Chapter 7: Competition is Everywhere

Example of direct competition

McDonald's vs. Burger King or Wendy's

Market Share

The portion of the total market potential that each company expects in relation to its competitors

Market Opportunity

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

Indirect Competition

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

Positioning Strategy

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

Psychographics

people's interests and values

Price Competition

rivalry among businesses on the basis of price and value - Restaurants use it with their lunch or early evening dinner specials

Demographics

the descriptive characteristics of a market such as age, gender, race, income, and educational level

Consumer Perceptions

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

Market segmentation

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

Market Intelligence

the process of gaining competitive market information

Market Potential

the total revenue that can be obtained from a market segment

Market Positions

- Attribute - Price and Quality - Use or Application - Product User - Product Classification - Competitor

Nonprice Competition

business emphasizes factors of its marketing mix other than price; deemphasizes price by developing a unique offering that meets an important customer need - Unique Offerings: service, quality, credit, location, guarantees, or unique image

Direct Competition

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

California Roll

crab, avocado, cucumber

Mass marketing

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

Benefit Segmentation

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

Geographic Segmentation

dividing consumers into markets based on where they live

Product usage

how frequently consumers use products and the quantity of product used