What type of analysis in an actual business situation

Reference no: EM13190302

a. You and a competing firm are the only sellers of a new product. You are engaged in an intense battle for initial market share. You both realize that the one who captures most of the market share will be the one who spends the most on advertising and promotion. You are the marketing manager and you have up to $1 million for advertising and promotion for all your products. You have to decide how much of your budget you should allocate to the marketing of the new product. Construct a payoff matrix similar to the one shown . Notice that price is the variable designated as being high or low. What variable would you use in this example? The numbers represent potential revenue. What might they represent in this example?
b. What challenges do you think there are in using this type of analysis in an actual business situation?

Reference no: EM13190302

Questions Cloud

How do innate and environmental factors interact : How do innate and environmental factors interact? Please be sure to provide at least 2 examples. What relationship exist between one period of life and development in another period? Please be sure to provide at least 2 examples.

Why does the assumption of independence of risks matter : Small firms can discover the abilities of their workers more quickly than large ones because they can observe the workers more closely at a variety of tasks. Does it then make sense for people with high abilities to go to small firms

State compund z has a solubility limit : Compound Z has a solubility limit of 32.5 g/L in diethyl ether. Compund Z has a solubility limit od 2.5 g/L in water. You are given a 100 mL aqueous solution that contains 200 mL of compund Z. If you do three 33.3 mL extractions of Z using diethyl..

Conversational quality : "Conversational quality" in a speech means that the speaker talks the same as she or he would in ordinary conversation.

What type of analysis in an actual business situation : a competing firm are the only sellers of a new product. You are engaged in an intense battle for initial market share. You both realize that the one who captures most of the market share will be the one who spends the most on advertising and promo..

Explain butanol is mixed with an equal volume : What observed rotation is expected when a 1.06 M solution of (R)-2-butanol is mixed with an equal volume of a 0.530 M solution of racemic 2-butanol,

What is the dislocation density for copper : What is the dislocation density for copper if the dislocations contribute 75 MPa to the strength of the crystal? If the dislocations form a uniform circle array, what is the distance between each dislocation and the total length of dislocation for th..

Security associated with new project : Your company has put in the request for a new database system and you have been tasked with architecting the security associated with this new project.

Compute the amount of work produced on the system : calculate the amount of work produced on the system and by applying the first law of thermodynamic calculate the amount of q of heat transfered from the system to the enviroment,

User Account

All Pages