Theme 1.1.1

Question 1

What is branding?

Answer 1

A name, term, sign, symbol, design that allows consumers to identify the goods and services of a business and to differentiate them from competitors.

Question 2

E-commerce

Answer 2

conducting business transactions online

Question 3

Online retailing/e-tailing

Answer 3

the retailing of goods online

Question 4

Market

Answer 4

a set of arrangements that allows buyers and sellers to communicate and trade in a particular range of goods and services.

Question 5

Marketing

Answer 5

a management process involved in identifying anticipating and satisfying consumer requirements profitably.

Question 6

Market share

Answer 6

the proportion of total sales in a particular market

Question 7

Mass market

Answer 7

a very large market in which products with mass appeal are targeted

Question 8

niche market

Answer 8

a smaller market, usually within a large market or industry

Question 9

advantages of niche markets

Answer 9

• less competition
• clear focus - target particular customers
• builds up specialist skills and knowledge
• can often charge a higher price
• profit margins often higher
• customers tend to be more loyal

Question 10

advantages of mass market

Answer 10

• able to access economies of scale
• easier to afford larger advertising and marketing campaigns (marketing economies of scale)

Question 11

disadvantages of niche markets

Answer 11

• lack of economies of scale
• risk of overdependence on a single product or market
• likely to attract competition if successful
  -vulnerable to market changes