Caselet $2\mathrm{.}2$: ProMedia Technology

ProMedia Technology is a software company that sells to companies of all types. The software packages help marketers and public relations $($PR$)$ professionals manage media. Products include:

Financial project tracking, an application that tracks and allocates costs to projects, and also enables budgeting through "what$-$if$"$ scenario planning.

Media buying and tracking software, which automates routine media buying.

Creative management, which stores and makes available various creative illustrations.

Lead management, an application that tracks leads by media channels and develops return on investment $($ROI$)$ models.

The PR tracking application, an add$-$on to the media research service, scores the effectiveness of various media placements and provides an ROI on PR$.$

Companies can buy any or all of the applications and pay a monthly rate based on an annual subscription. Subscription rates vary by size of the account, and are priced either by the number of users $($such as the financial project tracking$),$ or by the number of pages $($such as the creative management application$),$ or both $($such as the media research service$).$

As manager of the company's sales force of $12$ people, you report directly to the CEO, who also happens to be the sole owner and founder of ProMedia. Over coffee last week, he mentioned that the company's growth of less than $10$ percent for the past two years was stifling product development. He had to either find a way to grow faster or reduce costs; otherwise, some start$-$up company might leapfrog over ProMedia's offerings. He's thinking that cutting the sales staff in half and going with two inside salespeople might be the best route, and wanted you to report back on some options. Realistically, what options do you have? What do you think is the best