Marketing Positioning Strategies

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Questions and Answers

Which of the following is classified as a specialty channel?

Retail Stores

Wholesalers

Catalogues (correct)

Distributors

What transportation method is most suitable for heavy and bulky shipments?

Trucks

Trains (correct)

Planes

Pipelines

Which factor is generally NOT considered when determining the transportation method?

Color of Goods (correct)

Type of Goods

Volume

Destination

Which area is NOT part of inventory management?

Understocking Signup and view all the answers

What is the primary goal of the Just-in-Time (JIT) strategy?

Avoid excess inventory Signup and view all the answers

What is the primary goal of positioning a product?

To create an image of the product in the consumer’s mind Signup and view all the answers

Which type of positioning focuses on the specific benefits a product provides to customers?

Benefit Positioning Signup and view all the answers

What defines a private brand?

A brand sold exclusively by one retailer Signup and view all the answers

What distinguishes a commodity from a branded product?

Commodities are unbranded products Signup and view all the answers

Which of the following describes a corporate dominant brand?

It is associated with a manufacturer’s name and reputation. Signup and view all the answers

What is the purpose of service positioning?

To provide unique services that define the brand. Signup and view all the answers

What best defines a generic brand?

A low-cost brand with minimal marketing and packaging. Signup and view all the answers

How does top-of-the-mind awareness benefit a brand?

It ensures that the brand is the first that consumers think of in its category. Signup and view all the answers

What defines a monogrammatic style of branding?

Stylistic writing of the company's initials Signup and view all the answers

Which of the following is NOT a characteristic of a compelling slogan?

Exceeding seven words Signup and view all the answers

What is the purpose of co-branding?

To combine two or more brands for mutual benefit Signup and view all the answers

Which pricing strategy involves setting an initially low price to entice customers?

Penetration Pricing Signup and view all the answers

What does the term 'economies of scale' refer to?

Reduction in production costs as production increases Signup and view all the answers

Which distribution strategy ensures that a product is available everywhere?

Intensive Distribution Signup and view all the answers

What is the role of wholesalers in the distribution channel?

Buy from producers and sell small amounts to retailers Signup and view all the answers

Which pricing policy involves attracting customers by offering a popular product at a low price?

Leader Pricing Signup and view all the answers

What type of branding strategy involves making slight changes to existing products?

Support for an Existing Brand Signup and view all the answers

What type of pricing involves bringing together several products in one package?

Combo Pricing Signup and view all the answers

Which brand strategy involves using one established brand to create a related new product?

Development of a Brand Extension Signup and view all the answers

Which distribution type maintains a direct relationship between the producer and the buyer?

Direct Channels Signup and view all the answers

What is a common tactic in psychological pricing?

Using pricing that ends in .99 to suggest better value Signup and view all the answers

Study Notes

Positioning

Positioning creates a product image in consumers' minds.
Position is a product's stance, perception, attitude, or point of view.
Marketers choose how to position their products to create a desired brand image.
Top-of-the-Mind Awareness (TOMA) is crucial; appealing to some, not others.
Example: Tesla is a TOMA brand for luxury electric vehicles.

Types of Positioning

Benefit Positioning: Products offer benefits to buyers.
Target Positioning: Focused marketing to specific consumer segments.
Price Positioning: Offering the most expensive or cheapest product in a category.
Distribution Positioning: Distinctive sales and distribution methods.
Service Positioning: Providing unique and maintained services.

Brand

A brand encompasses the product's image features: name, visual associations (logo), slogan.
These create a product's identity and personality, allowing consumer association.
Commodities are unbranded products (e.g., cocoa, coffee, grains, cattle, cotton).
A commodity market involves buying/selling/trading raw materials (e.g., oil, gold).

Types of Brand Names

Corporate Dominant: (National Brand) Product associated with the company's reputation (e.g., Roots, Coke).
Product Dominant: Product name connected to its attributes (e.g., Play-Doh).
Private Brand: Retailer-created brand (e.g., Loblaw's "President's Choice").
Generic Brand: Lowest cost, no name, unbranded.

Logos

Logos represent brand identity symbolically.
Monogrammatic: Stylized company initials (e.g., HBO).
Visual Symbols: Drawings of people, animals, or objects (e.g., Roots).
Abstract Symbols: Vague product associations (e.g., Nike).

Slogans

Short, catchy phrases associated with a brand.
Ideally 7 words or fewer.
Must be memorable and positive, conveying brand name, product function.

Branding Strategies

Support: Slight changes to existing products.
Development: Brand extension for similar products building on existing success.
Licensing: Allowing other companies to use the brand for a fee.
Co-branding: Two or more brands collaborate for mutual benefit.
Acquisition: Purchasing a well-known company.

Pricing

Gross Profit: Money after raw materials and packaging.
Break-even Point: Units sold to cover costs.
Economies of Scale: Lower cost per unit with increased production.

Pricing Strategies

Market Skimming: Initially high price before competition.
Penetration Pricing: Initially low price to attract customers quickly.
Competitive Pricing: Matching competitors' prices.
Benchmark Pricing: Following the leader's pricing strategy.

Pricing Policies

Leader/Loss Leader: Popular product at low price to attract customers.
Price Lining: Products at different price points.
Everyday Low Prices (EDLP): Guaranteed lowest price.
Purchase Discounts: Reductions for larger orders.
Super Sizing: Larger portions at slightly higher prices.
Premium/Prestige Pricing: High price for unique characteristics.
Interest-Free Pricing: Financing options without or with little interest.
Negotiated Pricing: Buyer/seller negotiate prices.
Combo Pricing/Bundling: Several products as a package.
Psychological Pricing: Using consumer behavior to set prices (odd/even, promotional).

Distribution

Distribution selects, manages, and develops channels to reach consumers.
Logistics handles product movement through these channels.
Distribution Channels describe product ownership paths from producer to customer.

Distribution Types

Intensive: Product available everywhere (e.g., gum, chips).
Selective: Controlled locations (e.g., Nike, Gap).
Exclusive: One or a few retailers (exclusive selling points).
Integrated: Company controls all stages (manufacturing, distribution, retail).

Distribution Channels

Direct Channels: Producer deals directly with buyers (e.g., farmers market, online stores).
Indirect Channels: Products pass through wholesalers and distributors.
Intermediaries: Importers, wholesalers, and retailers.

Specialty Channels:

Channels not involving traditional retail locations (e.g., vending machines, e-commerce, social media, mail-order catalogs).

Transportation Factors

Transportation method decisions depend on factors like destination, weight, volume, and goods type.

Transportation Methods

Trucks (door-to-door, relatively fast).
Trains (large quantities, bulky).
Planes (fast, expensive).
Ships (international shipments, inexpensive).
Pipelines (specialized goods).

Inventory Management

Inventory management controls goods within a business, covering overstocks, out-of-stocks, shrinkage, and turnover.
Just-in-Time (JIT) strategy minimizes inventory.

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Description

This quiz explores the concept of positioning in marketing, covering key strategies such as benefit, target, and price positioning. Understand how brands create a desired image in consumers' minds and the importance of top-of-the-mind awareness. Perfect for marketing students and professionals alike.