Market segmentation

 how National Basketball Association increased its popularity and how they should use market segmentation. 

I am a marketing student at university who has a love for the NBA, and I find it interesting how they have successfully increased popularity, I want to showcase how I believe they have used market segmentation and suggest ways to improve.


ever since its start in 1946, the NBA has increased its viewership decade by decade and grasped the attention and loyalty of fans but to truly understand why this is and how to increase the viewership, even more, I believe they have already and should use market segmentation to categorise their viewers by their wants and needs to prioritise their target market, the main way they can do this is by using demographic segmentation which for the NBA consists mainly of Age, Income and Gender. 


I believe Age is the least of concern to the NBA because they have viewers ranging from early childhood up to elderly age and there will be no real benefit by categorising people by age e.g 20-29 whereas income is important because even though the NBA provide a service they are still a business and rely on support from fans to pay the players and keep fans interested, income is especially important because some front row seats can cost up to $10000. 

Gender is another demographic that I believe is important for the NBA as to focus on the target market they must acknowledge the proportionate differences between male and female viewership/interest. 

statistical explains how "The survey conducted in May 2022 in the United States showed that 63 percent of female respondents had no interest in the NBA". As seen in image 1 we can identify that there is a fine difference between male "Avid fans and female "Avid fans" being 27% male to 8% female by focusing on female consumers more than males could be detrimental to the NBA therefore they should use this information to adjust their advertising.

Image 1 

Geographical Segmentation

Due to the nature and culture of football dominance in Europe and basketball dominance in North America, the NBA understands these issues and that is why you don't see a lot of advertisements in European countries. because these consumers cannot physically watch these games, they have created solutions to these issues such as the NBA league pass and sky sports streaming while this isn't their primary target market, they still need to understand the needs and wants of these specific consumers with the consideration and should look to implement geographical segmentation categorising. 

Image 2
Reference list 
Gough. C. (2022) Level of interest in the National Basketball Association in the United States as of May 2022, by gender [online] Available from https://www.statista.com/statistics/1098381/national-basketball-association-interest-gender/ [Accessed 18 October 2022] 
https://www.questionpro.com/blog/what-is-market-segmentation/ 

Comments

  1. Jacob Høyem Øren19 October 2022 at 10:51

    Interesting to read. Liked the part about the geographical segmentation, much information there I didn't know. Can clearly see that you know what you are talking about when it comes to basketball and how National Basketball Association increased its popularity.

    ReplyDelete
  2. Marco Pini19 October 2022 at 10:52

    Hi Shane. That was an excellent blog post. I liked how you had a great understanding of the NBA and its marketing strategies. You conveyed your points very clearly and I found your analysis of how the NBA should market itself very interesting.

    ReplyDelete
  3. Archie Roberts19 October 2022 at 10:57

    First of all I love the NBA so this blog really caught my attention and made me think about how the NBA market themselves in the UK which was part of your geographical segment. I like that you used sky sports as an example for a primary streaming platform as it definitely helped attract newcomers in the UK to basketball.

    ReplyDelete

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