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JUSTIN
DIAL
A MARKETING ANALYSIS
ASHLEY
FARNSLEY
TONY
HINKEL
NICOLE
MALOTT
SUMMARY
POSSIBLE
OPTIONS
COMPANY
DECISION
SENIOR MANAGEMENT
VP OF ADVERTISING
VP OF SALES
VP OF OPERATIONS
VP OF FINANCE
HIRE AN EXTRA SALES
REPRESENTATIVE FOR AN
ADDITIONAL COST OF 60,000
INCREASE ADVERTISING BUDGET BY
350,000
CUT PRICES BY 20% ON ALL
PAINT PRODUCTS
MAINTAIN CURRENT OPERATION
BEHAVIOR
VP OF ADVERTISING
INCREASE ADVERTISING BUDGET BY
350,000
SALES
COG
ADVERTISING
COMMISSION
OTHER
12,480,000
7,488,000
4,992,000
724,400
124,800
3,307,200
835,600
13,480,000
8,088,000
5,392,000
724,400
134,800
3,572,200
960,600
BASE ADJUSTED SALES
VP OF OPERATIONS
SALES
COG
ADVERTISING
COMMISSION
OTHER
9,984,000
7,488,000
2,496,000
374,400
124,800
3,307,200
- 1,310,400
22,880,000
13,728,000
9,152,000
686,400
228,800
6,063,200
2,173,600
BASE ADJUSTED SALES
CUT PRICES BY 20% ON ALL
PAINT PRODUCTS
VP OF SALES
SALES
COG
ADVERTISING
COMMISSION
OTHER
12,480,000
7,488,000
4,992,000
374,400
124,800
3,367,200
1,125,600
14,040,000
8,424,000
5,616,000
421,200
140,400
3,720,600
1,333,800
BASE ADJUSTED SALES
HIRE AN EXTRA SALES
REPRESENTATIVE FOR AN
ADDITIONAL COST OF 60,000
WEIGHING IN
CAPABILITY
Are we meeting a goal that is appropriate
and in line with company’s capacity?
PROFIT
Does the option provide enough initiative
to invest time/money in to?
QUESTION: WHICH MARKETING EFFORT DO WE NEED TO PURSUE IN ORDER TO GET
CLOSER TO OUR COMPANY’S OVERALL GOAL?
NO ADDITIONAL ADVERTISING
SALES
COG
ADVERTISING
COMMISSION
OTHER
12,480,000
7,488,000
4,992,000
374,400
124,800
3,307,200
1,185,600
CURRENT
WITH
ADVERTISING
13,480,000
8,088,000
5,392,000
724,400
134,800
3,572,200
960,600
NO PRICE CUTS
$0.00
$2,000,000.00
$4,000,000.00
$6,000,000.00
$8,000,000.00
$10,000,000.00
$12,000,000.00
$14,000,000.00
$16,000,000.00
$18,000,000.00
$20,000,000.00
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Sales Growth
$22,880,000
MARKET GROWTH AVERAGING 1 TO 2% EACH YEAR
HIGHEST
PAYOUT
LOWEST
PAYOUT
-$1,310,400 $2,173,600
ADDING A REP
SALES REPS9
$1,050,000.00
$1,100,000.00
$1,150,000.00
$1,200,000.00
2005 2006
Percentage Lowered
$1,100,000.00
$1,200,000.00
$1,300,000.00
$1,400,000.00
2005 2006
Percentage Raised
-5.06% 12.5%
JONES BLAIR DECISION
GROUP A
THANK YOU
JUSTIN
DIAL
ASHLEY
FARNSLEY
TONY
HINKEL
NICOLE
MALOTT

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