Question

When a firm markets products under its own name and that of a reseller because each attracts different segments, it is called a Blank______ strategy.

Multiple choice question.
mixed branding
multiproduct
private labeling
multibranding

Answer 1

The strategy when a firm markets products under its own name and that of a reseller to target different segments is called a multi-branding strategy.

This is often seen in monopolistic competition where product differentiation is key to gaining market presence against established brands.

Step-by-step explanation:

When a firm markets products under its own name and that of a reseller because each attracts different market segments, this approach is called multi-branding strategy.

In the context of monopolistic competition, firms may utilize this technique to access different consumer groups and leverage product differentiation.

This differentiation strategy becomes a crucial component in monopolistic markets where many firms compete with distinct styles, flavors, or brand names but also face stiff competition from others offering similar yet differentiated products.

Establishing a significant brand name can entail substantial marketing and advertising efforts, as seen in the competition with well-established brands like Coca-Cola or Pepsi.