1. 10/20/031 Taking the Market Robert M. Smith Focalpoint Marketing Inc.

2. 10/20/032 The Questions Is there an effective new approach that can be executed by our fragmented and diverse industry? Is it short term economics or a longer-term trend? Does it require concerted, industry- wide effort? Is there a serious golf participation problem? ?

3. 10/20/033 What We Did Reviewed two dozen research studies and reports. Interviewed 15 industry leaders. Reviewed industry programs addressing these questions. Distilled to a single report.

4. 10/20/034 Facts in a Minute Rounds played:3% Revenue: < 1% Peak demand over supply: 1990 Avid golfer participation: 2% Women golfer participation: 3% Main reasons: job, family, time Junior golfers: 1.7 mm 2001-2002

5. 10/20/035 What We Know There is a serious economic problem... with many dimensions. Overbuild - Generally Overbuild High-end Corp Outings Down Consumer Uncertainty

6. 10/20/036 What We Know There is also a longer-term problem... that is not going away. More activity options Growing perception of time limitations. There is far greater competition... and the time crunch has put golf at a competitive disadvantage.

7. 10/20/037 What We Know Women The traditional golf model is a mature market. WomenKids/Minorities Avids The barriers for new entrants remain. High attrition of first time and casual players dilutes the impact of acquisition. Barriers

8. 10/20/038 Even when the economy revives, the longer-term problems will remain. So...

9. 10/20/039 Implication The build it and they will come distribution strategy is dead! We must learn to become marketers.

10. 10/20/0310 Ask These Guys...

11. 10/20/0311 So, What’s Marketing? It is every touch of the customer... 1. Friend’s recommendation 2. Personal experience 3. Attitude of facility employees 4. Condition of the course 5. The pricing 6. Perception of equipment 7. Tournament watched 8. News stories 9. Advertising 10. Everything else Top Ten in Impact

12. 10/20/0312 So, What’s Marketing? Everything that you do - or fail to do - sends a marketing message. ActionMessage Intro to golfWe welcome beginners Disinterested proYou’ll never be good Special group for women golfers Golf is for people like me 18 holes onlyGolf takes all day Club’s priced for beginners Golf’s not that expensive

13. 10/20/0313 Ask These Guys...

14. 10/20/0314 Relevance to Golf There is opportunity for renewed growth. Growth requires a long-term course that involves some pain and a lot of change. To grow beyond a mature market requires a new view of the market and marketing. We must learn how to generate, nurture and retain customer demand. We must view the industry as a single, interdependent “eco-system.”

15. 10/20/0315 A New Approach It’s not about you...... it’s about the customer.

16. 10/20/0316 A New Approach Address the strategic issues A mature market Barriers to trial Retention problems Time disadvantage A fragmented industry

17. 10/20/0317 A New Approach Use marketing intelligence Customer insights/trends Price/demand relationships Yield management Price elasticity Economic and consumer behavior trend forecasting

18. 10/20/0318 A New Approach Take a holistic view 1. Generate consideration 2. Promote trial 3. Encourage adoption 4. Reward Loyalty

19. 10/20/0319 Feel Included Getting Better 3. Usage More than beginner Equipment Investment “My club” Customer Experience 2.Trial Introduction Driving Range Nine holes 4. Loyalty More Rounds More Purchases Missionary Work Holistic View Can’t get enough My Sport 1.Consideration Friend’s invite Tournament Learn-to Promo

20. 10/20/0320 A New Approach Extend the golf product line Nine holes Par threes Family and ladies times Special introductory instruction Other family activity

21. 10/20/0321 A New Approach Use Your Best Customers Best customers are excited & they want to share that excitement. Customer missionaries are your most credible marketers. Avids are the most valuable and they will attract more Avids. Arm them and they will prove your best competitive weapon.

22. 10/20/0322 A New Approach Integrate your efforts Develop an omnibus plan Agree on common standards Adopt common themes/ messages Each take on a piece of the plan Measure and critique

23. 10/20/0323 There is a Bottom Line Reject magic bullets +Learn to become marketers +Coordinate marketing efforts Renewed Growth and Profits

24. 10/20/0324 And success follows... end of story.