Marketing Management Chapter 10 Flashcards
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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.

<p>True</p> Signup and view all the answers

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

<p>True</p> Signup and view all the answers

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

<p>False</p> Signup and view all the answers

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.

<p>False</p> Signup and view all the answers

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

<p>True</p> Signup and view all the answers

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

<p>True</p> Signup and view all the answers

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

<p>True</p> Signup and view all the answers

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

<p>False</p> Signup and view all the answers

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

<p>False</p> Signup and view all the answers

What are points-of-difference (PODs)?

<p>Attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe they could not find to the same extent with a competitive brand.</p> Signup and view all the answers

Explain straddle positioning.

<p>Occasionally, a company will straddle two frames of reference with one set of points-of-difference and points-of-parity.</p> Signup and view all the answers

What is an example of a leverageable advantage?

<p>A leverageable advantage is one that a company can use as a springboard to new advantages.</p> Signup and view all the answers

What are three variables a firm should consider when analyzing potential threats posed by competitors?

<ol> <li>Share of market, 2. Share of mind, 3. Share of heart.</li> </ol> Signup and view all the answers

Explain why the Westin Stamford hotel might not have been successful in creating its POD as the world's tallest hotel.

<p>The hotel may not have been relevant to most tourists; other factors may be more important.</p> Signup and view all the answers

Provide an example of a category point-of-parity and a competitive point-of-parity for Belling.

<p>Category point-of-parity: Freshly brewed coffee; Competitive point-of-parity: Fast customer service times.</p> Signup and view all the answers

Give an example of a point-of-parity and a point-of-difference for Belling.

<p>Point-of-parity: Freshly brewed coffee; Point-of-difference: Unusual interior design.</p> Signup and view all the answers

Provide an example of the use of straddle positioning.

<p>Subway restaurants positioned as offering healthy, good-tasting sandwiches.</p> Signup and view all the answers

All marketing strategy is built on STP: segmentation, targeting, and ________.

<p>positioning</p> Signup and view all the answers

________ is the act of designing the company's offering and image to occupy a distinctive place in the minds of the target market.

<p>Positioning</p> Signup and view all the answers

The goal of positioning is to ________.

<p>locate the brand in the minds of consumers to maximize the potential benefit to the firm</p> Signup and view all the answers

The result of positioning is the successful creation of ________, which provides a cogent reason why the target market should buy the product.

<p>a customer-focused value proposition</p> Signup and view all the answers

Which of the following best describes a car company's value proposition?

<p>We sell the safest, most durable wagon.</p> Signup and view all the answers

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 ________.

<p>customer-focused value proposition</p> Signup and view all the answers

Which of the following best describes BR Chicken's value proposition?

<p>We sell tender golden chicken at a moderate price.</p> Signup and view all the answers

The ________ defines which other brands a brand competes with and therefore which brands should be the focus of competitive analysis.

<p>competitive frame of reference</p> Signup and view all the answers

________ are defined as companies that satisfy the same customer need.

<p>Competitors</p> Signup and view all the answers

A(n) ________ is a group of firms offering a product or class of products that are close substitutes for one another.

<p>industry</p> Signup and view all the answers

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

<p>True</p> Signup and view all the answers

Positioning is the act of designing the company's offering and image to occupy a distinctive place in the minds of the target market.

<p>True</p> Signup and view all the answers

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

<p>False</p> Signup and view all the answers

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

<p>False</p> Signup and view all the answers

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

<p>True</p> Signup and view all the answers

What are the requirements for deciding on a positioning strategy?

<p>Determining a frame of reference, identifying optimal points-of-parity and points-of-difference, creating a brand mantra.</p> Signup and view all the answers

________ refers to the products or sets of products with which a brand competes and which function as close substitutes.

<p>Category membership</p> Signup and view all the answers

When Coca-Cola determines the bottled-water competitors for its Dasani brand, it is determining Dasani's ________.

<p>category membership</p> Signup and view all the answers

When Coca-Cola focused on developing its soft drink business but missed seeing the market for coffee bars, it was suffering from ________.

<p>marketing myopia</p> Signup and view all the answers

Category membership is seen as the products that function as close substitutes of a brand.

<p>True</p> Signup and view all the answers

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

<p>False</p> Signup and view all the answers

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

<p>False</p> Signup and view all the answers

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

<p>True</p> Signup and view all the answers

Explain why a company's competition may not be from companies in the same category.

<p>Competition can come from diverse sources, including new market entrants or substitutes that fulfill the same customer need.</p> Signup and view all the answers

Which of the following terms is most closely associated with the statement: 'attributes or benefits consumers strongly associate with a brand'?

<p>Points-of-difference</p> Signup and view all the answers

Points-of-________ are product associations that are not necessarily unique to the brand.

<p>parity</p> Signup and view all the answers

The three criteria that determine whether a brand association can truly function as a point-of-difference are ________.

<p>desirability, deliverability, differentiability</p> Signup and view all the answers

The three criteria for a brand association include desirability, ________, and differentiability.

<p>deliverability</p> Signup and view all the answers

Which of the following criteria relates to consumers seeing the brand association as personally relevant to them?

<p>Desirability</p> Signup and view all the answers

Which of the following criteria relates to the company having the internal resources and commitment to create and maintain the brand association?

<p>Deliverability</p> Signup and view all the answers

Which of the following criteria relates to consumers seeing the brand association as distinctive and superior to relevant competitors?

<p>Differentiability</p> Signup and view all the answers

A brand must demonstrate ________, for it to function as a true point-of-difference.

<p>clear superiority of an attribute or benefit</p> Signup and view all the answers

The two basic forms of points-of-parity are ________ points-of-parity and ________ points-of-parity.

<p>Category; competitive</p> Signup and view all the answers

________ are attributes or benefits that consumers view as essential to a legitimate and credible offering within a certain product or service class.

<p>Category points-of-parity</p> Signup and view all the answers

Philip Morris bought Miller Brewing and launched low-calorie beer. What does the company assure by stating that the beer tastes good?

<p>Points-of-parity</p> Signup and view all the answers

When BMW positioned the brand as offering both luxury and performance, it is known as ________.

<p>straddle positioning</p> Signup and view all the answers

Philip Morris attempted to build ________ by conveying that the beer contained one-third less calories.

<p>points-of-difference</p> Signup and view all the answers

Consumers might not consider a hand sanitizer truly a hand sanitizer unless service elements are considered ________.

<p>category points-of-parity</p> Signup and view all the answers

Nivea became the leader in skin cream class using the attributes of gentle and caring. This is an example of ________.

<p>category points-of-parity</p> Signup and view all the answers

________ are associations designed to overcome perceived weaknesses of the brand.

<p>Competitive points-of-parity</p> Signup and view all the answers

As a marketing manager, which of the following would be the best purpose for your organization's competitive points-of-parity?

<p>To negate competitors' perceived points-of-difference</p> Signup and view all the answers

Marketers typically focus on brand ________ in choosing the points-of-parity and points-of-difference.

<p>benefits</p> Signup and view all the answers

A marketer that wants to anchor a point-of-difference for Dove soap might emphasize which of the following?

<p>Dove soap helps users have softer skin.</p> Signup and view all the answers

________ are visual representations of consumer perceptions and preferences.

<p>Perceptual maps</p> Signup and view all the answers

Straddle positions ________.

<p>Allow brands to expand their market coverage</p> Signup and view all the answers

Which of the following statements about brand mantras is true?

<p>They can provide guidance about what ad campaigns to run.</p> Signup and view all the answers

American Express' 'World-Class Service' and Starbucks' 'Rewarding Everyday Moments' are examples of brand ________.

<p>mantras</p> Signup and view all the answers

Brand ________ are short phrases that capture the brand positioning.

<p>mantras</p> Signup and view all the answers

A brand ________ is a translation of the brand mantra aimed at engaging consumers.

<p>slogan</p> Signup and view all the answers

BMW's 'The ultimate driving machine' is an example of a brand ________.

<p>slogan</p> Signup and view all the answers

A brand mantra should be ________.

<p>communicative, simple, and inspirational</p> Signup and view all the answers

Brand mantras capture the brand's points-of-________, what is unique about the brand.

<p>difference</p> Signup and view all the answers

Points-of-parity are important while designing brand mantras for brands facing rapid growth.

<p>True</p> Signup and view all the answers

For brands in stable categories, the brand mantra may focus more exclusively on points-of-difference.

<p>True</p> Signup and view all the answers

One common difficulty in creating strong brand positioning is that points-of-parity and points-of-difference are negatively correlated.

<p>True</p> Signup and view all the answers

________ is a company's ability to perform in ways that competitors cannot match.

<p>Competitive advantage</p> Signup and view all the answers

A ________ advantage is one that a company can use as a springboard to new advantages.

<p>leverageable</p> Signup and view all the answers

Which of the following types of differentiation relates to companies having better-trained personnel?

<p>Employee differentiation</p> Signup and view all the answers

Singapore Airlines is well regarded due to the excellence of its flight attendants. This exemplifies ________ differentiation.

<p>employee</p> Signup and view all the answers

Which type of differentiation refers to effectively designing distribution medium's coverage and performance?

<p>Channel differentiation</p> Signup and view all the answers

Dayton, Ohio-based Iams found success selling premium pet food through regional veterinarians. This is an example of ________ differentiation.

<p>channel</p> Signup and view all the answers

Which of the following is an example of channel differentiation?

<p>Exclusive stores for premium products</p> Signup and view all the answers

Which of the following is an example of image differentiation?

<p>Distinctive store fragrance</p> Signup and view all the answers

If Starbucks considers quick-serve restaurants in its competitive frame, intended ________ might be quality, image, and variety.

<p>PODs</p> Signup and view all the answers

If a brand is developing an offering with multiple frames of reference, it is NOT advisable to ________.

<p>adopt lowest common denominator positioning</p> Signup and view all the answers

Subway restaurants are positioned as offering healthy, good-tasting sandwiches. When the competitive frame of reference is quick-serve restaurants, what is the POD?

<p>Health</p> Signup and view all the answers

Suppliers who are dependable in their on-time delivery are likely to be differentiated based on ________.

<p>Reliability</p> Signup and view all the answers

Suppliers who are better at handling emergencies are most likely differentiated based on their ________.

<p>Resilience</p> Signup and view all the answers

A supplier that creates better information systems and introduces innovative methods is most likely differentiated on its ________.

<p>Innovativeness</p> Signup and view all the answers

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

<p>False</p> Signup and view all the answers

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.

<p>False</p> Signup and view all the answers

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

<p>True</p> Signup and view all the answers

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

<p>False</p> Signup and view all the answers

Category points-of-parity may change over time due to technological advances.

<p>True</p> Signup and view all the answers

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

<p>False</p> Signup and view all the answers

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

<p>True</p> Signup and view all the answers

Trying to be all things to all people leads to highest-common-denominator positioning.

<p>False</p> Signup and view all the answers

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.

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