MKTG Mangement Chapter 10 (FINAL)

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Dr. Gonzalez Trinity University Fall 2012

A

1) All marketing strategy is built on STPsegmentation, targeting, and ________.
A) positioning
B) product
C) planning
D) promotion
E) performance

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

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

B

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

C

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.

D

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.

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

C

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

B

9) ________ are defined as companies that satisfy the same customer need.
A) Communities
B) Competitors
C) Trendsetters
D) Industries
E) Task groups

C

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

A

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.

B

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

A

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

D

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

C

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

E

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

B

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

A

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

E

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

D

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

C

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

A

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

D

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

C

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

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

E

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

C

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

D

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

A

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

C

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

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

B

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

D

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.

A

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

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

D

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

A

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

C

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

D

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

A

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

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

C

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

B

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

B

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.

C

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

A

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

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

B

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

C

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

C

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

A

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

C

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

B

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

C

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

D

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

B

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

E

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

D

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.

B

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.

C

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.

E

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

A

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

D

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

C

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

A

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

B

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

A

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

E

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

B

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

D

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

E

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

C

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

A

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.

true

74) All marketing strategy is built on segmentation, targeting, and positioning.

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.

false

76) The result of positioning is the successful creation of an employee-focused value proposition.

false

77) Positioning requires that marketers define and communicate only the differences between their brand and its competitors.

true

78) The competitive frame of reference defines which other brands a brand competes with.

true

79) Category membership is seen as the products which function as close substitutes of a brand.

false

80) A company is more likely to be hurt by current competitors than by emerging competitors or new technologies.

false

81) The industry concept of competition reveals a broader set of actual and potential competitors than competition defined in just the market concept.

false

82) Using the industry approach, competitors are defined as companies that satisfy the same customer need.

true

83) To analyze its competitors, a company needs to gather information about both the real and the perceived strengths and weaknesses of each competitor.

false

84) Associations that make up points-of-difference are based exclusively on product features.

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.

true

86) Points-of-parity may be shared among two or more brands.

false

87) Category points-of-parity are unique to a brand.

true

88) Category points-of-parity may change over time due to technological advances, legal developments, or consumer trends.

false

89) Category points-of-parity are associations designed to overcome perceived weaknesses of the brand.

true

90) A competitive point-of-parity negates competitors' perceived points-of-difference.

false

91) Trying to be all things to all people leads to highest-common-denominator positioning, which is typically effective.

false

92) Straddle positioning refers to a brand using different positioning with different categories of competitors.

true

93) Occasionally, a company will be able to straddle two frames of reference with one set of points-of-difference and points-of-parity.

true

94) Perceptual maps provide quantitative portrayals of market situations and the way consumers view different products, services, and brands along various dimensions.

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.

true

96) Brand mantras must communicate both what a brand is and what it is not.

false

97) Brand mantras are typically designed to capture the brand's points-of-parity, that is, what is unique about the brand.

false

98) Brands are never affiliated with categories in which they do not hold membership.

false

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.

true

100) The typical approach to positioning is to inform consumers of a brand's membership before stating its point-of-difference.

true

101) The product descriptor that follows the brand name is often a concise means of conveying category origin.

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".

false

103) A good illustration of negatively correlated attributes or benefits is good taste versus bad taste.

true

104) A leverageable advantage is one that a company can use as a springboard to new advantages.

true

105) Competitive advantage is a company's ability to perform in one or more ways that competitors cannot or will not match.

true

106) The means of differentiation that are often most compelling to consumers relate to aspects of the product and service.

false

107) Companies cannot achieve differentiation by differentiating their channels, as this is not the purpose of a distribution channel.

false

108) A good positioning should contain points-of-difference and points-of-parity that have rational but not emotional components.

true

109) Brand storytelling is a less-structured approach to brand positioning.

true

110) Narrative branding is based on deep metaphors that connect to people's memories, associations, and stories.

false

111) Cultural branding is essential for small firms, but ineffective for large companies.

true

112) Small businesses must focus on building one or two strong brands based on one or two key associations.

false

113) While creating a loyal brand community is useful for large companies, it is not cost-effective for small firms.

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.

114) What are the requirements for deciding on a positioning strategy?

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.

115) With respect to positioning, explain points-of-parity and points-of-difference.

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.

116) With the help of an example, explain straddle positioning.

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.

117) Describe three methods by which a brand can communicate category membership.

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.

118) Briefly describe four brand differentiation strategies.

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."

119) Explain three variables a firm should consider when analyzing potential threats posed by competitors.

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.

120) Name and briefly explain three less-structured alternatives to competitive brand positioning.

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.

121) What are the five elements of narrative branding as described by Randall Ringer and Michael Thibodeau?

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

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: 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!

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.
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.

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.
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.

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.
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.

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.
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.

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.
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.

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.
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.

129) Give an example of the use of straddle positioning.

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.

130) Define a brand mantra and provide an example of a brand mantra.

Answer: Student answers may vary.
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!"

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.
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.

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: The three main ways to convey a brand's category membership are: announcing category
benefits; comparing to exemplars; and relying on the product descriptor.

133) How can coffee shop chain Belling convey its category membership? List the methods it can use to achieve this.

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.

134) As a company seeks to establish a category membership designation, how does the company approach points-of-difference? What is done first?

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.

135) Provide three examples of negatively correlated attributes and benefits.

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.

136) Define leverageable advantage with an example.

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.

137) How does a company differentiate its market offerings using employee differentiation? Provide an example of a company using employee differentiation.

Answer: Considerations to achieve competitive advantage in the distribution channel are in the areas of coverage, expertise, and performance.

138) Companies can achieve competitive advantage through the way they design their distribution channel. What three areas are considered in this design process?

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.

139) Belling wants to analyze the threats posed by its competitors. Which three variables must it monitor to achieve this?

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.

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 use innovative and distinctive packaging for its products, or use interior design to give the store a distinctive look.

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.
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.

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.
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.

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.

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