MKT 100 Lecture Notes - Lecture 6: Monopolistic Competition, Oligopoly, Home Hardware

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Yanina Chevtchouk

Document Summary

Sizing up a situation- priority is understanding the competition operating in its market. Pure monopoly: 1 seller sets the price for a unique product. Canada post (no other companies delivers door-to-door so it can set the price without considering competition and there"s no reason to spend money on advertising) becoming outdated because consumers pay bills online or communicate online. To respond to this behaviour change, canada post offers online services but by doing that, it enters the market with other competitors and loses the monopoly status. Oligopoly: few sellers, they are sensitive to each others" prices. Price of gas (identical) gas companies don"t compete over setting the price but instead move lockstep in terms of price increases/decreases. Advertising focuses on product features not prie and is informative and not persuasive. Features: product offerings at a range of prices so different price points are available.