Problem RecognitionThe Jones Blair Company is a small paint (coatings) manufacturer in the southwestern United States. The company's factory and headquarters are located in Dallas, Texas; and does most of its business in the 11-county Dallas-Fort-Worth region, as well as Oklahoma, New Mexico and Louisiana. The company currently sells high-quality architectural paints and accessories in various markets. The company also sells OEM materials to domestic and international customers. Jones Blair is currently looking for solutions to market its architectural coatings and miscellaneous items. Jones Blair mainly deals with customers who are looking for a high-end product. They strive to produce high quality coatings by continuously researching and developing new solutions. This has led to the Jones Blair product being the highest priced product on the market. Jones Blair primarily targets DIY customers (50% of sales) and professional painters (25% of sales) who are looking for great point of sale service, ease of application and durability. Jones Blair Company increased sales on a year-over-year basis, but sales volume remained the same. This is due to the high research and development costs of their products. The company is concerned that it will face a price plateau and be able to remain competitive in the industry. Jones Blair must determine where and how the company will market its architectural products in the Southern United States. Currently, the company employs eight sales representatives to manage inventory and customer expectations across the company's 200 cooperative stores. The company spends approximately 3% of net sales ($12,000,000*0.03 = $360,000). Of this, 55% is spent on co-op advertising ($360,000*0.55=$198,000). This is spent on newspaper advertising and seasonal catalogs distributed by the retailer. The remainder of the advertising budget is spent on in-store displays, corporate brand advertising, a website, point-of-purchase signage, regional magazines, awards and advertising production costs. The case analysis will determine where and how the company should market its architectural products. Alternatives Jones Blair developed four alternatives to alleviate the company's marketing problems. a) Spend an additional $350,000 on corporate advertising; b) Reduce the price by 20%; c) Hire one additional sales representative.;d) Do nothing (Status Quo).a) Spend an additional $350,000 on company advertising. This money will be used to raise awareness. The majority will be spent on television commercials targeting primarily the Dallas Fort Worth (DFW) area in the do-it-yourself market. Brand image is important to consumers, and TV commercials are a great way to get the name out there.