Marketing STP Components and Segmentation Types

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Questions and Answers

Which statement accurately describes personal selling?

It is less effective than digital marketing.

It is a cost-effective marketing communication method.

It requires skilled sales representatives. (correct)

It is the oldest but most effective form of marketing communication.

What is the primary objective of Integrated Marketing Communication?

To focus solely on digital marketing strategies.

To ensure a unified message across different promotional elements. (correct)

To create confusion among competitors.

To reduce the total marketing budget.

Which of the following is not an example of a marketing communication medium?

Market plan Signup and view all the answers

What is NOT a phase of promotional planning?

Identifying market trends Signup and view all the answers

Which of the following is NOT considered a tool in the promotion mix?

Investments Signup and view all the answers

What type of institution does sport represent due to its significant influence?

Social Signup and view all the answers

Efforts to support one’s sponsorship with additional strategic initiatives is known as what?

Activation Signup and view all the answers

What is unique about sport marketing compared to traditional marketing?

It has fixed supply Signup and view all the answers

What distinguishes a sport offering from other products like cars or flights?

It is perishable and produced at the same time it is consumed Signup and view all the answers

Reasons for the tremendous growth in sport sponsorship over the past three decades include which of the following?

Increased media interest in sport. Signup and view all the answers

What is a notable characteristic of sport financing in professional sports?

Unconventional revenue sources are significant Signup and view all the answers

Today's sport sponsorship can best be described as what?

A calculated approach to reach target audiences through sports. Signup and view all the answers

What is the final stage in the hierarchy of effects model?

Action/Purchase Signup and view all the answers

Which of the following best describes examples like discounts and coupons?

Sales promotion Signup and view all the answers

What defines a form of mass communication that is paid for by an identified sponsor?

Advertising Signup and view all the answers

What is a common misconception about the nature of sports offerings?

They are produced independently from consumption Signup and view all the answers

What is the average royalty rate for trading cards and video games?

20% Signup and view all the answers

Which of the following statements about licensed merchandise distribution channels is incorrect?

E-Commerce Signup and view all the answers

Trademarks can include which of the following elements?

Words, sounds, and shapes Signup and view all the answers

Under the Federal Trademark Act of 1946, what is defined as 'any word, name, symbol, or combination thereof used by a merchant to identify goods'?

Trademark Signup and view all the answers

What role does the league or team play in a formal licensing agreement?

Licensor Signup and view all the answers

Which statement about royalty fees is false?

Royalty fees are based on net sales. Signup and view all the answers

Which of these is not a common channel for licensed sports merchandise distribution?

E-commerce Signup and view all the answers

How many colleges and universities offer licensing programs?

About 300 Signup and view all the answers

Which statement about the title page of a sponsorship proposal is incorrect?

It should include the company's logo. Signup and view all the answers

What is one incorrect understanding of the role of a sponsorship proposal?

To assist in selling the connection to a company. Signup and view all the answers

Why is measuring sponsorship essential for rights holders?

It enhances understanding of promotional potential. Signup and view all the answers

Which type of exposure is NOT typically measured against paid advertising rates in sponsorship measurement?

Extent of social media impressions. Signup and view all the answers

What complicates the measurement of sponsorship from a practical perspective?

The impact of uncontrolled environmental factors. Signup and view all the answers

Why has sponsorship measurement been viewed as complex and controversial academically?

Sponsorship objectives vary widely. Signup and view all the answers

Which of the following is a common assumption about sponsorship proposals that is incorrect?

They only serve to inform the potential sponsor without strategic goals. Signup and view all the answers

What is a misconception regarding the objectives of sponsorship measurement?

It only focuses on financial benefits for the sponsor. Signup and view all the answers

Which component of STP involves determining how consumers should perceive an offering compared to competitors?

Positioning Signup and view all the answers

Which type of market segmentation would be used to categorize consumers based on their income level?

Demographic segmentation Signup and view all the answers

What is the primary focus of psychographic segmentation?

Understand consumer lifestyles and motivations Signup and view all the answers

What is NOT a segment characteristic when breaking down a market in segmentation?

Expendable Signup and view all the answers

When selecting a target market, which factor does NOT typically influence the decision?

Prevalence of social media Signup and view all the answers

Which provision is generally not included in naming rights deals?

Disclosure of the total cost of the naming rights agreement Signup and view all the answers

Which of the following correctly matches the market segmentation type with its description?

Psychographic - based on personality traits Signup and view all the answers

If a sport marketer wants to group consumers by their participation in recreational sports, which type of segmentation would they be using?

Behavioral segmentation Signup and view all the answers

Which statement about naming rights is accurate?

Naming rights sold to well-established brands generally face community acceptance. Signup and view all the answers

Which method is not typically used by licensors to combat counterfeit goods?

Utilizing advanced computer algorithms for tracking Signup and view all the answers

Which of the following is considered a target market component in the STP process?

Resource allocation and commitment Signup and view all the answers

Which statement regarding royalty fees in licensed merchandise is inaccurate?

Licensers face the highest financial risk in licensing agreements. Signup and view all the answers

Which statement about licensing agreements is incorrect?

Exclusive product categories generally incur lower royalty rates. Signup and view all the answers

What factor is most important for public acceptance of naming rights?

The reputation of the organization buying the rights Signup and view all the answers

Which of the following is not a primary element of the licensing agreement?

Exclusions of specific product categories Signup and view all the answers

How do licensors generally classify their agreements?

Exclusive or non-exclusive agreements Signup and view all the answers

Study Notes

STP Components

Segmentation is dividing the market into homogeneous, reachable, responsive and sustainable groups. It focuses on who, what, where, why, when, and how.
Targeting involves selecting which market segments to commit resources. It assesses size, reach, profitability, and measurability.
Positioning outlines how the selected segments perceive the offering in relation to competitors. It defines the product position within the target market's perception.

Market Segmentation Types

Socioeconomic: Segmenting based on occupation.
Demographic: Segmenting based on age, gender, or ethnicity.

Market Segmentation (STP)

A process comprising segmentation, targeting, and positioning.

Consumers of Sport

Spectators
Participants
Sponsors are all considered consumers of sport.

Perceptual Maps

Tools for marketers to understand how consumers perceive sports products/services. Maps visually show the dimensions and location of products/services, relative to competition.

Components of STP Model

Segmentation - dividing the market into groups.
Targeting- choosing which groups to focus on.
Positioning- defining how the product will be perceived by the target group.

AIO Dimensions

Activities, Interests, and Opinions.

Perceptual Map

A visual representation of consumer perceptions of brands, products, or services in the marketplace.

Unique Features of Sport Business

Unique features distinguish sport business from mainstream business models, highlighting its distinctiveness. These include its unique characteristics as a social institution.

STP Model Elements

Segmenting the market into groups.
Targeting a specific segment
Positioning the product or service within a segment.

Sport Financing

Funding sport through unconventional revenue centers (like sponsorships, naming rights, TV rights, merchandise sales, etc.).

Marketing Communication

A set of activities communicating a product, brand, service, etcetera to consumers.

Important aspects of Sport Marketing

The unique aspect of sport marketing is the emphasis on the fixed supply and rational consumer decision-making, contrasted with the variability of outcome in sports events.

Personal Selling

One of the promotional marketing components used in sport marketing, typically used to target a select demographic (e.g. VIPs, sponsors). Also, it is a costly component of marketing.

Integrated Marketing Communication (IMC)

A strategy for delivering a consistent message about a business or its products.

Marketing Communication Mediums

Various methods used to communicate with potential customers include TV, stadium signage, and websites.

Sponsorship

A significant method of financing for professional sports teams and leagues (alongside ticket sales).
Investment to access a unique marketing opportunity.
Companies gain potential benefits such as: stronger brand recognition, increased sales, and better market position.
Sport teams/leagues gain financial support and recognition.

Sponsorship Triangle

A concept in sponsorship, featuring the sponsor, sponsee (athlete or organization), and media. These three elements are important and need to be considered when crafting a sponsorship deal.

Sponsorship Stages

Sponsorships have stages, such as attention, understanding, engagement, appreciation, and commitment.

Sponsorship Categories

An effective and popular category used is cause-related marketing.

Marketing Communication Elements (e.g., Promotional Mix)

These methods often include advertising, personal selling, sponsorship, and publicity.

Branding

The act of creating a name and associated identifiers to distinguish a company's products from competitors'. This is done through identifying symbols, and logos.

Common Sponsorship Mistakes

Inadequate focus on relevance.
Too much emphasis on brand and prestige without addressing actual needs.

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Description

This quiz explores the key components of segmentation, targeting, and positioning (STP) in marketing. It also covers various market segmentation types, including socioeconomic and demographic factors. Understand how consumers of sports, such as spectators and sponsors, impact marketing strategies.