growing over the past few years and it includes quite a few prosperous professionals, whose children are getting married and having children of their own. Historically, these clients have appreciated our high quality photographic portraits. However, competition is increasing and she wants to move into a higher value ad market. I have been considering the market mix for this service and I’d like your help in making the decisions. I know you’re new, but does this product appeal to you? Yes, of course. But do you realize I am new to all of this? The reason I wanted you to get involved in this is that I know you’re taking a marketing class and I wanted to get your fresh input into this decision. Let’s get together after lunch and I’ll bring you up to date on what my thoughts are for product, price, promotion and place. This will give you a little time to review the four Ps before getting started. I am glad I kept all of my marketing notes. See you after lunch. Hey Connie, hope you had a good lunch. I wanted to meet with you in the production area to show you a couple of product prototypes, so we can get right to work discussing the marketing mix. One of the ideas comes from Catherine and the other idea is the work of her husband, Joe. Who you know is also our accountant. At the end of our discussion, I want you to make a choice as to which product we are going to proceed with. Is this okay with you? You want me to make the decision? Good, I’m glad you’re willing to help. Come with me over to our layout table, so I can show you the two prototypes. Here are the two product ideas we are considering. Our budget won’t allow us to pursue both ideas, so you’ll have to make a choice. The large portrait on the left framed in gold leaf is Catherine’s version of the new Premiere portrait service and she would like to sell one portrait per month. The smaller unframed portrait on the right is her husband Joe’s version of the new Premiere portrait service and Joe believes we can sell 20 of these portraits each month. Our job is to design the marketing mix for each product and choose one approach. I have put together two tables listing the marketing mix elements appropriate to each product. You’re here to review the two options and make a choice. Once you’ve made a choice, I’ll give you my feedback on your choice. Your professor’s a good friend of mine, so you may see a discussion in class about this. Do you feel like you’re ready to review the two options and make a decision? I reviewed my notes in the marketing mix and I think I can make an appropriate decision. Come with me to my office. Marketing mix plans are sitting on my desk. Here’s the marketing mix I propose to support Catherine’s idea of the product. Look it over. And when you’re done, I’ll give you the other proposal. I have a good understanding of the Katherine option. Now, here’s the marketing mix I proposed to support Joe’s idea to the product. Look at over. And when you’re done, I’ll give you an opportunity to make the decision. Thanks for helping me out. I know Catherine’s product looks attractive, but Joe’s idea may produce more revenue. It’s 120,000 versus Joe’s 190,000. Keep in mind, we won’t have to purchase any new equipment under Joe’s proposal. Of course, Katherine’s proposal will help build our brand which is very good in our town. It’s a tough choice and I’m glad you get to make it. Which option do you think we should pursue? I have to say, you’ve made a wise choice. Catherine is a fine artist in great demands. In her portrait service offer customers adorable product that benefits from direct selling method and the intangible Premiere portrait service really needs this special marketing, such as gallery viewings and wine and cheese parties. The Premiere portrait is a specialty item with a high price and requires individual selling in a direct sales environment. One that’s designed for a unique, one of a kind presentation like the kind offered in our gallery setting. The quality of the ink and paper. The fine art framing and the archival glass, all support the uniqueness of the portrait. Shipping the product in a protective wooden crate reinforces the value proposition, as well as the intangible warranty guarantee. The Premiere portrait service will further Catherine already strong brand and offer a new product to her loyal customer based. Well, you’ve made a wise choice here. Technically, Catherine is a very good photographer. But her ability with Corel still needs to be developed. Catherine’s strong suit is in her technical proficiency with Photoshop CS4 and she produces stunning portraits using the artistic tools available in the software. Our normal portrait sells for $450. So we’ll be increasing our marginal revenue by $395 per portrait without increasing our costs. Producing the number of portraits wanted by the customer does reduce the specialty appeal, but the customer will be able to share the moment with more relatives and friends and this should increase word of mouth marketing for the Premiere portrait service. Selling the product unframed enables the customer to complete the creative process by selecting the frame themselves and it gives them a deeper sense of ownership. Our logo is on every product and the quality of the portrait can be seen through the cellophane wrap. Discounting will entice more sales and financing gives up the opportunity to increase our gross margin. There is a very large markup on the product, so we will not have to borrow money to do our financing and it is an intangible that customers will like. The Premiere portrait service will maintain Catherine’s strong brand for technically superior portraits and help us expand our customer base.

In the tutorial, assume you are Connie, the Assistant Marketing Manager. Evaluate the marketing mixes presented, select between two options for a new product, and post here in the discussion which option you chose and why.