Chapter 7

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Questions and Answers

Brand positioning refers to both the place a brand occupies in customers' minds relative to the competition, and:

The profit that positioning can generate.

The competitive advantage that a position conveys.

The marketer's decision making intended to create that position. (correct)

The characteristics built into the product.

Identify a limitation of physical positioning.

It is rarely useful in undertaking a positioning analysis because they are based primarily on technical rather than on market data.

Competitive offerings of many industrial goods and services cannot be typically evaluated on the basis of physical characteristics.

It ignores the early stages of identifying new product offerings.

Customers' attitudes toward a product are often based on social or psychological attributes. (correct)

Which of the following is characteristic of perceptual positioning analysis of a brand?

Technical orientation

Large number of dimensions

R&D implications need to be interpreted (correct)

Physical brand properties

Which of the following is characteristic of physical positioning analysis of a brand?

Represents impact of product specs Signup and view all the answers

Which of the following is a characteristic of physical positioning?

Large number of dimensions Signup and view all the answers

Which of the following is a difference between physical and perceptual positioning?

Perceptual positioning has a consumer orientation while physical positioning has a technical orientation. Signup and view all the answers

Which of the following examples best illustrates perceptual positioning?

Colgate's toothpaste with enhanced freshness of breath and sparkly teeth Signup and view all the answers

Marketing decision makers, while seeking to win a particular position in a customer's mind, endow their product with various kinds of attributes. The speed of a computer system, the roominess of a car, and a product or service being user-friendly are examples of which type of categorization based on such attributes?

Complex physically based attributes Signup and view all the answers

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?

Identifying relevant set of competitive products serving a target market Signup and view all the answers

Volvo's emphasis on safety, Toyota's emphasis on reliability, and Norelco's promising a 'close and comfortable shave' highlights which determinant attribute?

Benefits Signup and view all the answers

Which of the following positioning bases typically includes 'who made it' and 'prior products'?

Parentage Signup and view all the answers

Which of the following positioning bases is illustrated by a clothing manufacturer’s claim of their shirts being made from pure organic cotton?

Ingredients Signup and view all the answers

Which of the following is an example of using product features as a determinant attribute in positioning?

"This is the quietest dishwasher made in America." Signup and view all the answers

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?

Endorsements Signup and view all the answers

A bank positions itself using its deposit safety as an attribute. Why would this positioning not create an impact in the consumer's mind?

Because most consumers perceive all banks to be about equally safe Signup and view all the answers

Two stores occupy positions comparable to one another on the positioning grid. This indicates that:

Consumers consider them to be relatively alike. Signup and view all the answers

Identify the limitation of a product positioning analysis.

It does not tell the marketer which positions are most appealing to customers. Signup and view all the answers

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:

Conjoint analysis. Signup and view all the answers

Both positioning statements and value propositions should reflect a:

Unique selling proposition. Signup and view all the answers

_____ is the term marketers use to refer to the value created by establishing customer preference for one’s brand.

Brand equity Signup and view all the answers

Which of the following results when companies create differences between their brands and other brands that consumers perceive as meaningful?

Brand equity Signup and view all the answers

Study Notes

Market-Oriented Perspectives

The goal of an early entrant is to develop an enduring competitive position via products, service, distribution, and costs by the time competitors enter.

Differentiation and Brand Positioning

Brand positioning refers to the place a brand occupies in customers' minds relative to the competition, and the marketer's decision making intended to create that position.
Physical positioning analysis of a brand represents the impact of product specs and has a limited number of dimensions.
Perceptual positioning analysis of a brand has a consumer orientation, R&D implications need to be interpreted, and has a large number of dimensions.
A key difference between physical and perceptual positioning is that perceptual positioning has a consumer orientation while physical positioning has a technical orientation.
Examples of perceptual positioning include General Foods' breakfast cereal in new chocolate and honey flavors, Volvo's new venture into making fighter planes, and L'Oreal's new range of water-resistant lipstick in fruit flavors.

Determinant Attributes in Positioning

Marketing decision makers endow their products with various kinds of attributes, such as the speed of a computer system, the roominess of a car, and a product or service being user-friendly, which are examples of complex physically based attributes.
Volvo's emphasis on safety, Toyota's emphasis on reliability, and Norelco's promising a "close and comfortable shave" highlight the benefits as a determinant attribute.
Product features can be used as a determinant attribute in positioning, such as a dishwasher being the quietest made in America.
Ingredients can also be used as a determinant attribute, such as a clothing manufacturer's claim of their shirts being made from pure organic cotton.
Parentage, which includes "who made it" and "prior products," can be another determinant attribute.

Positioning Bases

Endorsements can be used as a positioning base, such as a tagline saying "Find out why thousands of nutritionists across America are recommending Speedheal to their clients."
Ingredients can also be used as a positioning base, such as a bank positioning itself using its deposit safety as an attribute.

Product Positioning Analysis

A product positioning analysis does not tell the marketer which positions are most appealing to customers.
Conjoint analysis is a method used to survey customers and ask their preferences among various real or hypothetical product configurations, each with attributes that are systematically varied.

Brand Equity and Value Proposition

Brand equity is the term marketers use to refer to the value created by establishing customer preference for one's brand.
Both positioning statements and value propositions should reflect a unique selling proposition.
When companies create differences between their brands and other brands that consumers perceive as meaningful, brand equity results.

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Description

Understand market-oriented perspectives and learn how to create a competitive brand position through differentiation, products, service, distribution, and costs