Date: April 24, 2013 Topic: Monopolistic Competition Aim: How does monopolistic competition exist? Do Now: Multiple Choice Questions.
Beginning in the mid-1970’s Pepsi Cola launched a marketing campaign called the Pepsi Challenge. The challenge took the form of a taste test. TODAY WE WILL TAKE THE PEPSI CHALLENGE!!
Monopolistic Competition Many companies compete in an open market to sell products that are similar but not identical. Each firm holds a monopoly over its own particular product.
Four Conditions of Monopolistic Competition Many firms. Few artificial barriers to entry. Slight control over price. Differentiated Products.
Monopolistic Competition
Non-price Competition Monopolistic competition also takes the form of non-price competition. Competition through ways other than lowering prices. I WILL FIGHT YOU IN WAYS OTHER THAN CHANGING MY PRICES!
NONPRICE COMPETITION STATION #1 PHYSICAL CHARACTERISTICS
THESE SNEAKERS LOOK BETTER AND ARE MUCH MORE COMFORTABLE, KIM!
NONPRICE COMPETITION STATION #2 LOCATION
FINALLY WATER! BUT WAIT A SECOND! THAT WATER MAY COST ME MY SPOTS! WE’RE HITTIN THE OCEAN PALACE FOR OUR SONS COLLEGE GRADUATION DINNER!
NONPRICE COMPETITION STATION #3 SERVICE LEVEL
I CAN JUST SIT IN MY CAR AND THEY BRING ME FOOD! THE SERVICE USED TO BE SO MUCH BETTER HERE!
NONPRICE COMPETITION STATION #4 ADVERTISING, IMAGE, AND STATUS
HEY, WHAT GREEN SHIRT DO YOU WANT TO BUY? YO! THAT HILFIGER SHIRT IS MAD NICE. IT SAYS HILFIGER ON IT.
Oligopoly Market dominated by a few large profitable firms. Ex: airlines and gas companies.
Summary activity – Answer the Aim. How does monopolistic competition exist? YES, THIS WILL BE COLLECTED.