Segmentation and Target Market
Segmentation and Target Market
The fitness industry in the United States has grown greatly as more individuals are exposed to healthy living as a lifestyle. Rather than simply attracting athletes, fitness facilities are recognizable service providers to all demographics. As a result, the job outlook for personal trainers and exercise instructors is good. According to the “Bureau of Labor Statistics” (2014) website, “employees of fitness trainers and instructors is projected to grow 13 percent from 2012 to 2022, as about as fast as the average for all occupations” (para. 1). Understanding the need for personal care and services many entrepreneurs are either starting up their own fitness facilities or opening fitness franchises. One such option is the Planet Fitness franchise. Planet Fitness has found a niche in the industry’s market segment and has identified a unique positioning strategy for their services. Market Segmentation
A market segment is “the type of market or customers a company will serve” (Kotler & Keller, 2011, p.39). Market segments are generally a subset of a market, which allows the marketer to classify the type of possible customers into groupings (i.e., segment). Once defined as a segment, marketing strategies focus on influencing potential customers based on the groups shared commonalities and descriptive traits, such as demographics, psychographic, geographic, and consumer behavior. Demographics
At its most rudimentary level, a market segments demographics is defined by the group’s similar characteristics, such as age, income, education level, social class, and race to name a few variables. The importance of understanding demographic variables of the market segment is to ensure that the well-liked two-fold objectives are met. “One reason demographic variables are so popular with marketers is that they’re often associated with consumer needs and wants. Another is that they’re easy to measure” (Kotler & Keller, 2011, p.216). While some marketing strategies may only pursue gender, it is certain that Planet Fitness targets multiple demographic variables, which are explained later. Planet Fitness’s segmented market psychographics is indeed its chief strategy. Psychographics
Planet Fitness understands the importance of psychographics in marketing its service. By far, the understanding and handling of psychographic data warrants Planet Fitness to obtain a competitive advantage over its competitors. Planet Fitness’s ability to exploit a niche in the market through its comprehension in psychographics is proven paramount in its ability to attract a customer base otherwise ignored by competitors. That is, Planet Fitness’s primary customer base is an individual who exhibit a high lotus of control. “The personality variable of “lotus of control” is one personality trait that has generally shown fairly consistent results with respect to environmental beliefs and behavior” (McCarty, Shrum, & Lowrey, 2010, para. 11). As a compilation of psychology and demographics, psychographic utilization is the most concentrated marketing tool used by marketers, as well as Planet Fitness’s marketers, which are explained later (Kotler & Keller, 2011). However, location has always and will always constitute the customers willingness to utilize the services offered. Therefore, the optimization of customer traffic is of vital importance to any Planet Fitness’s success. Geographic
In some metropolitans, popular fitness facilities (aka gym’s) are dominated by bodybuilding resources, which are located in business active sites. Unfortunately, their high prices, compact, and at times uncomfortable exercise environments, deter many prospective customers. To combat this situation niche fitness options such as the Lady Fitness, Curves and Thrive Fitness franchises offer alternatives to elevate the uncomfortable environment. Therefore, Planet Fitness’s strategic...
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Kotler, P., & Keller, K. L. (2011). Marketing Management (14th ed.). Upper Saddle River, NY: Prentice Hall.
McCarty, J. A., Shrum, L.J., & Lowrey, T. M. (2010, May). Psychographics. Green Consumerism: An A to Z Guide, (), 365-368. doi:http://knowledge.sagepub.com.ezproxy.apollolibrary.com/view/greenconsumerism/SAGE.xml
Planet Fitness. (2014). About Planet Fitness. Retrieved from http://Planet Fitness.planetfitness.com/About-Planet-Fitness-Gym
Reviews. (2014). Planet Fitness. Retrieved from https://www.planetfitness.com/Planet-Fitness-Reviews
U.S. Census Bureau. (2012). Age and Sex Composition. Retrieved from http://www.census.gov/population/age/data/2012comp.html
Yahoo Finance. (2012). Planet Fitness Continues Successful Growth With Puerto Rico Expansion. Retrieved from http://finance.yahoo.com/news/planet-fitness-continues-successful-growth-144200898.html
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