MKT 4451 Exam 2 Ch. 7

) Name and briefly describe two less-structured alternative approaches to competitive brand positioning.

Two alternative approaches to competitive branding are as follows: 1. Brand narratives and storytelling: Rather than outlining specific attributes or benefits, some marketing experts describe positioning a brand as telling a narrative or story. Narrative branding includes a brand story, a consumer journey, visual language or expression for the brand, a manner of narrative expression, and the brand's role in consumers' lives. Primal branding employs seven assets of a primal code: a creation story, creed, icon, rituals, sacred words, a way of dealing with nonbelievers, and a good leader. 2. Cultural branding: For companies to build iconic, leadership brands, they must assemble cultural knowledge, strategize according to cultural branding principles, and hire and train cultural experts.

Category membership is seen as the products that function as close substitutes of a brand

T

Narrative branding is based on deep metaphors that connect to people's memories, associations, and stories.

T

Perceptual maps provide quantitative portrayals of market situations and the way consumers view different products, services, and brands along various dimensions.

T

Points-of-parity may be shared among two or more brands

T

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

T

The competitive frame of reference defines which other brands that a brand competes with.

T

The most constructive response to protecting market share is continuous innovation.

T

The typical approach to positioning is to inform consumers of a brand's membership before stating its point-of-difference.

T

To analyze its competitors, a company needs to gather information about both the real and the perceived strengths and weaknesses of each competitor.

T

Describe four broad strategies employed by market followers to meet their competitors. Which of these is unethical?

1. cloner-the cloner emulates the leader's products, name, and packaging, with slight variations 2. imitator-the imitator copies some things from the leader but maintains differentiation in terms of packaging, advertising, pricing, or location 3. adapter-the adapter takes the leader's products and adapts or improves them 4. counterfeiter-the counterfeiter duplicates the leader's product and package and sells it on the black market or through disreputable dealers A counterfeiting strategy is unethical as well as illegal.

Describe three methods by which a brand can communicate category membership.

: There are three main ways to convey a brand's category membership: 1. Announcing category benefits. To reassure consumers that a brand will deliver on the fundamental reason for using a category, marketers frequently use benefits to announce category membership. 2. Comparing to exemplars. Well-known, noteworthy brands in a category can also help a brand specify its category membership. 3. Relying on the product descriptor. The product descriptor that follows the brand name is often a concise means of conveying category origin.

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

All marketing strategy is built on segmentation, targeting, and ________. A) positioning B) product C) planning D) promotion E) performance

A

If Microsoft announces plans for a new-product development, smaller firms may choose to concentrate their development efforts in other directions to avoid head-to-head competition. In this example, Microsoft is employing a ________ defense strategy. A) preemptive B) counteroffensive C) mobile D) flank E) contraction

A

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

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-________ 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

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

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

________ defense involves occupying the most desirable market space in the minds of the consumers and making the brand almost impregnable. A) Position B) Flank C) Preemptive D) Mobile E) Contraction

A

) Define a brand mantra and provide an example of a brand mantra.

A brand mantra is an articulation of the heart and soul of the brand and is closely related to other branding concepts like "brand essence" and "core brand promise." Brand mantras are short, three- to five-word phrases that capture the irrefutable essence or spirit of the brand positioning. American Express's "World Class Service, Personal Recognition," is an example of a brand mantra.

Belling is a chain of coffee shops. Give an example of a category point-of-parity and a competitive point-of-parity for the company.

A category point-of-parity for Belling could be its freshly brewed coffee and friendly atmosphere. A competitive point-of-parity could be its fast customer service times.

) Compare responsive marketing, anticipative marketing, and creative marketing. Which is the most proactive?

A responsive marketer finds a stated need and fills it. An anticipative marketer looks ahead to needs customers may have in the near future. A creative marketer discovers solutions customers did not ask for but to which they enthusiastically respond. Creative marketers are proactive market-driving firms, not just market-driven ones.

Explain three variables a firm should consider when analyzing potential threats posed by competitors.

Answer: In general, the firm should monitor three variables when analyzing potential threats posed by competitors: 1. Share of market-competitors' share of the target market. 2. Share of mind-percentage of customers who named the competitor in responding to the statement, "Name the first company that comes to mind in this industry." 3. Share of heart-percentage of customers who named the competitor in responding to the statement, "Name the company from which you would prefer to buy the product."

) 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

An alternative to being a market follower in a large market is to be a leader in a small market. This type of competitor is called a ________. A) marketing king B) market nicher C) segment king D) guerilla marketer E) strategic clone

B

Epic Inc., a firm that produces chairs for offices, uses comparative advertising to inform consumers that its products offer the same features and quality as the competitor's. This is an example of a(n) ________ attack. A) guerilla B) frontal C) encirclement D) bypass E) flank

B

In his article, "Innovative Imitation," Theodore Levitt argues that ________. A) imitation is wrong and should be punished B) product imitation might be as profitable as product innovation C) innovation is not possible without substantial imitation D) innovation cannot begin unless dissatisfaction with imitation occurs E) imitation should be against the law because of the intellectual property decision involved

B

Pepsodent launched a new product that could whiten teeth, fight decay, and maintain fresh breath. Observing that Pepsodent did not focus on the dental sensitivity aspect, Colgate introduced a toothpaste which did all of the above and also protected sensitive teeth. This is an example of a(n) ________ attack. A) frontal B) flank C) guerrilla D) encirclement E) bypass

B

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

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

Using the market approach, ________ are defined as companies that satisfy the same customer need. A) communities B) competitors C) trendsetters D) industries E) task groups

B

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

When Starbucks introduced its Tazo Tea line to bring in new customers who had never gone to Starbucks because they don't drink coffee, Starbucks was employing a ________ strategy. A) market-penetration B) new-market segment C) geographical-expansion D) niche identification E) blue-ocean

B

When the total market expands, the market ________ usually gains the most. A) challenger B) leader C) follower D) nicher E) entrant

B

Which of the following is the most constructive response a market leader can make when defending its market share? A) maintain basic cost control B) innovate continuously C) provide desired benefits D) meet challengers with a swift response E) provide expected benefits

B

A firm that is willing to maintain its market share, and not attack the leader and other competitors in an aggressive bid for further market share, is known as a market ________. A) challenger B) leader C) follower D) nicher E) entrant

C

A marketing manager has decided to "leapfrog" the competition by moving into cutting-edge technologies. This indirect approach to attacking competition can be characterized as a(n) ________ attack. A) flank B) encirclement C) bypass D) guerrilla E) frontal

C

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

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

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

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

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 markets.

C

_______ 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

________ 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

With the help of an example, explain why a company's competition may not be from companies in the same category

Category membership includes the products or sets of products with which a brand competes and which function as close substitutes. After having spent billions of dollars building their networks, cell phone carriers AT&T, Verizon Wireless, and Sprint face the threat of new competition emerging as a result of a number of changes in the marketplace: Skype and the growth of Wi-Fi hotspots, municipal Wi-Fi networks built by cities, and dual mode phones that can easily switch networks.

There are three key consumer criteria that determine whether a brand association can truly function as a point-of-difference. When the Westin Stamford hotel in Singapore advertised that it was the world's tallest hotel, it attempted to create a point-of-difference (POD). Discuss whether this attempt to create a POD would be likely to succeed.

Consumers must see the brand association as personally relevant to them. Staying in the tallest hotel might not be a necessary need for most tourists, there might be other factors that are more important. The hotel was not successful in its attempt to create its POD because of the desirability criteria associated with PODs.

) When food product companies advertise recipes that use their branded products in entirely different ways, they are increasing the ________ consumption of the brand. A) amount of B) level of C) dedication to D) frequency of E) awareness

D

A firm that is based in France designs jewelry and takes custom orders from around the world. They design up to 15 pieces of jewelry in a year and ensure that each design uses distinctive stones and is unique. Such nichemanship is an example of ________ specialist role. A) customer-size B) product C) product-feature D) job-shop E) quality-price

D

Brand mantras typically are designed to capture the brand's points-of-________. A) conflict B) parity C) inflection D) difference E) presence

D

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

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

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

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

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.

D

________ 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

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

A company is more likely to be hurt by current competitors than by emerging competitors or new technologies.

F

American Girl dolls tap into mother-daughter relationship and the cross-generational transfer of femininity. This is an example of a narrative arc.

F

Associations that make up points-of-difference are based exclusively on product features.

F

Positioning requires that marketers define and communicate only the differences between their brand and its competitors.

F

The industry concept of competition reveals a broader set of actual and potential competitors than competition defined in just the market concept.

F

The nicher achieves high sales volume, whereas the mass marketer achieves high margin.

F

The result of positioning is the successful creation of an employee-focused value proposition.

F

) Belling is a chain of coffee shops. List possible competitors first from an industry point of view and then from the market point of view.

From an industry point of view, Belling's competitors will be other coffee shops, coffee machines, and outlets that sell coffee in addition to other foods. From a market point of view, Belling's competitors could be anything from restaurants to supermarkets selling ready-to-drink coffee.

An example of communicating category membership by relying on the product descriptor is Ford's positioning of its Freestyle automobile, which combines the attributes of an SUV, a minivan, and a station wagon, as a "sports wagon."

T

With respect to positioning, explain points-of-parity and points-of-difference.

Points-of-difference (PODs) are 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. Points-of-parity (POPs), on the other hand, are associations that are not necessarily unique to the brand but may in fact be shared with other brands.

What are the requirements for deciding on a positioning strategy?

Positioning aims to help guide marketing strategy by clarifying the brand's essence, identifying the goals it helps consumers achieve, and showing how it does so in a unique way. Specifically, deciding on a positioning requires: ∙ choosing a frame of reference by identifying the target market and relevant competition ∙ identifying the optimal points-of-parity and points-of-difference brand associations given that frame of reference ∙ creating a brand mantra to summarize the positioning and essence of the brand

What are the five elements of narrative branding as described by Randall Ringer and Michael Thibodeau?

Randall Ringer and Michael Thibodeau see narrative branding as based on deep metaphors that connect to people's memories, associations, and stories. They identify five elements of narrative branding: 1. the brand story in terms of words and metaphors 2. the consumer journey in terms of how consumers engage with the brand over time and touch points where they come into contact with it 3. the visual language or expression for the brand 4. the manner in which the narrative is expressed experientially in terms of how the brand engages the senses 5. the role/relationship the brand plays in the lives of consumers

Attacking the market leader proves successful and beneficial only when the leader is not serving the market well.

T

With the help of an example, explain straddle positioning.

Student answers will vary. Occasionally, a company will be able to straddle two frames of reference with one set of points-of-difference and points-of-parity. In these cases, the points-of-difference for one category become points-of-parity for the other and vice versa. Subway restaurants are positioned as offering healthy, good-tasting sandwiches. This positioning allows the brand to create a POP on taste and a 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. Straddle positions allow brands to expand their market coverage and potential customer base.

) Small businesses should focus on building one or two strong brands based on one or two key associations.

T

A leverageable advantage is one that a company can use as a springboard to new advantages.

T

The cost of buying higher market share through acquisition may far exceed its revenue value. Which are the four factors a company should consider before doing so?

The four factors to be considered before buying higher market share are: the possibility of provoking antitrust action, economic cost, the danger of pursuing the wrong marketing activities, and the effect of increased market share on actual and perceived quality.

) Among the niche specialist roles, what are end-user, vertical-level, and product-feature specialists?

The key idea in successful nichemanship is specialization. An end-user specialist serves one type of end-user customer. A vertical-level specialist concentrates on some vertical level of the production-distribution value chain. A product-feature specialist produces a certain type of product or product feature.

As a company seeks to establish a category membership designation, how does the company approach points-of-difference? What is typically done first?

The typical approach to positioning is to inform consumers of a brand's membership before stating its point-of-difference. Presumably, consumers need to know what a product is and what function it serves before deciding whether it dominates the brands against which it competes.

Sally's is a boutique bakery that specializes in cupcakes. Identify one method by which Sally's can conduct low-cost marketing research.

There are a variety of low-cost marketing research methods. The idea mentioned in the chapter is to work with students and professors at local colleges and universities. Students may have other ideas as well.

) Belling wants to analyze the threats posed by its competitors. Which three variables must it monitor to achieve this?

To analyze the threats posed by its competitors, Belling must monitor the competitors' share of the market, share of mind and share of heart.

) How can a small business create a loyal brand community?

Word of mouth is important. Small businesses also can employ cost-effective approaches to public relations, social networking, promotions, and sponsorships.