Marketing for Golf Management Chapter 9: Pricing

Transcript:Marketing for Golf Management Chapter 9: Pricing:
Marketing for Golf Management Chapter 9: Pricing and Membership Structure 9.0 Learning Objectives In this chapter, we will: Describe how the Marketing Mix should be considered during a membership drive. Apply the marketing mix to various distribution channels within the golf industry, such as hard goods, soft goods, and services. List some of the factors impacting the cost of a golf membership. Explain how PESTEL analysis is useful to organizations. Define the five-step process to getting to know your customers in the golf industry. Identify revenue streams at a country club/golf facility subjective to the target market. 9.1 The Marketing Mix Organizations must find the right combination of factors that allow them to gain an advantage over their competitors. This combination—the marketing mix—is the combination of factors that a company controls to provide value to its target customers. During the 1950s, the components of the marketing mix were conceived as the “four Ps”: Product: the goods and services offered Promotion: communication and information Place: distribution or delivery Price: ensuring fair value in the transaction (McCarthy, 1964) Over time, new categories of the marketing mix have been proposed. One example is the four Cs, proposed by Robert F. Lauterborn in 1990: Customer solution: what the customer wants and needs Communication: a two-way dialogue with the customer Convenience: an easy process to act or buy Cost: the customer’s cost to satisfy that want or need (Lauterborn, 1990) 9.1 The Four Ps Alignment with the Four Cs 9.2 Golf Memberships A golf club membership encompasses a comprehensive package, seamlessly blending golfing prowess, social engagement, and elite access to create a holistic and enriching experience for everyone in the family The average cost of a golf membership in Canada is between $1000-$50,000. Depends on club quality and location The initiation fee is often the largest lump sum that you will have to pay to the club. Initiation fees in Canada can range between $1000 – $50,000 To keep your membership in good standing, annual dues must be paid to the country club on a regular basis. These fees range from a few hundred to a few thousand dollars a month An additional fee to consider is an assessment which is a larger fee that is levied in order to cover the cost of major expenses, such as renovations. More frequent golfers will find that a club membership will be more economical in the long