Chapter 10 Quiz

What should be done if you have many competitors in different categories or subcategories?

either develop the positioning at the categorical level for all relevant categories or with an exemplar from each category

What is a useful measure of the effectiveness of an organization's positioning?

the Brand Substitution Test

TRUE/FALSE: A good positioning should follow the "90-10" rule

TRUE

TRUE/FALSE: companies that make steady gains in mind share and heart share will inevitably make gains in market share and profitability

TRUE

TRUE/FALSE: Consumers typically want to maximize both the negatively correlated attributes or benefits.

TRUE.

What are the three main ways to convey a brand's category membership?

1. Announcing category benefits 2. Comparing to exemplars 3. Relying on the product descriptor.

What are the three high level variables used in accessing potential threats from competitors?

1. Share of Market 2. Share of Mind 3. Share of Heart

What are the two main options with multiple frames of reference?

1. develop the best possible positioning for each type or class of competitors and then see whether there is a way to create one combined positioning robust enough to effectively address them all. 2. Prioritize competitors and then choose the most important set of competitors to serve as the competitive frame.

What is a value proposition?

A cogent reason why the target market should buy a product or service

How does Michael Porter describe competitive advantage?

A company's ability to perform in one or more ways that competitors cannot or will not match.

What is competition from an industry point of view?

A group of firms offering a product or class of products that are close substitutes for one another.

What is a brand mantra?

A three to five word articulation of the heart and the soul of the brand and is closely related to other branding concepts like, "branding essence" and "core brand promise".

What is a good starting point in defining a competitive frame of reference for brand positioning?

Category membership

What can happen as a result of changes in the marketing environment?

An opening up of new opportunities to create a means of differentiation.

What do marketers typically focus on when choosing points-of-parity and points-of-difference that make up their brand positioning?

Brand benefits.

How can companies deliver high customer value and satisfaction?

Building customer advantages

How can emotional brands provide financial payoffs?

By successfully differentiating themselves.

When are perceptual maps often used?

Choosing specific POPs and PODs to position a brand.

What are three key criteria for brand mantras?

Communicate, simplify, and inspire.

What are the three criteria that determine whether a brand association can truly function as a point-of-difference?

Desirability, deliverability, and differentiability.

What do straddle positions allow brands to do?

Expand their market coverage and potential customer base.

TRUE/FALSE: Often a good positioning will have only one POD and POP

FALSE

TRUE/FALSE: individual attributes and benefits often have positive and no negative aspects

FALSE

What is the typical approach to positioning?

Inform consumers of a brand's membership before stating its point-of-difference.

What is important for markets to do when a product is new?

Inform consumers of the brand's category membership.

Why is it important to have a Brand Mantra?

It further focuses brand positioning and guides the way marketers help consumers think about the brand.

Why should you not try to Position all 100% of a brand's product?

It often yields an unsatisfactory,"lowest common denominator" result.

How can a company make sure its brand mantra is effective?

Make sure no other brand can singularly excel on all dimensions.

What is competition from a market point of view?

Mapping out the buyer's steps in obtaining and using the product.

What does positioning require?

Marketers need to define and communicate similarities and differences between their brand and its competitors.

What is often the key to positioning?

Not achieving a point-of-difference but rather achieving a point-of-parity

What is the correlation points-of-parity?

Potentially negative associations that arise from the existence of positive associations from the brand.

A good positioning has one foot in the ________ and one in the _______

Present; Future

What is all marketing strategy built on?

Segmentation, targeting, and positioning (STP)

What is positioning?

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

What can happen if the points-of-parity and points-of-difference are not credible?

The brand may not be viewed as a legitimate player in either category.

What happens when a company is able to straddle two frames of reference with one set of points-of-difference and points-of-parity

The point-of-difference for one category become points-of parity for the other and vice versa.

What is category membership?

The products of set of products with which a brand competes and that function as close substitutes.

What do marketers have to do to identify a possible means of differentation?

They have to match consumers' desire for a benefit with their company's ability to deliver.

Why are few competitive advantages inherently sustainable?

They only have springboards to new advantages. To be successful, you must be continually inventing new advantages that can serve as the basis of points-of-difference.

Why are brand attributes important?

They play more of a supporting role by providing "reasons to believe" or "proof points" as to why a brand can credibly claim it offers certain benefits.

What does a competitive frame of reference define?

Which other brands a brand competes with and which should thus be the focus of competitive analysis.

What is the competitive points-of-parity?

associations designed to overcome perceived weaknesses of the brand in light of competitors' points-of-difference.

What are Points-of-parity?

attribute or benefit associations that are not necessarily unique to the other brand but may in fact be shared with other brands.

What is the Category points-of-parity?

attributes or benefits that consumers see as essential to a legitimate and credible offering within a certain product of service category.

What are Points-of-differences?

attributes or benefits that consumers strongly associate with a brand, positively evaluate, and believe they could not find the exact same extent with a competitive brand.

What is the most compelling means of differentiation for consumers?

benefits related to performance

What are competitors?

companies that satisfy the same customer need.

What are perceptual maps?

visual representations of consumer perceptions and preferences. They provide quantitative pictures of market situations and the way consumers view different products, services, and brands along various dimensions.