Final answer:
Selective demand is the preference for a specific brand over its competition, often achieved through branding strategies. It differs from primary demand, which is the demand for the product category as a whole. Companies employ branding to foster loyalty and repeat purchases.
Step-by-step explanation:
Selective demand is a term used within the field of marketing and refers to the demand for a specific brand or product over its competitors. This is in contrast to primary demand, which is the demand for a product category as a whole. Companies aim to create selective demand for their products through various marketing strategies, such as branding, to distinguish their offerings from those of competitors and encourage consumers to specifically seek out their brand.
Branding is crucial as it helps create a unique identity and can elevate a product or service in the minds of consumers. Branding encompasses a variety of sub-functions, and selective demand is one of these sub-functions. Strong branding can lead to consumer loyalty and repeat purchases. A classic example might be how Apple has generated selective demand for its iPhones, despite many alternatives in the smartphone market.