NanoViz is a new computer company started by Billie Jean Hudak and Martin Wilkomen, two former tech heads, to develop and market small projection equipment for computer-driven presentations. For example, the current product line features four models ranging in price from $1,399 to $1,899. The firm's leading seller, the NanoV, sells for $1,599 and allows a presenter (a salesperson, professor,seminar leader, etc.) to connect the sandwich sized projector to the video-out port on almost any VCR or notebook computer. Clear images are then projected on an ordinary screen or - in a pinch - even a wall. One leading computer magazine recently reviewed the NanoV in its new products feature, calling it "the next best thing to buying a cinema."
Hudak and Wilkomen don't want to sell through intermediaries, having been burned in their earlier days by a large department store that reneged on a large order of another home entertainment product. The partners have asked you to pick up the pieces of the marketing plan begun by Billie's father, just before he had a near-fatal heart attack.
NanoViz is working with little cash right now. Over 90 percent of its $500,000 in assets are tied up in parts (30 percent) and finished goods inventory (70 percent). Product costs run about $330 at the bottom end of the line to about $710 at the top end. Direct costs on the NanoV are $759. About $40,000 is on hand now for marketing, but crisp and early sales could fund substantially more marketing activities.
The following costs illustrate a number of the media options available (M = 1,000, MM = 1 million):
Four-color ad in PC Tec magazine (circ = 1.1 MM) $14,000
Black and white ad 8,000
Four-color ad in Sales & Marketing Tips mag (circ = 2.6 MM) 18,000
Black and white ad in Wall Street Today (circ 21mm/column inch) 600
Mailing lists: "Big Business"(n = 125,407) $80/M
University info Technology directors (n = 27 M) $70/M
Razor Image catalog six-mo, hot list (n = 49,379) $90/M
Trade show exhibit and receptions/demo $5K to $15K
Website development: $5M - $25M, $10,000/mo upkeep
Postal charges as low as $.20
Telephone service bureau: outbound calls @$1.50 ea, inbound @ $4.50 ea
1)Based on your learning, what forms of media would you use for your advertising campaign and why?
2)Put together an integrated marketing campaign based on the $40,000 available using the logic that early sales will fund future marketing campaigns.
3)Be sure to justify and explain your responses.
This should be roughly 2-3 pages long (or 600-800 words; Times New Roman, 12 pt font); try to make your paper concise.