Scenario 1-4
At Sam-Mart, a huge discount retailer, sales are around $70 billion a year and rising. In addition, the company employs more than 500,000 people worldwide. Sam-Mart stores carry just about every major brand imaginable. In addition, Sam-Mart carries its own brand called Wally's Choice. The Wally's Choice label is on products like cookies, potato chips, paper towels, and other personal and household products.
-(Scenario 1-4) In one city, Biggies', a competing retail outlet, opens a store across the street from a Sam-Mart. A battle for business ensues. One of the tools both chains use in their fight for customers is advertising. Sam-Mart runs three different commercials that stress the point that it has very low prices. Biggies' runs three different commercials that stress the point that it has very friendly salespeople. Which one of the following practices are the two stores engaging in?

Question

Quizplus · Accepted Answer

The two stores are engaging in external positioning as they are using advertising to differentiate themselves from each other in the eyes of the customers. Sam-Mart is emphasizing its low prices, while Biggies' is emphasizing its friendly salespeople, in order to gain an advantage in the competitive market.

Scenario 1-4 At Sam-Mart, a Huge Discount Retailer, Sales Are Around $70