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”