Chapter 10 Crafting the Brand Positioning 1) All marketing strategy is built on STP, segmentation, targeting, and ________. A) positioning B) product C) planning D) promotion E) performance Answer: A 2) ________ is the act of designing the company's offering and image to occupy a distinctive place in the minds of the target market. A) Positioning B) Valuation C) Pricing D) Commercialization E) Launching Answer: A 3) The goal of positioning is ________. A) to locate the brand in the minds of consumers to maximize the potential benefit to the firm B) to discover the different needs and groups existing in the marketplace C) to target those customers marketers can satisfy in a superior way D) to collect information about competitors that will directly influence the firms’ strategy E) to help the firm anticipate what the actions of its competitors will be Answer: A 4) The result of positioning is the successful creation of ________, which provides a cogent reason why the target market should buy the product. A) an award-winning promotional campaign B) a customer-focused value proposition C) a demand channel D) everyday low pricing E) employee value proposition Answer: B 5) Which of the following best describes a car company's value proposition? A) We charge a 20% premium on our cars. B) We target safety-conscious upscale families. C) We sell the safest, most durable wagon. D) We are the market leader in the small car category. E) We focus on expanding in faster-growing markets. Answer: C 6) Which of the following best describes BR Chicken's value proposition? A) We sell chicken at most major malls. B) We undertake home delivery services. C) We target quality-conscious consumers of chicken. D) We sell tender golden chicken at a moderate price. E) We charge a 10% premium on our chicken. Answer: D 7) The ________ defines which other brands a brand competes with and therefore which brands should be the focus of competitive analysis. A) consumer profitability analysis B) competitor indexing C) service blueprint D) competitive frame of reference E) cluster analysis Answer: D 8) ________ refers to the products or sets of products with which a brand competes and which function as close substitutes. A) Consumer profitability analysis B) Competitive frame of reference C) Category membership D) Value membership E) Demand field Answer: C 9) ________ are defined as companies that satisfy the same customer need. A) Communities B) Competitors C) Trendsetters D) Industries E) Task groups Answer: B 10) A(n) ________ is a group of firms offering a product or class of products that are close substitutes for one another. A) community B) task force C) industry D) focus group E) umbrella brand Answer: C 11) Which of the following statements about blue ocean thinking is true? A) It involves designing creative business ventures to positively affect both a company's cost structure and its value proposition to consumers. B) In blue ocean thinking, industry boundaries are defined and accepted, and the competitive rules of the game are known. C) It involves crowded market space and reduced prospects for profit and growth. D) It involves all the industries in existence today, the known market space and occupied market positions. E) In blue ocean thinking, value to consumers comes from reintroducing factors the industry has previously offered. Answer: A 12) Which of the following terms is most closely associated with the statement: “attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand”? A) points-of-inflection B) points-of-difference C) points-of-parity D) points-of-value E) points-of-presence Answer: B 13) ________ are product associations that are not necessarily unique to the brand but may in fact be shared with other brands. A) Points-of-parity B) Points-of-difference C) Points-of-inflection D) Points-of-presence E) Points-of-divergence Answer: A 14) The three criteria that determine whether a brand association can truly function as a point-of-difference are ________. A) comparability, authenticity, deliverability B) desirability, peculiarity, deliverability C) deviance, peculiarity, deformity D) desirability, deliverability, differentiability E) differentiability, authenticity, desirability Answer: D 15) Which of the following criteria relates to consumers seeing the brand association as personally relevant to them? A) deliverability B) authenticity C) desirability D) differentiability E) feasibility Answer: C 16) Which of the following criteria relates to the company having the internal resources and commitment to feasibly and profitably create and maintain the brand association in the minds of consumers? A) differentiability B) peculiarity C) desirability D) believability E) deliverability Answer: E 17) Which of the following criteria relates to consumers seeing the brand association as distinctive and superior to relevant competitors? A) desirability B) differentiability C) believability D) deliverability E) deviance Answer: B 18) The brand must demonstrate ________, for it to function as a true point-of-difference. A) clear superiority on an attribute or benefit B) clear profitability to the company C) clear similarity to the attributes of other brands D) technological advances for an attribute or benefit E) exploitation of competitors' weakness Answer: A 19) The two basic forms of points-of-parity are ________ and ________. A) conceptual points-of-parity; competitive points-of-parity B) strategic points-of-parity; conceptual points-of-parity C) category points-of-parity; deliverable points-of-parity D) competitive points-of-parity; peculiar points-of-parity E) category points-of parity; competitive points-of-parity Answer: E 20) ________ are attributes or benefits that consumers view as essential to a legitimate and credible offering within a certain product or service class. A) Category points-of-difference B) Conceptual points-of-parity C) Competitive points-of-parity D) Category points-of-parity E) Competitive points-of-difference Answer: D 21) Coca Cola introduced zero-calorie, Coke Zero, and assured health conscious consumers that it tastes as good as the original. What does the company assure by doing this? A) points-of-difference B) points-of-presence C) points-of-parity D) points-of-conflict E) points-of-inflection Answer: C 22) Coca Cola introduced zero-calorie, Coke Zero, and assured health conscious consumers that it tastes as good as the original. What did the company try to build when they conveyed the fact that Coke Zero contained almost zero calories per liter and hence is a healthier alternative? A) points-of-difference B) points-of-conflict C) points-of-parity D) points-of-presence E) points-of-inflection Answer: A 23) Consumers might not consider a hand sanitizer truly a hand sanitizer unless they are gels designed to apply topically, contain alcohol that kills the germs present on the skin, and developed for use after washing hands or for those times when soap and water are not available. These service elements are considered ________. A) competitive points-of-difference B) competitive points-of-parity C) category points-of-difference D) category points-of-parity E) conceptual points-of-parity Answer: D 24) Nivea became the leader in the skin cream class on the “gentle”, “protective” and “caring” platform. The company further moved into classes such as deodorants, shampoos and cosmetics. Attributes like gentle and caring were of no value unless consumers believed that its deodorant was strong enough, its shampoo would cleanse and its cosmetics would be colorful enough. This is an example of ________. A) competitive points-of-parity B) competitive points-of-difference C) category points-of-parity D) category points-of-difference E) competitive points-of-presence Answer: C 25) ________ are associations designed to overcome perceived weaknesses of the brand. A) Conceptual points-of-parity B) Category points-of-difference C) Competitive points-of-parity D) Competitive points-of-difference E) Category points-of-parity Answer: C 26) As a marketing manager, which of the following would be the best purpose for your organization's competitive points-of-parity? A) to point out competitors' points-of-difference B) to emphasize competitors' points-of-difference C) to rationalize competitors' perceived points-of-difference D) to globalize competitors' perceived points-of-difference E) to negate competitors' perceived points-of-difference Answer: E 27) A marketer that wants to anchor a point-of-difference for Dove soap on brand benefits might emphasize which of the following? A) the soap is one-quarter cleansing cream B) Dove products include bar soaps and shampoos C) Dove soap helps users have softer skin D) the soap brand has global presence E) the brand has recently launched soap for men Answer: C 28) Subway restaurants are positioned as offering healthy, great-tasting sandwiches. ________ allows the brand to create a point-of-parity (POP) on taste and a point-of-difference (POD) on health with respect to quick-serve restaurants such as McDonald's and Burger King and, at the same time, a POP on health and a POD on taste with respect to health food restaurants and cafés. A) Category-based positioning B) Need-based positioning C) Noncomparitive positioning D) Straddle positioning E) Price-quality positioning Answer: D 29) BMW positioned itself as the only car that offered both luxury and performance. It was able to achieve a point-of-difference on performance and a point-of-parity on luxury with respect to other car brands. This is an example of ________. A) straddle positioning B) category-based positioning C) need-based positioning D) noncomparitive positioning E) price-quality positioning Answer: A 30) Marketers typically focus on ________ in choosing the points-of-parity and points-of-difference that make up their brand positioning. A) brand equity B) brand awareness C) brand benefits D) brand architecture E) brand extensions Answer: C 31) ________ are visual representations of consumer perceptions and preferences. A) Procedural maps B) Brain maps C) Perceptual maps D) Procedural models E) Cognitive maps Answer: C 32) Straddle positions ________. A) help firms to analyze who their competitors are B) allow brands to expand their market coverage and potential customer base C) are a necessity while creating a firm's vision and mission statement D) assist firms in collecting information on competitors that will directly influence their strategy E) are ambiguous moral principles behind the operation and regulation of marketing Answer: B 33) Which of the following statements about brand mantras is true? A) They guide only major decisions, they have no influence on mundane decisions. B) Their influence does not extend beyond tactical concerns. C) They must economically communicate what the brand is and avoid communicating what it is not. D) They can provide guidance about what ad campaigns to run and where and how to sell the brand. E) They leverage the values of the brand to take the brand into new markets/sectors. Answer: D 34) McDonald’s brand philosophy of “Food, Folks, and Fun” is an example of ________. A) brand mantras B) brand parity C) brand identity D) brand architecture E) brand extension Answer: A 35) ________ are short, three- to five-word phrases that capture the irrefutable essence or spirit of the brand positioning and ensure that the company's own employees understand what the brand represents. A) Brand mantras B) Brand symbols C) Brand logos D) Brand alliances E) Brand extensions Answer: A 36) A ________ is an external translation that attempts to creatively engage consumers. A) brand vision B) brand extension C) brand architecture D) brand slogan E) brand alliance Answer: D 37) BMW's “The ultimate driving machine,” and American Express’ “Don't leave home without it,” are all examples of ________. A) brand slogan B) brand personality C) brand mission D) brand architecture E) brand vision Answer: A 38) A brand mantra should be ________. A) original, ambiguous, and straightforward B) unique, complex, and inspirational C) communicative, memorable and inspiring D) competitive, sensitive, and simple E) unique, sensitive, and explanatory Answer: C 39) Brand mantras typically are designed to capture the brand’s ________, that is, what is unique about the brand. A) points-of-conflict B) points-of-parity C) points-of-inflection D) points-of-difference E) points-of-presence Answer: D 40) Points-of-parity are important while designing brand mantras for brands facing ________. A) rapid growth B) market saturation C) slow and steady growth D) rapid decline E) stability in sales volume Answer: A 41) For brands in more stable categories where extensions into more distinct categories are less likely to occur, the brand mantra may focus more exclusively on ________. A) points-of-difference B) points-of-presence C) points-of-inflection D) points-of-parity E) points-of-conflict Answer: A 42) A chicken stock cube might attain membership in the seasoning category by claiming the benefit of great taste and support this benefit claim by possessing high-quality ingredients (performance) or by showing users delighting in its consumption (imagery). In what way is the brand's category membership being conveyed? A) comparing to exemplars B) relying on the product descriptor C) announcing category benefits D) focusing on reliability E) persuasion based on believability Answer: C 43) The typical approach to positioning is to inform consumers of a brand's category membership before stating its ________, A) point-of-parity B) point-of-difference C) point-of-conflict D) point-of-weakness E) point-of-presence Answer: B 44) The ____________ that follows the brand name is often a concise means of conveying category origin. A) exemplars B) product descriptor C) category benefits D) deliverability variables E) counter examples Answer: B 45) Industrial tools claiming to have durability, and antacids announcing their efficacy convey a brand's category membership by ________. A) relying on the product descriptor B) comparing to exemplars C) announcing category benefits D) communicating deliverability variables E) identifying counter examples Answer: C 46) A well-known car manufacturing company introduces a new hatchback model by describing its distinctive features and then stressing the speed and safety qualities of the car. Which of the following is the company using to convey its membership in the hatchback segment? A) announcing category benefits B) comparing to exemplars C) relying on the product descriptor D) using channel differentiation E) maximizing negatively correlated attributes Answer: A 47) Which of the following ways to conveying a brand's category membership relates to well-known, noteworthy brands in a category helping a brand specify its category membership? A) comparing to exemplars B) communicating deliverability variables C) identifying counter examples D) announcing category benefits E) relying on the product descriptor Answer: A 48) SJC is a new retailer that targets the youth market. SJC needs to make an impression using advertising, and decides to use funny or irreverent ads to get its point across. Each ad features one of SJC's competitors and conveys an advantage SJC has over that competitor. Which of the following is the company using to convey its membership in the retail segment? A) announcing category benefits B) comparing to exemplars C) relying on the product descriptor D) using channel differentiation E) maximizing negatively correlated attributes Answer: B 49) When Tommy Hilfiger was an unknown brand, advertising announced his membership as a great U.S. designer by associating him with Calvin Klein, and Perry Ellis, who were recognized members of that category. Tommy Hilfiger conveyed the brand's category membership by ________. A) relying on the product descriptor B) focusing on reliability C) comparing to exemplars D) announcing category benefits E) identifying counter examples Answer: C 50) To capitalize on the advantage that an MNC brings to the perception of quality, local brand Videocon positioned itself as an “Indian MNC” in its tagline. The company conveyed its brand's category membership by ________. A) announcing category benefits B) identifying counter examples C) relying on the product descriptor D) focusing on reliability E) comparing to exemplars Answer: C 51) One common difficulty in creating a strong, competitive brand positioning is that many of the attributes or benefits that make up the points-of-parity and points-of-difference are ________. A) negatively correlated B) always correlated C) directly proportional D) never correlated E) positively correlated Answer: A 52) ________ is a company's ability to perform in one or more ways that competitors cannot or will not match. A) Brand positioning B) Market research C) Competitive advantage D) Competitor analysis E) Competitive intelligence Answer: C 53) A ________ is one that a company can use as a springboard to new advantages. A) sustainable advantage B) leverageable advantage C) realistic advantage D) rational advantage E) distinct advantage Answer: B 54) Which of the following types of differentiation relates to companies having better-trained personnel who provide superior customer service? A) channel differentiation B) services differentiation C) personnel differentiation D) image differentiation E) product differentiation Answer: C 55) Singapore Airlines is well regarded in large part because of the excellence of its flight attendants. This is an example of ________ differentiation. A) image B) services C) product D) personnel E) channel Answer: D 56) Which of the following types of differentiation refers to companies effectively designing their distribution medium's coverage, expertise, and performance to make buying the product easier and more enjoyable and rewarding? A) service differentiation B) channel differentiation C) image differentiation D) product differentiation E) employee differentiation Answer: B 57) In China, Dell targets chief information officers of Chinese state-owned enterprises, emphasizing speed, convenience, and service in its customer relationship. This is an example of ________ differentiation. A) service B) employee C) image D) product E) channel Answer: E 58) Which of the following is an example of channel differentiation? A) Ritz-Carlton has an intensive training program for its customer-facing employees, to ensure a consistent service standard. B) Shangri-La hotels use a distinctive signature fragrance in all outlets so that customers can associate the fragrance with the hotel. C) JEK's sophisticated customer database allows the company to handle queries and product returns much faster than competitors. D) RTZ shifted its products from supermarket aisles to exclusive stores as it realized that customers were willing to pay more in stores. E) Hayley's found success by allowing buyers to customize the color and some features of its appliances before buying them. Answer: D 59) Which of the following is an example of image differentiation? A) Ritz-Carlton has an intensive training program for its customer-facing employees, to ensure a consistent service standard. B) Shangri-La hotels use a distinctive signature fragrance in all outlets so that customers can associate the fragrance with the hotel. C) JEK's sophisticated customer database allows the company to handle queries and product returns much faster than competitors. D) RTZ shifted its products from supermarket aisles to exclusive stores as it realized that customers were willing to pay more in stores. E) Hayley's found success by allowing buyers to customize the color and some features of its appliances before buying them. Answer: B 60) Which of the following is an example of services differentiation? A) Ritz-Carlton has an intensive training program for its customer-facing employees, to ensure a consistent service standard. B) Shangri-La hotels use a distinctive signature fragrance in all outlets so that customers can associate the fragrance with the hotel. C) JEK's sophisticated customer database allows the company to handle queries and product returns much faster than competitors. D) RTZ shifted its products from supermarket aisles to exclusive stores as it realized that customers were willing to pay more in stores. E) Hayley's found success by allowing buyers to customize the color and some features of its appliances before buying them. Answer: C 61) Marlboro’s “macho cowboy” image has struck a responsive chord with much of the cigarette-smoking public. This is an example of ________. A) personnel differentiation B) channel differentiation C) service differentiation D) product differentiation E) image differentiation Answer: E 62) A company which can differentiate itself by designing a better and faster delivery system that provides more effective and efficient solutions to consumers is most likely using ________ differentiation. A) services B) channel C) image D) product E) employee Answer: A 63) Suppliers who are dependable in their on-time delivery, order completeness, and order-cycle time are most likely to be differentiated based on ________. A) resilience B) innovativeness C) insensitivity D) reliability E) expertise Answer: D 64) Suppliers who are better at handling emergencies, product recalls, and inquiries are most likely to be differentiated based on their ________. A) innovativeness B) thoroughness C) resilience D) insensitivity E) reliability Answer: C 65) A supplier creates better information systems, and introduces bar coding, mixed pallets, and other methods of helping the consumer. The supplier is most likely to be differentiated on its ________. A) innovativeness B) reliability C) insensitivity D) resilience E) accuracy Answer: A 66) Which of the following traits of a brand's ability to become a love-mark relates to drawing together stories, metaphors, dreams, and symbols? A) intimacy B) mystery C) insensitivity D) sensuality E) practicality Answer: B 67) Which of the following traits of a brand's ability to become a love-mark keeps the five senses of sight, hearing, smell, touch, and taste on constant alert for new textures, intriguing scents and tastes, music, and other such stimuli? A) sensuality B) intimacy C) mystery D) practicality E) sensitivity Answer: A 68) Which of the following traits of a brand's ability to become a love-mark implies empathy, commitment, and passion? A) practicality B) sensuality C) morality D) mystery E) intimacy Answer: E 69) Randall Ringer and Michael Thibodeau see ________ as based on deep metaphors that connect to people's memories, associations, and stories. A) cultural branding B) narrative branding C) brand journalism D) emotional branding E) personal branding Answer: B 70) Which element of a brand story framework do Randall Ringer and Michael Thibodeau relate to the time, place, and context of the brand story? A) cast B) pitch C) narrative arc D) setting E) language Answer: D 71) Which element of a brand story framework do Randall Ringer and Michael Thibodeau relate to the way the narrative logic unfolds over time, including actions, desired experiences, defining events, and the moment of epiphany? A) language B) pitch C) cast D) setting E) narrative arc Answer: E 72) Which element of a brand story framework do Randall Ringer and Michael Thibodeau relate to the authenticating voice, metaphors, symbols, themes, and leitmotifs? A) narrative arc B) context C) language D) setting E) cast Answer: C 73) Which of the following statements about the branding guidelines for a small business is true? A) A small business must creatively conduct low-cost marketing research. B) A small business must avoid leveraging secondary brand associations. C) A small business must separate the well-integrated brand elements to enhance both brand awareness and brand image. D) A small business must disintegrate the brand elements to maximize the contribution of each of the three main sets of brand equity drivers. E) A small business must focus on building more than two strong brands based on a number of associations. Answer: A 74) All marketing strategy is built on segmentation, targeting, and positioning. Answer: True 75) Positioning is the act of designing the company's offering and image to occupy a distinctive place in the minds of the target market. Answer: True 76) The result of positioning is the successful creation of an employee-focused value proposition. Answer: False 77) Positioning requires that marketers define and communicate only the differences between their brand and its competitors. Answer: False 78) The competitive frame of reference defines which other brands a brand competes with. Answer: True 79) Category membership is seen as the products which function as close substitutes of a brand. Answer: True 80) A company is more likely to be hurt by current competitors than by emerging competitors or new technologies. Answer: False 81) The industry concept of competition reveals a broader set of actual and potential competitors than competition defined in just the market concept. Answer: False 82) Using the industry approach, competitors are defined as companies that satisfy the same customer need. Answer: False 83) To analyze its competitors, a company needs to gather information about both the real and the perceived strengths and weaknesses of each competitor. Answer: True 84) Associations that make up points-of-difference are based exclusively on product features. Answer: False 85) Points-of-parity are attributes or benefits consumers strongly associate with a brand and believe that they could not find to the same extent with a competitive brand. Answer: False 86) Points-of-parity may be shared among two or more brands. Answer: True 87) Category points-of-parity are unique to a brand. Answer: False 88) Category points-of-parity may change over time due to technological advances, legal developments, or consumer trends. Answer: True 89) Category points-of-parity are associations designed to overcome perceived weaknesses of the brand. Answer: False 90) A competitive point-of-parity negates competitors' perceived points-of-difference. Answer: True 91) Trying to be all things to all people leads to highest-common-denominator positioning, which is typically effective. Answer: False 92) Straddle positioning refers to a brand using different positioning with different categories of competitors. Answer: False 93) Occasionally, a company will be able to straddle two frames of reference with one set of points-of-difference and points-of-parity. Answer: True 94) Perceptual maps provide quantitative portrayals of market situations and the way consumers view different products, services, and brands along various dimensions. Answer: True 95) The purpose of brand mantras is to ensure that employees and external marketing partners understand what the brand is to represent to the customers. Answer: True 96) Brand mantras must communicate both what a brand is and what it is not. Answer: True 97) Brand mantras are typically designed to capture the brand’s points-of-parity, that is, what is unique about the brand. Answer: False 98) Brands are never affiliated with categories in which they do not hold membership. Answer: False 99) Consumers should understand what the brand stands for, and not just what it is not. Answer: True 100) There are situations in which consumers know a brand’s category membership but may not be convinced the brand is a valid member of the category. Answer: True 101) The product descriptor that follows the brand name is often a concise means of conveying category origin. Answer: True 102) If Barry compares his organization's products to those of leaders in the field, then he is conveying category membership by “comparing to exemplars”. Answer: True 103) A good illustration of negatively correlated attributes or benefits is good taste versus bad taste. Answer: False 104) A leverageable advantage is one that a company can use as a springboard to new advantages. Answer: True 105) Competitive advantage is a company's ability to perform in one or more ways that competitors cannot or will not match. Answer: True 106) The means of differentiation that are often most compelling to consumers relate to aspects of the product and service. Answer: True 107) Companies cannot achieve differentiation by differentiating their channels, as this is not the purpose of a distribution channel. Answer: False 108) A good positioning should contain points-of-difference and points-of-parity that have rational but not emotional components. Answer: False 109) Rather than outlining specific attributes or benefits, some marketing experts describe positioning a brand as telling a narrative or story Answer: True 110) Narrative branding is based on deep metaphors that connect to people's memories, associations, and stories. Answer: True 111) Cultural branding is essential for small firms, but ineffective for large companies. Answer: False 112) Small businesses must focus on building one or two strong brands based on one or two key associations. Answer: True 113) While creating a loyal brand community is useful for large companies, it is not cost-effective for small firms. Answer: False 114) What are the requirements for deciding on a positioning strategy? Answer: Positioning requires that marketers define and communicate similarities and differences between their brand and its competitors. Specifically, deciding on a positioning requires: (1) determining a frame of reference by identifying the target market and relevant competition, (2) identifying the optimal points-of-parity and points-of-difference brand associations given that frame of reference, and (3) creating a brand mantra to summarize the positioning and essence of the brand. 115) With respect to positioning, explain points-of-parity and points-of-difference. Answer: Points-of-difference (PODs) are attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand. Points-of-parity (POPs), on the other hand, are associations that are not necessarily unique to the brand but may in fact be shared with other brands. 116) With the help of an example, explain straddle positioning. Answer: Occasionally, a company will be able to straddle two frames of reference with one set of points-of-difference and points-of-parity. In these cases, the points-of-difference for one category become points-of-parity for the other and vice versa. Subway restaurants are positioned as offering healthy, good-tasting sandwiches. This positioning allows the brand to create a POP on taste and a POD on health with respect to quick-serve restaurants such as McDonald's and Burger King and, at the same time, a POP on health and a POD on taste with respect to health food restaurants and cafés. Straddle positions allow brands to expand their market coverage and potential customer base. 117) Describe three methods by which a brand can communicate category membership. Answer: There are three main ways to convey a brand's category membership: 1. Announcing category benefits. To reassure consumers that a brand will deliver on the fundamental reason for using a category, marketers frequently use benefits to announce category membership. 2. Comparing to exemplars. Well-known, noteworthy brands in a category can also help a brand specify its category membership. 3. Relying on the product descriptor. The product descriptor that follows the brand name is often a concise means of conveying category origin. 118) Briefly describe four brand differentiation strategies. Answer: In addition to product and service differentiation, the four differentiation strategies are: (1) personnel differentiation-companies can gain a strong competitive advantage through having better-trained people; (2) channel differentiation-companies can achieve competitive advantage through the way they design their distribution channels' coverage, expertise, and performance; (3) image differentiation-companies can craft powerful, compelling images that appeal to consumers' social and psychological needs; and (4) services differentiation-a service company can differentiate itself by designing a better and faster delivery system that provides more effective and efficient solutions to consumers. 119) Explain three variables a firm should consider when analyzing potential threats posed by competitors. Answer: In general, the firm should monitor three variables when analyzing potential threats posed by competitors: 1. Share of market—The competitors' share of the target market. 2. Share of mind—The percentage of customers who named the competitor in responding to the statement, “Name the first company that comes to mind in this industry.” 3. Share of heart—The percentage of customers who named the competitor in responding to the statement, “Name the company from which you would prefer to buy the product.” 120) Name and briefly explain three less-structured alternatives to competitive brand positioning. Answer: Three alternatives to competitive branding are as follows: Brand narratives and storytelling: Rather than outlining specific attributes or benefits, some marketing experts describe positioning a brand as telling a narrative or story. Brand journalism: Just as editors and writers for newspapers and magazines tell many facets of a story to capture the interests of diverse groups of people, marketers should communicate different messages to different market segments, as long as they at least broadly fit within the basic broad image of the brand. Cultural branding: For companies to build iconic, leadership brands, they must assemble cultural knowledge, strategize according to cultural branding principles, and hire and train cultural experts. 121) What are the five elements of narrative branding as described by Randall Ringer and Michael Thibodeau? Answer: Randall Ringer and Michael Thibodeau see narrative branding as based on deep metaphors that connect to people's memories, associations, and stories. They identify five elements of narrative branding: (1) the brand story in terms of words and metaphors, (2) the consumer journey in terms of how consumers engage with the brand over time and touch points where they come into contact with it, (3) the visual language or expression for the brand, (4) the manner in which the narrative is expressed experientially in terms of how the brand engages the senses, and (5) the role/relationship the brand plays in the lives of consumers. 122) Randall Ringer and Michael Thibodeau see narrative branding as based on deep metaphors that connect to people's memories, associations, and stories. Briefly describe their framework for a brand story. Answer: Based on literary convention and brand experience, Randall Ringer and Michael Thibodeau offer the following framework for a brand story: • Setting. The time, place, and context • Cast. The brand as a character, including its role in the life of the audience, its relationships and responsibilities, and its history or creation myth • Narrative arc. The way the narrative logic unfolds over time, including actions, desired experiences, defining events, and the moment of epiphany • Language. The authenticating voice, metaphors, symbols, themes, and leitmotifs 123) How does a loyal brand community support the positioning and branding of a small business? Provide an example to support your explanation. Answer: Student answers may vary. Creating a vibrant brand community among current and prospective customers can be a cost-effective way to reinforce loyalty and help spread the word to new prospects. Web browser Mozilla Firefox is able to compete with Microsoft's Internet Explorer in part because of its dedicated volunteer group of 10,000 programmers who work on its open source coding. Twelve fans of the brand felt so strongly about it they used two-by-fours and rope to hollow out a 30,000-square-foot impression of the brand's logo in an oat field outside Salem, Oregon! A loyal brand community supports the positioning and branding of a small business by advocating for the brand, providing valuable feedback, and extending its reach through word-of-mouth and social sharing. For example, a small artisanal coffee shop with a dedicated community of coffee enthusiasts can use their support to reinforce its image as a quality-focused, local establishment. This community helps attract new customers who value authenticity and recommendations from peers, thereby strengthening the brand's market position. 124) With the help of an example, explain why a company's competition may not be from companies in the same category. Answer: Student answers may vary. Category membership includes the products or sets of products with which a brand competes and which function as close substitutes. After having spent billions of dollars building their networks, cell phone carriers face the threat of new competition emerging as a result of a number of changes in the marketplace: Skype and the growth of Wi-Fi hotspots, municipal Wi-Fi networks built by cities, and dual mode phones that can easily switch networks. A company's competition may not be limited to companies in the same category because consumer choices are often influenced by broader factors like lifestyle, preferences, and evolving market trends. For example, a high-end gym might not only compete with other gyms but also with wellness retreats, personal trainers, or even fitness apps that offer convenience and variety. Understanding these diverse competitive influences helps companies strategize effectively beyond direct category competitors. 125) Belling is a chain of coffee shops. List possible competitors first from an industry point of view and then from the market point of view. Answer: Student answers may vary. From an industry point of view, Belling's competitors will be other coffee shops, coffee machines and outlets that sell coffee in addition to other foods. From a market point of view, Belling's competitors could be anything from restaurants to supermarkets selling ready-to-drink coffee. From an industry point of view, possible competitors for Belling, a chain of coffee shops, could include: 1. Starbucks and other national/international coffee chains. 2. Costa Coffee and other regional coffee chains. 3. Independent coffee shops in the same locality. From a market point of view, competitors could extend to: 1. Cafés in adjacent industries, such as bakeries or juice bars. 2. Fast food chains offering coffee as part of their menu. 3. Convenience stores with coffee offerings for grab-and-go customers. 126) There are three key consumer criteria that determine whether a brand association can truly function as a point-of-difference. When the Westin Stamford hotel in Singapore advertised that it was the world's tallest hotel, it attempted to create a point-of-difference (POD). Explain why the hotel may not have been successful in its attempt to create its POD. Answer: Student answers may vary. Consumers must see the brand association as personally relevant to them. Staying in the tallest hotel might not be a necessary need for most tourists, there might be other factors that are more important. The hotel was not successful in its attempt to create its POD because of the desirability criteria associated with PODs. The Westin Stamford hotel in Singapore may not have been successful in creating a point-of-difference (POD) because: 1. Relevance: Being the tallest hotel may not be relevant or meaningful to all potential guests compared to factors like service quality or location. 2. Distinctiveness: Other hotels may have similar claims or unique selling propositions (USPs), diminishing the perceived distinctiveness of being the tallest. 3. Believability: Without clear evidence or tangible benefits associated with its height, consumers may not perceive it as a credible or compelling reason to choose the hotel over competitors. 127) Belling is a chain of coffee shops. Give an example of a category point-of-parity and a competitive point-of-parity for the company. Answer: Student answers may vary. A category point-of-parity for Belling could be its freshly-brewed coffee and friendly atmosphere. A competitive point-of-parity could be its fast customer service times. For Belling, a chain of coffee shops, a category point-of-parity could be offering a variety of coffee beverages, as this is expected in the coffee shop industry. A competitive point-of-parity could be providing free Wi-Fi, matching the standard set by many other coffee shops to attract customers who seek a comfortable place to work or relax while enjoying their coffee. These points help Belling meet basic customer expectations and compete effectively in the coffee shop market. 128) Belling is a chain of coffee shops. Give an example of a point-of-parity and a point-of-difference for the company. Answer: Student answers may vary. Points-of-parity for Belling could be its freshly-brewed coffee or friendly atmosphere. Points-of-difference could be its unusual interior design or laid-back attitude. For Belling, a chain of coffee shops, a point-of-parity could be offering quality coffee beverages similar to other coffee chains in terms of taste and preparation standards. A point-of-difference could be their unique focus on sustainability, using ethically sourced coffee beans and eco-friendly packaging, distinguishing them from competitors who may not prioritize sustainability as prominently. This differentiation enhances Belling's brand identity and appeals to environmentally conscious consumers. 129) Give an example of the use of straddle positioning. Answer: Student answers may vary. Subway restaurants are positioned as offering healthy, good-tasting sandwiches. This positioning allows the brand to create a POP on taste and a POD on health with respect to quick-serve restaurants such as McDonald's and Burger King and, at the same time, a POP on health and a POD on taste with respect to health food restaurants and cafés. Straddle positioning involves targeting two or more distinct market segments simultaneously. An example is Toyota's Prius hybrid car, which straddles the market by appealing to environmentally conscious consumers seeking fuel efficiency and cost savings, while also appealing to tech-savvy consumers interested in cutting-edge hybrid technology and innovation. This dual appeal allows Toyota to capture market share from both traditional gasoline-powered cars and niche electric vehicle markets. 130) Define a brand mantra and provide an example of a brand mantra. Answer: Student answers may vary. A brand mantra is an articulation of the heart and soul of the brand and is closely related to other branding concepts like “brand essence” and “core brand promise.” Brand mantras are short, three- to five-word phrases that capture the irrefutable essence or spirit of the brand positioning. American Express's “World Class Service, Personal Recognition,” is an example of a brand mantra. A brand mantra is a succinct articulation of a brand's core essence, capturing its purpose and promise in just a few words. It typically emphasizes what the brand stands for and what it promises to deliver consistently. Example: Nike: "Authentic athletic performance" 131) Give an example of how a brand can be affiliated with a category in which it does not hold membership. Answer: Student answers may vary. Spizza's frozen pizza has adopted a positioning strategy that identifies with a different category from its own—instead of putting it in the frozen pizza category, the marketers have positioned it in the delivered pizza category with ads that claim, “It's Not Delivery, It's Spizza’s!” A brand can be affiliated with a category it does not officially belong to through strategic partnerships or endorsements. For instance, a luxury fashion brand might collaborate with a renowned artist to release limited-edition artwork, thus associating itself with the art world despite not being an art-focused brand. This affiliation leverages the artist's credibility to expand the brand's appeal into new consumer segments and enhance its perceived cultural relevance. 132) Belling begins most advertising messages by announcing category benefits and then moving on to its specific positioning. Offer one reason why Belling may adopt this strategy. Answer: Student answers may vary. To reassure consumers that a brand will deliver on the fundamental reason for using a category, marketers such as Belling frequently use benefits to announce category membership. Belling may adopt this strategy of beginning advertising messages with category benefits to establish a common ground with consumers and set a baseline expectation. By emphasizing well-known category benefits like quality coffee and a comfortable atmosphere first, Belling ensures potential customers recognize its offerings as meeting industry standards before highlighting its unique positioning or additional features. This approach helps to build initial interest and credibility before delving into specific brand differentiators. 133) How can coffee shop chain Belling convey its category membership? List the methods it can use to achieve this. Answer: The three main ways to convey a brand's category membership are: announcing category benefits; comparing to exemplars; and relying on the product descriptor. 134) As a company seeks to establish a category membership designation, how does the company approach points-of-difference? What is done first? Answer: The typical approach to positioning is to inform consumers of a brand's membership before stating its point-of-difference. Presumably, consumers need to know what a product is and what function it serves before deciding whether it dominates the brands against which it competes. 135) Provide three examples of negatively correlated attributes and benefits. Answer: Student answers may vary. Some examples of negatively correlated attributes and benefits are: low price versus high quality, taste versus low calories, strong versus refined, powerful versus safe, and ubiquitous versus exclusive. Three examples of negatively correlated attributes and benefits are: 1. Cost vs. Quality: As cost decreases, perceived quality often decreases. 2. Speed vs. Customization: Faster service may be perceived as less customized or personalized. 3. Environmental Impact vs. Convenience: Products that are more environmentally friendly may be less convenient or require more effort to use or dispose of properly. 136) Define leverageable advantage with an example. Answer: A leverageable advantage is one that a company can use as a springboard to new advantages, much as Microsoft has leveraged its operating system to Microsoft Office and then to networking applications. In general, a company that hopes to endure must be in the business of continuously inventing new advantages. 137) How does a company differentiate its market offerings using personnel differentiation? Provide an example of a company using personnel differentiation. Answer: Student answers may vary. A company differentiating its market offerings using personnel differentiation, does so by having better-trained personnel who provide superior customer service. Singapore Airlines is well regarded in large part because of its flight attendants. A company can differentiate its market offerings using personnel differentiation by focusing on the unique skills, expertise, and customer service capabilities of its employees. This can include hiring knowledgeable and friendly staff who provide personalized experiences and expert advice. An example is Apple's retail stores, where employees (called "Geniuses") are trained extensively to offer technical support and advice, enhancing customer satisfaction and loyalty through superior service and expertise. 138) Companies can achieve competitive advantage through the way they design their distribution channel. What three areas are considered in this design process? Answer: Considerations to achieve competitive advantage in the distribution channel are in the areas of coverage, expertise, and performance. 139) Belling wants to analyze the threats posed by its competitors. Which three variables must it monitor to achieve this? Answer: To analyze the threats posed by its competitors, Belling must monitor the competitors' share of the market, share of mind and share of heart. 140) Sally's is a boutique bakery that specializes in cupcakes. How can Sally's create channel differentiation to stand apart from its competitors? Answer: Student answers may vary. Sally's can more effectively and efficiently design its distribution channels' coverage, expertise, and performance to make buying the product easier and more enjoyable and rewarding. It can set up an online store or undertake home deliveries. Sally's can create channel differentiation by focusing on unique distribution channels and customer access points. For example, offering exclusive delivery services for customized cupcake orders within a specific radius, setting up pop-up shops in high-traffic areas, or partnering with local coffee shops to sell their cupcakes can differentiate Sally's from competitors. Emphasizing convenience, personalization, and accessibility through innovative channels can attract new customers and enhance brand loyalty. 141) Sally's is a boutique bakery that specializes in cupcakes. How can Sally's create image differentiation to stand apart from its competitors? Answer: Student answers may vary. Sally's can use innovative and distinctive packaging for its products, or use interior design to give the store a distinctive look. Sally's can create image differentiation by focusing on distinctive branding elements and marketing strategies. For example, emphasizing handmade and locally sourced ingredients, showcasing unique and creative cupcake designs through vibrant packaging and social media, and promoting a cozy and welcoming ambiance in their bakery can set Sally's apart. Highlighting a commitment to quality, creativity, and a personalized customer experience can help build a strong and memorable brand image that resonates with customers looking for something special and unique in their cupcake choices. 142) Sally's is a boutique bakery that specializes in cupcakes. Give one method by which Sally's can conduct low-cost market research. Answer: Student answers may vary. There are a variety of low-cost marketing research methods that help small businesses connect with customers and study competitors. One way is to set up course projects at local universities to access the expertise of both students and professors. Sally's can conduct low-cost market research by leveraging social media platforms. They can create polls or surveys on platforms like Instagram or Facebook to gather customer feedback on flavors, pricing preferences, and satisfaction levels. Monitoring comments and messages from followers can also provide valuable insights into customer preferences and trends, helping Sally's refine their offerings and marketing strategies effectively without significant financial investment. 143) Sally's is a boutique bakery that specializes in cupcakes. Give some methods by which Sally's can position itself without spending a lot on promotions. Answer: Student answers may vary. Because small businesses often must rely on word of mouth to establish their positioning, public relations, social networking, and low-cost promotions and sponsorship can be inexpensive alternatives for Sally's. Creating a vibrant brand community among current and prospective customers can also be a cost-effective way to reinforce loyalty and help spread the word to new prospects. Sally's can position itself effectively without extensive promotional spending by: 1. Word-of-Mouth: Encouraging satisfied customers to share their experiences and recommend Sally's to friends and family. 2. Local Partnerships: Collaborating with nearby businesses or cafes to cross-promote each other's offerings. 3. Community Engagement: Participating in local events, sponsoring neighborhood activities, or donating cupcakes to charity events to enhance visibility and goodwill. 4. Online Presence: Maintaining an active and engaging social media presence to showcase their products, interact with customers, and build a loyal following organically. Test Bank for Marketing Management: A South Asian Perspective Philip Kotler, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha 9789810687977, 9780132102926
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