Golf Technologies, Inc.
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. 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 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 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 current 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 either of these world-class golfers. 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.