Chapter 10
Points-of-parity are important while designing brand mantras for brands facing ________. A) rapid growth B) market saturation C) slow and steady growth D) rapid decline E) stability in sales volume
A) rapid growth
135) Brand storytelling is a less-structured approach to brand positioning.
True
118) The product descriptor that follows the brand name is often a concise means of conveying category origin.
True
119) If Barry compares his organization's products to those of leaders in the field, then he is conveying category membership by "comparing to exemplars."
True
12) Positioning is the act of designing the company's offering and image to occupy a distinctive place in the minds of the target market.
True
121) A leverageable advantage is one that a company can use as a springboard to new advantages.
True
11) All marketing strategy is built on segmentation, targeting, and positioning.
True
75) Category points-of-parity are unique to a brand.
False
Which of the following statements about the branding guidelines for a small business is true? A) A small business must creatively conduct low-cost marketing research. B) A small business must avoid leveraging secondary brand associations. C) A small business must separate the well-integrated brand elements to enhance both brand awareness and brand image. D) A small business must disintegrate the brand elements to maximize the contribution of each of the three main sets of brand equity drivers. E) A small business must focus on building more than two strong brands based on a number of associations.
A) A small business must creatively conduct low-cost marketing research.
If Starbucks considers quick-serve restaurants and convenience shops in its competitive frame of reference, then intended ________ might be quality, image, experience and variety, while intended ________ might be convenience and value. A) PODs; POPs B) POPs; PODs C) substantiators; image variables D) design variables; personality variables E) image variables; personality variables
A) PODs; POPs
________ is the act of designing the company's offering and image to occupy a distinctive place in the minds of the target market. A) Positioning B) Valuation C) Pricing D) Commercialization E) Launching
A) Positioning
A well-known car manufacturing company introduces a new hatchback model by describing its distinctive features and then stressing the speed and safety qualities of the car. Which of the following is the company using to convey its membership in the hatchback segment? A) announcing category benefits B) comparing to exemplars C) relying on the product descriptor D) using channel differentiation E) maximizing negatively correlated attributes
A) announcing category benefits
A brand must demonstrate ________, for it to function as a true point-of-difference. A) clear superiority of an attribute or benefit B) clear profitability to the company C) clear similarity to the attributes of other brands D) technological advances for an attribute or benefit E) exploitation of competitors' weakness
A) clear superiority of an attribute or benefit
Which of the following ways to convey a brand's category membership relates to well-known, noteworthy brands in a category helping a brand specify its category membership? A) comparing to exemplars B) communicating deliverability variables C) identifying counter examples D) announcing category benefits E) relying on the product descriptor
A) comparing to exemplars
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 ________. A) customer-focused value proposition B) competitive frame of reference C) points-of-parity D) straddle positioning E) perceptual map
A) customer-focused value proposition
For brands in more stable categories where extensions into more distinct categories are less likely to occur, the brand mantra may focus more exclusively on points-of-________. A) difference B) presence C) inflection D) parity E) conflict
A) difference
Subway restaurants are positioned as offering healthy, good-tasting sandwiches. When the competitive frame of reference is quick-serve restaurants like McDonald's, what is the POD? A) health B) taste C) convenience D) price E) brand
A) health
A supplier creates better information systems, and introduces barcoding, mixed pallets, and other methods of helping the consumer. The supplier is most likely to be differentiated on its ________. A) innovativeness B) reliability C) insensitivity D) resilience E) accuracy
A) innovativeness
The goal of positioning is to ________. A) locate the brand in the minds of consumers to maximize the potential benefit to the firm B) discover the different needs and groups existing in the marketplace C) target those customers marketers can satisfy in a superior way D) collect information about competitors that will directly influence the firms' strategy E) help the firm anticipate what the actions of its competitors will be
A) locate the brand in the minds of consumers to maximize the potential benefit to the firm
American Express' "World-Class Service, Personal Recognition," Mary Kay's "Enriching women's lives," Hallmark's "Caring Shared," and Starbucks' "Rewarding Everyday Moments" are examples of brand ________. A) mantras B) parity C) identity D) architecture E) extension
A) mantras
Brand ________ are short, three- to five-word phrases that capture the irrefutable essence or spirit of the brand positioning and ensure that the company's own employees understand what the brand represents. A) mantras B) symbols C) logos D) alliances E) extensions
A) mantras
One common difficulty in creating a strong, competitive brand positioning is that many of the attributes or benefits that make up the points-of-parity and points-of-difference are ________. A) negatively correlated B) always correlated C) directly proportional D) never correlated E) positively correlated
A) negatively correlated
Points-of-________ are product associations that are not necessarily unique to the brand but may in fact be shared with other brands. A) parity B) difference C) inflection D) presence E) divergence
A) parity
Philip Morris bought Miller Brewing and launched low-calorie beer, at a time when consumers had the impression that low-calorie beer does not taste as good as normal beer. What did the company try to build when they conveyed the fact that the beer contained one third less calories and hence it is less filling? A) points-of-difference B) points-of-conflict C) points-of-parity D) points-of-presence E) points-of-inflection
A) points-of-difference
All marketing strategy is built on STP: segmentation, targeting, and ________. A) positioning B) product C) planning D) promotion E) performance
A) positioning
BMW's "The ultimate driving machine," American Express' "Don't leave home without it," New York Times' "All the news that's fit to print," and AT&T's "Reach out and touch someone" are all examples of brand ________. A) slogan B) personality C) mission D) architecture E) vision
A) slogan
In which of the following examples is a company communicating category membership using a product descriptor? A) Use Zipex for quick and thorough cleaning. B) Barry's Oats, when you want nutrition and flavor. C) Clarity offers you the best prices for the best quality. D) Choose Grissom's for an unparalleled shopping experience. E) Chloe: All you need for a beautiful you.
B) Barry's Oats, when you want nutrition and flavor.
________ are defined as companies that satisfy the same customer need. A) Communities B) Competitors C) Trendsetters D) Industries E) Task groups
B) Competitors
Which of the following is an example of image differentiation? A) Berry's has an intensive training program for its customer-facing staff, to ensure a consistent service standard. B) The Swan Hotels use a distinctive signature fragrance in all outlets so that customers can associate the fragrance with the hotel. C) JEK's sophisticated customer database allows the company to handle queries and product returns much faster than competitors. D) RTZ shifted its products from supermarket aisles to exclusive stores as it realized that customers were willing to pay more in stores. E) Hayley's found success by allowing buyers to customize the color and some features of its appliances before buying them.
B) The Swan Hotels use a distinctive signature fragrance in all outlets so that customers can associate the fragrance with the hotel.
The result of positioning is the successful creation of ________, which provides a cogent reason why the target market should buy the product. A) an award-winning promotional campaign B) a customer-focused value proposition C) a demand channel D) everyday low pricing E) employee value proposition
B) a customer-focused value proposition
Straddle positions ________. A) help firms to analyze who their competitors are B) allow brands to expand their market coverage and potential customer base C) are a necessity while creating a firm's vision and mission statement D) assist firms in collecting information on competitors that will directly influence their strategy E) are ambiguous moral principles behind the operation and regulation of marketing
B) allow brands to expand their market coverage and potential customer base
Which of the following types of differentiation refers to companies effectively designing their distribution medium's coverage, expertise, and performance to make buying the product easier and more enjoyable and rewarding? A) services differentiation B) channel differentiation C) image differentiation D) product differentiation E) employee differentiation
B) channel differentiation
SJC is a new retailer that targets the youth market. SJC needs to make an impression using advertising, and decides to use funny or irreverent ads to get its point across. Each ad features one of SJC's competitors and conveys an advantage SJC has over that competitor. Which of the following is the company using to convey its membership in the retail segment? A) announcing category benefits B) comparing to exemplars C) relying on the product descriptor D) using channel differentiation E) maximizing negatively correlated attributes
B) comparing to exemplars
The typical approach to positioning is to inform consumers of a brand's category membership before stating its point-of-________. A) parity B) difference C) conflict D) weakness E) presence
B) difference
Which of the following criteria relates to consumers seeing the brand association as distinctive and superior to relevant competitors? A) desirability B) differentiability C) believability D) deliverability E) deviance
B) differentiability
A ________ advantage is one that a company can use as a springboard to new advantages. A) sustainable B) leverageable C) realistic D) rational E) distinct
B) leverageable
19) When Coca-Cola focused on developing its soft drink business but missed seeing the market for coffee bars and fresh-fruit-juice bars that eventually impinged on its soft-drink business, it was suffering from ________ because it defined competition in traditional category and industry terms. A) factor elimination B) marketing myopia C) factor reduction D) category points-of-parity E) reliance on product description
B) marketing myopia
Randall Ringer and Michael Thibodeau see ________ as based on deep metaphors that connect to people's memories, associations, and stories. A) cultural branding B) narrative branding C) brand journalism D) emotional branding E) personal branding
B) narrative branding
Which of the following terms is most closely associated with the statement: "attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand"? A) points-of-inflection B) points-of-difference C) points-of-parity D) points-of-value E) points-of-presenc
B) points-of-difference
17) ________ refers to the products or sets of products with which a brand competes and which function as close substitutes. A) Consumer profitability analysis B) Competitive frame of reference C) Category membership D) Value membership E) Demand field
C) Category membership
________ is a company's ability to perform in one or more ways that competitors cannot or will not match. A) Brand positioning B) Market research C) Competitive advantage D) Competitor analysis E) Competitive intelligence
C) Competitive advantage
________ are associations designed to overcome perceived weaknesses of the brand. A) Conceptual points-of-parity B) Category points-of-difference C) Competitive points-of-parity D) Competitive points-of-difference E) Category points-of-parity
C) Competitive points-of-parity
A marketer that wants to anchor a point-of-difference for Dove soap on brand benefits might emphasize which of the following? A) The soap is one-quarter cleansing cream. B) Dove products include bar soaps and shampoos. C) Dove soap helps users have softer skin. D) The soap brand has global presence. E) The brand has recently launched soap for men.
C) Dove soap helps users have softer skin.
________ are visual representations of consumer perceptions and preferences. A) Brand narratives B) Share of mind variables C) Perceptual maps D) Exemplars E) Points-of-parity
C) Perceptual maps
Which of the following best describes a car company's value proposition? A) We charge a 20 percent premium on our cars. B) We target safety-conscious upscale families. C) We sell the safest, most durable wagon. D) We are the market leader in the small car category. E) We focus on expanding in faster-growing mar
C) We sell the safest, most durable wagon.
Industrial tools claiming to have durability, and antacids announcing their efficacy convey a brand's category membership by ________. A) relying on the product descriptor B) comparing to exemplars C) announcing category benefits D) communicating deliverability variables E) identifying counter examples
C) announcing category benefits
Tums claims to have the most acid-reducing components of any antacid. In what way is the brand's category membership being conveyed? A) comparing to exemplars B) relying on the product descriptor C) announcing category benefits D) focusing on reliability E) persuasion based on believability
C) announcing category benefits
Marketers typically focus on brand ________ in choosing the points-of-parity and points-of-difference that make up their brand positioning. A) equity B) awareness C) benefits D) architecture E) extensions
C) benefits
Nivea became the leader in the skin cream class on the "gentle," "protective," and "caring" platform. The company further moved into classes such as deodorants, shampoos, and cosmetics. Attributes like gentle and caring were of no value unless consumers believed that its deodorant was strong enough, its shampoo would cleanse, and its cosmetics would be colorful enough. This is an example of ________. A) competitive points-of-parity B) competitive points-of-difference C) category points-of-parity D) category points-of-difference E) competitive points-of-presence
C) category points-of-parity
A brand mantra should be ________. A) original, ambiguous, and straightforward B) unique, complex, and inspirational C) communicative, simple, and inspirational D) competitive, sensitive, and simple E) unique, sensitive, and explanatory
C) communicative, simple, and inspirational
When Tommy Hilfiger was an unknown brand, advertising announced his membership as a great US designer by associating him with Geoffrey Beene, Stanley Blacker, Calvin Klein, and Perry Ellis, who were recognized members of that category. Tommy Hilfiger conveyed the brand's category membership by ________. A) relying on the product descriptor B) focusing on reliability C) comparing to exemplars D) announcing category benefits E) identifying counter examples
C) comparing to exemplars
Which of the following criteria relates to consumers seeing the brand association as personally relevant to them? A) deliverability B) authenticity C) desirability D) differentiability E) feasibility
C) desirability
Which of the following types of differentiation relates to companies having better-trained personnel who provide superior customer service? A) channel differentiation B) services differentiation C) employee differentiation D) image differentiation E) product differentiation
C) employee differentiation
A(n) ________ is a group of firms offering a product or class of products that are close substitutes for one another. A) community B) task force C) industry D) focus group E) umbrella brand
C) industry
Which element of a brand story framework do Randall Ringer and Michael Thibodeau relate to the authenticating voice, metaphors, symbols, themes, and leitmotifs? A) narrative arc B) context C) language D) setting E) cast
C) language
Philip Morris bought Miller Brewing and launched low-calorie beer, at a time when consumers had the impression that low-calorie beer does not taste as good as normal beer. What does the company assure by stating that the beer tastes good? A) points-of-difference B) points-of-presence C) points-of-parity D) points-of-conflict E) points-of-inflection
C) points-of-parity
Ford Motor Co. invested more than $1 billion on a radical new 2004 model called the X-Trainer, which combined the attributes of an SUV, a minivan, and a station wagon. To communicate its unique position — and to avoid association with its Explorer and Country Squire models — the vehicle, eventually called Freestyle, was designated a "sports wagon." According to the given scenario, Ford Motor Co. conveyed their brand's category membership by ________. A) announcing category benefits B) identifying counter examples C) relying on the product descriptor D) focusing on reliability E) comparing to exemplars
C) relying on the product descriptor
Suppliers who are better at handling emergencies, product recalls, and inquiries are most likely to be differentiated based on their ________. A) innovativeness B) thoroughness C) resilience D) insensitivity E) reliability
C) resilience
When BMW first made its strong competitive push into the US market in the early 1980s, it positioned the brand as the only automobile that offered both luxury (competing with Cadillac) and performance (competing with the Corvette), which is known as ________ because it uses points-of-difference and points-of-parity across categories. A) a competitive frame of reference B) zone of tolerance positioning C) straddle positioning D) red-ocean thinking E) perceptual mapping
C) straddle positioning
________ are attributes or benefits that consumers view as essential to a legitimate and credible offering within a certain product or service class. A) Category points-of-difference B) Conceptual points-of-parity C) Competitive points-of-parity D) Category points-of-parity E) Competitive points-of-difference
D) Category points-of-parity
Which of the following is an example of channel differentiation? A) Berry's has an intensive training program for its customer-facing employees, to ensure a consistent service standard. B) The Swan Hotels use a distinctive signature fragrance in all outlets so that customers can associate the fragrance with the hotel. C) JEK's sophisticated customer database allows the company to handle queries and product returns much faster than competitors. D) RTZ shifted its products from supermarket aisles to exclusive stores as it realized that customers were willing to pay more in stores. E) Hayley's found success by allowing buyers to customize the color and some features of its appliances before buying them.
D) RTZ shifted its products from supermarket aisles to exclusive stores as it realized that customers were willing to pay more in stores.
Subway restaurants are positioned as offering healthy, great-tasting sandwiches. ________ positioning allows the brand to create a point-of-parity (POP) on taste and a point-of-difference (POD) on health with respect to quick-serve restaurants such as McDonald's and Burger King and, at the same time, a POP on health and a POD on taste with respect to health food restaurants and cafés. A) Category-based B) Need-based C) Noncomparitive D) Straddle E) Price-quality
D) Straddle
Which of the following statements about brand mantras is true? A) They guide only major decisions, they have no influence on mundane decisions. B) Their influence does not extend beyond tactical concerns. C) They must economically communicate what the brand is and avoid communicating what it is not. D) They can provide guidance about what ad campaigns to run and where and how to sell the brand. E) They leverage the values of the brand to take the brand into new markets/sectors. Answer: D
D) They can provide guidance about what ad campaigns to run and where and how to sell the brand.
Which of the following best describes BR Chicken's value proposition? A) We sell chicken at most major malls. B) We undertake home delivery services. C) We target quality-conscious consumers of chicken. D) We sell tender golden chicken at a moderate price. E) We charge a 10 percent premium on our chicken.
D) We sell tender golden chicken at a moderate price.
If a brand is developing an offering with multiple frames of reference, which of the following is NOT advisable? A) create a combined positioning that addresses all competitors B) prioritize competitors C) choose the most important set of competitors to serve as the competitive frame D) adopt lowest common denominator positioning E) develop the best possible positioning for each type or class of competitors
D) adopt lowest common denominator positioning
When Coca-Cola determines the bottled-water competitors for its Dasani brand by identifying the products or sets of products with which a brand competes and which function as close substitutes, it is determining Dasani's ________. A) customer-focused value proposition B) points-of-parity C) points-of-difference D) category membership E) brand mantra
D) category membership
Consumers might not consider a hand sanitizer truly a hand sanitizer unless they are gels designed to apply topically, contain alcohol that kills the germs present on the skin, and developed for use after washing hands or for those times when soap and water are not available. These service elements are considered ________. A) competitive points-of-difference B) competitive points-of-parity C) category points-of-difference D) category points-of-parity E) conceptual points-of-parity
D) category points-of-parity
The ________ defines which other brands a brand competes with and therefore which brands should be the focus of competitive analysis. A) consumer profitability analysis B) competitor indexing C) service blueprint D) competitive frame of reference E) cluster analysis
D) competitive frame of reference
The three criteria that determine whether a brand association can truly function as a point-of-difference include desirability, ________, and differentiability. A) discrimination B) customerization C) implementation D) deliverability E) demand
D) deliverability
The three criteria that determine whether a brand association can truly function as a point-of-difference are ________. A) comparability, authenticity, deliverability B) desirability, peculiarity, deliverability C) deviance, peculiarity, deformity D) desirability, deliverability, differentiability E) differentiability, authenticity, desirability
D) desirability, deliverability, differentiability
Brand mantras typically are designed to capture the brand's points-of-________, that is, what is unique about the brand. A) conflict B) parity C) inflection D) difference E) presence
D) difference
Singapore Airlines is well regarded in large part because of the excellence of its flight attendants. This is an example of ________ differentiation. A) image B) services C) product D) employee E) channel
D) employee
Suppliers who are dependable in their on-time delivery, order completeness, and order-cycle time are most likely to be differentiated based on ________. A) resilience B) innovativeness C) insensitivity D) reliability
D) reliability
Which element of a brand story framework do Randall Ringer and Michael Thibodeau relate to the time, place, and context of the brand story? A) cast B) pitch C) narrative arc D) setting E) language
D) setting
A brand ________ is a translation of the brand mantra that attempts to creatively engage consumers and others external to the company. A) vision B) extension C) architecture D) slogan E) alliance
D) slogan
Which of the following is NOT one of the specific branding guidelines for small businesses? A) Creatively conduct low-cost marketing research. B) Leverage as many secondary associations as possible. C) Focus on building one or two strong brands based on one or two key associations. D) Create buzz and a loyal brand community. E) Use a trial-and-error approach.
E) Use a trial-and-error approach.
The two basic forms of points-of-parity are ________ points-of-parity and ________ points-of-parity. A) conceptual; competitive B) strategic; conceptual C) category; deliverable D) competitive; peculiar E) category; competitive
E) category; competitive
Dayton, Ohio-based Iams found success selling premium pet food through regional veterinarians, breeders, and pet stores. This is an example of ________ differentiation. A) service B) employee C) image D) product E) channel
E) channel
Which of the following criteria relates to the company having the internal resources and commitment to feasibly and profitably create and maintain the brand association in the minds of consumers? A) differentiability B) peculiarity C) desirability D) believability E) deliverability
E) deliverability
Which element of a brand story framework do Randall Ringer and Michael Thibodeau relate to the way the narrative logic unfolds over time, including actions, desired experiences, defining events, and the moment of epiphany? A) language B) pitch C) cast D) setting E) narrative arc
E) narrative arc
As a marketing manager, which of the following would be the best purpose for your organization's competitive points-of-parity? A) to point out competitors' points-of-difference B) to emphasize competitors' points-of-difference C) to rationalize competitors' perceived points-of-difference D) to globalize competitors' perceived points-of-difference E) to negate competitors' perceived points-of-difference
E) to negate competitors' perceived points-of-difference
122) In the context of Starbucks, 24-hour training program for baristas, stock options/health benefits, triple filtrated water, and a totally integrated system are examples of brand mantras within the brand positioning bull's-eye.
False
73) 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.
False
80) Straddle positioning refers to a brand using different positioning with different categories of competitors.
False
87) 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.
False
120) A good illustration of negatively correlated attributes or benefits is good taste versus bad taste.
False
13) The result of positioning is the successful creation of an employee-focused value proposition.
False
137) ESPN Zone restaurants tap into competitive masculinity and American Girl dolls tap into mother-daughter relationship and the cross-generational transfer of femininity. These are examples of narrative arcs.
False
138) Cultural branding is essential for small firms, but ineffective for large companies.
False
14) Positioning requires that marketers define and communicate only the differences between their brand and its competitors.
False
145) While creating a loyal brand community is useful for large companies, it is not cost-effective for small firms.
False
21) A company is more likely to be hurt by current competitors than by emerging competitors or new technologies.
False
22) The industry concept of competition reveals a broader set of actual and potential competitors than competition defined in just the market concept.
False
23) Using the industry approach, competitors are defined as companies that satisfy the same customer need.
False
72) Associations that make up points-of-difference are based exclusively on product features.
False
77) Category points-of-parity are associations designed to overcome perceived weaknesses of the brand.
False
79) Trying to be all things to all people leads to highest-common-denominator positioning, which is typically effective.
False
85) Brand mantras are typically designed to capture the brand's points-of-parity, that is, what is unique about the brand.
False
86) Brands are never affiliated with categories in which they do not hold membership.
False
91) Companies cannot achieve differentiation by differentiating their channels, as this is not the purpose of a distribution channel.
False
92) A good positioning should contain points-of-difference and points-of-parity that have rational but not emotional components.
False
123) One of the ways to communicate category membership is to rely on the product descriptor, like when Ford positioned its Freestyle automobile, which combined the attributes of an SUV, a mini-van, and a station wagon, as a "sports wagon."
True
136) Narrative branding is based on deep metaphors that connect to people's memories, associations, and stories.
True
144) Small businesses must focus on building one or two strong brands based on one or two key associations.
True
15) The competitive frame of reference defines which other brands that a brand competes with.
True
20) Category membership is seen as the products that function as close substitutes of a brand.
True
24) To analyze its competitors, a company needs to gather information about both the real and the perceived strengths and weaknesses of each competitor.
True
74) Points-of-parity may be shared among two or more brands.
True
76) Category points-of-parity may change over time due to technological advances, legal developments, or consumer trends.
True
78) A competitive point-of-parity negates competitors' perceived points-of-difference.
True
81) Occasionally, a company will be able to straddle two frames of reference with one set of points-of-difference and points-of-parity.
True
82) Perceptual maps provide quantitative portrayals of market situations and the way consumers view different products, services, and brands along various dimensions.
True
83) 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.
True
84) Brand mantras must communicate both what a brand is and what it is not.
True
88) The typical approach to positioning is to inform consumers of a brand's membership before stating its point-of-difference.
True
89) Competitive advantage is a company's ability to perform in one or more ways that competitors cannot or will not match.
True
90) The means of differentiation that are often most compelling to consumers relate to aspects of the product and service.
True
