Final answer:
Marketers introducing a new brand into a market with existing brands are not likely to use competition avoidance positioning; instead, they strive for product differentiation. This approach helps prevent direct competition with their existing brands and establishes a unique market identity that can be important in monopolistic competition or oligopoly markets. False.
Step-by-step explanation:
True or False: A marketer is likely to use competition avoidance positioning when it is introducing a new brand into a market where it has existing brands. The answer to this question would generally be False. Marketers might avoid competition between their own brands (cannibalization), but when introducing a new brand into a market, they often aim for product differentiation to ensure that the new brand does not directly compete with the existing brands. This approach is essential especially in situations of monopolistic competition or oligopoly where establishing a unique brand identity can be a significant barrier to entry for new competitors. For example, entering the soft drink market as a competitor to Coca-Cola or Pepsi requires not only producing the fizzy drink itself but also creating a brand and marketing strategy that can compete with these well-established brands.