Marketing Strategy Electronics Communication Electronics Communications, Inc. manufactures portable radio systems that can be used for two-way communications. The companys new product, which has a range up to 25 miles, is particularly suitable for use in a variety of applications; such as, mobile unit-to-home office systems, marina sales and service systems, and others. In these applications the two-way communication system enables an office to easily contact field sales personnel, repair personnel, and so on. The primary distribution channel for the product will be through industrial communication equipment distributors. However, the firm is also considering distribution through a national chain of discount stores and a marine equipment distributor. These latter two distribution channels have the advantage of allowing the products to reach individuals interested in radio-oriented hobbies and individuals desiring boat communication systems. Because of the differing distribution and promotional costs, the profitability of the product varies with the distribution alternative selected. In addition, the companys estimate of the advertising cost and sales time per unit sold will vary with the different distribution channels. Since the company only produces these units on order, the number of units produced and the number of units sold are the same. The table below summarizes the data prepared by Electronic Communications with respect to profit, expected advertising effort ($s) per unit sold, and the estimated sales effort (in hours) per unit sold. The advertising and sales force estimates are based on past experience with similar radio equipment. Distribution Channel Profit per Unit Sold Estimated Average Advertising Dollars Per Unit Sold Estimated Sales Force Effort per Units Sold (hours) Industrial $90 $10 2.5 Discount Stores $70 $18 3.0 Marine $84 $8 3.0 Company management has specified that at least 100 units must be distributed through the discount stores during the next three months. The firm has set the advertising budget at $5,000 and stated that a maximum of 1,200 hours of sales force time will be available during the current planning period (3 months). In addition, production capacity is 600 units. The company is now faced with the task of establishing a profitable marketing strategy. Fortunately, in your new position with Electronics Communication you are knowledgeable about using Linear Programming to analyze such situations and prepare a business/strategy report for management. What is/are your recommendations? Provide sufficient detail to support the recommendation(s)