Please provide a concluding paragraph and expand on these respones

As the marketing manager for your product, you have been forced to take a price increase due to cost pressures from your suppliers. After adjusting for customer and consumer demand fluctuations and elasticity, you feel that you have accounted for all possible reactions. Your boss, however, feels differently and says that your recommendations are not complete. What other factors, besides consumer/customers, are affected by price changes?

There are other stakeholders in the business who are directly or indirectly affected by price changes. For example, the distributors, wholesalers, and retailers will find their profitability at stake due to lowering of demand from the end customers (due to elasticity). Due to a reduction in demand, your own salesforce will be unable to sell as before leading to the sales commission reduction. So, Salesforce is another stakeholder who will be affected by price change decision.

The government and the regulators may impose restrictions and impose more tax (especially if the price increase leads price to be at a separate bracket of tax). Finally, several kinds of reactions will be observed from large and small competition which will change the present dynamics of the market. All these factors need to be considered in addition to customer and consumer reaction.

As the marketing manager for a brand leader in your industry, you noticed that a competitor has just reduced his prices by 15 percent on his number one selling product. In a memo to your boss, you must outline how (or if you wish to) respond to this latest threat. In creating your letter, you outline three possible response alternatives that are available to you. These three responses are?

The three possible responses I would suggest are:

Reduce the price of our product to match the competitor or go even below that.

Finding a low-cost material with the same quality.

Finding a less expensive packaging material to balance the other costs.

In responding to a competitors price cut, a firm in a nonhomogeneous market has more latitude and should consider what four issues before responding?

In responding to a competitors price cut, a firm in a nonhomogeneous market has more latitude and should consider four issues before responding, which are:

Reasons behind the price changes done by the competitor.

Whether the price change is temporary or permanent?

The effect of price change on the companys market share and profits.

Likely reactions of the competitors.