Problem RecognitionThe Jones Blair Company is a small paint (coatings) producer in the southwest United States. The company's factory and headquarters are located in Dallas, Texas; and it conducts most of its business in this 11-county Dallas-Fort-Worth region, as well as Oklahoma, New Mexico and Louisiana. Currently, the company sells premium architectural paint and accessories in various markets. The company also sells OEM materials to domestic and international customers. Jones Blair is currently seeking solutions to market its architectural coatings and miscellaneous items. Jones Blair primarily targets customers looking for a high-end product. They strive to produce superior quality coatings by continually researching and developing new solutions. This made the Jones Blair product the most expensive product on the market. Jones Blair primarily targets DIY customers (50% of sales) and professional painters (25% of sales) looking for excellent point-of-purchase service, ease of application and sustainability. The Jones Blair company increased its sales on an annual basis, but the sales volume remained the same. This is due to the high cost of research and development of their products. The company fears facing a price plateau and being able to remain competitive in the sector. Jones Blair must determine where and how the company will market its architectural products in the American South. Currently, the company employs eight sales representatives to manage inventory and customer expectations at the company's 200 cooperative outlets. The company spends about 3% of its net sales ($12,000,000*.03 = $360,000). Of this amount, 55% is devoted to cooperative advertising ($360,000*.55 = $198,000). This amount is spent on newspaper advertising and seasonal catalogs distributed by retailers. The remainder of the advertising budget is spent on in-store displays, corporate brand advertising, a website, point-of-sale signs, regional magazines, premiums and advertising production costs. This business case will determine where and how the company should market its architectural products. Alternatives Jones Blair developed four alternatives to solve the company's marketing problem. a) Spend an additional $350,000 on corporate advertising; b) Reduce the price by 20%; c) Hire an additional sales representative; d) Do nothing (status quo). a) Spend an additional $350,000 on corporate advertising. This money will be used to increase awareness. The majority of this will be spent on television ads primarily targeting the Dallas Fort Worth (DFW) area in the DIY market. Branding is important to consumers and TV commercials are a great way to get the name out there..