1. Competition

2. Competition
The rivalry among sellers trying to achieve such goals as increasing
profits
market share
sales volume
by varying the elements of the marketing mix: price, product, distribution, and promote
The struggle among companies for scarce customer dollars

3. Direct Competition
A situation in which two or more businesses offer products or services that are essentially the same; as such, the businesses are competing for the same potential market
Example:
LA/San Diego Chargers / LA Raiders
Dominoes / Papa Johns Pizza

4. Indirect Competition
The conflict between vendors whose products or services are not the same but that could satisfy the same consumer need.
Example:
Dominoes / KFC - indirect
Dominoes / Papa Johns - direct

5. Factors That Influence Demand for a Sports or Entertainment event
Price of the tickets
How often the event takes place
How much promotion is used
People involved in event - (key players / performers)

6. Effect of Competition on businesses
Develop new products
Improve product quality
Bring prices closer to production costs
less profit is made per unit
Operate more efficiently
make as much profit per unit
Provide better services
customers are happy and return
Provide wider selections

7. Types of Competition
Price Competition: when a business uses the price of their product to compete in the marketplace
two products which are substantially similar are judged by prospective consumers on their respective pricing, with the purchase made mostly on the basis of which is cheaper
Non-Price Competition: when a business uses other product features:
Quality
image or service
Market situation in which competitors would not lower prices for fear of a price war. Instead they focus on extensive promotions to highlight the distinctive benefits or features of their products.

8. Monopoly Monopoly: a situation in which there is only one company
One supplier of goods/services
No substitute products available
No competition
No price limits

9. Recreation Competition

10. Class Activity Identify 2 examples of Direct Competition & explain why
i.e. Papa Johns & Dominoes
Identify 2 examples of Indirect Competition & explain why
i.e. KFC / Papa Johns Pittsburgh Pens / Washington Caps
Answer the following:
What types of direct and indirect competition exist in the SER industries?
How does price competition impact the SER industries?
How does non-price competition impact the SER industries?
Why is competition good for SER consumers?
If a business does not compete with price, what are some other ways it could compete?
Why should competition research be an ongoing process for SER industries?