About the Market Campaigns - Assignment Example

Part E The management should consider other factors apart from the monetary benefits of making a profit of $100,000 from $75,000 when choosing either of the two alternatives. Alternative one was to increase the sales by a combination strategy of reducing the selling price to $3.70 per unit and undertaking a marketing campaign that would cost $21600. Factors to be addressed in the case are The industry within which the firm operates. The rules governing an industry determine the price of selling goods manufactured in the firm.

The firm should, therefore, determine if it is violating any of these rules by lowering the price to $3.70.Violation of regulations can lead to legal sanctions and in extreme conditions the firm may be closed. The firm should also consider if it is within the maximum and minimum prices implied in the industry. The price of $3.70 should be neither beyond nor below the set maximum and minimum prices. Factors that to be considered about the market campaigns are the quality of the marketing campaign, and whether it will accomplish the objectives of carrying it out.

The method used to carry it out. Two methods of market campaigns are through either the media or using written forms like banners and pamphlets. The duration of the marketing, campaign and lastly, the effectiveness and competence of the staff used in the campaign are paramount. Alternative two was to accept an offer from an overseas customer to purchase units at a cost of $3.00 each, this would lead to an additional administration cost of $5,000. The various factors to consider are customer loyalty, this is very crucial as it prevents the issue of bad debts and losses from the sale.

Some elements to consider in this case are; whether the customer pays his debts on time, the duration that he has been in the company, and lastly the number of goods that he normally purchases. The customer is overseas and therefore the management should determine the cost of exporting the goods to him according to the customs duty regulations. The cost of packaging is relevant. Packaging of the goods should be using the safest method to avoid the goods being damaged during transit and in a way that the customer has specified.