Competition is everywhere - Marketing - chapter 7

If the market potential for gasoline sales in one community is $10,385,990 and one convenience store had a market share of 8%, the value it's gasoline sale is

$83,087,920 = 10,385,990 (0.08)

Which of the following is not a basis for product positioning?

Brand name

Consumer perceptions are the images consumers strategy have of competing goods and services in the marketplace.

True

Dividing consumers into markets based in where they live is referred to as demographic segmentation.

True

Emphasizing qualities such as service, quality, credit, location, guarantees, or a unique image is appropriate for business using non-price competition.

True

If customers prefer the new product the new product of a competitor, it will be difficult to win those customers back.

True

It would be unethical to obtain and use information that a competitor considers to be private and does not disclose outside of the organization.

True

Making a product available to consumers in more locations will usually add to the business's costs.

True

One method of positing a product is to associate a type of user with the product.

True

Positing highlights differences between competitors in the mind of the consumer.

True

Target markets should be selected from the segments that have the greatest potential.

True

The process of gaining competitive market information is called market intelligence.

True

The type of competitors a business faces will affect its positing.

True

market opportunity

an identified market with excellent potential based on careful research.

Appropriate methods to gain competitive information would include all of the following except...

Asking the employees of competitors to share information.

A business will do well when consumers perceive the attributes of its product as being

Close of consumers' ideal image

the images consumers have of competing goods and services in the marketplace.

Consumer Perception

The descriptive characteristics of a market such as age, gender, race, income, and education levels.

Demographics

competition in a market with businesses that offer the same type of product or service.

Direct Competition

Every company wants to make its products

Distinctive

Because it is difficult to determine the source of much of the information on the internet, it is not a good source of competitive information.

False

Competition limits the variety of products that are available to consumers.

False

Each person is a part of only one market segment that influences all of his/her purchase decisions.

False

If a company has a a marketing mic that meets the needs of its customers, it will not need to gather information on the marketing mixes its competitors use.

False

If a company lowers its prices, all companies in direct competition will have to lower their prices as well.

False

Market segmentation does not apply to business markets.

False

One consumers have developed a perception of a product, business will be unable to change the product's position.

False

Successful companies base their positing strategy decisions solely on the actions of their competitors.

False

indirect competition occurs when two brand of similar products are compared.

False

dividing consumers into markets based on where they live.

Geographic segmentation

Competition forces businesses to offer reasonable prices for the products and services the consumer uses.

True

occurs when a business competes with other companies offering products that are not in the same product category but satisfy similar customer needs.

Indirect Competition

Which of these is not a benefit of competition?

It allows businesses to charge higher prices for products.

Making changes in the distribution strategy should be planned carefully because its usually takes a great amount of time

It usually takes a great deal of time, it often involves other businesses to implement change, and it can increase the price customers must pay for a product.

The unique image of a product or service in a consumers min that's relative to the similar competitive offerings.

Market Postion

the process of dividing a large group of consumers into subgroups based on specific characteristics and common needs.

Market Segmentation

the total revenue that can be obtained from the market segment.

Market potential

a portion of the total sales market potential that each company expects in reaction to its consumers.

Market share

directs a company's marketing mix at a large and heterogeneous group of consumers.

Mass Marketing

The business environment includes

New Technology, Changing consumer needs, and resource availability.

Competition creates products that

Offer new product ideas, are reasonably priced, are improvements over existing products.

rivalry among businesses on the basis of price and value.

Price competition

how frequently consumers use products and the quantity of product usage.

Product usage

The competitive marketing mix element that usually receives more attention than others in the mix is

Promotion

People's interests and values are referred to as

Psychographics

people's interests and values.

Psychographics

The ideal competitive position for a product is when consumers view company's product attributes as ........ when compared to those of competitors.

Superior

Changes in the business environment can have an impact on the success of a company's positing strategy.

True

exhibitions where companies associated with an industry gather to showcase their products.

Trade show

A market opportunity is an identified market with excellent potential based on careful research.

True

A successful company's market share should be larger than the market potential.

True

All businesses should avoid using price competition.

True

An advantage of promotional strategies is that they can be changed quickly.

True

An example of direct competition is Nike and Reebok.

True

Anything you see an ad comparing one product with a well-known competitor's products, you can assume that a competitor positing strategy is being used.

True

Businesses that indirectly compete with each other will need to use non-price competition.

True

Businesses use marketing information and market research to complete market segmentation.

True

divides consumers into groups depending on specific values or benefits they expect or require from the use of a product or service.

benefit segmentation

Mass Marketing

directs a company's marketing mix at a large and heterogeneous group of consumers

the process of gaining competitive market information

market intelligence

new markets as well as ways to improve a company's offerings in current markets; identified markets with excellent potential based on careful research.

market opportunities

business emphasizes factors of its marketing mix other than price; deemphasizes price by developing a unique offering that meets an important customer need.

nonprice competition

Outlines how a company will present its products or services to consumer and how it will compete in the marketplace with other businesses offering similar products and services.

positing strategy

rivalry among businesses on the basis of price and value is called

price competition