MARKETING 7-3

To be able to compete successfully, businesses must be able to identify and reach a market segment that has a need for their product or service and position itself effectively against its competitors.

• TRUE

• FALSE

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

• TRUE

• FALSE

Businesses benefit in many ways from competition.

• TRUE

• FALSE

The market segments are so diverse that businesses must make sure that there are products to meet consumers’ wants and needs.

• TRUE

• FALSE

Which of these are not a factor of a nonprice marketing mix?

• Product quality

• Brand name

• Similar products with competitors

• Location

A small business may not be able to compete with large companies due to __________ ______ and _________ __________.

• Higher costs; lower volume

• Lower costs; higher volume

• Less customers; higher costs

• More customer and higher costs

Which of these is not a benefit to customers from business competition?

• Reasonable prices

• Improved products

• New product ideas

• Less variety

Each company must make their product __________ to other companies so customers will be more likely to purchase from them.

• Distinctive

• Similar

• Cheaper

• None of these listed

Direct competition is competition in a market with businesses that offer the same type of product or service, and it an uncommon form of competition.

• TRUE

• FALSE

Competition forces businesses to offer reasonable prices for the products and services the customers use.

• TRUE

• FALSE