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?

<p>Market plan (B)</p> Signup and view all the answers

What is NOT a phase of promotional planning?

<p>Identifying market trends (A)</p> Signup and view all the answers

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

<p>Investments (A)</p> Signup and view all the answers

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

<p>Social (D)</p> Signup and view all the answers

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

<p>Activation (A)</p> Signup and view all the answers

What is unique about sport marketing compared to traditional marketing?

<p>It has fixed supply (D)</p> Signup and view all the answers

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

<p>It is perishable and produced at the same time it is consumed (A)</p> Signup and view all the answers

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

<p>Increased media interest in sport. (B), Sponsorship as a way for companies to stand out. (C)</p> Signup and view all the answers

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

<p>Unconventional revenue sources are significant (C)</p> Signup and view all the answers

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

<p>A calculated approach to reach target audiences through sports. (A)</p> Signup and view all the answers

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

<p>Action/Purchase (D)</p> Signup and view all the answers

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

<p>Sales promotion (A)</p> Signup and view all the answers

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

<p>Advertising (B)</p> Signup and view all the answers

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

<p>They are produced independently from consumption (C)</p> Signup and view all the answers

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

<p>20% (A)</p> Signup and view all the answers

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

<p>E-Commerce (D)</p> Signup and view all the answers

Trademarks can include which of the following elements?

<p>Words, sounds, and shapes (B)</p> 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'?

<p>Trademark (A)</p> Signup and view all the answers

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

<p>Licensor (C)</p> Signup and view all the answers

Which statement about royalty fees is false?

<p>Royalty fees are based on net sales. (C)</p> Signup and view all the answers

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

<p>E-commerce (C)</p> Signup and view all the answers

How many colleges and universities offer licensing programs?

<p>About 300 (B)</p> Signup and view all the answers

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

<p>It should include the company's logo. (D)</p> Signup and view all the answers

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

<p>To assist in selling the connection to a company. (A)</p> Signup and view all the answers

Why is measuring sponsorship essential for rights holders?

<p>It enhances understanding of promotional potential. (B)</p> Signup and view all the answers

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

<p>Extent of social media impressions. (B)</p> Signup and view all the answers

What complicates the measurement of sponsorship from a practical perspective?

<p>The impact of uncontrolled environmental factors. (A)</p> Signup and view all the answers

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

<p>Sponsorship objectives vary widely. (B)</p> Signup and view all the answers

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

<p>They only serve to inform the potential sponsor without strategic goals. (C)</p> Signup and view all the answers

What is a misconception regarding the objectives of sponsorship measurement?

<p>It only focuses on financial benefits for the sponsor. (D)</p> Signup and view all the answers

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

<p>Positioning (A)</p> Signup and view all the answers

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

<p>Demographic segmentation (C)</p> Signup and view all the answers

What is the primary focus of psychographic segmentation?

<p>Understand consumer lifestyles and motivations (A)</p> Signup and view all the answers

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

<p>Expendable (B)</p> Signup and view all the answers

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

<p>Prevalence of social media (C)</p> Signup and view all the answers

Which provision is generally not included in naming rights deals?

<p>Disclosure of the total cost of the naming rights agreement (D)</p> Signup and view all the answers

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

<p>Psychographic - based on personality traits (B)</p> 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?

<p>Behavioral segmentation (D)</p> Signup and view all the answers

Which statement about naming rights is accurate?

<p>Naming rights sold to well-established brands generally face community acceptance. (A)</p> Signup and view all the answers

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

<p>Utilizing advanced computer algorithms for tracking (D)</p> Signup and view all the answers

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

<p>Resource allocation and commitment (A)</p> Signup and view all the answers

Which statement regarding royalty fees in licensed merchandise is inaccurate?

<p>Licensers face the highest financial risk in licensing agreements. (D)</p> Signup and view all the answers

Which statement about licensing agreements is incorrect?

<p>Exclusive product categories generally incur lower royalty rates. (C)</p> Signup and view all the answers

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

<p>The reputation of the organization buying the rights (B)</p> Signup and view all the answers

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

<p>Exclusions of specific product categories (C)</p> Signup and view all the answers

How do licensors generally classify their agreements?

<p>Exclusive or non-exclusive agreements (B)</p> Signup and view all the answers

Flashcards

Market Segmentation

Dividing the market into smaller groups with similar characteristics.

Targeting

Selecting the specific groups of consumers to target with marketing efforts.

Positioning

Creating a distinct image or impression of a product in the minds of consumers.

Demographic Segmentation

Groupings based on characteristics like age, gender, and ethnicity.

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Socioeconomic Segmentation

Grouping based on income, occupation, and education level.

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Psychographic Segmentation

Categorizing consumers based on their values, lifestyles, and personalities.

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Sport Consumers

Individuals who consume or use sports products and services.

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Market Selection Decisions

Encompasses the strategic decisions made in STP (segmentation, targeting, positioning) to define the marketing approach.

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Sport: A Social Institution

Sport is a significant social phenomenon, impacting various aspects of society.

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Unique Aspect of Sport Marketing

Sport marketing distinguishes itself by presenting a fixed supply of events, unlike products with variable production.

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Sport Offering vs. Conventional Products

Sport offerings are unique due to their simultaneous production and consumption, limited availability, unpredictable outcomes, and interdependent production among teams.

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Unique Aspect of Sport Financing

Professional sport financing differs because a significant portion of revenue comes from unconventional sources like sponsorships, naming rights, and merchandise sales.

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Action/Purchase

The final stage of the Hierarchy of Effects model, where the consumer takes action based on the marketing message.

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Sales Promotion

Promotional strategies used to incentivize customers, including discounts, contests, and coupons.

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Advertising

A form of paid communication designed to reach a wide audience, promoting a product, service, or idea.

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Hierarchy of Effects Model

The Hierarchy of Effects model outlines the stages consumers go through when influenced by marketing, from awareness to purchase.

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Integrated Marketing Communication

A process that ensures all marketing communication elements convey a consistent message about the organization and its offerings.

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Personal Selling Cost

Personal selling is one of the most costly marketing communication methods.

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Personal Selling: Oldest Approach

It is the oldest form of communication, relying on direct interaction between a salesperson and a customer.

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Marketing Communication Mix

Marketing communication tools include advertising, public relations, sales promotion, personal selling, and direct marketing.

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Personal Selling: Building Relationships

It involves engaging in direct, interactive communication with the goal of building customer relationships and achieving sales.

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Sponsorship Activation

Sponsorship activation encompasses supplemental efforts beyond the initial sponsorship agreement. It aims to maximize its impact and value.

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Reasons for Sports Sponsorship Growth

The increased media attention and the desire for companies to break through advertising clutter are significant reasons for the surge in sports sponsorship.

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Market Plan: Not a Medium

A marketing plan outlines strategies for achieving business objectives. It's not a marketing communication medium.

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Sponsorship Proposal's Real Job

A sponsorship proposal should be structured to help your contact person convince their company to sponsor your event.

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Media Exposure Measurement

Quantifying and measuring exposures like TV coverage, radio mentions, and press coverage to see how much the sponsor's brand was seen or heard.

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Why Sponsorship Measurement Matters

Important for understanding the event's promotional value, justifying sponsorship fees, and renewing future agreements.

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Challenges of Sponsorship Measurement

The simultaneous use of other marketing tactics, unpredictable economic conditions, and pursuing multiple sponsorship goals.

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What a Sponsorship Proposal Should Look Like

A sponsorship proposal should be professionally formatted, including letterhead, design elements, and the sponsor's logo.

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Purpose of a Sponsorship Proposal

The goal is not to assume the sponsorship status, but to clearly and effectively communicate your proposal to a potential sponsor.

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Sponsorship Proposal Title Page

The title page should be professional and include elements like letterhead, graphics, and the sponsor's logo.

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Academically, Measuring Sponsorship

The measurement of sponsorship can be challenging due to factors like the combined use of other marketing tools, unmanageable economic factors, and pursuing various sponsorship goals.

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Royalty Fee

The amount of money paid to the owner of a trademark for the right to use it.

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Licensing Agreement

An agreement between a league or team and a manufacturer that grants the manufacturer the right to use the league or team's trademarks on merchandise.

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Licensor

The company or organization that grants permission to use its trademarks.

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Licensee

The company or organization that receives permission to use the trademarks.

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Trademark

A word, name, symbol, or design that identifies and distinguishes the goods or services of one party from those of others.

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Trademark Definition

A legal term under the Federal Trademark Act of 1946, used to describe any word, name, symbol, or combination thereof adopted and used by a manufacturer or merchant to identify their goods and distinguish them from others.

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Royalty Fee Range

The average range of royalty fees charged by major sports leagues for the use of their trademarks on licensed merchandise.

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Licensed Merchandise Distribution Channels

The various ways licensed sports merchandise is distributed to consumers, including online and offline channels.

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What is typically NOT included in a naming rights deal?

Naming rights deals typically include details about the size, location, and number of signage components, a clause outlining who pays for signage updates if the sponsor changes names, and a luxury suite for the sponsor. However, it is not a common practice to include all of the above provisions in a naming rights deal.

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Which statement is TRUE regarding naming rights?

While naming rights deals for new venues are generally accepted, deals involving well-established, locally connected companies are even more likely to be welcomed by the public. Conversely, selling naming rights for an already-existing venue has been less successful.

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How do brand owners protect against counterfeit goods?

Brand owners use various methods to combat counterfeiting, including implementing security labels, working with customs officials, and conducting regular checks for counterfeit goods at marketplaces.

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What is the role of royalties in licensed merchandise?

Licensed product manufacturers (licensees) pay royalties to teams and leagues (licensors) for the right to use the team's logos and names. This allows teams to build brand awareness and increase revenue with minimal risk, as the licensee assumes the financial risk of production and bears the royalty fees.

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What are the key elements of a licensing agreement?

Licensing agreements outline the terms of a licensing agreement. These include the term of the agreement, financial considerations, product categories, and distribution channels. The agreements can be exclusive or non-exclusive, with higher royalty rates generally charged for exclusive arrangements.

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How do professional sports teams handle licensing revenues?

Professional sports teams often operate under collective agreements that pool licensing revenues and establish a 'properties office' representing all teams within a league, with some exceptions.

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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.

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