Marketing STP Components and Segmentation Types

Dividing the market into smaller groups with similar characteristics.

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

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

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

Grouping based on income, occupation, and education level.

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

Individuals who consume or use sports products and services.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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.

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

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.

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

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

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

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.

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

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

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.

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.

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.

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.

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.

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.