One Drawback of Niche Marketing Is That a Company Often

question 67

True/False

One drawback of niche marketing is that a company often has to reduce the price of its product due to the smaller volume of sales it can expect.

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Definitions:

Franchise

The right or license granted to an individual or group to market a company’s goods or services.

License

A legal authorization allowing an individual or entity to use a piece of property or engage in a particular activity or business.

Decentralized Company

A decentralized company allows for decision-making authority to be distributed among various levels within the organization rather than being concentrated at the top.

Decision Making

Choosing among alternative actions; a component inherent in the other management processes of planning, directing, controlling, and improving.