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2. A company has just developed five innovative new products that will be able to compete advantageously with products that have been on the market

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2. A company has just developed five innovative new products that will be able to compete advantageously with products that have been on the market for years. Given this. the Commercial Department has been asked to carry out a marketing campaign to spread the new products on the market. The Directorate has proposed two options: - An aggressive campaign that would publicize the products in different media. as well as activations and other direct marketing activities to convince customers. - A more austere campaign that does not include dissemination in the media. whose investment is lower. The corn pany's Board of Directors wants. in any case. the campaign to start in the rst quarter of 201 9 to start the sale of the products in that year. however. the market condition is not known with certainty since it may be favorable or unfavorable for the company. In the first case (favorable market}. the prots that the company would obtain from the sale of the ve products would be $3.2 million with an aggressive campaign and $1.5 million with an austere campaign: whereas. in the case of the unfavorable market. the company would lose $0.5 million with an aggressive campaign and would gain $0.1 million in the case of an austere campaign. It can be considered that if no campaign is developed. it is because the products will not be sold yet and. therefore. there Is no prot or loss. in this rst stage you are asked to answer the following questions: a) What decision would you make if the Board does not care about losing some money in order to start selling the product? b] What decision would you make if the Board has decided that you cannot afford to lose money? c) Present a scheme of optimal decisions based on the degree of optimism that the company's Board of Directors may have. d] Would the decision change If the criterion to be adopted was to minimize the maximum loss of opportu nity

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