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Questions and Answers
Explain how the result of a market positioning analysis affects the final decision about where to position a new brand or reposition an existing one.
Explain how the result of a market positioning analysis affects the final decision about where to position a new brand or reposition an existing one.
- Positioning statement: refers to how the products/services meet a particular customer needs. Positioning is the process to define a suitable niche market for a product.
- Repositioning statement: refers to the process of changing a target market’s understanding and perception of product/services due to unexpected reasons. The selection of position should match with the needs of target segmentation as well as the preference of customers; thereby, company can deploy marketing activities appropriately. Example: Bitis- one of the well-known brands. Bitis lost connection with gen Z (middle-age). CMO of Bitis realized that most of Gen Z moved into other brands: Nike, Adidas. Hence, Bitis decided to launch a new product named Bitis Hunter repositioning to those who live far away from home. When wearing these shoes, they will remember their hometown and desire to come back home. Consequently, this campaign is totally successful because it can touch into the bottom of the heart of audiences. It can be said that Bitis employs a repositioning strategy by launching new products as it can enhance the brand image and attract the target customers like Bitis desires.
Qantas (Australia's largest international and domestic airline) is in an extremely
competitive and seemingly mature market. You have been asked by the marketing manager to come up with an alternative going forward. Offer suggestions to the manager on what is possible.
(Examine the existing position of Qantas, what key competitors are doing? Which products/services do competitors serve to the customers?)
Qantas (Australia's largest international and domestic airline) is in an extremely competitive and seemingly mature market. You have been asked by the marketing manager to come up with an alternative going forward. Offer suggestions to the manager on what is possible. (Examine the existing position of Qantas, what key competitors are doing? Which products/services do competitors serve to the customers?)
- Before the business reach to mature stage, it would go through the growth stage. In this stage, business could capture the demand of customers, the profit increase dramatically. All supply and demand are both favored for supplier. However, the market is saturated which leads to both needs and demand of customers go down. Customers saw no innovation or differentiation in products/services. This is when the market reached maturity. Qantas is suffering this situation; it seemingly mature market. Mature market is the stage when the rate of growth slows or little growth. This may pressure on profit.
- In order to exist as well as maintain the position in this situation. Firstly, Qantas should redefine targeted segmentation. It means that Qantas should consider desirable target customers to be strongly positive to market attractiveness and potential competitive position. Secondly, redesigning services should be applied in this case. Qantas must identify which flaws it is facing; thereby, adding more value or upgrade the quality are different from competitors and enhance augmentation for services. Finally, Qantas should develop new products. In order to attract customers’ attention, gain profit and enhance revenue, Qantas can add the utility for existing customers and enlarge more benefits for new customers.
Ford Motors want to be the profitable survivor in the declining market. Write a brief note on this strategy. Explain the conditions most appropriate for the use of the profitable survivor strategy
Ford Motors want to be the profitable survivor in the declining market. Write a brief note on this strategy. Explain the conditions most appropriate for the use of the profitable survivor strategy
_ Any businesses has to be in declining market which cannot be generated money any more. This is considered as a difficult stage when business ongoing find ways to overcome and managers must seek opportunities to survive.
_ In case of becoming profitable survivor in this circumstance, it is feasible when a company see market start growing again in the future. A profitable survivor focus on gaining market share. Definitely, if a company still operate in declining market, it needs to adjust its strategies from the one it use in mature stage. There are some conditions for the use of profitable survivor strategy
- Ford Motors should take risks by creating the breakthrough in designing products. Adding more value in products makes Ford Motors differentiate to competitors. From there, they can gain the position in the market
- Exploring the latest trend and technology in order to catch up with the changing external environment. By doing that, Ford Motors can compete with other players as well as survive in declining market
In which of the following stages of the product life cycle do sales increase at a progressively faster rate as more people learn about the product and it becomes readily available?
In which of the following stages of the product life cycle do sales increase at a progressively faster rate as more people learn about the product and it becomes readily available?
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_____ is designed to obtain as much margin per unit as possible and also enables the company to recover its new product investments more quickly
_____ is designed to obtain as much margin per unit as possible and also enables the company to recover its new product investments more quickly
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Which of the following is true of the introductory stage in a product life cycle?
Which of the following is true of the introductory stage in a product life cycle?
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Which of the following pricing strategies is appropriate during the maturity stage of the product life cycle?
Which of the following pricing strategies is appropriate during the maturity stage of the product life cycle?
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Identify the appropriate response by a firm when its product line is in the mature life cycle stage.
Identify the appropriate response by a firm when its product line is in the mature life cycle stage.
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The shakeout stage in a product life cycle is signaled by:
The shakeout stage in a product life cycle is signaled by:
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New-to-the-world products can be defined as:
New-to-the-world products can be defined as:
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Which of the following refers to products that supplement a firm’s established product line?
Which of the following refers to products that supplement a firm’s established product line?
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Identify the firm characteristic of a new product pioneer pursuing the mass-market penetration strategy.
Identify the firm characteristic of a new product pioneer pursuing the mass-market penetration strategy.
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Sales promotion efforts (like coupon drops and merchandising deals) are examples of the _____ strategy to achieve share growth.
Sales promotion efforts (like coupon drops and merchandising deals) are examples of the _____ strategy to achieve share growth.
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CEO of BHP Bilton is looking for to identify the source of synergy from different business in BHP.
CEO of BHP Bilton is looking for to identify the source of synergy from different business in BHP.
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Explain the various ways Tiger Airway as challenger can target other domestic airlines in an established market like Australia
Explain the various ways Tiger Airway as challenger can target other domestic airlines in an established market like Australia
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What is the major marketing objective for followers, particularly larger firms entering a product-market shortly after the pioneer?
What is the major marketing objective for followers, particularly larger firms entering a product-market shortly after the pioneer?
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A primary marketing objective of all competitors in mature markets is simply to:
A primary marketing objective of all competitors in mature markets is simply to:
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The transition from market growth to maturity typically begins:
The transition from market growth to maturity typically begins:
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Goliath Corp. made overly optimistic forecasts of future sales volume. As a result, the firm expanded too rapidly, and production capacity overshot the demand as growth slowed. The excess, in turn, lead to an increase in price per unit. Which of the following strategic traps did Goliath Corp. fall into during the shakeout period?
Goliath Corp. made overly optimistic forecasts of future sales volume. As a result, the firm expanded too rapidly, and production capacity overshot the demand as growth slowed. The excess, in turn, lead to an increase in price per unit. Which of the following strategic traps did Goliath Corp. fall into during the shakeout period?
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"A business may survive and prosper during the growth stage even though it has neither differentiated its offering from competitors nor attained the lowest-cost position in its industry. But during the transition period, such is not the case." Which of the following strategic traps leads to a state where a business may struggle during the transition period?
"A business may survive and prosper during the growth stage even though it has neither differentiated its offering from competitors nor attained the lowest-cost position in its industry. But during the transition period, such is not the case." Which of the following strategic traps leads to a state where a business may struggle during the transition period?
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National Motors manufactures high-end automobiles. The attributes of their cars include excellent handling, acceleration, comfort, and braking, and provides the company an advantage over its competitors. Identify the product quality dimension emphasized by National Motors.
National Motors manufactures high-end automobiles. The attributes of their cars include excellent handling, acceleration, comfort, and braking, and provides the company an advantage over its competitors. Identify the product quality dimension emphasized by National Motors.
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The _____ quality dimension refers to the consistency of performance from purchase to purchase or to a product’s uptime, the percentage of time that it can perform satisfactorily over its life.
The _____ quality dimension refers to the consistency of performance from purchase to purchase or to a product’s uptime, the percentage of time that it can perform satisfactorily over its life.
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The gap between management perceptions and service quality specifications occurs when:
The gap between management perceptions and service quality specifications occurs when:
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The production of no-frills goods to maintain a low-cost position:
The production of no-frills goods to maintain a low-cost position:
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In some labor-intensive industries, a business can achieve a cost advantage, at least in the short term, by gaining access to inexpensive labor. This is an example of the _____ method used to obtain a sustainable cost advantage.
In some labor-intensive industries, a business can achieve a cost advantage, at least in the short term, by gaining access to inexpensive labor. This is an example of the _____ method used to obtain a sustainable cost advantage.
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Papyrus Inc. achieved a cost advantage by being the first major papermaker to rely exclusively on recycled pulp. The firm’s lower cost gave it a competitive edge in the price sensitive commercial market for toilet paper and other such products used in hotels, restaurants, and office buildings. Which method of maintaining a low-cost position has the company used?
Papyrus Inc. achieved a cost advantage by being the first major papermaker to rely exclusively on recycled pulp. The firm’s lower cost gave it a competitive edge in the price sensitive commercial market for toilet paper and other such products used in hotels, restaurants, and office buildings. Which method of maintaining a low-cost position has the company used?
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Which of the following is the critical determinant of success in mature markets?
Which of the following is the critical determinant of success in mature markets?
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Identify the market characteristic that affirms growth extension in maturing markets through application of an extended use strategy.
Identify the market characteristic that affirms growth extension in maturing markets through application of an extended use strategy.
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Which of the following is a possible marketing action that may be taken to convert current nonusers in the target segment into users?
Which of the following is a possible marketing action that may be taken to convert current nonusers in the target segment into users?
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To develop differentiated positioning focused on untapped segments using a market expansion strategy, a firm should:
To develop differentiated positioning focused on untapped segments using a market expansion strategy, a firm should:
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Which of the following is a possible marketing action that can encourage extended use of products?
Which of the following is a possible marketing action that can encourage extended use of products?
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_____ is a factor that helps to determine the strategic attractiveness of declining product markets.
_____ is a factor that helps to determine the strategic attractiveness of declining product markets.
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_____ refers to the ease with which weaker competitors can leave the market.
_____ refers to the ease with which weaker competitors can leave the market.
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The objective of a _____ strategy is to generate cash quickly by maximizing cash flow over a relatively short term.
The objective of a _____ strategy is to generate cash quickly by maximizing cash flow over a relatively short term.
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Which of the following is the primary objective of niche strategies in a declining market?
Which of the following is the primary objective of niche strategies in a declining market?
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Which of the following will be the primary objective of a firm, in a declining market, which has a sustainable competitive advantage in target segments but limited overall resources?
Which of the following will be the primary objective of a firm, in a declining market, which has a sustainable competitive advantage in target segments but limited overall resources?
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Which of the following is the most probable marketing action by a firm to implement a harvesting strategy in a declining market?
Which of the following is the most probable marketing action by a firm to implement a harvesting strategy in a declining market?
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_____ is the process by which a market is divided into distinct subsets of customers with similar needs and characteristics that lead them to respond in similar ways to a particular product offering and marketing program.
_____ is the process by which a market is divided into distinct subsets of customers with similar needs and characteristics that lead them to respond in similar ways to a particular product offering and marketing program.
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_____ entails designing product offerings and marketing programs that can establish an enduring competitive advantage in the target market by creating a unique brand image, or position, in the customer’s mind.
_____ entails designing product offerings and marketing programs that can establish an enduring competitive advantage in the target market by creating a unique brand image, or position, in the customer’s mind.
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Identify the scenario emphasizing the impact of income on consumer markets that are segmented demographically.
Identify the scenario emphasizing the impact of income on consumer markets that are segmented demographically.
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Carol’s Trio, an upscale retail chain, stocks and sells only Spanish, German, and French products. Trio is an example of segmenting a market by _____
Carol’s Trio, an upscale retail chain, stocks and sells only Spanish, German, and French products. Trio is an example of segmenting a market by _____
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_____ divides the market according to the characteristics of the buying organization using attributes such as age of firm, firm size, and industry affiliation.
_____ divides the market according to the characteristics of the buying organization using attributes such as age of firm, firm size, and industry affiliation.
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In _____, customers are grouped by the characteristics of the individuals who influence the purchasing decision.
In _____, customers are grouped by the characteristics of the individuals who influence the purchasing decision.
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AdventureBikes targets wilderness enthusiasts and introduced special robust bikes for them. PowerDrink’s target market comprises tennis players who need to replenish water and salts lost through perspiration. These are examples of _____ segmentation that is based on target consumers’ activities.
AdventureBikes targets wilderness enthusiasts and introduced special robust bikes for them. PowerDrink’s target market comprises tennis players who need to replenish water and salts lost through perspiration. These are examples of _____ segmentation that is based on target consumers’ activities.
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When consumers evaluate product alternatives on the basis of desired characteristics and how valuable each characteristic is to them, it is referred to as _____.
When consumers evaluate product alternatives on the basis of desired characteristics and how valuable each characteristic is to them, it is referred to as _____.
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Which of the following statements is true of behavioral segmentation?
Which of the following statements is true of behavioral segmentation?
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Which of the following is true of principle-oriented consumers?
Which of the following is true of principle-oriented consumers?
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A(n) _____ consumer shops for products that demonstrate the consumer’s success.
A(n) _____ consumer shops for products that demonstrate the consumer’s success.
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_____ is the degree to which buying activity is centralized and influences a buyer to consider all transactions with a given supplier on a global basis, to emphasize cost savings, and to minimize risk.
_____ is the degree to which buying activity is centralized and influences a buyer to consider all transactions with a given supplier on a global basis, to emphasize cost savings, and to minimize risk.
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A(n) _____ refers to a recurring buying situation handled on a routine basis.
A(n) _____ refers to a recurring buying situation handled on a routine basis.
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Which of the following buying situations occurs when some element, such as price or delivery schedules, has changed in a client–supplier relationship?
Which of the following buying situations occurs when some element, such as price or delivery schedules, has changed in a client–supplier relationship?
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What is the first step in constructing a market attractiveness/competitive position matrix for evaluating potential target markets?
What is the first step in constructing a market attractiveness/competitive position matrix for evaluating potential target markets?
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In which of the following steps of evaluating potential target markets is the market-attractiveness/competitive-position matrix plotted?
In which of the following steps of evaluating potential target markets is the market-attractiveness/competitive-position matrix plotted?
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Based on the market attractiveness/competitive position matrix, which of the following strategies should a firm consider when the market attractiveness is moderate and the competitive position is weak?
Based on the market attractiveness/competitive position matrix, which of the following strategies should a firm consider when the market attractiveness is moderate and the competitive position is weak?
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Based on the market attractiveness/competitive position matrix, which of the following strategies should a firm consider when the market attractiveness is low and the competitive position is strong?
Based on the market attractiveness/competitive position matrix, which of the following strategies should a firm consider when the market attractiveness is low and the competitive position is strong?
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Based on the market attractiveness/competitive position matrix, which of the following strategies should a firm consider when the market attractiveness is high and the competitive position is strong?
Based on the market attractiveness/competitive position matrix, which of the following strategies should a firm consider when the market attractiveness is high and the competitive position is strong?
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Which of the following is true of a mass-market strategy?
Which of the following is true of a mass-market strategy?
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Which of the following market strategies is often favored by smaller companies to avoid direct confrontations with larger firms while building volume and share?
Which of the following market strategies is often favored by smaller companies to avoid direct confrontations with larger firms while building volume and share?
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Apple gained significant market share within a short period of time following the launch of the first iPhone on 29/6/2007 in emerging smartphone market. Explain how Apple’s share gains are worth more in a growth market than in a mature market
Apple gained significant market share within a short period of time following the launch of the first iPhone on 29/6/2007 in emerging smartphone market. Explain how Apple’s share gains are worth more in a growth market than in a mature market
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CEO of Qantas is looking for to identify the source of synergy from different business in Qantas. What are the various sources of synergy for Qantas?
CEO of Qantas is looking for to identify the source of synergy from different business in Qantas. What are the various sources of synergy for Qantas?
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Explain niche-market and growth-market strategies with relevant examples.
Explain niche-market and growth-market strategies with relevant examples.
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Brand positioning refers to both the place a brand occupies in customers' minds relative to the competition, and:
Brand positioning refers to both the place a brand occupies in customers' minds relative to the competition, and:
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Identify a limitation of physical positioning.
Identify a limitation of physical positioning.
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Which of the following is characteristic of perceptual positioning analysis of a brand?
Which of the following is characteristic of perceptual positioning analysis of a brand?
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Which of the following examples best illustrates perceptual positioning?
Which of the following examples best illustrates perceptual positioning?
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A firm is considering introducing a new product category in a highly competitive environment. The marketers obtain customer perceptions of the new product concept relative to likely substitute products on various critical determinant attributes. Which of the following stages of the product positioning process is the firm currently in?
A firm is considering introducing a new product category in a highly competitive environment. The marketers obtain customer perceptions of the new product concept relative to likely substitute products on various critical determinant attributes. Which of the following stages of the product positioning process is the firm currently in?
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Volvo's emphasis on safety, Toyota's emphasis on reliability, and Norelco's promising a 'close and comfortable shave' highlights which determinant attribute?
Volvo's emphasis on safety, Toyota's emphasis on reliability, and Norelco's promising a 'close and comfortable shave' highlights which determinant attribute?
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Which of the following positioning bases typically includes 'who made it' and 'prior products'?
Which of the following positioning bases typically includes 'who made it' and 'prior products'?
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Which of the following positioning bases is illustrated by a clothing manufacturer’s claim of their shirts being made from pure organic cotton?
Which of the following positioning bases is illustrated by a clothing manufacturer’s claim of their shirts being made from pure organic cotton?
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Which of the following is an example of using product features as a determinant attribute in positioning?
Which of the following is an example of using product features as a determinant attribute in positioning?
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Rex and Tens, a food manufacturing company, has the following tagline in its ad for a new health drink—Speedheal. 'Find out why thousands of nutritionists across America are recommending Speedheal to their clients.'—Which positioning base is used in this Speedheal ad?
Rex and Tens, a food manufacturing company, has the following tagline in its ad for a new health drink—Speedheal. 'Find out why thousands of nutritionists across America are recommending Speedheal to their clients.'—Which positioning base is used in this Speedheal ad?
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A bank positions itself using its deposit safety as an attribute. Why would this positioning not create an impact in the consumer's mind?
A bank positions itself using its deposit safety as an attribute. Why would this positioning not create an impact in the consumer's mind?
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Two stores occupy positions comparable to one another on the positioning grid. This indicates that:
Two stores occupy positions comparable to one another on the positioning grid. This indicates that:
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Identify the limitation of a product positioning analysis.
Identify the limitation of a product positioning analysis.
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Customers are surveyed and asked their preferences among various real or hypothetical product configurations, each with attributes that are systematically varied. This is an example of a:
Customers are surveyed and asked their preferences among various real or hypothetical product configurations, each with attributes that are systematically varied. This is an example of a:
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Both positioning statements and value propositions should reflect a:
Both positioning statements and value propositions should reflect a:
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_____ is the term marketers use to refer to the value created by establishing customer preference for one’s brand.
_____ is the term marketers use to refer to the value created by establishing customer preference for one’s brand.
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Which of the following results when companies create differences between their brands and other brands that consumers perceive as meaningful?
Which of the following results when companies create differences between their brands and other brands that consumers perceive as meaningful?
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Study Notes
Market-Oriented Perspectives
- Successful corporate, business, and marketing strategies are based on market-oriented perspectives
- A new product can be communicated to the target market through various factors, including social media, product launches, and hiring well-known experts
- The rate of adoption of a new product category is influenced by factors such as competition, reputation, and investment in R&D and marketing
Designing Marketing Databases
- Designing marketing databases requires considering several major issues:
- Cost of collecting data
- Economic benefits of using data
- Ability to keep data current in a mobile society
- Rapid advances in technology to maximize data usage
- Collecting and storing data costs money, and the cost must be weighed against its value
Market Segmentation
- Market segmentation is the process of dividing a market into distinct subsets of customers with similar needs and characteristics
- Segmentation can be based on various factors, including demographics, geographic location, behavior, and firmographics
- Examples of segmentation include:
- Demographic segmentation (e.g., age, gender, income)
- Geographic segmentation (e.g., region, city, country)
- Behavioral segmentation (e.g., activities, interests, opinions)
- Firmographic segmentation (e.g., industry, company size, job function)
Target Market Strategies
- A mass-market strategy involves designing a single product and marketing program that will appeal to the largest number of consumers
- A niche-market strategy involves serving one or more segments that, while not the largest, consist of a sufficient number of customers seeking somewhat-specialized benefits
- A growth-market strategy involves targeting one or more fast-growth segments, even though they may not currently be very large
Market Attractiveness and Competitive Position
- Market attractiveness factors include:
- Market size and growth rate
- Trends (demographic, sociocultural, economic, political/legal, technological, and natural)
- Unmet customer needs
- Competitive position factors include:
- Degree of differentiation from competitors
- Resources required to compete effectively
- Critical success factors and product life-cycle conditions
Differentiation and Brand Positioning
- Brand positioning refers to the place a brand occupies in customers' minds relative to the competition
- Physical positioning analysis is limited because it ignores customers' attitudes toward a product based on social or psychological attributes
- Perceptual positioning analysis of a brand involves interpreting R&D implications and large number of dimensions### Physical Positioning Analysis
- Physical positioning represents product specifications and communication
- It has a technical orientation
- Limited number of dimensions are involved in physical positioning
Perceptual Positioning Analysis
- Perceptual positioning represents product attributes and benefits
- It has a consumer orientation
- It involves identifying relevant set of competitive products serving a target market
- Perceptual positioning is based on perceptual measures
- Examples of perceptual positioning include Volvo's emphasis on safety, Toyota's emphasis on reliability, and Norelco's promise of a close and comfortable shave
Determinant Attributes
- Determinant attributes are the characteristics of a product that influence consumer preferences
- Examples of determinant attributes include product features, ingredients, manufacturing process, benefits, and endorsements
- Companies use determinant attributes to position their products in the market
Positioning Bases
- Positioning bases are the characteristics of a product that are used to differentiate it from competitors
- Examples of positioning bases include ingredients, manufacturing process, benefits, price/quality, and parentage
- Companies choose a positioning base that is relevant to their target market and product
Product Positioning Analysis
- Product positioning analysis involves identifying the target market and the product category in which the product competes
- It also involves identifying the unique benefit that the product offers to the target market
- The analysis is limited in that it does not indicate how alternative products are positioned relative to one another in customers' minds
Conjoint Analysis
- Conjoint analysis is a research technique used to identify the preferences of consumers among various product configurations
- It involves surveying customers and asking them to compare different product attributes
- Conjoint analysis helps companies to identify the optimal product configuration that meets customer needs
Brand Positioning and Value Proposition
- Brand positioning involves creating a unique identity for a brand in the market
- Value proposition is a statement that describes the benefits of a product or brand to the customer
- Both positioning statements and value propositions should reflect a unique selling proposition (USP)
- A value proposition should include information about the target market, benefits offered, and price range relative to competitors### Product Life Cycle
- Introduction of a new product requires large investments, resulting in short-term losses
- In the growth stage, sales increase rapidly, and substantial investments continue; profitability is depressed due to building facilities in advance to ensure supply
- The firm with the largest share during this period should have the lowest per-unit costs due to scale and learning effects
- The innovating firm's share is likely to erode substantially during the growth stage
Mass-Market Penetration Strategy
- Primary objective: to maximize the number of triers and adopters in the target market
- Used by pioneers to stimulate primary demand and attract a large number of customers quickly
Niche Penetration Strategy
- Used by pioneers to stimulate selective demand among early adopters
- Involves starting with high-priced versions and introducing lower-priced versions later in anticipation of competitive entries
Entering a Foreign Market
- Exporting is the simplest way to enter a foreign market, involving the least commitment and risk
- Franchising grants the right to use the company's name, trademarks, and technology
- Joint ventures involve a joint ownership arrangement to produce or market goods in a foreign country
Marketing Program Components for a Skimming Strategy
- A high price is used to increase margins and revenues, focusing on customer groups who are least sensitive to price and most likely to be early adopters
- Introductory promotional programs focus on customer groups who are likely to be early adopters and less sensitive to price
- Continuing product development efforts focus on the next generation of technology or identifying new application segments
Share Maintenance Marketing Objectives
- For share leaders, the primary objective is to stimulate selective demand among later adopters
- Involves retaining existing customers and ensuring brand loyalty
Share Growth Marketing Objectives
- For followers, the primary objective is to attain share growth by attracting new customers
- Involves attacking the market-share leader within its primary target market or targeting smaller untapped or underdeveloped segments in the market
Strategies for Share Growth
- Flanking strategy: developing a second product line with features or price more appealing to a specific segment of potential customers
- Market expansion strategy: developing multiple-line extensions or brand offerings targeted to the needs of various potential user applications or geographical segments within the market
- Fortress strategy: defending market position by expanding into a number of market segments
- Confrontation strategy: improving ability to win new customers who might otherwise be attracted to a competitor's offering
- Encirclement strategy: targeting several smaller untapped or underdeveloped segments in the market simultaneously
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Description
This quiz covers market-oriented perspectives and strategies for successful corporate and business growth, including the role of social media and legitimacy of new products.
