Briefly describe product specialization and market specialization
What will be an ideal response?
With product specialization, the firm sells a certain product to several different market segments. A microscope manufacturer, for instance, sells to university, government, and commercial laboratories, making different instruments for each and building a strong reputation in the specific product area. The downside risk is that the product may be supplanted by an entirely new technology. With market specialization, the firm concentrates on serving many needs of a particular customer group, such as by selling an assortment of products only to university laboratories. The firm gains a strong reputation among this customer group and becomes a channel for additional products its members can use. The downside risk is that the customer group may suffer budget cuts or shrink in size.
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Which of the following statements is true about trademarks?
a) trademarks are designs and names by which businesses differentiate their products b) trademarks specify certain safety standards to which a product must adhere c) trademarks are the exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit d) trademarks grant the inventor of a new product or process exclusive rights for a defined period to the manufacture, use or sale of that invention
Black economy is most likely to be prevalent when:
A. large amounts of economic activity are in the form of legally recorded cash transactions. B. people engage in barter agreements to avoid paying taxes. C. a country's GNI per capita exceeds $30,000. D. the expenses of the government are less than its income. E. a country is in trade surplus with another foreign country.