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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?
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