Article 2.29
Marketing Plan 2009: Sell More Old Products to Core Customers
2009 will
be a tough-economy year in which real interest rates (the difference between
the nominal interest rate and the deflation in inventory values) will be high
(if bank debt remains available for leveraged distributors):
·
What items should we proactively
sell to which sub-sets of our customers to maximize profits and free cash flow?
·
How
should we engage our suppliers on strategically profitable growth opportunities
instead of their less-focused agenda of selling all of their products to any
of our theoretical customers?
·
What
are our economic assumptions for the four marketing plays below?
ROI’s FOR DIFFERENT,
MARKETING PLAY OPTIONS?:
If we had
four separate profit centers that each (hypothetically) pursued – with equal
execution capability – one of the four different marketing “plays” below, could
ROI outcomes vary as follows?
1.
Sell
more stocked items to existing customers that buy those items, but not from us.. .
Sell….more old items to old customers