Consider a market with two firms, kellogg and post, that sell breakfast cereals. both companies must choose whether to charge a high price ($4.004.00) or a low price ($3.503.50) for their cereals. these price strategies, with corresponding profits, are depicted in the payoff matrix to the right. kellogg's profits are in red and post's are in blue. what is the cooperative equilibrium for this game?

This activity is important because as a marketing manager, you must allocate resources to reach your target market. during the strategic marketing process, managers move through three important phases to determine how to optimally allocate resources: a planning phase, an implementation phase, and an evaluation phase. in this interactive exercise, you are asked to review various strategic marketing actions and determine where in the strategic marketing process the action would occur. the goal of this exercise is to demonstrate your understanding of the strategic marketing process and related marketing actions.