SituationPhillip Chin (Marketing Director) for HI (Hurricane Island) is in the midst of formulating the 1987 marketing budget. Of the many options for fulfilling next years corporate goals, supporting the PDP (Professional Development Program) represents a clear path toward meeting the schools leadership strategic objective.AnalysisPDP participants consist of highly homogenous corporate groups that seek an alternative to in-house training. HIs superior instructors and facilities provide a challenging environment whereby corporate participants demonstrate greater managerial abilities, such as confidence ...view middle of the document...
At present, marketing the PDP is handled by Chin and Robert Weiler (VP), but they are too busy to continue this effort, and have mandated a full-time recruiter. As a result of managements desire to capture $200,000 in gross revenue, the average total cost per SPD ranges from $112 to $144.Some of HIs managers voice apprehension about the PDP. They remark that corporate programs could be interfering with the schools mission. HI could lose its donor base if it does not strike a balance with PDP.RecommendationsIn its 1987 budget, HI should consider increasing the average PDP SPD from $137 to $144. This figure satisfies several criteria. First, the figure complies with the expectations for $200,000 annual gross revenues via a full-time marketing recruiter as cited by Chin and Weiler. Second, it is under Chins $200 cap, and yields nearly $65,000 in profit. Third, it limits the amount of PDP students to not more than the previous year, thus addressing the concerns of those who believe the PDP is an endangerment to the schools donations.ConclusionWe believe that the recommended price increase in the PDP offers a positive overall value for the school. Clients should perceive the price as a good value, and the donors will see that HI has not failed its mission to serve youth and underprivileged. Lastly, the school benefits financially with additional profits, and internal comparative advantages of Chin and Weiler are restored upon hiring a marketing recruiter.