DRIVING FOR THE GREEN MARKETING.

According to the National Golf Foundation, 2,350 golf courses were built in the United States between 1990 and 1997, while the number of golfers playing on these courses remained static. Among the many reasons for the rapid growth in golf course development is that it simply lagged behind demand and carrying capacity of rounds of play. Golf course development is simply catching up with demand.

Marketing Tools for Developers

Actually, the increase in golf course development may have more to do with meeting the demand for high-end real estate related to golf. Around the city of Denver, residential and commercial park subdivisions are listing their golf course as a crucial element in the development plan. The growing list includes Raccoon Creek, Thorn Creek, Coal Creek, and at least 15 others. Golf is the amenity that generates interest in developments. Placing people in the houses and office space is much more important to developers than getting folks out to play golf.

To illustrate this point, a developer donated land for an award-winning golf course but tabled his development plans surrounding the course when economic recession hit Colorado during the mid-'80s. In 1995, he returned to the area, subdivided the remaining land, constructed an additional nine holes, and gave a turnkey nine holes to the local recreation district.

Was he a generous promoter of golf? No doubt. However, he may have had equally compelling financial reasons. He was required by the county to dedicate open space in his development; the golf course qualified as open space. He was able to sell fairway lots at a much higher premium. The additional nine holes were related to meeting dedicated open-space requirements, and they increased the appreciable value of the surrounding real estate.

If golf courses are built without regard to demand, competition for players may become fierce.

The New Math 

You do the math: static demand + greater supply = a climate of competition. The question facing many park and recreation directors and their managers of golf is equally as simple: What must I do to get golfers to play at my golf course instead of that new one down the street? The answer? Advertise.

When I managed a golf course, the golf pro and I did not see eye to eye on the need for advertising. He contended that the course would sell itself. I disagreed.

The course was not filled to near capacity. There were plenty of rounds to sell. The retail round supported the course, local discounted golfer, and general recreation programs. We could not simply rely on how "good" our product was; we had to get the message out that we had a quality product. So I implemented an advertising plan.

Promoting the Benefits

There is an obligation among professional golf managers to promote the benefits and advantages of the game of golf, as well as their own golf course.

Promote golf. Promote the benefits and advantages of golf. Why do we play the game? Social, emotional, physical, and economic reasons are often cited as important. So why can't we as golf professionals and managers get that message across to potential patrons?

In 1959 Richard Nixon and the U.S. space program both endorsed the physical benefits of trampolines. Thousands of jump centers sprang up around the country. Eight months later, the jump-center business was virtually abandoned. People weren't taught how to improve their skills or how to jump safely. What enthusiasm jumping from feet to rear didn't kill, insurance companies finished off.

Identify emerging markets -- ethnic minorities, women, and people with disabilities. And don't just make golf accessible to these groups, make it fun. Minority Golf magazine reports that by 2000, there will be some 4 million people of color playing golf, a 60 percent increase since 1997. There have been significant advances in adaptive equipment for people with disabilities, allowing greater access to full participation.

Educational opportunities -- aimed at beginners of all ages -- can introduce new golfers to the sport. The skiing industry learned long ago that discounted lift tickets would attract more children. Teach children lifetime sports early on in their development. Mom and dad, who must transport the kids to and from the golf course, represent another captive market.

The best advertisement is the satisfied customer. We need to maintain our current member base by striving to improve the product we deliver.

Components of an Effective Plan

Market your community ... and with your community. Not all of your marketing should be designed to bring patrons to your course. Some of it should demonstrate that you are an active participant in and have a commitment to your community as a whole. Target your marketing to the entire community, not simply the golf course. Your course is part of the feeling of community, part of the quality of life.

Market in the context of a larger plan. Many people will benefit from your success. Let others stretch your marketing dollar. Provide slide files and write accurate copy that you would like to see in print. Make the slide file and text available to realtors, property management companies, developers, and others to include in their brochures. Include information about your course in the summer recreation-program guide and other in-house literature.

Market the things that make your course special. Leon Younger stresses the need for "value-added" messages in promotional advertising. In his presentation to the Golf Management Institute in La Jolla, Calif., Younger asked participants to list unique things that they do at their courses. What do you have or do for your golfers that sets you apart from the competition?

A new public course in south Denver charges 850 per round, 40 percent higher than a nearby competitor. But included in that fee is a bottle of spring water, a golf cart, range balls, free towels, and seven-day advanced reservations. It is crucial that the golfing public knows about the added values in that golf experience.

Selecting an Advertising Piece

Once you have determined what you want to sell, you must decide how and where you want to sell it. There are hosts of advertising agencies out there willing to help you spend your advertising dollar. Spend your money wisely. The following criteria should help you decide whether to invest your money in a particular piece of advertising.

Did I initiate the contact? I am suspicious about my "need" for something that was initiated by a cold call from an advertising representative. The tip-offs are obvious. "Is Mrs. Connie there? .... May I speak to the person who makes decisions about advertising?" Like telephone solicitations at home, I have a prepared answer. "I'm sorry. We establish our advertising budget a year in advance. I'd be happy to listen to what you have to present, but I will not be able to include it in this year's budget."

Learn to say no. Advertising representatives can be relentless, even after you have politely declined.

Where Should I Advertise?

I made it a policy to turn down requests for in-room brochures because I felt that "walk-ons" were not a substantial part of my market. I was marketing a destination resort course. In my opinion, walk-ons don't generally want to pay what a destination course charges.

"Let's see, I can play your course in my tennis shoes for how much? Eighteen holes, $72; golf club rentals, $15; range balls, $3; a cart for $15; two sleeves of golf balls, $15; two beverages, $7' lunch, $10; a golf glove, $15. For $152, you might be able to fit me in? I don't think so!"

I chose to avoid the "community calendar" television channels for the same reason. The cost is extraordinary in comparison to the return.

Table 1 on page 74 illustrates a number of available marketing pieces. What you choose depends on your goals and budget.

TABLE 1.MARKETING AND ADVERTISING TECHNIQUES FOR GOLF COURSES

Advertising                                 Number of      Ease of
Pieces                             Cost   Impressions   Distribution

HIGHLY RECOMMENDED
The satisfied customer              L          M             H
Direct mail                         M          L             M
Rack cards                          H          H             H
Post cards                          R          L             H
Business cards                      L          M             H
Real-estate developer
 brochures                          S          M             H
Property management brochures       S          M             H
Web page                            M          H             H
Golf paraphernalia                  R          L             H
Membership in local service clubs   L          L             M
Yellow pages                        L          H             H

MODERATELY RECOMMENDED
Yardage cards                       R          L             H
Golf-tour company brochures         S          L             H
Tournaments                         L          L             H
Contributions to nonprofits
as tournament prizes                L          L             H
Newspaper ads                       H          H             H
Magazine ads                        H          H             H
Team sponsorships                   M          L             H

LOW OR NO RECOMMENDATION
Community calendar (TV)             H          L             H
TV ads                              H          M             H
Infomercials                        H          M             H
Radio ads                           M          M             H
Novelties                           H          L             H
Billboards                          H          M             H

H = High

M = Medium

L = Low

R = Reimbursable 

S = Subsidized 

How much does it cost? Try to stick to the advertising budget you've established. It doesn't matter how you determine what you will spend if you can justify the expenditure compared to the impact of your promotional campaign and the return on your investment. You may decide to spend 1 percent of your budget or an amount equal to a day, weekend, or week's green fees. How much you spend on advertising ultimately goes hand in hand with the next question.

How many impressions will I get? I had a food-service manager who loved giving out lighters and pens embossed with the course's logo. How much did that advertisement piece cost, and how many impressions does each make when carried around in someone's pocket? One. For the same marketing dollar, I might generate up to 40 impressions with postcards -- 20 with the purchasers and 20 with the recipients.

Some ad pieces pay for themselves. One of my favorite advertising pieces is the postcard. People actually pay to help advertise your course. When you factor the revenue produced through this marketing technique, you may actually make money, or at least break even.

Logo-enhanced sweaters, golf shirts, hats, balls, bag tags, yardage guides, and towels are billboards for your course. Although they represent a valuable source of revenue, remember that their primary intent is to advertise.

Don't leave your advertisements in the closet. Get them out on the street doing what they are supposed to do -- advertise your golf course. I had a postcard that didn't sell. I ended up giving them away. I used them for tournament notices. I used them for reminders for locker rentals. Slow-moving merchandise can be discounted or used for tournament prizes. If the primary reason for selling logo-enhanced merchandise is advertising, sell 1,000 signature golf balls at cost rather than 100 at a premium.

Complimentary rounds factor into your marketing equation. Complimentary rounds of play contribute to your marketing strategy. Figure donations and complimentary rounds into your advertising plan. Although they do not represent cold, hard cash, complimentary rounds do cost you money. Give away one round of golf for two, with a cart. The twosome may bring along paying guests.

Be sensitive to emerging market conditions. At the end of the 1997 season, a course 50 miles and a mountain range away announced it was closing for two years to renovate. Another course announced it was closing one nine to accommodate base development at its ski resort. We immediately moved into that market, placing four advertisements in the newspaper and hiring a rack company to distribute brochures throughout the county.

Is the advertising effort effective? Find out from your local and state chambers of commerce what your target markets should be. Is my advertising reaching the people I need to reach? Do I advertise for the retail rack customer? You bet. Do I advertise for the discounted season-pass player? No.

I wanted to reach those who spend money on recreational pursuits, the yuppie, the I-like-to-ski-and-golf crowd. I chose to place an advertisement in a resort community's color directory of businesses. The advertising company produced 50,000 booklets for distribution during the ski season.

There are a number of strategies you can employ to track the effectiveness of your efforts. Computerized tracking from your point-of-sales system is capable of generating mailing lists. Suggestion boxes and comment cards are also useful. The golfer who has already played your course is the core of your future marketing. Send a rack brochure or a postcard as a follow-up piece.

To help justify the campaign to your board and the public, your advertising decisions should be based on maximizing the return on your investment. Increased profits or rounds of play are quantifiable measures of a successful marketing plan. Profit margins indicate success. And remember, the bottom line of advertising decisions is the bottom line.

Is your golf course a profit center? Does it compete for golfers with the other courses in your community? In today's climate of accountability, says Conner Shepherd, Ph.D., who managed Pole Creek Golf Course in Winter Park, Colo., for nearly five years, the bottom line -- whether it's making a profit or simply having the course pay for itself -- is important. In "Driving for the Green: Marketing Your Community's Golf Course," Shepherd encourages park and recreation professionals and course managers to improve their bottom line, build a customer base, strive to satisfy their customers, and, above all else, advertise (p. 72).3