In Touch Promotions (ITP) sells promotional items emblazoned with company logos and names; such items can be given to employees or handed out at trade shows in order to increase awareness of the customers' name and product. ITP does not do the print work itself, but works with a number of specialized printers and clothing manufacturers for the various products. ITP does produce a catalog and sells directly to customers. The company does not maintain inventory or have expensive production facility. This report identifies the marketing strategy for ITP and considers the company's marketing future.
One of the primary strengths of ITP is that it does not perform its own manufacturing. Because it serves as a "middleman" between the end customer and the companies which actually do the various types of printing, ITP does not have much overhead, and very little capital equipment. ITP has offices of 1000 square feet, and only 8 employees; most of these employees are directly engaged in selling activities. Since employees are paid a commission on top of a small guaranteed salary, the costs associated with the employees varies directly with the amount of sales. This cost structure gives ITP a strong financial position since it has no outstanding debt.
Using subcontractors to produce the various items which the company includes in its catalog is also a strength. Because ITP is not dependent on any one vendor, it is able to negotiate the best terms with the most appropriate vendor for any particular order. In addition to pricing terms, this may also include negotiations regarding delivery and the type of work to be done. For example, ITP may have several different vendors who can print logos on mugs, but only one vendor which can do it using gold lettering or trim. Having multiple suppliers increases the range of products that ITP can offer its customers; this, in turn, increases the customer base for ITP.
Another strength is t...