Tag Archives: services

Where do you golf?

How many readers are golfers? Wait. How should we define golfers? Are they regular players on a golf course consistently, or do we include folks who like the driving range but rarely walk onto a course?

The definition of ‘golfer’ has certainly been blurred by the expansion of Topgolf, as well as fueled by the use of technology in simulators and driving ranges. According to the National Golf Foundation, the number of people going to these locations now is greater than the number of people playing golf on outdoor courses.

And that’s a good thing for the golf industry in general. Long-viewed as an expensive, elitist sport dominated by males, the changing role of technology in golf now opens the sport up to more people who want to drive a ball, but not necessarily spend thousands of dollars and hours on it. Anytime an industry can introduce new consumers to its value, it has a chance of keeping the consumer’s interest.

Plus, Topgolf is more social than traditional golf courses. Topgolf’s approach is much more social, hosting groups of players with tables, couches, food and drink. Microchips embedded in the golf balls track shots, allowing golfers to virtually compete with each other, play famous courses and video courses.

As a result, some traditional country clubs and golf courses are also now more agreeable to revising old traditions and loosening dress codes, as well as designing new and entertaining games for the course and speedier play.

No need to yell “fore” on this tee.

Group Activities and Discussion Questions:

  1. Poll students: Who would consider themselves as golfers? How would they define the market? Where and when do they play golf?
  2. Show Topgolf’s website: https://topgolf.com/us/
  3. Poll students about their Topgolf experience.
  4. Who is the target market for Topgolf?
  5. What is an off-course golfer and how can it be reached?
  6. Divide students into teams and have them research the trends occurring in golf both on-course and off-course.
  7. ALTERNATIVE: Have students explore Topgolf as a franchise investment.

Source: Feuer, W. (1 December 2024). For the first time, most golfers play off-course. Wall Street Journal.

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What Hurts EV Sales?

The shift to electric vehicles (EV) sure seems to have slowed way down. According to research from company CarGurus, EV inventories are not only up 506% from a year ago, they are on the lot an average of 82 days compared to 64 days for gas-powered cars. Sales are down, but why when reducing emissions and being environmentally sound are so important to consumers?

Well, prices of EVs are still a factor, even though prices have been cut by Tesla and other manufacturers. The average EV list price is 28% higher than a gas car, and with interest rates near 8%, a new EV costs more than $200 more per month. New EV buyers also need to install at-home chargers for roughly $2,000. However, EV tax credits may help the situation when, as of January 1st, buyers can get up to $7,500 EV credits upfront, plus some states also have tax credits for new buyers.

But one of the biggest concerns revolves around charging stations, especially when taking road trips away from the home charger. Sound infrastructure for charging stations is still an issue. According to Pew Research, Americans are not very confident that the necessary infrastructure will be built in order to support a large number of EVs. While 17% think are confident that it will happen, 53% are not very confident.

The Wall Street Journal tested 120 charger stations and found problems ranging from different ports on different cars and charging stations, to broken charger stations. Of the stations checked, 40% were broken with 27% being out-of-order, 10% with payment issues, and many more with connection issues (handshake between car and charging station).

Will you buy an EV?

 Group Activities and Discussion Questions:

  1. Poll students: Who plans to buy an EV after they graduate? Why or why not?
  2. Show video about public EV chargers: https://www.wsj.com/video/series/joanna-stern-personal-technology/how-bad-are-public-ev-chargers-i-visited-over-120-to-find-out/0CA1EEF7-79C4-4818-B876-899E4B2EFCCD
  3. Show additional research on EV viewpoints from Pew Research: https://www.pewresearch.org/short-reads/2023/07/13/how-americans-view-electric-vehicles/
  4. Divide students into teams.
  5. Have each team work on a promotional plan for EVs that accounts for the issues of price and/or charger infrastructure. What do consumers want to hear?

Source: Lee, M.(14 November 2023). Here’s why people aren’t buying EVs in spite of price cuts and tax breaks. USA Today; Sterns, J. (15 November 2023). How bad are public EV chargers? I visited over 120 to find out (Video). Wall Street Journal.

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Netflix Ends DVD Rental

Oh, the red envelope in our mailboxes made us happy. But after 25 years in the DVD subscription business, Netflix DVD mailing is going away. Yes, Netflix has sent out its last red envelope, telling customers they could keep the DVD without any charge. (It even offered 10 free movies for subscribers at the end of the service.)

You may not remember, but Netflix started as a DVD rental-by-mail service back in 1998. At that point in time, DVDs were the way to watch movies and most consumers had to go to their local video rental store to get the discs. (Remember Blockbuster?) In 2007, Netflix shifted to a streaming service, moving away from the physical DVD.  But, by 2021 DVD rentals accounted for less than 1% of Netflix revenue.

According to Digital Entertainment Group, sales of physical discs and rentals have fallen by 30% to $361 million in the first quarter of this year compared with last year. On the other side, streaming subscriptions have increased more than 22% to $8.7 billion in the first quarter of this year.

Speaking of moving away from physical DVDs, Best Buy has announced that it will stop selling DVD movies both in stores and online in early 2024. This shouldn’t surprise most college students; they most likely only stream movies online. But, we have to consider how the way we watch movies and TV shows has changed over the decades. It’s a great example of a product life cycle and how services have evolved.

Want to watch a movie?

 Group Activities and Discussion Questions:

  1. Poll students: Who has used the DVD mail service from Netflix? Who watches DVD?
  2. Show a video: https://youtu.be/8v8DMfnj6nQ?si=bsEOXllfCP_iYVGv
  3. Discuss the stages in the product life cycle.
  4. What are the marketing objectives in each stage?
  5. Divide students into teams. Have each team draw a product life cycle and place various products and services into each stage.
  6. Make sure to have them include movie watching such as VHS, DVD, and streaming on the PLC.
  7. Next, have students brainstorm on how to revise or reposition products in the last stages of the PLC to move them into an earlier stage of the life cycle.

Source: Kelly, S. (29 September 2023). Netflix shutters its DVD rental business, marketing the end of the red envelope era. CNN Business; Norfleet, N. (14 October 2023). Best Buy to end DVD, Blu-ray sales next year. Minneapolis Star Tribune; Ugwu, R. (24 August, 2023). Netflix says you can keep their DVDs (and request more, too). New York Times.

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