Direct Marketing Memorandum

This memo is with regard to the current problem as to the proposed raise in merchandise strategy for company products. As you have wholly been made aware, a recommendation was recently submitted to the Vice President for merchandising with the suggestion being to establish a direct-marketing system for the company in order to increase sales and productivity levels.Furthermore, the rationale behind this groove of thinking was that a direct marketing model would better cleanse the companys capability to reach out to customers directly, and being fitted to address their needs and wants quickly and efficiently. This however, is now being contested by some of the major(ip) retailer clients in our distribution network, especi aloney since it is their information that this entrust essentially lessen their own sales and marketing initiatives.Not just now will it mean reduced orders and client patronizing on their end, it will also effectively deprive them of profits and financial s ustainability. It becomes therefore the maculation of this memo that a compromise must be arrived at, since the needs of two parties in this scenario must be taken into careful account. The new recommendation then is as follows the establishment of a modified direct marketing system similar in nature to the model currently in use by Hewlett-Packard Corp.Instead of accepting orders on the company site and depriving retailers of their major function, decentralization to a certain degree will be through with(p) by forwarding all orders or requests on the site to the retailer systems for processing. While this model reduces outright profits on the part of the company, as opposed to the original direct marketing one, it would still retain the regard of the retailers in our distribution network, which basically amount to roughly 60% of all sales operations. This is believed to be the best option for the company to take devoted the current circumstances.