2: The Market

Question 1

Franchise (3)

Answer 1

• A business that sells the rights
• To the use of its name and trading methods to local businesses
• e.g. Nandos and McDonalds

Question 2

Generic Brands (3)

Answer 2

• Brands that are so well known
• That customers say the brand when they mean the product
• E.g. Bacardi (white rum)

Question 3

Product differentiation (2)

Answer 3

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

Question 4

Mass Marketing (3)

Answer 4

• Creating products/services with universal appeal
• That is, aiming a product at the whole market
• E.g. Coca-Cola

Question 5

Mass marketing COA (5)

Answer 5

• Succesful mass marketing
• leads to high sales
• As there is a huge target market
• Leading to improved purchasing EOS
• Thus, reducing variable costs
• And therefore increasing contribution per unit
• And resulting in higher operating profits

Question 6

Niche Marketing (3)

Answer 6

• Creating products/services that target a very small segment
• Of a much larger market
• Usually: specialised products, lower volume, higher prices

Question 7

______________ is a way to achieve product differentiation

As it adds ___________ to your product by _____________________ (3)

Answer 7

• Effective branding
• percieved value
• creaiting an image assiociated with it

Question 8

Difference between risk and uncertainty (2)

Answer 8

• Risk can be quantified
• Uncertainty cannot