Chapter 7 -- Competition is Everywhere!

Market ______ is the portion of the total market potential that each company expects in relation to its competitors.

In a certain city last year, sales of treadmills were 50,000 units. Exercise Unlimited had a market share of 75 percent, followed by Rico's Sporting Goods with 17 percent, and the Sweat Shop with 8 percent. How many treadmills did the Sweat Shop sell Last year?

**HINT: To find the answer, multiply the total number of treadmills SOLD, (50,000), times Seat Shop's Market Share (which is 8 percent or .08),

• 4,000 Treadmills

• 8,500 Treadmills

• 37,000 Treadmills

• 2,021 Treadmills

True or False: Companies must be careful not to base their positioning strategy solely on the actions of their competitors.

• TRUE

• FALSE

True or False: Market Segmentation directs a company's efforts at a specific group of consumer with unique needs.

• TRUE

• FALSE

______ marketing directs a company's marketing mix at a large and heterogeneous group of consumers (*hint, heterogeneous means diverse and different*)

With market _______, the company views its competition as only those businesses that have products and services appealing to the selected market segment.

• segmentation

• positioning

_______ marketing considers all of the consumers in a market as potential customers and every other business competing in that market as a competitor.

True or False: If a competitor has information it considers to be private and does not disclose to people outside the business, obtaining and using that information would be unethical.

• TRUE

• FALSE

What is the total revenue that can be obtained from the market segment?

• Marketing Mix

• Market Potential

• Segmentation

• Market Intelligence

________ competition is competition in a market with businesses that offer the same type of product orservice.