3 Marketing & Competitiveness 12 Flashcards
1
Q
What is a competitive market ?
A
Manyfirms operating in the market competing for consumers
Even spread of market share
2
Q
What is a Monopoly?
A
When there is only one business operating in the market
3
Q
Monopoly…
A
No competition
Monopolies are bad for consumers because of lack of choice and higherprices
Monopolies don’t have to spend much on promotion
4
Q
What is a Oligopoly?
A
When there is a few firms who own the majority of the market
5
Q
How marketing improves competitiveness?
A
Design: Compete on quality rather than price (German cars)
Brand image: Blind taste tests show that consumers can’t taste the difference between own-brand vs premium brands yetbrands are more popular even though they are more expensive
