Marketing Structures and the 4 Ps of Marketing

Marketing Structures and the 4 Ps of Marketing

By Rachel Kramer

Multiple Choice

How are you today?

• Great! I LOVE Economics

• Fine.

• Mid

• Bad

Good Luck!

This week we have completed activities that have dealt with different marketing structures and the 4Ps of Marketing. Now you will read more about this and answer the questions that follow.

Review Questions

Multiple Choice

a person or company that makes, grows, or supplies goods to sell is called the?

• damand
• price
• producer
• shortage

Multiple Choice

This part of the market determines DEMAND

• buyers
• sellers
• suppliers
• store owners

Multiple Choice

This part of the market determines SUPPLY

• buyers
• sellers
• consumers
• us

Multiple Choice

For the law of demand, as price rises, what happens to quantity demanded?

• it goes up
• it goes down
• it stays the same
• it is not effected

Multiple Choice

For the law of supply, as price rises, what happens to quantity supplied?

• it goes up
• it goes down
• it stays the same
• it is not effected

Different Marketing Structures

Important Vocab​

Vocab Words

​Market Structure: a set of conditions that describes the characteristics of a market in which a business firm competes.

​

Firm(s): ​a for-profit business, usually formed as a partnership that provides professional service

​

Market: an arrangement that allows buyers and sellers to make arrangements​

Vocab Words

​Monopoly: a market structure with only 1 seller in the market

​

Perfect Competition: a market structure in which a large number of firms all produce and identical product​

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Oligopoly: a few large businesses supply the most or all of the products

​

Multiple Choice

In which market structure is there the LEAST competition?

• Monopoly
• Oligopoly
• Monopolistic Competition
• Perfect Competition

Multiple Choice

Which type of market structures has many many producers(companies) that sell identical products and has no control over price?

• perfect competition
• monopolistic competition
• oligopoly
• monopoly

Different Market Structures

Entry into the Market​: Relatively easy to start a new business

Product Differentiation: None- Products are identical

Ability to Set Price: ​None- Market determines price & businesses accept it

Number of Firms: Many businesses​

Perfect Competition​ (a market structure in which a large number of firms all produce and identical product​)

​Examples: fish farms, corn growers

Multiple Choice

This market structure occurs when an industry has many businesses selling the same product

• Monopoly

• Oligopoly

• Monopolistic Competition

• Perfect Competition

Entry into the Market​: Can be difficult

Product Differentiation: It is significant for some products like cars, but for less standardized products like gasoline

Ability to Set Price: ​Have considerable ability to price their products

Number of Firms: A Few Large Businesses

Oligopoly (a few large businesses supply the most or all of the products)

​Examples: Breakfast cereals, major appliances, soft drink companies, car companies

Multiple Choice

This market structure is when on industry is controlled by a handful of companies

• Monopoly

• Oligopoly

• Monopolistic Competition

• Perfect Competition

Entry into the Market​: Very difficult

Product Differentiation: None

Ability to Set Price: ​One company determines product price

Number of Firms: A Single Large Business

​Monopoly (a market structure with only 1 seller in the market)

​Examples: Electric Company, telephone companies, water companies

Multiple Choice

Which of the following is most likely an example of a monopoly?

• A Starbucks across from Dunkin Donuts

• A gas station in the country by itself

• 3 fast food restaurants all on the same street

• A Kroger 4 miles away from a Walmart

Entry into the Market​: Relatively easy to start a new business

Product Differentiation: Products are differentiated to meet the demands of specific markets

Ability to Set Price: ​Have limited ability to set prices because of available substitutes

Number of Firms: Many businesses​

Monopolistic Competition (many firms that offer similar but identical products)

​Examples: Fast Food Places, Toothpaste, Car Washes

The 4Ps of Marketing

Marketing: In Economics, everything that takes place in a company between product production and purchase​

Multiple Choice

What is not part of the marketing mix (the 4Ps)?

• Product
• Person
• Price
• Promotion

Product, Place, Price, Promotion

​Product: Companies must make something the consumer wants

​

Place: When and where the consumer will buy it

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Price: Companies must charge a price that enables them to make a profit

​

Promotion:​ How the company gets the message out to the consumers about their product

Multiple Choice

The Gap has created a new pop-up advertisement to introduce their new line of khakis.

• Product

• Place

• Pricing

• Promotion

Multiple Choice

Apple Computer decided to create and sell the new IPhone.

• Product

• Place

• Pricing

• Promotion

Multiple Choice

Janet owns two McDonald's restaurants and has decided to open another restaurant in a new mall.

• Product

• Place

• Pricing

• Promotion

Multiple Choice

When Nintendo Wii was introduced into the marketplace, the consumer cost for an X-Box was greatly reduced.

• Product

• Place

• Pricing

• Promotion

Multiple Choice

Paco's Pizza decided to sell its pizza and pasta through a website as well as in their current restaurant.

• Product

• Place

• Pricing

• Promotion

Multiple Choice

During the two weeks before Christmas, Target and Walmart both mailed flyers to advertise holiday sales.

• Product

• Place

• Pricing

• Promotion

Multiple Choice

Ford Motor Company decided to update the Mustang since sales in the 1960s had been so good.

• Product

• Place

• Pricing

• Promotion

Multiple Choice

At the end of the calendar year, the Honda dealer slashes the consumer cost of a new car to help reduce the amount of inventory.

• Product

• Place

• Pricing

• Promotion

Multiple Choice

J. C. Penney runs newspaper advertisements every weekend to help increase sales.

• Product

• Place

• Pricing

• Promotion

Multiple Choice

After many teens ran up large cell phone bills, most cell phone companies decided to offer pre-paid cell phone service plans.

• Product

• Place

• Pricing

• Promotion