Our Town Photography with the slogan “Capturing the Light in Your Life” will be the contextual container for the project. The student (as marketing manager for the business) will be tasked with developing the marketing program for a new portrait service that turns a traditional digital portrait into a canvas oil painting or a watercolor work of art. This is being done in the industry but it has a long way to go as a fully developed business model so I think the idea will have some duration.
You can visit www.idcphotography.com to get an idea of the end product. Bruce and Murta Dorn are on the leading edge of this movement and as a creative I think you will find their work interesting.
Marketing Mash-Up: Mixing the 4P’s
Our Town Photography with the slogan “Capturing the Light in Your Life” will be the contextual container for the project. The student (as marketing manager for the business) will be tasked with developing the marketing program for a new portrait service that turns a traditional digital portrait into a canvas oil painting or a watercolor work of art. This is being done in the industry but it has a long way to go as a fully developed business model so I think the idea will have some duration.
You can visit www.idcphotography.com to get an idea of a potential end product. Objectives: At the end of this tutorial, you should be able to:
Your Role in This Scenario: In this scenario-based exercise, your objective will be to play the role of Connie, a marketing professional recently hired by Our Town Photography, a growing photography studio that has made a name for itself through its passion for unique photographs. Currently, the studio has been experimenting with artistic representations created from actual photographs that they take of their clients, and would like to offer this as an additional service.
Scene 1: Mark, the marketing manager is located in his contemporary office in the Our Town Photography studio/gallery. Earlier in the morning, Catherine, the owner, had asked Mark to create a marketing program for a new photography/artography service to be titled Premier Portraits. Premier Portraits will employ the latest in digital technology to produce archival quality canvas and watercolor portraits as original works of art created and signed by the artist, Catherine. You, as a new member of the team, have been asked to join Mark as he considers the marketing mix decision for this new Premier Portrait service.
Mark: Thank you for joining me this morning. Catherine wants us to design a marketing program for our new Premier Portrait service. Our client base has grown over the years to include quite a few prosperous professionals whose children are getting married and having children. Historically, these clients have appreciated our high quality photographic portraits. However, competition is increasing and Catherine wants to move into a higher value add market. I have been considering the marketing mix for this service and I would like your help in making the decisions. I know you are new, but does this project appeal to you?
Connie: Yes, of course, but you do realize I am new to all of this?
Mark: The reason I want you involved is to get your fresh input into this decision and I know you are taking a marketing class. Let’s get together after lunch and I will 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 4P’s before getting started.
Connie: I am glad I kept all my marketing notes. See you after lunch.
Scene 2:
Mark, the marketing manager is standing in the production area of the Our Town Photography Studio/Gallery. This is the area where the prints are produced and matted and framed for delivery to the customer. Mark wants to show the assistant a couple of prototypes for the new product and discuss the marketing mix. The area has a large worktable for assembly of the picture package, a high end workstation for image processing, a large format inkjet printer and a mat cutter mounted on the wall.
Mark: Hi, I hope you enjoyed 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? Connie: You want me to make the decision? Okay.
Mark: 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.
Scene 3:
Mark and the assistant are standing in front of a large maple hardwood table that is used to assemble finished photographs. Catherine’s prototype is located on the left side of the table and Joe’s prototype is located on the right side of the table. On the left side, sits a 40 x 60 inch portrait printed on high quality canvas resembling a Rembrandt painting. Catherine used Corel painter to create a portrait employing her unique brush style and has done some embellishments using real oil paint on the portrait and has signed it using a pure gold paint. The portrait is framed in a hand carved gold leaf coated picture frame and covered with museum quality archival acrylic. The Matting for the picture is the best that is available in the industry. There is a sturdy wood crate off to the side that will be used to ship the portrait to the client. Catherine is very proud of this prototype. On the right side, is a 16 x 20 inch portrait printed on high quality inkjet paper and resembles an oil painting created using the tools available in Photoshop CS4. The picture is matted on good quality mat board and is signed by Catherine using a black permanent marker. The picture is not framed but there is some cellophane wrapping sitting on the table that will be used to package the portrait for shipping. The cellophane has the logo for the studio imprinted on it. Joe believes the Photoshop paint effect along with Catherine’s signature will help sell several copies of each portrait.
Mark: Here are the two product ideas we are considering. Our budget will not allow us to pursue both ideas so you will have to make a choice. The large portrait on the left framed in gold leaf is Catherine’s version of the new premier portrait service and she would like to sell one portrait per month. The smaller unframed portrait on the right is her husband’s Joe’s version of the new premier 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 are to review the two options and make a choice. Once you have made a choice and the marketing program has ended, I will give you my feedback on your choice. Pay close attention, because you may have to discuss your selection with some of your peers in marketing class. Your professor is a good friend of mine. Are you ready to review the two options and make your decision?
Connie: I reviewed my notes on the marketing mix and I think I can make an appropriate decision. Mark: Okay, come with me to my office. The marketing mix plans are sitting on my desk.
Scene 4:
Mark and the assistant enter his office and Mark suggests they sit down. Mark sits at his desk and the assistant takes a seat in front of his desk. There are 2 1-page documents sitting on the desk. Mark picks up one of the documents and hands it to the assistant.
Mark: Here is the marketing mix I propose to support Kathryn’s idea of the product. Look it over and when you are done I will give you the other proposal.
Connie: OK. I have a good understanding of the Catherine option.
Scene 5 :
Mark still sitting at his desk hands the second option to the assistant.
Mark: Here is the marketing mix I propose to support Joe’s idea of the product. Look it over and when you are done I will give you the opportunity to make the decision.
Mark: Thank you for helping me out. I know Catherine’s product looks attractive but Joe’s idea may produce more revenue: $120,000 versus $190,000. Keep in mind we will not have to purchase any new equipment under Joe’s proposal. Of course, Catherine’s proposal will help build our brand which is very good in Our Town. It is a tough choice and I am glad you get to make it. Which option should we pursue? Mark and the assistant are still sitting in his office as the decision is made. Which marketing mix do you recommend? Please check your selection.
Alternative if Catherin’s proposal selected.
Mark: You have made a wise choice. Catherin is a fine artist in great demand and her portrait service offers our customers a durable product that benefits from the direct selling method and the intangible Premier Portrait service really needs the special marketing such as gallery viewings and wine and cheese parties. The Premier Portrait is a specialty item with a high price and requires individual selling in a direct sales environment designed for unique one of a kind presentations 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 at the intangible warranty guarantee. ThePremier Portrait service will further Catherin’s already strong brand and offer a new product to her loyal customer base.
Alternative if Joe’s proposal selected.
Mark: You have made a wise choice. Technically, Catherin is a very good photographer but her ability with Corel still needs to be developed. Catherin’s strong suit is in her technical proficiency with PhotoshopCS4 and she produces stunning portraits using the artistic tools available in the software. Our normal portrait sells for $450 so we will 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 Premier Portrait service. Selling the product unframed enables the customer to complete the creative process by selecting the frame and gives them a deeper sense of ownership and 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 us 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 own financing and it is an intangible that customers will like. The Premier Portrait service will maintain Catherin’s strong brand for technical superior portraits and help us expand our customer base.
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