Bob Merita, manager of Showtime media is looking for ways to increase profits. Showtime media is located along a buy cross-town street about two miles from a metropolitan area of 1 million and near a large university. He sells a wide variety of products used for its different types of multimedia presentations. His line includes high-quality video and digital cameras, color scanners for the use with computers, flat panel monitors, Teleprompters and protection equipment. Most of his sales of this specialized equipment are made to local schools, for classroom use. Most of these purchases are delivered by the sales reps or the sores delivery truck. Many repeat orders come in by phone or mail, but email and electronic file exchange have become common.
Bob’s customers who make most of the over the counter purchases are 1) serious amateurs, 2) some professional who prepare videos or computerized presentation materials on a fee basis. He gives price discounts of up to 25% off the suggested retail price to customers who buy more than $2000 worth of goods per year. Most of his customers apply to this discount.
In recent years, many amateur photo buffs have purchased digital cameras to capture family pictures. Therefore, Bob planned a special pre-Christmas sale of two of the most popular brands of digital cameras. To promote his sale, he posted large signs in the sore windows, gave the sell a lot of space on the home page of ShowTime’s Website, he also ran ads in a Christmas gift suggestion edition of the local newspaper. Bob wanted to sell 100 cameras but only had sold five.
Therefore we have decided to use our contact list of repeat customers to send out a post card with an advertisement of our digital camera that we are selling during our pre-Christmas sale. The post card will also have a coupon with an additional 15% off any camera accessory when the camera is purchased