MKT 100 Lecture Notes - Lecture 5: Tim Hortons, Home Hardware, Monopolistic Competition

• School: Ryerson University
• Department: Marketing
• Course: MKT 100
• Professor: Mary Foster

Document Summary

A company must understand the characteristics of the market it is operating in: pure monopoly: one seller sets the price for its unique product. Canada post; there are no other companies that deliver mail door to door on a daily basis -> can decide how much to charge without competitors -> no need to spend money on promotional strategies. With the new distribution channel (internet) it"s losing its monopoly status as it is competing with other online delivery services: oligopoly: few sellers that adjust prices to the few competitors. Aside from the types, marketing metrics are also used. Market share: expresses the proportion of the total market held by one particular brand/company. Pepsi and coca-cola together have about 70% of the market share. In automobiles, there are many companies that have command of the market. Herfindahl score: more complicated way of calculating market share -> higher the.