CASE

Honeywell, Inc.
SPECTRONICS DIVISION

In early January 1981, Gary Null, marketing manager for Fiber Optics, scheduied
a meeting with mbers of his management team to discuss the
promotion pro
gram prepared by the division's advertising agency. The program represented
the first comprehensive advertising, sales-promotion, and publicity campzign for
the line of fiber optics products manufactured by the Specturonics Division of
Honeywell, Inc.
The consensus of Null's team was that the proposed
campaign was thorough
and exciting. Nevertheless, Null realized that the campaign would have to be ap
proved by top management. Therefore, in the memo to his management team, he
outlined the topics to be addressed:
1. Should we adopt the 1981 promotion campaign as presented to us
2. Ifyes, how can we justify it, and at what expenditure levelP
3. If no, what changes, if any, might we make in the program?
In addition, he asked each member of the group to prepare wrirten argumenrs to
support the position favored.

THE FIBER OPTICS INDUSTRY, FALL 1980

The concept of fiber optics can be traced to the nineteenth century, when an
English physicist demonstrated that light can be transmitted through a stream of
water by internal reflection. Years later, others observed that two opticaly dissim
ilar materials could be assembled to form a fiber that would transmit light. Research
on optical fibers continued through the mid-twentieth century, when such other
transparent fibers as glass and plastic were found to be superior conductors of
light.
Although technologically complex, fiber optics can be described as the tech
nique of transmitting light through long, thin, flexible fibers of glass, plastic, and
other transparent material. When fiber optics is used in a commercial application,
a light source emits infrared light flashes corresponding to data. Millions of light
flashes per second send streams of light through a transparent fibe. Because ofa

This case was made possible through the cooperation of the Spectronics Division of Honeywell, Inc.
The case was prepared by Professor Roger A. Kerin and Angela Schuetze, graduate student, Edwin L
Cox School of Business, Southern Methodist University, as a basis for class discussion and is not de
signed to illustrate effcctive or ineffective handling of an administrative situation. Certain names and
data have been disguised.
 mirror cffcct, the fiber acceleratcs the movement of light. A light sensor at the
other cnd of the filber "rcads" the data transmitted.
Fiber optics technology has becn heralded as a replacement for copper wires
as a mcans for transmitting data. Four major benefits of optical fibers over copper
wirc have becn citcd. First, they save space, since optical fibers can carry more
information than copper wirc. Second, optical fibers do not create magnetic fields
and arc immune to clcctromagnctic ficlds. Third, optical fibers do not conduct
clectricity and thus can be uscd when electrical cables would be hazardous. Finally,
optical filbers are small and lightweight relative to copper wire. These benefits
prompted scientists to proclaim that fiber opticstechnology would replace copper
wire in the second half of the twenticth century, and a new industry developed.

Fiber Optics Components and Systems

Fiber optics products are divided into two categories: fiber optics components and
fiber optics systems. Components are the individual
products emitter or
transmit, and detect light. There are five types of components:necessary
to emit,
trans
mitter, fiber or cable, detector or
receiver, connector, and coupler. An emitter is a
light source. A detector receives the light sent
by the emitter. The
through which light is transmitted from thefiber optical
or
cable is a glass fiber
detector. A connector acts as a link emitter to the
between the emitter or the detector and the
optical cable. Couplers enable a large number
into a single of
optical connector. When several emitters are assembled tojoined
and detectors to be
a
complete, self-contained unit capable of datacomponents a form
Cxists. transmission, fiber optics system

Market for Fiber Optics

Technology
The market for fiber
optics technology was in its infancy in 1981.
mates varied,
most industry forecasters believed the sales of fiber Although esti
nents and
systems would exceed $100 million in 1981 and reach
optics compo-
1990. $1.9 billion by
The application of fiber
optics technology varies by end users and
of component. Gnostic
Concepts, Inc., a major electronics research by type
the volume estimates
by user segment and component type shown in firm, made
and 2. Exhibits 1

Competitive Activity
The appeal of
fiber optics technology had attracted a host of firms involved
various applications, and numerous firms in
entered the industry as
system suppliers. Corning Glass Works, ITT, and AT&T's component and
Western Electric division
represent major manufactureis offiber
General Electric, AMP, Motorola, and optics
cable for use in telecommunications.
firms pursuing the fiber optics Amphenol North America represent major
component and system market. In addition, selected
computer manufacturers such as IBM, DEC; and
fiber optics technology. Overall, Sperry-Univac were developing
competitive activity was
great, as the fiber
optics
industry evolved. The various competitors were each seeking a
vantage while actively seeking to stimulate volume technological ad-
through marketing efforts. Cost
 HONEYWELL, INC. 349

EXHIBIT 1

U.S. Fiber Optics Component Consumption by Application

Appication 1981 1986 1990
Telecommunications (including telephone) 34% 38% 43%
Adjustments 21 19
25 27 22
Government/military
Automotive
Business/tetail
Instruments
Satellite earth
Industrial
Cable T.V. 2

Computer 3 3
Total (millions of dollars) $135 $814 $1,868
Note: "Adjustments" include U.S.-manufactured components and systems not used in U.S, equipment,
minus imported parts-that is, the trade balance (exports minus imports) plus inventory change plus
nonproduction use. Nonproduction uses inchude replacement parts, serappage, and parts for R&D. The
concept of adjustment is important in order to reconcile U.S. application requirements and U.S.
production.
Source: Gnostic Concepts, Inc., Menlo Park, California. Printed with permission.

considerations also loomed as a critical determinant of competitive activity. Al

though costs varied among component and system suppliers, gross margins in the
industry fell in the range from 25 to 30 percent.

SPECTRONICS DIVISION
Spectronics is a division of Honeywel, Inc., a Minneapolis, Minnesota-based For
tune 500 company. Honeywell, Inc. is a high-technology company engaged in a
variety of businesses that produce computers and controls for information process-

EXHIBIT 2

U.S. Fiber Optics Productión by Component Type

Component Type 1981 1986 1990
Cable 57% 53% 60%
Transmitter, receiver, repeater 38 37 30
Connector, coupler 10 0
Total (millions of dollars) $135 $814 $1,868
Note: A "repeater" is a regenerative component that allows the
restoration of after degradation
due to transmission over an optical cable. Repeaters are most frequently used signal
in mediumto-long cables.
Virtually all cable production is devoted to telecommunications, cable TV, and satellite earth
applications.
Source: Gnostic Concepts, Inc., Menlo Park, California. Printed
with permission.
350
and aero

management,
environmental control, industrial processcs,
ing, cner8y were $4.2 billion; operating
revenucs in 1979
Inc.
spacc and defense. Honcywell,
$478.1 million.
profit was
Optoclectronics is
the busincss of optoclectronics.
Spectronics is cngaged in devíces for
and other electronic
a branch of electronics
that deals with solid-state
and sensing electromagnctic
u
radiation in
generating, modulating, transmitting, Products pro
infrared portions of the light spectrum.
traviolet, visible-light, and and ight-sensing devices, optical
duced by Spectronics include light-emitting data-transmission ports and
and a variety of optic
switches, fiber optics devices, automobiles, and aircraft
components for use in computers, office equipment,
1978. Spectron-
systems. Spectronics was acquired by
Honeywell, Inc. in August
cxceeded $11 million.
ics's total product sales prior to the acquisition

Sales and Marketing Efforts

Spectronics markets its full line of products through its own sales force and selected
distributors. International sales are handled through the international sales offices
of Honeywell, Inc. "The term sales is sort of a misnomer" said Null. "Our people
are actually problem solvers in the truest sense. The majority of our sales volume
arises from custom optoelectronic components, assemblies, and systems to meet
Exact customer requirements." He continued:

We work closcly with design engineers, and virtually all of our sales and adver
tising cffort is directed toward this audience. We advertise in technical publica
tions and try to communicate state-ofthe-art applications of optoelectronics. I'd
say the total advertising budget for Spectronics is modest, and a good share of
that goes to updating product catalogs and other product-related information.

Null added, "Design engineers play an instrumental role in developing technical

specifications for optoclectronic devices. Although they do not necessarily make
the final decision on the type and source of these devices, their views carry con-
siderable weight, given the nature of the technology. But fiber optics is different.
Optoelectronics is a mature technology; fiber optics is an emerging technology.
Our sales and advertising effort may have to be modified"

Fiber Optics
Spectronics had been developing fiber optics data-transmission systems for more
than six years prior to its acquisition by Honeywell, Inc. Principal efforts during
this developmental period had focused on applying the division's engineering
skills to special applications of fiber optics for use in the military. Spectronics's
largest Department of Defense contract for fiber optics was a $2.1 million Army
contract for light-emitting diode (LED) modules for forwardHooking infrared sys
tems. Secondary emphasis was placed on custom applications of fiber optics for
commercial use.
Present product-development efforts for commercial use have focused on
short- to medium-distance applications (under two miles) of fiber optics technol
ogy for local area networking in the computer industry. A "local network" is a data
 351

HONEYWELI, INC,

EXBIT 3

DCnterface Link
Duplex
Cable assembly
annon assembly
MDM connector

Crimp-on diode
Spectronlcs Connectors

50urce and
detector pair

-k
DuPont Cable -

that are within

terminals and computers
c o m m u n i c a t i o n s system
for connecting or in close proximity,
as

buildings on the same property,

o n e building, in several
such as telephone
networks for public
switching networks
long-haul applications and can
opposed to industrial
products also have
lines. However, Spectronics's
instrumentation industry. ITT Cannon, an
be used in the with DuPont and
Spectronics, in conjunction link is suitable
In May 1980, Interface. This
data link called the HDC source
nounced a point-topoint uses Spectronics
transmission between
computers and
c o n n e c t o r s from ITT
for short-range data c o r e cables,
and electrical
DuPont plastic
and detector pairs, late 1980, Spectronics's
Interface link is
shown in Exhibit 3. By receiv
Cannon. The HDC
connectors, transmitters,
included fiber optics
line of fiber optics products assemblies and systems
other fiber optics attention to
ers, andcouplers among Null to give increased
development prompted
Success in product use. Null noted:
aspects of fiber optics for commercial
the marketing
to deal with different
markets and require us
us into new and
Fiber optics will take customers in the computer
have in the past. Our present fiber
the
people than we users should be receptive
to
instrumentation
markets and industrial into new segments
necessitate expanding
But fiber optics will who are
optics technology. in the industrial segment. Our people
such as robotics come up
of each market, products will have to
responsiblefor o u r other optoelectronic
now
customer list and develop contacts.
with a new
commission the
management, he was given approval to for
After talking with top comprehensive promotion
program
to prepare a
division's advertising agency
352

fiber optics directed

commercial
at
recommended to Null(nonmilitary)
the campaign uses. The next section
in late October 1980.
describes

PROPOSED 1981 PROMOTION

CAMPAIGN
The proposed campaign consists of two
Optics Corporate Campaign and (2) Fiber complementary components: (1) Fiber
Optics Product Campaign.
Fiber Optics Corporat
Situation
Campaign
market is
Analysis and
Corporate Campaign The present fiber optics
characterized by a healthy amount of activity by a
yet no
company has forged ahead to variety of participants,
reason, the market establish itself as the industry leader. For this
appears to be
posing. The number-one "leader" primed for just such a campaign as we are pro
note that
although there are few position is there for the
taking. It is important to
commitment of resources to that companies that have the technology and the
the leader technology that Honeywel/Spectronics does,
position is open only until
The someone claims it.
target firms in this
system original equipment campaign are North American computer and
of priority are (a) manufacturers (OEM). The targeted audiences incontrol
order
() design engineers.operating management, (b) engineering management, and
The
objectives for the
reputation in fiber optics forcampaign (1) to build a leadership
are
identity and
of fiber optics as a
"today" Honeywell/Spectronics, (2) to promote "currency"
affordability, ease of use, andproduction
availability
technology, 3) to generate awareness of
of
perception Honeywell/Spectronics as a fiber optics, and (4) to further solidify
of
single entity.
Campaign Strategy Approaches to leadership
cording to the taste,
style, and resources of promotion vary greatly ac
least effective is often the the advertiser. The most obvious
and
unabashed "We're Number One"
aligned is the product-.comparison technique. Very closely
communicates a more subtle "We'retechnique, which usually sacrifices
Number One." A more impact and
is what we call the
"Speaking for the Industry" prestigious approach
approach.
The formula is
By generating above-par awareness
size can be
through higher-impact advertising, the simple.
market
increased, and
Honeywell/Spectronics' s market share
will increase
accordingly. The company with the technology and
production
satisfy the market derives the greatest benefit. As capacity to best
Honeywel/Spectronics's mar-
keting efforts stimulate the market, the same marketing efforts do double
generating awareness of Honeywell/Spectronics as the most capable fiberduty
in
optics
supplier and thereby increasing its market share. Thus we recommend a program
that promotes fiber optics rather than one that
compares our products with those
of competitors.

The section presents a highly condensed version of the actual program. The main points of the cam
paign are reported in their entirety, however. Selected creative work has been omitted because of space
limitations.
HONEYWELL, INC. 353

Media Efort The media cffort will conccntrate on carefully chosen

publications.
Targets Target audiences fall into four subcategorles, as follows:
1. Primary target audience-operattng management.Direct advertising im-
pressions toward managerial/administrative professionals throughout the
industrial community to establish awareness of fiber optics in general and
Honeywell/Spectronics in particular. Communication with these decision
makers is an important support to the sales effort.
2. Secondary target audience-engineertng. Direct advertising impressions
toward engineers within the computer and control/instrumentation sys-
tems industry who are responsible for the design and specification ofequip
ment and devices. Emphasize coverage of those engineers within the
engineering management and procurement committee areas.
3. Geographic target audience. Advertise nationally, with primary emphasis
on centers of electronic activity.
Seasonal targets. Schedule advertising for maximum weight and impact to
begin the campaign. Thereafter, schedule for consistent exposure through-
out the year.

Media strategy Toachieve the media objectives, we recommend the following

strategy. Advertise in print media for a more detailed explanation of Honeywel/
Spectronics's message and the most comprehensive and cost-effective coverage of
the target audience.
1. Utilize business and industry trade magazines (1) targeted by title/function.
to the industry management professional or design engineer, (2) edited to
be of business interest to their readers, (3) providing coverage of the target
in the total United States, and (4) covering the target in the computer and
controls environment conducive to the positive communication of our
message.
2. Be flexible in scheduling execution to take advantage of all communication

opportunities (that is, special sections/editorial emphasis on fiber optics in

selected publications).
3. Utilize two-page spread ads in four colors for maximum impact and
effectiveness.
Media recommendations and cost The publications recommended in Exhibit
4 were selected on the basis of their (1) impact in the marketplace, (2) total cov
erage of the target audience, (3)) editorial quality and compatibility (value to
reader), and (4) media efficiency.
The recommended media/insertion/cost schedule is shown in Exhibit 5. Also
shown is an alternative lower-cost schedule.

Publicity and Sales Promotion Publicity and sales promotion have been
neglected by the fiber optics industry.

Objectives and audience The objectives of publicity and sales promotion

are

(1) to position fiber optics as a current or "now" technology and (2) to position

284
EXHIBIT 4

Recommended Publications for Corporate Campaign

industry, specifically those

Business Week/Industrial is an edition for subscribers in
employed in manufacturing as well as mining, construction, transportation,
cominications, and utilities. Its paid circulation of 350,000 is the largest available to us.
Published weckly, Business Weeh has carned and cnjoys a unique leadership role as "the"
weekly consumer business magazine.
Industry Week is published on alternate Mondays for the management (both corporate and
operations) of industrial firnms. /W reaches every industrial firm in the United States with
100+ employees. This circulation is also qualificd by management function and company
size.
Control Engineering is published monthly for engincers who design, develop, and apply
control and instrumentation systems. Editorial is technical, informing control engineers of

automatic control and data-handling systems about the practical application of new
instrumentation and analytical and systems-design techniques. Special attention is given to
the processing industry, machinery, and manufacturing, with emphasis on the exchange
of information between industries. CE is considered the leading publication serving the
control and instrumentation systems market. CE should be considered the basic media
vehicle for this market.
Computer Design is published monthly for the digital electronics market. Editorial is
devoted to designers of digital equipment and
systems. Circulation covers design
engineers and engineeringmanagement throughout the total electronics
components, computer equipment, subsystems, OEM-circuits,
We feel CD should be a basic computer-based systems, computers.
and
buy for coverage of our target in the
seminmonthly for specifying designers of electroniccomputer
EDN is published area.

and systems. Qualified

recipients are products, equipment,
electronics OEM. Editorial is technicalengineers and engineering management in the
and in depth. EDN offers the
coverage of our target engineer. most efficient
Electronic Design is published
bimonthly for the traditional EOEM design
engineering management. Editorial covers new engineer and
largest total EOEM, engineering, and technology and products. ED provides the
publications. engineering management circulation of candidate
Electronics Products
and Magazine is
subassemblies for speciiers published monthly and reports on new
products in the EOEM. Inproducts,
of electronics systems,
citculation, EPM resembles ED and EDN. terms of
Electronics is published on
alternate
Thursdays for manufacturers and users of
products and equipment worldwide. electronics
Electronics reports and
development/technological
leading in interprets
changes electronics. Electronics is new
industry
publication in this ffeld and is recommended as a recognized as the
Machine Design is basic vehicle.
published
design engineering function.
on alternate
Thursdays for
Technical editorial coversindividuals performing a
development; (b) current news; (c) design
the
following: (a) design and
professional,
is the
and problem-solving
management information; and (e) new ideas, (d) personal,
acknowledged leader in the product product announcements. MD
coverage. MD has a fulltime design engineering field in both
and editorial
feature section in each
issue. MD has the
electronics editor and includes circulation
advertisers of the design greatest share of total, an
electronics
Design Engineering is a engineering publications electronics, and exclusive
the design and technical magazine published monthly for
Editorial coversdevelopment
(a)
of
products for resale and engineers engaged in
(c) fluid power and research and technology, (b) specialized in-plant equipment.
materials and control, (d) mechanical electrical/electronic power and
manufacturing. Because design and power
impact. However, it should not of the cost transmission, and (e)
control,
considered as aefficiency,
be DE would
replacement effecively
for MD
or
add
DN
 355
HONEYWELL, INC.

EXHIBIT 5

Media/Insertion/Cost Schedules

Recommended Media/Cost Schedule

One-Timne
Cost Number of
Insertions Total Cost
Publication (1981 est.)
13 $411,424
Business Week/lndustrial $31,648
5,500 12 66,000
Control Engineertng
64,650
Computer Design 6,465
Electronics 7,073 10 70,7
Machine Design 9,396 10 93,960
55 $706,764
Total
Alternative Media/Cost Schedule
One-Time
Cost Number of
(1981 est.) Insertions Total Cost
Publication
Industry Week $17,472 13 $227,136
Control Erngineering 5,500 12 66,000
Computer Design 6,465 10 64,650
Electronics 7,073 10 70,730
Total 45 $428,516

Honeywel/Spectronics as the leàder of the fiber optics industry. The primary au

dience for publicity and sales promotion efforts inchudes (1) engineering manage-
ment, (2) design management, and (3) design engineers. The secondary audience
for these eforts includes (1) the business community and (2) the general public.

Publicity efort Fiber optics has not received the level of media exposure nor
mally accorded a developing technology with such current and potential scope,
particularly within business and mass media. The lack of coverage seems largely
due to an inadequate flow of information from the companies involved in fiber
optics research. In order to provide media with sufficient information to maximize
Spectronics's position, the recommended public relations program focuses on
(1) media symposia, (2) feature stories, and (3) trade shows.

1. Media symposia. In orderto gain

immediate, widespread exposure for fiber
optics and Honeywel/Spectronics, the public relations program begins
with a series of four media
symposia across the country. Various aspects of
fiber optics technology will be addressed
by company spokespeople as well
as by
invited experts. The agency recommends a division of invited guests
and company spokespeople between audiences
news and trade writers and
composed of (1) technical
(2) those associated with general or business
news. An exhibit of items
utilizing fiber optics should be developed to serve
as
examples of the technology.
 . Feature development. Through the symposia,
create its own: informed and
receptive mediaHoneywel/Spectronics will
hould not be leftwith only the remembrance ofaudience.
its
This audience
hus, the agencywill develop an learning experience.
ongoing program of feature
vill be for place in trade, business, and stories. These
publications general mass-media
shows. In keeping with the
Trade

leadership
positioning, Honeywell/
5Cectronics will design its own high-quality exhibit for trade shows. The
Phibit does not need tO De large, nor does it need to alter the current exhibit
policy.

A.p ecia
aleffort will be made to gain editorial attention
during major trade
A nress kit will
be developed for and
distributed to the media
sho W. The agency will serve as press contact, inviting media to visit attending
the
s Spec-
exhibit and arranging interviews with Spectronics spokespeople. Asimple,
troni

ded in each kit will allow media people to ask for information
w-cost card include
o
on eywel/Spectronic by requesting all subsequent news releases or by de
tailing the kinds of data that would most benefit the individual writer.
Seal program promotior As the computer and control OEM industries are
divzed for sales promotion opportunitics, the greatest area of opportunity rests
h e marketing rather than in the engineering and specification ends of their
isiresses. These businesses sel their products largely on the basis of technology
aadhenefits. The marketing of fiber optics as avaluc-added feature of their products
would serve to promote the currency of fnber optics for these user systems.
the development offiber optics as an OEM merchandising tool
The first step in
is the production
of promotional vehicles available to the computer and control
the formation of a
systems
manufacturers. 1o this end, the agency recommends
The hrst pass at an execution ofthis seal may be "WE'VE
"Fiber Optics Quality Seal. art to literature and lapel
Everything from camera-ready logo
SEEN THE LIGHT" free or on a very low-cost basis.
be provided to the manyfacturer
buttons could should,
the logo/seal. Marketing of the merchandising program
Exhibit 6 shows of the Spectronics sales call, supported
be an integral part
from that point forward, other participating manufacturers.
literature and examples of
by explanatory which includes
and sales promotion efforts is $63,000,
The fee for publicity the seal
costs for trade shows,
the four media symposia, and
the out-ofpocket
program promotion.
on promoting a
Creative materials will concentrate
Creative Directions

leadership image. have been chosen to por-

advertisements
Four-color print
Media advertising assertiveness of the
advertisements
wil
the leadership look.
The quality and campaign will
tray leader. The hrst-year
commitment of a
r e s o u r c e s and ad will dramatically
Speak to the wire. The first
over copper
fiber optics ads will position
promote the use of is over. Subsequent
technology reader
the era of the old and make the
announce that the
leader of new technology
visual will
as the dramatic
Oney'well/Spectronics
affordable, and
practical. A tease the
is here now, headlines that
4 w a r e that fiber optics
will be provoked by
L C S t the reader.
Further reading
 357
HONEYWELL, INC,

EXHIBIT 6

Fiber Optics Quality Seal

WEVE
SEEN THE
IIGHT.
oneywell
Specrons

reader's intelligence. Body copy will play off the headline, visual, and "leader iden

tity" Sample print advertisements (without copy) are shown in Exhibits 7 and 8.
Collateral materials The agency will design and develop an eight-page four
color brochure. The quality of the literature will attest to the resources and
commitment required of a leader. The literature will be impactful, concise, and
informative. The brochure will be used in addition to available technical literature,
not as a replacement.

Budget The fiber optics corporate campaign budget is shown in Exhibit 9.

The budget shows the alternative media spending levels in the context of the overall
Campaign

Fiber Optics Product Campaign

Objectives The objectives of the product campaign are

1. To increase top-ofmind awareness of Spectronics as a supplier of a full line

of fiber optics products.

288
3 S8
EXHIBIT 8

Two-Page Print Advertisement

CCODNNATES

e AOMrTAAE
If youre still
MOAKE
OA
designing withcopper wire,
youre probably still designing.

Honeywell
SpectranisS
360

EXHIBIT 9

Fiber Optics Corporate Campaign

Budgets
Alternative B
Alternattve A
$706,764
$428,516
Media
63,000
63,000
Public relations/sales promotion
Creative materials:
40,000 40,000
Media advertising
30,000 30,000
Collateral advertising8
Agency fee 12,000 12,000

Total $851,764 $573,516

2. To support Spectronics's leadership position promoted in the Honeywell

campaign.
Strategy Use four-color full-page ads in selected trade publications to speak
directly to the design engineer. Fach ad will be accompanied by an additional black-
and-white one-third vertical page listing distributors and theirtelephone numbers.
One ad will feature
simplicity and ease of use, and the other ad will promote
Spectronics's fullline capabilities.
These executions will complement the
Honeywell program both by gaining
from its heavy exposure and, in turn, by providing an added depth targeted to the
design engineer. The product campaign is designed to complement the corporate
campaign and will run in parallel with it.

Media and Budget The media chosen are technical in

orientation and thus
complement the copy of the advertisements. The media expenditure levels are
slightly higher than those now practiced. A
budget are shown in Exhibit 10. recommended and alternative media
HONEYWELL, INC.
361
EXHIBIT 10

Product Campaign Budget

Recommended Media/Cost Schedule

One-Time Number of
Publication Cost Insertions Total Cost
Electronics $4,869
Control Engineering 4,925 5
$19,476
Computer Design 4,605
24,625
Electronic Design 27,630
4,440 5
22,200
EDN
4,305 25,830
Electronics Products Magazine 3,960 4
15,840
Total 30 $135,601
Alternative MediaCost Schedule
One-Timne Number of
Publication Cost Insertions Total Cost
Electronics $4,869 $ 14,607
Control Engineering
4,925 14,775
Computer Design 4,605
Electronic Design 18,420
4,440
EDN 13,320
4,305 4
17,220
Electronics Products Magazine 3,960 2
Total 7,920
19 $86,262