Download So, What`s Marketing?

Taking the Market
Robert M. Smith
Focalpoint Marketing Inc.
10/20/03
1
The Questions
Is there a serious
golf participation
problem?
Does it require
concerted, industrywide effort?
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Is it short term
economics or a
longer-term trend?
?
Is there an effective
new approach that
can be executed by
our fragmented and
diverse industry?
2
What We Did
Distilled to a
single report.
Reviewed industry
programs addressing
these questions.
Interviewed 15 industry
leaders.
Reviewed two dozen research
studies and reports.
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3
Facts in a Minute
2001-2002
• Rounds played:
3%
• Revenue:
< 1%
• Peak demand over supply: 1990
• Avid golfer participation:
2%
• Women golfer participation: 3%
• Main reasons: job, family, time
• Junior golfers:
1.7 mm
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4
What We Know
There is a
serious
economic
problem . . .
with many
dimensions.
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Overbuild Generally
Corp
Outings
Down
Overbuild
High-end
Consumer Uncertainty
5
What We Know
There is also a longer-term problem
. . . that is not going away.
•
•
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More activity options
Growing perception of time
limitations.
There is far greater competition . . .
and the time crunch has put golf at
a competitive disadvantage.
6
What We Know
Women
The
traditional
golf model
is a mature
market.
Women
Barriers
Kids/Minorities
Kids/Minorities
Avids
• The barriers for new entrants remain.
• High attrition of first time and casual
players dilutes the impact of acquisition.
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7
So . . .
Even when the economy revives,
the longer-term problems will
remain.
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8
Implication
The build it and they will come
distribution strategy is dead!
We must learn to become
marketers.
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Ask These Guys . . .
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10
So, What’s Marketing?
It is every
touch of the
customer . . .
Top Ten in
Impact
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1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Friend’s recommendation
Personal experience
Attitude of facility employees
Condition of the course
The pricing
Perception of equipment
Tournament watched
News stories
Advertising
Everything else
11
So, What’s Marketing?
Everything
that you do
- or fail to do sends a
marketing
message.
Action
Message
Intro to golf
We welcome beginners
Disinterested pro You’ll never be good
Special group for Golf is for people like me
women golfers
18 holes only
Golf takes all day
Club’s priced for Golf’s not that expensive
beginners
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12
Ask These Guys . . .
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13
Relevance to Golf
There is opportunity
for renewed growth.
To grow beyond a
mature market
requires a new view
of the market and
marketing.
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Growth requires a long-term
course that involves some pain
and a lot of change.
We must view
the industry as
a single,
interdependent
“eco-system.”
We must learn how to generate, nurture
and retain customer demand.
14
A New Approach
It’s not about you . . .
. . . it’s about the customer.
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15
A New Approach
Address the strategic issues
•
•
•
•
•
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A mature market
Barriers to trial
Retention problems
Time disadvantage
A fragmented industry
16
A New Approach
Use marketing intelligence
•
•
•
•
•
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Customer insights/trends
Price/demand relationships
Yield management
Price elasticity
Economic and consumer
behavior trend forecasting
17
A New Approach
Take a holistic view
1.
2.
3.
4.
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Generate consideration
Promote trial
Encourage adoption
Reward Loyalty
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1.Consideration
Holistic
View
• Friend’s invite
• Tournament
• Learn-to Promo
Feel Included
2.Trial
• Introduction
• Driving Range
• Nine holes
Getting
Better
Customer
Experience
Can’t get
enough
4. Loyalty
• More Rounds
• More Purchases
• Missionary Work
My Sport
3. Usage
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• More than beginner
• Equipment Investment
• “My club”
19
A New Approach
Extend the golf product line
 Nine holes
 Par threes
 Family and ladies times
 Special introductory instruction
 Other family activity
•
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A New Approach
Use Your Best Customers
Best customers are excited & they
want to share that excitement.
Customer missionaries are your most
credible marketers.
Avids are the most valuable and they
will attract more Avids.
Arm them and they will prove your
best competitive weapon.
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A New Approach
Integrate your efforts
Develop an omnibus plan
Agree on common standards
Adopt common themes/ messages
Each take on a piece of the plan
 Measure and critique
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There is a Bottom Line
Reject magic bullets
+ Learn to become marketers
+ Coordinate marketing efforts
Renewed Growth and Profits
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And success follows
. . . end of story.
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