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What can be observed in the statement? Provide examples and alternative solution for it

What can be observed in the statement? Provide examples and alternative solution for it

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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What can be observed in the statement? Provide examples and alternative solution for it.
Pure competition and oligopoly when there is little or no differentiation Most product-markets head toward pure competition--or oligopoly-over the long run. In these situations, competitors offer very similar marketing mixes, and customers see the alternatives as close substitutes. In other words, competitors have failed to differentiate their offerings. In this situation, managers usually compete on low prices, and profit margins shrink. In oligopoly there are a few large firms competing, whereas in pure competition there are often many firms. Avoiding these competitive situations is sensible and fits with our emphasis on finding a competitive advantage. Marketing managers can't just adopt the same "good" marketing strategy being used by other firms. That leads to head-on competition and a downward spiral in prices and profits. So, target marketers try to offer a marketing mix better suited to target customers' needs than competitors' offerings.
Transcribed Image Text:Pure competition and oligopoly when there is little or no differentiation Most product-markets head toward pure competition--or oligopoly-over the long run. In these situations, competitors offer very similar marketing mixes, and customers see the alternatives as close substitutes. In other words, competitors have failed to differentiate their offerings. In this situation, managers usually compete on low prices, and profit margins shrink. In oligopoly there are a few large firms competing, whereas in pure competition there are often many firms. Avoiding these competitive situations is sensible and fits with our emphasis on finding a competitive advantage. Marketing managers can't just adopt the same "good" marketing strategy being used by other firms. That leads to head-on competition and a downward spiral in prices and profits. So, target marketers try to offer a marketing mix better suited to target customers' needs than competitors' offerings.
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