I'd like to make sure my answer(and how I got my answer) are correct.
You are a pricing manager at Argyle Inc. a medium sized firm that recently introduced a new product into the market. Argyle's only competitor is Baker Company, which is significantly smaller than Argyle. The Management of Argyle has decided to pursue a short term strategy of maximizing this quarter's revenues, and you are in charge of formulating a strategy that will permit the firm to do so. After talking with an employee who was recently hired from the Baker company, you are confidant that (a) Baker is constrained to charge $10 or $20 for its product, (b) Baker's goal is to maximize this quarter's profit, and (c) Baker's relevant unit costs are identical to yours. You have been authorized to price that product at two possible levels ($5 or $10) and know that your relevant costs are $2 per unit. The marketing department has provided the following information about the expected number of units sold (in millions) this quarter at various prices to help you formulate your decision:
(Please see attached for chart)
Argyle and Baker currently set prices at the same time. However, Argyle can become the first mover by spending $2 million on computer equipment that would permit it to set its price before Baker. Determine Argyle's optimal price and whether you should invest the $2 million.© BrainMass Inc. brainmass.com October 24, 2018, 10:57 pm ad1c9bdddf
Argyle's optimal price would be $5. I would advice the company ...
Market a new product
Create a product or service (do not choose an existing brand) OR select a product or service from the following list: cell phone, video game, motorcycle, perfume, hair salon, toothpaste, website design consulting business, online dating service, auto body shop.
Using the course resources, develop an environmental analysis, marketing strategy, and marketing mix for this product.
Consider if your selected product is affected by environmental factors (Political, Economic, Socio-cultural, Technological, Competitive). If so, how?
Include a description of the target market and positioning (how customers perceive your product or service).
Include a detailed overview of each element of the marketing mix (product, price, distribution, and marketing communications