Marketing Management Assignment 2 - Garcia [PDF]

Zitiervorschau

Golf Technologies, Inc. (GTI) relies on high level scientific testing to design golf clubs that provide larger "sweet spots," resulting in fewer missed hits and maximum yardage. In the last year, GTI discovered a technical breakthrough in club design. Its newest clubs, for the same level of energy, hit the golf ball longer than any existing clubs on the market. CEO Harvey Pennick is very excited about this breakthrough and believes these clubs will create a new level of excitement and enthusiasm among players. Pennick is well aware that many club manufacturers sell "new scientific breakthroughs" with each year's new model clubs. He also knows that consumers have become fairly immune to these claims. He believes he must do something different to convince potential buyers that the newest GTI clubs actually do have a larger sweet spot and really do hit the ball farther. Armed with objective tests that prove these claims, Pennick and his marketing staff believe they need a highly credible golfer to be used in their promotional materials (TV ads, magazine ads, infomercials, and special event promotions). The credibility of the message in GTI's promotions will be critical if golfers are to really believe their claim of a breakthrough in club design. Pennick's staff presents the two golfers whom they believe are the best known: Rory McIlroy and Bubba Watson. Both golfers are considered among the best in the world and have very high name recognition. However, both these golfers have exclusive contracts with other club manufacturers. Both contracts have buyout clauses so, if GTI is to hire either one of them, it will be expensive to buy out the existing contract and to offer enough money to attract one of these world-class golfers to be GTI's new spokesperson. 1. Assuming Pennick agrees with his staff on the choice of McIlroy or Watson, what would be the next step/s for Pennick? What are alternative decisions to these? What are the consequences? Pennick has a variety of choices he can make. He has plenty of decision alternatives, he just has to decide which one is the best one. The best alternative is the one that produces the most advantages and the fewest serious disadvantages. Basically the alternative with the most pros and the fewest cons. Mr. Pennick is planning to advertise the newest technology he got for his club through all sort of media while being backed by famous golf players. Before he can do any of that he needs to do some marketing research so that he can correctly identify his target audience and a concrete marketing strategy needed. After sorting all this, he will be able to make an appropriate decision from the options he’s presented. 2. If Pennick decides to conduct marketing research, write the research objective/s. At Golf Technologies, Inc. (GTI) we will use technology only to improve our products, place and not just for the sake of using technology. Changes that do not increase the performance or appearance of the club will not be considered. We want to show golf club manufacturers and retailers that new golf technology is going to out perform older, established methods. We will prove that the future of Golf clubs lies with high-tech innovations in material and design, not in standard design.

1. To determine the significant investment in research and development and engineering with the aim of focusing on new technologies to provide better golf clubs for players. 2. To determine the increase in net profit of Golf Technologies with the innovative change of clubs. 3. To determine the users who believe that this new technology is true to its promise in regards to the “sweet spot”