2.2.5 - Impact of Competition on the Marketing Mix

What is the impact on price when a business is a monopoly?

• The business has no control over pricing.

• The business must match competitors' prices.

• The business must lower prices to attract customers.

• The business can increase prices due to lack of alternatives.

How does limited or no competition affect promotion?

• Promotion must include public relations.

• There is less need for promotion due to high awareness.

• There is a higher need for expensive advertising.

• Promotion must be focused on social media.

What is a likely impact on product development in a monopoly?

• Higher customer service focus.

• Focus on creating a unique selling point.

• Increased investment in research and development.

• Little incentive to invest in innovation.

How does increased competition affect the promotional mix?

• Need for a full suite of promotional methods.

• Less need for promotion.

• Promotion is not necessary.

• Focus on cheaper forms of advertising.

What is the impact on distribution channels with increased competition?

• Only direct distribution is used.

• Only indirect distribution is used.

• Distribution channels are chosen to suit the business.

• Distribution channels are chosen to suit the consumer.