Market Selection Decisions of PING Anser Driver Golf Club - Case Study Example

Assignment: SPAD 45023 How Each Makes Market Selection Decisions. When selecting a market, a firm considers the market requirements and the ability of the firm to meet such requirements. The market factors determine how a company will produce its products, and its marketing strategies. Market factors can be grouped into marketing factors, product factors, and market factors. Marketing factors are those that should be considered to reach the targeted consumers. Product factors are such as product specialization characterisation, value, and level of standardization. Market factors are such as the economic status, culture and political status of a nation (Srinivasan, 2008). Ping Golf club Ping golf club’s market selection is based on the consumers needs. There are more than ninety types of golf clubs and each is focused on a specific issue. Examples with specific features are; PING Anser Driver golf club meant for Fine tuning trajectory, there is PING G20 Fairway which focuses on getting the ball airborne and adding yards and there is PING G20 Driver for all ability levels. This shows that PING assessed what it could provide golf players and decided to focus on specific features of the game. They focused on trajectory, different golf players’ abilities, and what players like in golf; getting the ball in the air and more yards (PING Golf (a), n.d). Taylormade golf clubs There are about twenty four different golf clubs based on their purposes and features. These help in understanding the company’s market selection. The company targets a variety of consumers. There are slow launchers in the game, and there is a specific golf club for them. There are lady golfers and there is a specific golf club just created for them. There are other features describing these golf clubs that give one an idea of the company’s target market. These features are; stability, quality of materials used, speed and distance, speed consistency, and ability to swing the ball as high as possible. These are just a few examples, but they illustrate the large market captured by the company, and level of segmentation (PING Golf (b), n.d). Titleist golf clubs There are about forty five types of golf clubs which shows the high level of segmentation and may be the large size of the market. This also shows that the company deals with a variety of customers forcing it to produce golf clubs that suit such preferences. There is Titleist AP2 Irons which is concerned with speed consistency, playability, and control when shooting. The following three examples illustrate some features of golf clubs in Titleist. There is Titleist 910 D3 Driver that is concerned with sound and feel, longer performance, better fit and more control. A third type is Titleist Vokey Design SM4 Wedge which is designed to maximise pin conformity, shot control, and sand performance (PING Golf (c), n.d). From the above description of the three golf clubs features, one can only conclude that the main factor in market selection decision is the consumer. The consumer determines what type of product is to be produced. This then leads to market segmentation, for example, there are beginners, there are those who like it easy, and there are those with weaknesses in a few areas of the game. Golf clubs are therefore designed to suit the customers. There is no much difference in the market selection decision process. All the products show that features of the game, challenges of the game, and consumer’s ability and preference, drive market selection decisions. This has also guided market segmentation for the products are categorised according to their unique features. An example of segmentation is the level of ability of consumers. There are beginners, experienced, and expertise. One can also consider further segmentation in this group, for example, there may be beginners who need improved speed consistency. Golf clubs specifically for that purpose are produced. The level of segmentation is evident in the number of golf clubs produced by a company. One with very few types like Ping, may only be focused on a small market. The concept of sponsorship has different meanings due to people’s perceptions, but the main idea is that the sponsor provides finances of any other form of support to a sponsored party for mutual benefit of both parties. The sponsored party gets the finances or the agreed service that the sponsor provides, while the sponsor gets to use the chance to meet its marketing objectives. Sponsorship is support given to an organization in the form of goods, money, know-how, or services, in exchange for associations and rights that can be used commercially by the sponsor. Most sponsorship takes place in events, especially sporting events. An example of a sponsorship is the company; Fly Emirates, sponsoring Arsenal Football Club and several other football clubs. The clubs on the other hand, use sponsorship support to clear rising costs. Sponsorship has different objectives depending on the company. Sponsorship can be done to create promotional activities. Companies can promote their products, logos and brands through sponsorship of sports events. Having a company’s logo in pens, bags, sweatshirts, and a variety of products is also another way of creating opportunities for promotion. A company may get involved in a sponsorship to boost its reputation. This is especially the case when the company sponsors a corporate social responsibility program. Sponsorships are also done to foster favourable company associations. May be a company can sponsor another’s young football team to maintain good relations or business (Abiodun, 2011). Examples of two different sponsorship opportunities and their perspective market segments and target markets The chance for BP to sponsor a corporate social responsibility program in Nigeria is an example of a sponsorship opportunity. BP is a company that has had problems with the world, specifically because of oils spills that pollute the environment. The company’s reputation when it comes to environmental conservation is destroyed. Because of this, if BP finds a corporate social responsibility program that focuses on environmental conservation, it can do it good, for it will be a step towards building a good reputation. In such a case, the perspective market segment is the whole world, especially those with information about BP’s track record of oil spills. The project may be focused on Nigeria only, but such sponsorship will have an extensive effect on the world’s perception of BP. The target market here consists of the customers that had lost interest in BP before because of one or two poor environmental practices, investors who may have lost faith in the company, and the company’s loyal customers. To those who lost faith in the company, such a sponsorship is to change their perception and recognize the company’s efforts in sustainable environmental development. For investors, the sponsorship means good management, and sustainable development, which influence company future performance; hence good information for decision making about investing in BP. To the loyal customers, the message is that the company cares, and is willing to make changes to improve quality of life of the people in areas of their operations. It also communicates the company’s willingness to steer on with its customers and find more (Abiodun, 2011). Another example of a sponsorship opportunity is the Olympics. This event provides several companies with a chance to achieve several of their objectives. Some companies which need to create awareness about its products can use the athletes or even a session during the event to show off their product. An example is Adidas sponsoring athletes through offering free sports shoes, and clothing. The athletes will be putting on the shoes when running of competing in the sporting events. Those who will see the athletes will respond differently depending on who they are. An event like the Olympics attracts different people to one centre. There are coaches, athletes and spectators. Target market in this case depends on the product. The sports shoes for example, can target the athletes, their coaches, spectators, as well as those who watch the event on Television or from the internet. The athletes are given the chance to wear the shoes and appreciate the qualities of the product. From this, the company expects to influence their decision on which sports shoes they should buy next. The coaches are also given an almost similar experience. When they see the athletes wearing the sports shoes, they can be persuaded to buy such next time. Spectators and observers are also given a chance to see the product and may be like it from its features, which the company portrays when the athletes wear them. In this event, the perceived market segment is the whole world. This is especially so because it is expected that Olympics, as a major event will be aired in most nations in the world. The whole world can then be subdivided into three groups; athletes, coaches, and spectators. Spectators can be divided into two subsections; those who love Adidas, and those who do not. Athletes can also be subdivided based on their activities, for example; long distance runners, short race athletes, swimmers, and so on. These differentiations determine the products promoted among them, or how they are promoted. A sponsorship opportunity for Heineken is taking up the expenses of airing a specific Olympic event on a specific television station. The television station will have cleared the financial requirements of airing such an event, and will have provided Heineken with space to advertise its product (Abiodun, 2011). References Abiodun, O. R. (2011). The Significance of Sponsorship as a Marketing Tool in Sport Events. Degree Thesis in International Business. Retrieved from: https://publications.theseus.fi/bitstream/handle/10024/24945/Student_Abiodun_Oladunni.pdf PING Golf - Golf Clubs & Equipment Index. Retrieved from http://scoregolf.com/equipment-guide/brands/ping-golf/13 Srinivasan. (2008). International marketing. PHI Learning Pvt. Ltd. TaylorMade Golf - Golf Clubs & Equipment Index. Retrieved from http://scoregolf.com/equipment-guide/brands/taylormade-golf/1 Titleist Golf - Golf Clubs & Equipment Index. Retrieved from http://scoregolf.com/equipment-guide/brands/titleist-golf/14 Read More