1.2 - The Market (Glossary)

Question 1

Define generic brands

Answer 1

Brands that are so totally associated with the product that customers treat the brand name like a product category e.g. ‘coke’ for cola

Question 2

Define mass marketing

Answer 2

The attempt to create products or services that have universal appeal

Question 3

Define niche marketing

Answer 3

Identifying the needs of consumers that make up a niche

Question 4

Define economies of scale

Answer 4

Factors that cause costs per unit to fall when a firm operates at a higher level of production

Question 5

Define a franchise

Answer 5

A business that sells the rights to the use of its name and trading methods to local businesses

Question 6

Define product differentiation

Answer 6

The extent to which consumers perceive your brand as being different from others