Explain what is in the given statement. Provide examples and alternative solutions. Pure competition and oligopoly when there is little or no differentiationMost product-markets head toward pure competition--or oligopoly-over the long run. Inthese situations, competitors offer very similar marketing mixes, and customers see thealternatives as close substitutes. In other words, competitors have failed to differentiate theirofferings. In this situation, managers usually compete on low prices, and profit margins shrink. Inoligopoly there are a few large firms competing, whereas in pure competition there are often manyfirms.Avoiding these competitive situations is sensible and fits with our emphasis on finding acompetitive advantage. Marketing managers can't just adopt the same "good" marketing strategybeing used by other firms. That leads to head-on competition and a downward spiral in prices andprofits. So, target marketers try to offer a marketing mix better suited to target customers' needsthan competitors' offerings.

Perfect competition refers to a type of competition in which there are large number of sellers and…

e competition and oligopoly when there is little or no differentiation Most product-markets head toward pure competition-or oligopoly-over the long run. In se situations, competitors offer very similar marketing mixes, and customers see the rnatives as close substitutes. In other words, competitors have failed to differentiate their rings. In this situation, managers usually compete on low prices, and profit margins shrink. In opoly there are a few large firms competing, whereas in pure competition there are often many IS.

e competition and oligopoly when there is little or no differentiation Most product-markets head toward pure competition-or oligopoly-over the long run. In se situations, competitors offer very similar marketing mixes, and customers see the rnatives as close substitutes. In other words, competitors have failed to differentiate their rings. In this situation, managers usually compete on low prices, and profit margins shrink. In opoly there are a few large firms competing, whereas in pure competition there are often many IS.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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