Page 593 - Business Principles and Management

C HAPTER 21 A SSESSMENT

CASE IN POINT

CASE 21-1: A Photographic Assortment
Aisha Muran has been a part-time photographer for many years. She has
specialized in individual family portraits for most of her business. Her
customers learn of her primarily via word of mouth or when they see her
portraits in other people’s homes. She enjoys the work but doesn’t make
enough money to do it full-time.
Part of Aisha’s problem involves changes in technology. Many people
are now buying inexpensive digital cameras and printers. This equipment
allows individuals to take their own pictures, send copies over the Inter-
net or by disk, and print high-quality images.
She has discussed the issue with several business advisers, who sug-
gested she consider expanding beyond portrait photography. They rec-
ommended expanding into weddings and special events; taking photos
of landscapes, buildings, animals, and other subjects that would meet
the needs of a broader audience; or purchasing and reselling home acces-
sories that would complement the purchase of pictures and portraits.
They have also mentioned that she could learn to enhance and improve
the quality of digital photos taken by her clients and then print them
using a professional-quality printer.
Aisha is unsure of what direction to take with her business. She has
considered spending money to advertise. She is also not sure that she
wants to get involved with digital photography.

THINK CRITICALLY
1. Describe a basic product, enhanced product, and extended product
that you would recommend to Aisha for expanding her business.
2. List the elements in Aisha’s current product assortment. Develop a
new product assortment that she could offer. Identify which of these
two assortments would be most appealing to potential customers.
3. If Aisha decided to purchase and resell home accessories, how could
she use the concept of a product line to effectively market those
products?
4. Describe how the Internet has made possible a new distribution
system for photographic images. Explain how digital photography
would enhance Aisha’s product offerings.
5. Construct a grid like the one shown in Figure 21-1 for Aisha, illus-
trating how she could develop a business that would fit into each of
the four quadrants. Describe the types of products she could offer
for each of the four positions on the grid.
6. Should Aisha spend any money on advertising before she has made
her product decisions? Explain your answer.

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