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1 Title: “Managing during recession” Imagine that you are part of the marketing team of the product X at company ABC, which aims at selling this product in the domestic as well as global markets. You...

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Title: “Managing during recession”
Imagine that you are part of the marketing team of the product X at company ABC, which aims at selling this product in the domestic as well as global markets. You are preparing a marketing strategy for this product in the second half of 2019. Define the properties of your product and the target markets by using the micro and macroeconomic concepts that we covered in the module, which will be used as an input for your marketing strategy. In particular address the following issues:
    What are the alternative scenarios with regards to the costs of production (marginal costs like labour costs, raw materials, energy)? Consider the macroeconomic expectations for the second half of 2019 and different scenarios about the macroeconomic developments and the course of the recession.
    What type of a good or service is X? What is the price and income elasticity of your product? What is the cross-price elasticity with respect to complementary and substitute products?
    What is the market structure? What are the possible strategies of your competitors? What will be your strategy with respect to your competitors?
    Which market segments and different pricing strategies can you imagine?
    Think of the developments in demand in different markets domestically and globally. How will demand develop in these markets? What is the effect of the recession on the demand for your product? How could government policies in different markets affect the demand for your product?
    Prepare different scenarios about the developments in the cu
ency markets and their effect on the price competitiveness of your company.
Answered Same DayNov 29, 2021

Solution

Abhishek answered on Dec 06 2021
53 Votes
ECONOMICS
MANAGING DURING RECESSION
Table of Contents
Answer to Question a.    3
Answer to Question b.    3
Answer to Question c.    4
Answer to Question d.    5
Answer to Question e.    6
Answer to Question f.    6
References    8
Answer to Question a.
Cost of production is the important factor that can lead to the pricing theory of the service or the product. However, there are different factors that can lead to the high and low cost of production under various scenarios. The marginal costs determine the hike and the low of the price in the market (Gu, Simunic & Stein, 2017).
Labor Costs
Labor cost refers to the cost that is incu
ed on the workforce that is required to make the particular goods or services. The Labor cost is a huge determinant in the pricing of the goods. If the labor cost is high, the pricing of the service will also be high. If the labor cost is low, the price of the goods will also be low (Bann et al. 2017).
Raw Materials
The raw materials refer to the resources that are needed to produce any goods and services. With the increase in the price of the raw materials the cost of production will also rise. Eventually, the price incu
ed on the service will be high as well. On the other hand, if the cost of the raw materials is low, the price of the goods or service will be low.
Energy
With the rise in the energy used in the production of goods and services, the price of the goods and services will be high. While if the price incu
ed on the energy is low, the price of the goods and services will be less.
Macroeconomics refers to the
oader spectrum of the economics. The expectation of macroeconomics for the second half of 2019 is that the organization must take decisions on the human behavior, information available to them and the past experiences (Agenor & Montiel, 2015). In the course of recession, the price of the goods and services has to be lowered to help the people in need. Through the concept of the macroeconomics, the humans opt for the low priced goods during the time of the recession.
Answer to Question b.
This product is a software, which can control the battery of a ship, or vessel, by which the marine vehicles can set on the water. This software helps the marine vehicles to start the journey. Marine vehicles do not require any non-sustainable fuels for this. This software will help to marine vehicles to reduce consumption of those fuels and accomplish the task of travel. The battery will help the ships by travelling on the water. The software will tell the captain of the ship, how much time the battery needs to be charged and how much time left to charge the battery again. The battery can work for a certain time of period on the water in the ship for its travelling. The ship can float on the water without the help of fuels, if it floats with the water.
The waves of the sea help the ship to float as per the flow of water. This software will help the battery to decide how much time the ship will take if it goes on the battery without fuel. The software will tell all the things to the captain of the ship by measuring the battery consumption and the distance that has been completed with the help of the battery, without fuel (Labandeira, Labeaga & Lopez-Otero, 2017). This software will also tell the captain that how much time will the battery needs to be recharged again. The battery will help the ship to float and the software will tell the time and distance to be crossed.
This product is responsive to the price. It has price elasticity. Any small change in the price of the product will influence the demand of the products. The rich countries can afford this product. The cheap price of the products will be demanded by all the countries. This product also has income elasticity. If any changes in income will influence the demand of the product, then that product has income elasticity (Buongiorno, 2015).
If any country's GDP is low or the country’s financial strategy is poor, then the country cannot afford this product. Cross price elasticity depend on the complementary or substitute products of the...
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