Competition

Question 1

Free Market

Answer 1

Successful business people can keep some of the money they make

Question 2

Profit

Answer 2

Drives business- the more you make the more you keep, amount of money your company makes

Question 3

Private property

Answer 3

People can buy things, keep them, sell them or give them away

Question 4

Perfect competition

Answer 4

A large number of small companies and none have the opportunity for market control. Requires government legislation to restrict growth in order to prevent market dominance by any of the competitors.

Question 5

Monopolistic competition

Answer 5

Large number of companies each having opportunity for market control

Question 6

Oligopoly

Answer 6

A market with a small number of large companies each with a substantial market control

Question 7

Monopoly

Answer 7

Is a market where a single company has complete market control

Question 8

Benefits of competition

Answer 8

• Encourages creation for new business.
• Businesses grow for one another
• Wider selection of goods and services
• Better costumer service relations
• Better product, price, new technology, increased productivity that improves the standards of living

Question 9

Types of competition

Answer 9

• Direct competition

* Indirect competition

Question 10

Direct competition

Answer 10

Customer chooses product from the same company

Ex. Nike and Adidas

Question 11

Indirect competition

Answer 11

Anything consumers can spend their money on, around the same price range.

Ex. iPhone and Micheal Kors

Question 12

Sustainable competition advantages

Answer 12

• Developing a unique selling point
• Lowering production costs
• Servicing a Niche Market
• Creating customer loyalty

Question 13

Developing a USP

Answer 13

One thing the companies product has that the competition does not and will mostly likely not develop. Why would consumers buy from my company ? A unique design, brand name, logo

Question 14

Lowering production costs

Answer 14

By using high technology and manufacturing systems and processing to reduce the costs, associated with its products will give them an advantage

Ex. Building a plant in another country with lower resource costs, fewer taxes and lower costs of living

Question 15

Servicing a Niche market

Answer 15

Marketers need to recognize an opportunity to create a niche market and take advantage of that opportunity.

Question 16

Creating customer loyalty

Answer 16

Also known as intimacy or relationship marketing, consumer develops a strong relationship with a product or retail and will not consider other brand or another store unless the favoured product or retailer makes a big mistake

Question 17

Non sustainable competition advantages

Answer 17

• Promotion
• Place
• Quality
• Benefits of use
• Price
• Design features

Question 18

Promotion

Answer 18

Sales, give aways, contests, can be copied by other companies. Companies use this to gain TOP- OF - MIND - AWARENESS, be the first brand consumers think of

Question 19

Placement

Answer 19

The more places you sell, the more competitive your product is

Question 20

Quality

Answer 20

• a product can compete with other products in its category by being the best in its type
• companies add features that will improve the product and take away ones that are not beneficial

Question 21

Benefits of use

Answer 21

•if a product can do more or preform better than another product they will be competitive

Question 22

Price

Answer 22

If a consumer thinks the product are similar the less expansive product have the competitive advantage. Marketers who focus for price with have a difficult time because other companies may have price reductions

Question 23

Design Features

Answer 23

Design influence the way a product looks and what it can do. The design of a product needs to catch the consumers interests or they will not purchase it

Question 24

Service competition

Answer 24

Companies offer value added services which are activities performed to support the sale of a product or service
•convenience 
•degree of service
•selection
•reputation 
•Price