Reference no: EM132401767

Answer three questions with Golf Technologies, Inc case

Golf Technologies, Inc. (GTI) relies on high-level scien- tific 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 break- through. Its newest designed 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 the new clubs will create a new level of excitement and enthusiasm among players. Pennick is well aware that many club manufacturers tout "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 new line of GTI clubs actually do have a larger, sweeter 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 promo- tional 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 breakthrough in club design.

38. Go to your library's online databases or the Internet and look for examples of firms conducting a marketing research study. There are many examples reported in periodicals such as Advertising Age, Marketing News, Business Week, and Forbes. Typically, these articles will mention a few details of the research project itself. Identify as many of the steps in the marketing research process as possible that are referred to in the articles you find.

39. Observe a business in your community. Examine what it does, what products or services it provides, how it prices and promotes its products or services, and other aspects of the business. If you managed the business, would you have conducted research to determine the firm's products, design, features, prices, promotion, etc.? If you decide you would not have conducted mar- keting research on a given area, explain why.

40. Think of what you may imagine as being an opportunity in the marketplace. Explain how Figure 3.2 would help you in conducting or not conducting marketing research.

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. How- ever, both these golfers have current exclusive contracts with other club manufacturers. Both contracts have buy- out 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 either of these world-class golf- ers. GTI will need only one of these golfers to be its new spokesperson.

1. Assuming Pennick agrees with his staff on the choice of McIlroy or Watson, what now is Pennick's decision in terms of decision alternatives?
2. Assuming Pennick is not confident in his assumptions about the consequences of the outcomes associated with your decision alternative, what should Pennick consider doing?
3. Should Pennick decide to conduct marketing research, write the research objective.