Deck 3: Positioning Services in Competitive Markets

Question 1

Positioning strategy is concerned with ___________, _____________, and _____________ distinctive differences.

A) finding, targeting, eliminating
B) creating, communicating, maintaining
C) praising, highlighting, saturating
D) anticipating, reducing, minimizing
E) purchasing, financing, consuming

Answer 1

B

Question 2

A service-focused firm offers a narrow range of services to a fairly broad market.

Answer 2

True

Question 3

A fully-focused organization concentrates on a narrow market segment, but has a wide range of services.

Answer 3

False

Question 4

The best way to anticipate possible competitive responses is to identify all current or potential competitors and conduct an internal corporate analysis for each of these competitors.

Question 5

One of the reasons why firms with a narrow product line elect to serve multiple segments is to create a portfolio of customers that hedge against low demand risks.

Question 6

Which of the following is the best example of a determinant characteristic for airline travel?

A) Oxygen masks
B) Plane size
C) Availability of frequent flier miles
D) Having cocktail service
E) Floatation devices

Question 7

Which of the following is NOT one of the four basic focus strategies?

A) Service focused
B) Unfocused
C) Fully focused
D) Refocused
E) Market focused

Question 8

A(n) ____________ is one that a firm has selected from among those in the broader market and may be defined on the basis of several variables.

A) general segment
B) segmentation field
C) target segment
D) holistic segment
E) mass customization

Question 9

Market analysis addresses all of the following factors EXCEPT ____________.

A) overall level of demand
B) trend of demand
C) government regulations
D) geographic location of demand
E) market analysis addresses all of the above factors

Question 10

It's usually a good idea for firms to try to appeal to all potential buyers in a market, because customer variety leads to full capacity.

Question 11

A target segment should only be selected on the basis of their sales and profit potential.

Question 12

Failure to select a desired position in the marketplace-and to develop a marketing action plan designed to achieve and hold this position-may result in which of the following possible outcomes?

A) The organization (product) is pushed into a position, where it faces indirect competition from a weaker competitor.
B) The organization (product) is pushed into a position that nobody else wants, because there is little customer demand.
C) The organization's (product's) position is so blurred that nobody knows what its supplementary aspects really are.
D) The organization (product) becomes obsolete before demand can be built.
E) The organization (product) cannot sustain growth in lieu of external resources.

Question 13

Positioning plays a pivotal role in marketing strategy, because it links market analysis and competitive analysis to environmental analysis.

Question 14

The objective of corporate analysis is to identify the organization's resources, any limitations or constraints, its goals, and how it values shape the way it does business.

Question 15

No service attribute can be easily quantified because of the intangibility of services.

Question 16

The same individuals may set different priorities for attributes according to all EXCEPT which of the following?

A) The purpose of using the service.
B) The cost of the service.
C) Whether the individual is using the service alone or with a group.
D) Who makes the decision.
E) The timing of use.

Question 17

A ____________ is composed of a group of buyers who share common characteristics, needs, purchasing behavior, or consumption patterns.

A) target class
B) class
C) focal segment
D) market segment
E) target segment

Question 18

Which of the following is NOT one of the four principles of positioning according to Jack Trout?

A) A company must maintain a strong labor base.
B) A company must establish a position in the minds of its targeted customers.
C) The position should be singular, providing one simple and consistent message.
D) The position must set a company apart from its competitors.
E) A company cannot be all things to all people-it must focus its efforts.

Question 19

In marketing terms, ____________ means providing a relatively narrow product mix for a particular market segment.

A) cantor
B) synopsis
C) focus
D) phyla
E) class

Question 20

Position statements change in response to changing market structures, technology, competitive activity, and evolution of the firm itself.

Question 21

Bright Horizons strategy included which of the following?

A) Marketing services to employers instead of parents.
B) Hiring inexpensive labor.
C) Commoditized service offerings.
D) Heavy regulatory oversight.
E) All of the above are strategies employed by BH.

Question 22

What are the characteristics of an unfocused service category?

Question 23

Give an example of a service focused company and explain the strategy.

Question 24

Grant Thornton, the fifth largest firm in the accounting industry, has successfully positioned itself as offering ____________ and having ____________.

A) high investment yield; "a passion for the business of accounting"
B) limited financial obligation; "a desire to exceed expectations"
C) easy access to partners; "a passion for the business of accounting"
D) low employee turnover; "a desire to exceed expectations"
E) high asset turnover; "a passion for the business of accounting"

Question 25

Rentokil Initial allows clients to purchase sector-specific solutions that deliver multiple services but feature just "one invoice, one account manager, one help desk, one contract, and one motivated service team."

Question 26

Explain what a fully-focused and a market-focused strategy are and discuss the opportunities and risks inherent in selecting each strategy.

Question 27

What are the three types of analysis to consider when developing a market positioning strategy?

Question 28

Capsule hotels chains have been launched in many countries, including New York, London, Amsterdam, and Malaysia.

Question 29

Grant Thornton is an example of a "tier two" accounting firm that positions itself on offering better service and/or lower prices.

Question 30

Distinguish between important and determinant attributes

Question 31

Discuss how a positioning map could be applied to the hotel industry given a competitive threat.

Question 32

Lasik eye surgery clinics and Starbucks follow a market-focused strategy, serving a broad customer base with a largely standardized product.

Question 33

Give an example of a company that utilizes a fully focused strategy and explain how.

Question 34

What are the two dimensions along which a company's focus can be described?

Question 35

UPS has had to develop communication strategies to change perceptions and increase awareness about ___________.

A) across-the-board rate increases for all services that are a result of recent rise in fuel costs
B) new same day delivery routes to most major cities across the continental US
C) other services they offer, including supply chain management and financial services
D) eco-friendly protocols, including hybrid trucks and packaging material recycling, that have been implemented
E) cuts in employee benefits

Question 36

What is a position statement?

Question 37

Bright Horizons chose a positioning strategy that emphasized low cost childcare.

Question 38

Give an example of a company that utilizes a market focused strategy and explain how.

Question 39

UPS repositioned itself by ____________ and adding the tagline ________.

A) extending their business model; "Save some Green by going Brown"
B) moving beyond the existing emphasis on the color brown; "Synchronizing the world of commerce"
C) changing its market-segmentation strategy; "The reason is Brown"
D) adding customization to its online offerings; "Brown with envy"
E) altering customer perceptions through personalization; "Changing the minds of the competition"

Question 40

Rentokil Initial has developed an extensive product range that includes all of the following EXCEPT _________.

A) package delivery
B) interior plants landscaping
C) uniform rental and cleaning
D) washroom attendant service
E) mobile paper shredding service

Question 41

Discuss the analysis that took place to develop Bright Horizons and the ways in which they overcame unappealing industry characteristics.

Question 42

Describe Yotel's positioning strategy and how it is able to successfully accomplish it.

Question 43

Explain what is meant by a capsule hotel.