Questions and Answers
Straddle positioning refers to a brand using different positioning with different categories of competitors.
False
Occasionally, a company will be able to straddle two frames of reference with one set of points-of-difference and points-of-parity.
True
Perceptual maps provide quantitative portrayals of market situations and the way consumers view different products, services, and brands along various dimensions.
True
The purpose of brand mantras is to ensure that employees and external marketing partners understand what the brand is in order to represent it to the customers.
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Brand mantras must communicate both what a brand is and what it is not.
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Brand mantras are typically designed to capture the brand's points-of-parity, that is, what is unique about the brand.
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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.
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The typical approach to positioning is to inform consumers of a brand's membership before stating its point-of-difference.
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Competitive advantage is a company's ability to perform in one or more ways that competitors cannot or will not match.
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The means of differentiation that are often most compelling to consumers relate to aspects of the product and service.
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Companies cannot achieve differentiation by differentiating their channels, as this is not the purpose of a distribution channel.
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A good positioning should contain points-of-difference and points-of-parity that have rational but not emotional components.
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What are points-of-difference (PODs)?
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Explain straddle positioning.
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What is an example of a leverageable advantage?
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What are three variables a firm should consider when analyzing potential threats posed by competitors?
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Explain why the Westin Stamford hotel might not have been successful in creating its POD as the world's tallest hotel.
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Provide an example of a category point-of-parity and a competitive point-of-parity for Belling.
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Give an example of a point-of-parity and a point-of-difference for Belling.
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Provide an example of the use of straddle positioning.
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All marketing strategy is built on STP: segmentation, targeting, and ________.
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________ is the act of designing the company's offering and image to occupy a distinctive place in the minds of the target market.
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The goal of positioning is to ________.
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The result of positioning is the successful creation of ________, which provides a cogent reason why the target market should buy the product.
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Which of the following best describes a car company's value proposition?
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Perdue's cogent reason why a target market should buy its chicken is 'More tender golden chicken at a moderate premium price', also known as its ________.
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Which of the following best describes BR Chicken's value proposition?
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The ________ defines which other brands a brand competes with and therefore which brands should be the focus of competitive analysis.
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________ are defined as companies that satisfy the same customer need.
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A(n) ________ is a group of firms offering a product or class of products that are close substitutes for one another.
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All marketing strategy is built on segmentation, targeting, and positioning.
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Positioning is the act of designing the company's offering and image to occupy a distinctive place in the minds of the target market.
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The result of positioning is the successful creation of an employee-focused value proposition.
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Positioning requires that marketers define and communicate only the differences between their brand and its competitors.
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The competitive frame of reference defines which other brands that a brand competes with.
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What are the requirements for deciding on a positioning strategy?
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________ refers to the products or sets of products with which a brand competes and which function as close substitutes.
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When Coca-Cola determines the bottled-water competitors for its Dasani brand, it is determining Dasani's ________.
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When Coca-Cola focused on developing its soft drink business but missed seeing the market for coffee bars, it was suffering from ________.
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Category membership is seen as the products that function as close substitutes of a brand.
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A company is more likely to be hurt by current competitors than by emerging competitors or new technologies.
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The industry concept of competition reveals a broader set of actual and potential competitors than competition defined in just the market concept.
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To analyze its competitors, a company needs to gather information about both the real and the perceived strengths and weaknesses of each competitor.
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Explain why a company's competition may not be from companies in the same category.
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Which of the following terms is most closely associated with the statement: 'attributes or benefits consumers strongly associate with a brand'?
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Points-of-________ are product associations that are not necessarily unique to the brand.
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The three criteria that determine whether a brand association can truly function as a point-of-difference are ________.
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The three criteria for a brand association include desirability, ________, and differentiability.
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Which of the following criteria relates to consumers seeing the brand association as personally relevant to them?
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Which of the following criteria relates to the company having the internal resources and commitment to create and maintain the brand association?
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Which of the following criteria relates to consumers seeing the brand association as distinctive and superior to relevant competitors?
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A brand must demonstrate ________, for it to function as a true point-of-difference.
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The two basic forms of points-of-parity are ________ points-of-parity and ________ points-of-parity.
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________ are attributes or benefits that consumers view as essential to a legitimate and credible offering within a certain product or service class.
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Philip Morris bought Miller Brewing and launched low-calorie beer. What does the company assure by stating that the beer tastes good?
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When BMW positioned the brand as offering both luxury and performance, it is known as ________.
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Philip Morris attempted to build ________ by conveying that the beer contained one-third less calories.
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Consumers might not consider a hand sanitizer truly a hand sanitizer unless service elements are considered ________.
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Nivea became the leader in skin cream class using the attributes of gentle and caring. This is an example of ________.
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________ are associations designed to overcome perceived weaknesses of the brand.
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As a marketing manager, which of the following would be the best purpose for your organization's competitive points-of-parity?
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Marketers typically focus on brand ________ in choosing the points-of-parity and points-of-difference.
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A marketer that wants to anchor a point-of-difference for Dove soap might emphasize which of the following?
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________ are visual representations of consumer perceptions and preferences.
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Straddle positions ________.
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Which of the following statements about brand mantras is true?
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American Express' 'World-Class Service' and Starbucks' 'Rewarding Everyday Moments' are examples of brand ________.
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Brand ________ are short phrases that capture the brand positioning.
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A brand ________ is a translation of the brand mantra aimed at engaging consumers.
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BMW's 'The ultimate driving machine' is an example of a brand ________.
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A brand mantra should be ________.
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Brand mantras capture the brand's points-of-________, what is unique about the brand.
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Points-of-parity are important while designing brand mantras for brands facing rapid growth.
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For brands in stable categories, the brand mantra may focus more exclusively on points-of-difference.
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One common difficulty in creating strong brand positioning is that points-of-parity and points-of-difference are negatively correlated.
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________ is a company's ability to perform in ways that competitors cannot match.
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A ________ advantage is one that a company can use as a springboard to new advantages.
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Which of the following types of differentiation relates to companies having better-trained personnel?
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Singapore Airlines is well regarded due to the excellence of its flight attendants. This exemplifies ________ differentiation.
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Which type of differentiation refers to effectively designing distribution medium's coverage and performance?
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Dayton, Ohio-based Iams found success selling premium pet food through regional veterinarians. This is an example of ________ differentiation.
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Which of the following is an example of channel differentiation?
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Which of the following is an example of image differentiation?
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If Starbucks considers quick-serve restaurants in its competitive frame, intended ________ might be quality, image, and variety.
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If a brand is developing an offering with multiple frames of reference, it is NOT advisable to ________.
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Subway restaurants are positioned as offering healthy, good-tasting sandwiches. When the competitive frame of reference is quick-serve restaurants, what is the POD?
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Suppliers who are dependable in their on-time delivery are likely to be differentiated based on ________.
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Suppliers who are better at handling emergencies are most likely differentiated based on their ________.
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A supplier that creates better information systems and introduces innovative methods is most likely differentiated on its ________.
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Associations that make up points-of-difference are based exclusively on product features.
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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.
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Points-of-parity may be shared among two or more brands.
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Category points-of-parity are unique to a brand.
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Category points-of-parity may change over time due to technological advances.
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Category points-of-parity are associations designed to overcome perceived weaknesses of the brand.
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A competitive point-of-parity negates competitors' perceived points-of-difference.
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Trying to be all things to all people leads to highest-common-denominator positioning.
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Study Notes
Marketing Strategy Foundations
- Marketing strategy relies on STP: Segmentation, Targeting, and Positioning.
- Positioning designs a company's offerings and image to establish a unique place in the target market's mind.
- Effective positioning aims to maximize brand recognition and benefits for the firm.
Value Proposition
- A customer-focused value proposition provides compelling reasons for customers to purchase a product.
- Examples include Perdue's commitment to tender chicken and BR Chicken's focus on moderate pricing.
Competitive Analysis
- The competitive frame of reference identifies which brands a company directly competes with.
- Competitors fulfill the same customer needs and should be prioritized in strategic analysis.
- Industry refers to firms offering closely substitutable products.
Positioning Strategy Requirements
- Requires defining both similarities and differences compared to competitors.
- Involves identifying target markets, competition, and optimal brand associations.
- Creation of a brand mantra encapsulates the brand's essence and positioning.
Points of Parity and Difference
- Points-of-difference are positively viewed brand associations that are not shared by competitors.
- Points-of-parity are attributes consumers view as essential but may be common among brands.
- Criteria for effective brand associations include desirability, deliverability, and differentiability.
Competitive Dynamics
- Current competitors pose a greater threat than emerging ones; companies may overlook new market entrants due to narrow focus.
- Marketing myopia refers to a failure to recognize broader competitive threats and changes in market dynamics.
Brand Mantra and Slogan
- Brand mantras are concise phrases that capture the essence of the brand’s positioning.
- Slogans creatively engage consumers and communicate the brand's message externally.
Differentiation Types
- Employee differentiation highlights superior service through skilled personnel.
- Channel differentiation improves customer experience via tailored distribution strategies.
- Image differentiation involves creating distinctive brand associations, such as signature fragrances.
New Market Strategies
- Brands may adopt straddle positioning to appeal to diverse markets, using differentiating factors across multiple categories.
- The importance of perceptual maps lies in their ability to visually represent consumer perceptions and brand positioning.
Strategic Insights
- Companies must balance points-of-parity and points-of-difference in stable and rapidly growing markets.
- Competitive advantage stems from unique abilities that outpace competitors, leading to greater brand loyalty and market share.
Evaluation of Points-of-Parity
- Points-of-parity may evolve due to technological, legal, and consumer shifts.
- Competitive points-of-parity are necessary for negating rivals' perceived strengths.
Brand Positioning Challenges
- Companies must carefully structure their messaging to avoid conflicting positioning across diverse target markets.
- Successful brands effectively communicate both their category membership and distinguishing characteristics to consumers.### Positioning Concepts
- Points-of-difference (PODs) are attributes or benefits strongly associated with a brand that are viewed positively and are unique compared to competitors.
- Points-of-parity (POPs) are attributes or associations that are shared with other brands, providing a baseline for consumer expectations.
Straddle Positioning
- Straddle positioning allows a brand to appeal to two different market categories with overlapping attributes.
- Example: Subway leverages its healthy sandwich offerings (POD on health) and tasty sandwiches (POP on taste) to position itself against both quick-service competitors (McDonald's, Burger King) and health-focused restaurants.
Leverageable Advantage
- A leverageable advantage acts as a foundation for developing new competitive advantages.
- Microsoft exemplifies this by using its operating system as a platform for expanding into Microsoft Office and networking applications, continuously creating points-of-difference.
Analyzing Competitive Threats
- Firms should monitor the following key variables regarding competitors:
- Share of market: Competitors' market presence within the target demographic.
- Share of mind: The percentage of consumers that identify a competitor when prompted about the industry leader.
- Share of heart: The percentage of consumers that express a preference for purchasing from a competitor.
Brand Association Effectiveness
- Three criteria determine if a brand association can function effectively as a POD:
- Relevance: The association must be personally significant to consumers.
- Desirability: The association should fulfill a desirable aspect beyond mere functionality.
- Distinctiveness: The association must differentiate the brand from competitors.
Category and Competitive Points-of-Parity
- Category point-of-parity for Belling coffee shops: Freshly brewed coffee and a friendly atmosphere, aligning with consumer expectations for coffee shop experiences.
- Competitive point-of-parity for Belling: Fast customer service times, reflecting a standard level of service in the competitive coffee market.
Points-of-Parity and Points-of-Difference for Belling
- Points-of-parity could include freshly brewed coffee and a welcoming atmosphere.
- Points-of-difference might be identified as an unusual interior design or a laid-back vibe that sets Belling apart from other coffee shops.
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Test your understanding of key concepts in Marketing Management Chapter 10 with these flashcards. Focus on segmentation, targeting, and positioning to prepare for your exams. Perfect for students looking to reinforce their marketing strategies knowledge.
