Chapter 10 1. All marketing strategy is built on STP segmentation, targeting, and ________. A) positioning B) product C) planning D) promotion E) performance Answer: A Rationale: Positioning is the next logical step after segmentation and targeting in the marketing process. Once a company has identified its target market segments, it needs to position its products or services in a way that resonates with those segments. Therefore, positioning completes the triad of STP. 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 Rationale: Positioning is all about creating a unique space for the company's products or services in the minds of consumers. It involves crafting a specific perception or image that sets the company apart from competitors and resonates with the target market. 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 Rationale: The primary objective of positioning is to establish a clear and distinct placement of the brand in the minds of consumers. This positioning aims to maximize the benefits to the firm by creating a strong association with the target market's needs and preferences. 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 Rationale: A value proposition is the unique benefit or advantage that a product or service offers to the target market. Through effective positioning, a company can create a value proposition that resonates with its target audience, giving them a compelling reason to choose its offerings over competitors'. 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 Rationale: This option clearly articulates a specific benefit of the car company's product – safety and durability. It presents a unique selling proposition that appeals to a particular segment of the market, in this case, safety-conscious upscale families. 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 Rationale: This option highlights a specific benefit of BR Chicken's product – tender golden chicken at a moderate price point. It communicates the value that customers can expect from choosing BR Chicken over other options, appealing to quality-conscious consumers who also consider affordability. 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 Rationale: The competitive frame of reference identifies the specific brands or products that a company considers its competitors. This understanding is crucial for conducting effective competitive analysis and devising strategies to differentiate the brand within its market context. 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 Rationale: Category membership refers to the specific product category within which a brand competes. These products or sets of products serve as close substitutes for each other, making them competitors within the same market segment. 9. ________ are defined as companies that satisfy the same customer need. A) Communities B) Competitors C) Trendsetters D) Industries E) Task groups Answer: B Rationale: Competitors are companies that offer similar products or services and compete for the same customer base. They fulfill the same or similar needs and desires of customers within a particular market, making them direct rivals in the business landscape. 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 Rationale: An industry consists of a group of firms that produce similar or related products or services and compete within the same market space. These firms offer products or classes of products that are close substitutes, making them part of the same industry segment. 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 Rationale: Blue ocean thinking focuses on creating new market spaces or industries rather than competing within existing ones. It aims to simultaneously reduce costs and enhance value for consumers by offering innovative and unique products or services. 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 Rationale: Points-of-difference (PODs) are those attributes or benefits that are unique to a brand and are perceived as superior by consumers compared to competitive brands. They play a crucial role in distinguishing a brand in the minds of consumers. 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 Rationale: Points-of-parity (POPs) are associations that are not necessarily unique to a brand but are considered essential for a brand to be perceived as a legitimate player within its product category. These associations are often shared with other brands in the same category. 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 Rationale: For a brand association to function as a point-of-difference, it must be desirable to consumers, deliverable by the company, and differentiable from competitors' offerings. These criteria ensure that the association provides a unique advantage to the brand. 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 Rationale: Desirability refers to the extent to which consumers perceive a brand association as personally relevant and appealing to them. It reflects the emotional connection and resonance that the association creates with consumers. 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 Rationale: Deliverability refers to the company's ability to feasibly and profitably create and maintain the brand association in the minds of consumers. It encompasses the availability of internal resources, capabilities, and commitment necessary to execute the association effectively. 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 Rationale: Differentiability refers to the extent to which consumers perceive the brand association as distinctive and superior to those of relevant competitors. It ensures that the association sets the brand apart in the marketplace and provides a competitive advantage. 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 Rationale: For a brand association to function as a true point-of-difference, the brand must demonstrate clear superiority on an attribute or benefit that is valued by consumers. This superiority distinguishes the brand from competitors and provides a compelling reason for consumers to choose it. 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 Rationale: Category points-of-parity (CPOPs) and competitive points-of-parity (CPOPs) are the two basic forms of points-of-parity. CPOPs refer to associations that are necessary for a brand to be considered a legitimate player within a product category, while CPOPs are associations that are necessary to negate competitors' points-of-difference. 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 Rationale: Category points-of-parity (CPOPs) are attributes or benefits that consumers view as essential for a brand to be considered a legitimate and credible offering within a certain product or service class. They establish the brand's basic legitimacy and relevance within its category. 21. Philip Morris bought Miller brewing and launched low-calorie beer, at a time when consumers had the impression that low-calorie beer does not taste as good as normal beer. What does the company assure by stating that the beer tastes good? A) points-of-difference B) points-of-presence C) points-of-parity D) points-of-conflict E) points-of-inflection Answer: C Rationale: Points-of-parity (POPs) are associations or attributes that are shared with competitors and are necessary to be perceived as a legitimate player within a category. In this case, by assuring consumers that the low-calorie beer tastes good, the company is addressing a common perception that low-calorie beer lacks in taste compared to regular beer, thus establishing a point-of-parity with other beers in terms of taste perception. 22. Philip Morris bought Miller brewing and launched low-calorie beer, at a time when consumers had the impression that low-calorie beer does not taste as good as normal beer. What did the company try to build when they conveyed the fact that the beer contained one third less calories and hence it is less filling? A) points-of-difference B) points-of-conflict C) points-of-parity D) points-of-presence E) points-of-inflection Answer: A Rationale: Points-of-difference (PODs) are associations or attributes that differentiate a brand from its competitors. By emphasizing that the beer contains one third less calories and is less filling, the company is highlighting unique attributes that set its low-calorie beer apart from regular beers, thus creating a point-of-difference. 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 Rationale: Category points-of-parity (CPOPs) are attributes or features that are necessary for a brand to be considered a legitimate offering within a category. In this case, the described service elements are essential characteristics that define what constitutes a hand sanitizer, establishing category points-of-parity. 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 Rationale: Nivea's attributes like "gentle," "protective," and "caring" are foundational characteristics that define the brand within the skincare category, establishing category points-of-parity. Moving into other product classes requires ensuring that the new products meet fundamental category expectations, such as the deodorant being strong enough or the shampoo effectively cleansing, thus further emphasizing the importance of category points-of-parity. 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 Rationale: Competitive points-of-parity (CPOPs) are associations or attributes that a brand shares with its competitors and are designed to overcome perceived weaknesses of the brand. By addressing these weaknesses and ensuring parity with competitors on certain attributes, a brand can maintain its competitiveness within the market. 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 Rationale: Competitive points-of-parity (CPOPs) are often used to counteract or nullify competitors' perceived points-of-difference (PODs). By establishing points-of-parity in areas where competitors have a distinct advantage, a company can mitigate the impact of competitors' strengths and level the playing field. 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 Rationale: This statement emphasizes a benefit directly associated with the Dove brand, specifically softer skin, which is a key attribute of Dove soap. By highlighting this brand benefit, the marketer is focusing on creating a point-of-difference (POD) for Dove soap based on its unique value proposition. 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 Rationale: Straddle positioning involves simultaneously targeting two or more distinct market segments by offering different positioning strategies for each segment. In this case, Subway is positioning itself as offering healthy, great-tasting sandwiches, which allows it to straddle between quick-serve restaurants and health food restaurants, creating points-of-parity and points-of-difference with respect to each segment. 29. BMW positioned itself as the only automobile that offered both luxury and performance. At that time, consumers saw U.S. luxury cars as lacking performance. It was able to achieve a point-of-difference on performance and a point-of-parity on luxury with respect to U.S. luxury cars like Cadillac. 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 Rationale: Straddle positioning involves targeting two or more market segments simultaneously by offering distinct positioning strategies for each segment. BMW positions itself as offering both luxury and performance, achieving a point-of-difference (POD) on performance compared to U.S. luxury cars and a point-of-parity (POP) on luxury. This strategy allows BMW to appeal to consumers who value both luxury and performance in a car. 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 Rationale: Marketers typically focus on brand benefits when choosing points-of-parity and points-of-difference for brand positioning because these attributes directly influence consumers' perceptions of the brand's value proposition and competitive advantage. By highlighting unique brand benefits, marketers can differentiate their brand and appeal to target consumers effectively. 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 Rationale: Perceptual maps are graphical tools used in marketing to visually display how consumers perceive different products or brands relative to each other based on certain attributes. They help marketers understand consumer preferences and positioning strategies. 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 Rationale: Straddle positions allow brands to cater to multiple market segments simultaneously, expanding their reach and potential customer base. By occupying positions between different segments, brands can effectively broaden their market coverage. 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 Rationale: Brand mantras serve as succinct expressions of a brand's essence and values, guiding various aspects of brand management including advertising campaigns and market strategies. 34. American Express'- "Worldclass Service, Personal Recognition," Mary Kay's - "Enriching women's lives," Hallmark's- "Caring Shared," and Starbucks'-"Rewarding Everyday Moments" are examples of ________. A) brand mantras B) brand parity C) brand identity D) brand architecture E) brand extension Answer: A Rationale: These statements are concise expressions that capture the core essence of each brand, which aligns with the definition of brand mantras. 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 Rationale: Brand mantras serve as succinct expressions of a brand's essence and values, providing clarity and guidance for employees about the brand's positioning. 36. A ________ is a translation of the brand mantra that attempts to creatively engage consumers and others external to the company. A) brand vision B) brand extension C) brand architecture D) brand slogan E) brand alliance Answer: D Rationale: Brand slogans are creative expressions derived from the brand mantra, designed to resonate with consumers and communicate the brand's essence effectively. 37. BMW's "The ultimate driving machine," American Express' "Don't leave home without it," New York Times' "All the news that's fit to print," and AT&T's "Reach out and touch someone" are all examples of ________. A) brand slogan B) brand personality C) brand mission D) brand architecture E) brand vision Answer: A Rationale: These statements are concise expressions derived from the brand mantras, designed to resonate with consumers and communicate the brand's essence effectively, fitting the definition of brand slogans. 38. A brand mantra should be ________. A) original, ambiguous, and straightforward B) unique, complex, and inspirational C) communicative, simple, and inspirational D) competitive, sensitive, and simple E) unique, sensitive, and explanatory Answer: C Rationale: A brand mantra should be simple and communicative, capturing the essence of the brand in a straightforward and inspirational manner to ensure clarity and resonance with consumers. 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 Rationale: Brand mantras focus on communicating the unique attributes and values of a brand, emphasizing its points of difference from competitors. 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 Rationale: In rapidly growing markets, establishing points-of-parity alongside points-of-difference helps brands maintain relevance and credibility, making it crucial while designing brand mantras. 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 Rationale: In stable categories, where significant shifts or expansions are less likely, brand mantras tend to emphasize what makes the brand unique or differentiates it from competitors, hence focusing more on points-of-difference. 42. Tums claims to have the most acid-reducing components of any antacid. 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 Rationale: By emphasizing having the most acid-reducing components, Tums is highlighting a key benefit within the antacid category, thus conveying its category membership through announcing category benefits. 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 Rationale: The conventional approach to positioning involves establishing the brand's category membership first, then differentiating it from competitors by stating its unique selling propositions or points-of-difference. 44. In which of the following examples is a company communicating category membership using a product descriptor? A) Use Zipex for quick and thorough cleaning. B) Barry's Oats, when you want nutrition and flavor. C) Clarity offers you the best prices for the best quality. D) Choose Grissom's for an unparalleled shopping experience. E) Chloe: All you need for a beautiful you. Answer: B Rationale: "Barry's Oats, when you want nutrition and flavor" directly communicates the category of the product (oats) through the product descriptor. 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 Rationale: By highlighting durability for industrial tools and efficacy for antacids, the brands are communicating the benefits within their respective categories, thus conveying their category membership. 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 Rationale: By emphasizing speed and safety qualities, the company is highlighting benefits typically associated with hatchback cars, thus conveying its membership in the hatchback segment through announcing category benefits. 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 Rationale: Comparing to exemplars involves referencing well-known brands within a category to help consumers understand the brand's category membership by association. 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 Rationale: By showcasing advantages over competitors in its advertising, SJC is comparing itself to exemplars within the retail segment, thereby conveying its membership in that segment. 49. When Tommy Hilfiger was an unknown brand, advertising announced his membership as a great U.S. designer by associating him with Geoffrey Beene, Stanley Blacker, 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 Rationale: By associating with established designers within the category, Tommy Hilfiger communicated its own membership in the category through comparison to exemplars. 50. Ford Motor Co. invested more than $1 billion on a radical new 2004 model called the X-Trainer, which combined the attributes of an SUV, a minivan, and a station wagon. To communicate its unique position—and to avoid association with its Explorer and Country Squire models—the vehicle, eventually called Freestyle, was designated a "sports wagon". According to the given scenario, Ford Motor Co. conveyed their 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 Rationale: By designating the vehicle as a "sports wagon," Ford Motor Co. is using the product descriptor to convey its category membership, distinguishing it from its other models and aligning it with a specific vehicle category. 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 Rationale: Points-of-parity and points-of-difference often involve attributes or benefits that are negatively correlated, meaning that as one increases, the other decreases. Balancing these attributes effectively can be challenging but crucial for successful brand positioning. 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 Rationale: Competitive advantage refers to the unique capabilities or advantages that a company possesses, allowing it to outperform competitors in the market. 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 Rationale: A leverageable advantage is a competitive advantage that a company can use to create new opportunities or advantages in the market. 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) employee differentiation D) image differentiation E) product differentiation Answer: C Rationale: Employee differentiation focuses on the quality of personnel and the level of customer service they provide, which can set a company apart from competitors. 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) employee E) channel Answer: D Rationale: The excellence of flight attendants at Singapore Airlines is a characteristic of employee differentiation, as it emphasizes the quality of personnel and service provided. 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 Rationale: Channel differentiation involves optimizing the distribution channels to enhance the buying experience and make it more convenient and rewarding for customers. 57. Dayton, Ohio––based Iams found success selling premium pet food through regional veterinarians, breeders, and pet stores. This is an example of ________ differentiation. A) service B) employee C) image D) product E) channel Answer: E Rationale: Iams' success through regional veterinarians, breeders, and pet stores illustrates channel differentiation, as it emphasizes the strategic selection and optimization of distribution channels. 58. Which of the following is an example of channel differentiation? A) Berry's has an intensive training program for its customer-facing employees, to ensure a consistent service standard. B) The Swan 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 Rationale: RTZ shifting its products from supermarket aisles to exclusive stores exemplifies channel differentiation by strategically changing the distribution channel to enhance the brand's positioning and perceived value. 59. Which of the following is an example of image differentiation? A) Berry's has an intensive training program for its customer-facing staff, to ensure a consistent service standard. B) The Swan 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 Rationale: The Swan Hotels using a distinctive signature fragrance in all outlets exemplifies image differentiation by creating a unique and memorable brand image that sets it apart from competitors. 60. Which of the following is an example of services differentiation? A) Berry's has an intensive training program for its customer-facing staff, to ensure a consistent service standard. B) The Swan 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 Rationale: JEK's sophisticated customer database enabling faster query handling and product returns illustrates services differentiation, as it enhances the customer experience and provides a unique advantage compared to competitors. 61. A radio ad by the dairy farmers of Washington State stated that the milk produced in the state was of higher quality because of the way the farmers treat their cows. They said that the difference comes from how comfortable they make their cows. Among others, this differentiation could certainly appeal to animal lovers and those moving toward organic products. This is an example of ________. A) personnel differentiation B) channel differentiation C) service differentiation D) product differentiation E) image differentiation Answer: E Rationale: This differentiation emphasizes the care and treatment of cows, appealing to consumers' emotions and values, which aligns with the concept of image differentiation. 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 Rationale: Improving the delivery system enhances the service provided to consumers, making it an example of services differentiation. 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 Rationale: Dependability in on-time delivery and order completeness emphasizes reliability, making it a differentiation based on reliability. 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 Rationale: Being better at handling emergencies and product recalls highlights resilience, making it a differentiation based on resilience. 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 Rationale: Introducing better information systems and innovative methods indicates innovativeness, making it a differentiation based on innovativeness. 66. Which of the following traits of a brand's ability to become a lovemark relates to drawing together stories, metaphors, dreams, and symbols? A) intimacy B) mystery C) insensitivity D) sensuality E) practicality Answer: B Rationale: Mystery in the context of lovemarks relates to the ability of a brand to evoke stories, metaphors, and dreams, capturing consumers' imagination and curiosity. 67. Which of the following traits of a brand's ability to become a lovemark 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 Rationale: Sensuality refers to the stimulation of the senses, keeping consumers engaged through various sensory experiences, which is essential for a brand to become a lovemark. 68. Which of the following traits of a brand's ability to become a lovemark implies empathy, commitment, and passion? A) practicality B) sensuality C) morality D) mystery E) intimacy Answer: E Rationale: Intimacy in the context of lovemarks implies a deep connection between the brand and consumers, characterized by empathy, commitment, and passion. 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 Rationale: Narrative branding, as described by Randall Ringer and Michael Thibodeau, is based on storytelling and deep metaphors that resonate with consumers' memories, associations, and stories. 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 Rationale: The setting in a brand story framework relates to the time, place, and context in which the brand story unfolds, providing essential background and context for the narrative. 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 Rationale: The narrative arc refers to the structure of the story, including how the narrative logic unfolds over time, encompassing actions, defining events, and the climax or moment of epiphany. 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 Rationale: Language in a brand story framework encompasses the authenticating voice, metaphors, symbols, themes, and leitmotifs used to communicate the brand's message and identity effectively. 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 Rationale: Conducting low-cost marketing research creatively is crucial for small businesses to understand their market, customers, and competitors without investing heavily in expensive research methods. This enables them to make informed decisions and develop effective branding strategies within budget constraints. 74. All marketing strategy is built on segmentation, targeting, and positioning. Answer: True Rationale: Segmentation, targeting, and positioning (STP) are fundamental components of marketing strategy. Segmentation involves dividing the market into distinct groups based on characteristics or needs, targeting involves selecting which of those segments to focus on, and positioning involves crafting the brand's image and message to occupy a distinct place in the minds of the target market. 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 Rationale: Positioning is indeed about creating a unique and favorable perception of a company's products or services in the minds of consumers. It involves tailoring the marketing mix to meet the needs and preferences of the target audience while differentiating the brand from competitors. 76. The result of positioning is the successful creation of an employee-focused value proposition. Answer: False Rationale: Positioning primarily focuses on creating a customer-focused value proposition rather than an employee-focused one. It's about how a company's products or services are perceived by consumers relative to competitors, not about internal messaging for employees. 77. Positioning requires that marketers define and communicate only the differences between their brand and its competitors. Answer: False Rationale: While highlighting points of differentiation is crucial in positioning, it also involves identifying and communicating the brand's unique benefits and value proposition. Simply focusing on differences may not effectively convey why consumers should choose one brand over another. 78. The competitive frame of reference defines which other brands a brand competes with. Answer: True Rationale: Understanding the competitive frame of reference is essential for effective positioning. It involves identifying the set of brands that consumers consider as alternatives to the brand in question. This helps in understanding the competitive landscape and crafting a positioning strategy accordingly. 79. Category membership is seen as the products which function as close substitutes of a brand. Answer: True Rationale: Category membership refers to the group of products or services that are considered substitutes or alternatives by consumers. Knowing which products belong to the same category helps in understanding the competitive landscape and positioning the brand effectively within that category. 80. A company is more likely to be hurt by current competitors than by emerging competitors or new technologies. Answer: False Rationale: Emerging competitors and new technologies can disrupt industries and pose significant threats to established companies. Ignoring or underestimating these new entrants can leave a company vulnerable to being overtaken in the market. Therefore, both current and emerging competitors should be carefully monitored and addressed in a company's strategic planning. 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 Rationale: The market concept of competition typically considers only direct competitors within the same product or service category. In contrast, the industry concept of competition includes a broader set of competitors, such as those offering substitute products or services, potential new entrants, and even suppliers and buyers. Therefore, the industry concept provides a more comprehensive view of competitive forces. 82. Using the industry approach, competitors are defined as companies that satisfy the same customer need. Answer: False Rationale: Competitors are not solely defined by satisfying the same customer need in the industry approach. Competitors can include companies offering substitute products or services, even if they don't directly fulfill the same customer need. The industry approach considers a broader range of competitive dynamics beyond simple customer need fulfillment. 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 Rationale: Effective competitor analysis involves assessing both tangible factors (real strengths and weaknesses) and intangible factors (perceived strengths and weaknesses) of competitors. This comprehensive understanding helps a company identify areas where it can gain a competitive advantage and areas where it may be vulnerable. 84. Associations that make up points-of-difference are based exclusively on product features. Answer: False Rationale: Points-of-difference (PODs) are attributes or benefits that are unique to a brand and are perceived as superior to those of competitors. While product features can be part of PODs, they can also include aspects such as brand image, customer service, or emotional appeal. Therefore, PODs are not exclusively based on product features. 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 Rationale: Points-of-parity (POPs) are attributes or benefits that are not necessarily unique to a brand but are necessary for it to be considered a legitimate competitor in its product category. Consumers expect these features to be present in all brands within the category, so they don't differentiate the brand but rather establish its basic credibility. 86. Points-of-parity may be shared among two or more brands. Answer: True Rationale: Points-of-parity are characteristics or benefits that are not unique to a single brand but rather shared among competitors within a product category. Brands often compete on points-of-parity to ensure they meet consumers' minimum expectations. 87. Category points-of-parity are unique to a brand. Answer: False Rationale: Category points-of-parity refer to attributes or benefits that are necessary for a brand to be considered a legitimate and credible competitor within its product category. These points are not unique to a single brand but are shared among competitors. 88. Category points-of-parity may change over time due to technological advances, legal developments, or consumer trends. Answer: True Rationale: Changes in technology, regulations, or consumer preferences can alter the expectations consumers have for products within a category. As a result, category points-of-parity may evolve over time to reflect these changes and ensure brands remain competitive. 89. Category points-of-parity are associations designed to overcome perceived weaknesses of the brand. Answer: False Rationale: Category points-of-parity are not specifically designed to overcome weaknesses of a brand. Instead, they are attributes or benefits that are necessary for a brand to be considered a legitimate competitor within its product category. They establish basic credibility rather than addressing specific weaknesses. 90. A competitive point-of-parity negates competitors' perceived points-of-difference. Answer: True Rationale: A competitive point-of-parity (CPOP) is a point of equivalence between a focal brand and its competitors. When a brand establishes a CPOP, it effectively neutralizes competitors' perceived points-of-difference (PODs) in that particular area, making the brand competitive on that dimension. 91. Trying to be all things to all people leads to highest-common-denominator positioning, which is typically effective. Answer: False Rationale: Trying to appeal to all consumers often results in a diluted brand identity and ineffective positioning strategy. Highest-common-denominator positioning may lead to a lack of differentiation and fail to resonate strongly with any particular consumer segment. 92. Straddle positioning refers to a brand using different positioning with different categories of competitors. Answer: False Rationale: Straddle positioning refers to a brand simultaneously targeting two or more distinct market segments with different positioning strategies. It involves balancing the brand's appeal to multiple consumer groups without necessarily changing the positioning based on competitors. 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 Rationale: In certain cases, a brand may have attributes or benefits that allow it to appeal to multiple frames of reference within the market. This situation enables the brand to straddle two or more frames of reference while maintaining a consistent set of points-of-difference and points-of-parity. 94. Perceptual maps provide quantitative portrayals of market situations and the way consumers view different products, services, and brands along various dimensions. Answer: True Rationale: Perceptual maps visually represent how consumers perceive different brands in relation to each other along specific dimensions such as price, quality, or features. While they are often based on qualitative data, they can be quantified to provide insights into market positioning. 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 Rationale: Brand mantras are short, three-to-five-word phrases that capture the essence of a brand's promise and identity. They are designed to be memorable and serve as guiding principles for employees and external partners to understand and communicate the brand's core values and positioning to customers. 96. Brand mantras must communicate both what a brand is and what it is not. Answer: True Rationale: Brand mantras should encapsulate the essence of a brand, including what it stands for and what makes it unique. This often involves defining not only what the brand represents but also what it deliberately avoids or is not associated with, helping to clarify its positioning in consumers' minds. 97. Brand mantras are typically designed to capture the brand's points-of-parity, that is, what is unique about the brand. Answer: False Rationale: Brand mantras are more focused on capturing the core essence or promise of a brand rather than highlighting what is unique about it. Points-of-parity (POPs) are attributes or benefits necessary for a brand to be considered a legitimate competitor in its product category, and they may or may not be reflected in the brand mantra. 98. Brands are never affiliated with categories in which they do not hold membership. Answer: False Rationale: Brands can sometimes extend into new product categories through brand extension or diversification strategies. While maintaining core associations, they can enter new markets where they previously didn't hold membership. This strategy is known as brand stretching. 99. 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: False Rationale: Generally, consumers associate brands with specific product categories based on their marketing and positioning efforts. If consumers are aware of a brand's category membership, they typically perceive it as a valid member of that category, assuming the brand maintains relevance and credibility within it. 100. The typical approach to positioning is to inform consumers of a brand's membership before stating its point-of-difference. Answer: True Rationale: The conventional approach to positioning often involves establishing the brand's category membership first to provide context and frame consumers' understanding. Once the category is established, the brand can then highlight its unique points-of-difference (PODs) to differentiate itself from competitors within that category. 101. The product descriptor that follows the brand name is often a concise means of conveying category origin. Answer: True Rationale: Product descriptors following the brand name often provide consumers with a quick understanding of the category to which the brand belongs. For example, "Apple iPhone" clearly indicates that the brand (Apple) is associated with smartphones (iPhone), conveying its category origin. 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 Rationale: Comparing a brand's products to those of established leaders or exemplars within a particular industry or category helps reinforce the brand's association with that category. It implies that the brand belongs in the same league as these leaders, thus affirming its category membership. 103. A good illustration of negatively correlated attributes or benefits is good taste versus bad taste. Answer: False Rationale: Negatively correlated attributes or benefits refer to those that are inversely related, meaning as one increases, the other decreases. An example of negatively correlated attributes could be cost versus quality, where higher quality is often associated with higher cost and vice versa. 104. A leverageable advantage is one that a company can use as a springboard to new advantages. Answer: True Rationale: A leverageable advantage is a strength or resource that a company possesses and can exploit to gain additional advantages or opportunities in the market. It serves as a foundation upon which the company can build further competitive advantages or expand its market presence. 105. Competitive advantage is a company's ability to perform in one or more ways that competitors cannot or will not match. Answer: True Rationale: Competitive advantage refers to the unique strengths or capabilities that enable a company to outperform its competitors in the market. These advantages can manifest in various forms such as cost leadership, differentiation, innovation, or superior customer service, providing the company with a sustainable edge over rivals. 106. The means of differentiation that are often most compelling to consumers relate to aspects of the product and service. Answer: True Rationale: Consumers are often most compelled by differentiation related to the product itself, such as unique features, quality, performance, or service attributes. These aspects directly affect the perceived value and utility of the product or service, making them highly influential in consumer decision-making. 107. Companies cannot achieve differentiation by differentiating their channels, as this is not the purpose of a distribution channel. Answer: False Rationale: Companies can indeed achieve differentiation by strategically managing their distribution channels. Differentiating channels can involve offering unique distribution methods, providing superior customer service through specific channels, or creating exclusive partnerships with retailers. Effective channel differentiation can enhance a company's competitive advantage and appeal to consumers. 108. A good positioning should contain points-of-difference and points-of-parity that have rational but not emotional components. Answer: False Rationale: A good positioning strategy should incorporate both rational and emotional components in its points-of-difference (PODs) and points-of-parity (POPs). While rational components address functional benefits and attributes, emotional components tap into consumers' deeper desires, aspirations, and values. Balancing both rational and emotional appeals can create a more holistic and resonant positioning with consumers. 109. Brand storytelling is a less-structured approach to brand positioning. Answer: True Rationale: Brand storytelling involves conveying the brand's identity, values, and purpose through narratives and anecdotes. It is often less structured compared to traditional positioning strategies, relying on storytelling techniques to engage consumers emotionally and create memorable brand experiences. 110. Narrative branding is based on deep metaphors that connect to people's memories, associations, and stories. Answer: True Rationale: Narrative branding relies on the use of storytelling techniques to create deep connections with consumers. It involves crafting narratives that resonate with people's memories, associations, and personal stories, tapping into universal themes and emotions to build strong brand identities. 111. Cultural branding is essential for small firms, but ineffective for large companies. Answer: False Rationale: Cultural branding, which involves aligning a brand with broader cultural trends, values, and movements, can be effective for both small and large companies. While small firms may leverage cultural branding to establish relevance and differentiate themselves in the market, large companies can also use it to reinforce their brand identity, connect with diverse audiences, and stay culturally relevant. 112. Small businesses must focus on building one or two strong brands based on one or two key associations. Answer: True Rationale: Small businesses often have limited resources and brand equity, making it challenging to manage multiple brands effectively. Focusing on building one or two strong brands based on distinct and relevant associations allows small businesses to concentrate their efforts and resources, maximizing the impact of their branding efforts. 113. While creating a loyal brand community is useful for large companies, it is not cost-effective for small firms. Answer: False Rationale: Building a loyal brand community can be beneficial for both large and small firms. While large companies may have more resources to invest in community-building activities, small firms can also leverage their agility, authenticity, and personal touch to foster strong connections with their customers. Building a loyal brand community can lead to repeat business, positive word-of-mouth, and long-term brand loyalty, making it a valuable investment for small firms. 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) employee 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: 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! 124. With the help of an example, explain why a company's competition may not be from companies in the same category. Answer: 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 AT&T, Verizon Wireless, and Sprint 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. 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: 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. 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: 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. 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: 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. 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: 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. 129. Give an example of the use of straddle positioning. Answer: 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. 130. Define a brand mantra and provide an example of a brand mantra. Answer: 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. 131. Give an example of how a brand can be affiliated with a category in which it does not hold membership. Answer: DiGiorno'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 DiGiorno!" 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: 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. 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: 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. 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 employee differentiation? Provide an example of a company using employee differentiation. Answer: Student answers may vary. A company differentiating its market offerings using employee 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. 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: 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. 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: Sally's can use innovative and distinctive packaging for its products, or use interior design to give the store a distinctive look. 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: 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 colleges and universities to access the expertise of both students and professors. 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: 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. Test Bank for Marketing Management Philip T Kotler, Kevin Lane Keller 9780132102926, 9780273753360, 9781292092621, 9780133856460, 9789332587403, 9780136009986
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