PEBBLE BEACH, CALIFORNIA - FEBRUARY 09: Nick Taylor of Canada plays a shot on the 13th hole during ... [+]
Golfer Nick Taylor was not the only winner at the 2020 AT&T Pebble Beach Pro-Am. The tournament itself conquered the four Ps of marketing, was a financial success and provided a great lesson for those who want to attract high-paying clients.
Since Steve John took over as the tournament director just before the 2012 AT&T Pebble Beach Pro-Am, his four-P marketing goal was to up the game for the fabled February golf event.
According to Investopedia, the concept of the four Ps has been around since the 1950s. The four Ps are the four critical factors that come into play when an item or service is offered to the public. The four Ps are the product (the item or service), the price (what the consumer pays), promotion (the marketing communications), and the place (the location where a product is marketed).
The place is a winner. One of the classic events on the PGA Tour, the AT&T Pebble Beach Pro-Am is contested annually in front of thousands of spectators and millions of television viewers on three of the Monterey Peninsula’s premier golf courses: Pebble Beach Golf Links, Spyglass Hill Golf Course and Monterey Peninsula Country Club Shore Course.
But John, a former president of a Honda car dealership, felt the event had become complacent and some of the celebrities were not those who appeal to today’s generation of spectators. So he worked on the product.
“We wanted a fresh approach to the celebrities we invite, a better product for the pros and amateurs and a better experience for the spectators,” said John, the CEO of the tournament’s host organization, the Monterey Peninsula Foundation. The chair of the board is Eastwood and the vice-chair is Peter Ueberroth.
As stated in its 990 filing with the federal government for fiscal year 2017, the Monterey Peninsula Foundation used ticket sales from its two tournaments, sponsorship fees, fees from amateurs to play with the pros and other fundraising to generate revenues of $36,290,555. That year the foundation used 39% of its revenues to make charitable grants to community organizations. Prize fees and golf related expenses to put on the tournaments amounted to $21,910,882 million, which translates to 60% of the foundation’s overall budget.
“We are lean by intent,” said John.
Actor and crooner Bing Crosby created the tournament in San Diego County in 1937 and moved it to Pebble Beach in 1947. Crosby’s concoction of roughly four parts professional golfers to one part show business and sports celebrities is the marketing DNA that makes the event special. While much of the tournament remains devoted to the world-class golf professionals who compete each year, “the heart and soul of tournament week on the Monterey Peninsula are the celebrity icons – Bing Crosby, Jack Lemmon, Clint Eastwood, Bill Murray – whose legendary antics inside and outside the ropes account for the tournament’s continued popularity and ardent following world-wide,” says the event’s promotional materials.
To keep attracting high-paying clients you cannot rely on past success. John was gracious to offer a look behind the scenes and how he has approached the four Ps of marketing.
All the trends are positive for John’s efforts. He reported revenues are up, ticket sales are up, prize money is up and charitable grants are up. John says he has held the line on ticket prices, which start in the $60 to $90 range per day for the four-day tournament. Sponsors pay to have hospitality suites and passes for the events. Actual attendance figures are hard to come by in golf because spectators do not buy an actual seat, but purchase access to walk the course. Grandstand seating is available at various golf holes at no additional charge.
As a marketer, you control what you can control. John reported he improved the product by the addition of three to five new celebrities each year, like the rapper Macklemore in 2020, and that has helped ticket sales. Spectator facilities like Club Patron, The AT&T Loft and the Meiomi Flavor Forward Lounge provide stunning views of the course and amenities of a club.
John has no control over the weather or which professional golfers decline to attend, such as fan favorite Tiger Woods, who has skipped the tournament for several years. According to StubHub, the Woods factor can increase badge sales by 20%, and according to Nielsen, Woods can increase TV ratings by as much as 150%.
In addition to the AT&T Pebble Beach Pro-Am, the foundation is the host of the PURE Insurance Championship. That is a September PGA Tour Champions event, which was formerly known as the PGA Senior Tour until 2002. The PURE Insurance Championship at Pebble Beach is a 54-hole golf event, featuring 78 PGA Tour Champions players and 78 junior golfers ages 15-18. In addition, 156 amateurs complete the field. The tournament is played on Pebble Beach Golf Links and Poppy Hills Golf Course. Spectators may attend for free and see golfers like Jay Haas, Lee Janzen, Tom Kite, Davis Love III and Mark O’Meara.
