Can the marketer identify a segment? • Accessibility: Can the marketer access the segment?• Responsiveness: Will the segment be responsive to marketing efforts in terms of wants and needs, and is it worth targeting the segment?Four Bases of Segmentation• State of being• State of mind• Product benefits• Product usage• State-of-Being Segmentation• Geography• Age• Income• Education• Gender• Sexual orientation• Race and ethnicityState-of-Mind Segmentation• State-of-mind segmentation assumes that consumers may be divided by personality traits; by lifestyle characteristics such as attitudes, interests, and opinions; and by • Values and lifestyle (VALS) typology– Innovators– Thinkers – Achievers – Experiencers – Believers – Strivers – Makers – SurvivorsProduct Benefits Segmentation• What does the customer want from the experience or product?– Socialization– Excitement– High performance– Entertainment– Affordability– Affirmation– RecognitionProduct Usage Segmentation• Sport marketers need to understand that their consumers can be segmented based on how much they use the product. – Common divisions include heavy, medium, and light users.– 80-20 rule: 80 percent of business comes