Chapter 7 Review
market opportunity
an identified market with excellent potential based on careful research
A negative effect of competition is that consumer usually end up paying higher prices for products and services.
False
All market segments present a market opportunity.
False
An example of indirect competition would be competition between a bowling alley and a video arcade.
False
Because businesses using the marketing concept thoroughly understand the needs of a target market, there is little need to gather information about competitors.
False
In today's economy, price competition must be used with direct competitors.
False
The type of competition that stresses convenient location or ample parking is called attribute competition.
False
benefit segmentation
divides consumers into groups depending on specific values or benefits they expect to require from the use of a product or service
geographic segmentation
dividing consumers into markets based on where they live
trade shows
exhibitions where companies associated with an industry gather to showcase their products
Which of the following mix elements can be changed very quickly by a competitor?
All can be changed very quickly.
demographics
the descriptive characteristics of a market such as age, gender, race, income, and educational level
Which of the following is not a typical business response to competition?
Reduce the variety of product choices.
Each segment of a market presents a viable market opportunity for a business.
True
Which of the following is not one of the areas that typically affects the selection of a positioning strategy?
Pricing
A market segment must be defined by its demographic characteristics
True
An example of a change in competitive position is the entry of a new competitor into the market.
True
In order to compete effectively with other businesses, marketers must create a unique image of their product or service in the consumer's mind.
True
Marketers do not need to know how consumers are using their products, as long as they are using them.
True
The most important influence on a company's positioning decision should be the actions of competitors.
True
direct competition
competition in a market with businesses that offer the same type of product or service
mass marketing
directs a company''s marketing mix at a large and heterogeneous group of consumers
product usage
how frequently consumers use products and the quantity of product used
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
psychographics
people''s interests and values
price competition
rivalry among businesses on the basis of price and value
consumer perceptions
the images consumers have of competing goods and services in the marketplace
market share
the portion of the total market potential that each company expects in relation to its competitors
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 the market segment
market position
the unique image of a product or service in a consumer''s mind relative to similar competitive offerings
non-price competition
when businesses decide to emphasize factors of their marketing mix other than price