Any info about Iomega (IOM)? Message Board

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Non-Tech : Any info about Iomega (IOM)?

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To: Jim Welsh who wrote (50331)	3/17/1998 2:58:00 AM
From: Reseller	Read Replies (1) of 58324

Re: Are you (and others) so certain that the advertising campaign has failed at this point. Fair enough question, a summation that is subjective at best but you asked. The context under which the advertising campaign has been validated is that the computer owner doesn't know what the Zip drive is about. And to a degree to enhance the OEM pull thru sale. That they must be educated about the Zip. My evaluation of computer people is that they are generally more progressive, and have an understanding of their technology ( unless it's first time buyers ). Computer people know computer people, it is rare that you would find a singular computer user that doesn't have friends, coworkers, or family to share information. They visit computer sales areas looking for software and the like and have an awareness of the most popular computer items. ( Zip drives ) It is my contention that computer users know about Zip. Now if your target is Miss Susian home maker and Joe six pk than I say that they don't know or care about the Zip drive and won't buy a Zip drive unless the price is of little consequence. Any user that needs additional storage is going to be out there looking for it and running into Zip. On occasion there have been alerts of $89.00 or $79.00 Zip drives offered on different Internet sights, in a short time they're sold out and Initially K.E. had identified a price point program where he suggested that at a given price point the sales would improve exponentially stating that his goal was to reduce his price to spur greater demand. I think this was generally accepted as good marketing. Along the way he must have been convinced that sales could be enhanced by advertising alone thus the present program of firm prices. The marketplace will dictate, with the demand growing the price can be kept firm but demand is slowing and advertising is blazing, the marketplace is mandating something different. The least that I would have expected is that demand would still be growing without the advertising program. What I'm now expecting is a larger inventory build up with price reductions to follow. I'm satisfied that an alert was issued sooner in the program than later but as I said if K.E. doesn't respond to the slower sales with something other than advertising soon than I'm out. IMHO Regards Reseller

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