Question 1

Which positioning concept is illustrated by a clothing manufacturer claiming that their shirts are made from pure organic cotton?
A)price/quality
B)endorsements
C)ingredients
D)features

Accepted Answer

The concept illustrated by the clothing manufacturer claiming that their shirts are made from pure organic cotton is the "ingredients" positioning concept because they are emphasizing the quality of the materials used in their products.

Question 2

Michael Porter identified three generic business strategies.These are:
A)cost leadership, differentiation, focus
B)cost leadership, positioning, focus
C)strategic intent, differentiation, cost leadership
D)segmentation, targeting, positioning

Accepted Answer

Michael Porter's three generic strategies are cost leadership, differentiation, and focus. These strategies are meant to provide a firm with a competitive advantage.

Question 3

Which of the following is a characteristic of physical positioning?
A)large number of dimensions
B)consumer orientation
C)represents impact of product specs
D)represents impact of communication

Accepted Answer

A

Question 4

'At Fidelity, you're not just buying a fund, a stock, or a bond-you're buying a better way to manage it.' Identify the determinant attribute being used here.
A)parentage
B)comparison
C)ingredients
D)pro-environment

Accepted Answer

The determinant attribute used here is 'parentage,' which refers to the brand or company's heritage and reputation. In this context, Fidelity is emphasizing its brand as a trusted and superior way to manage investments, rather than focusing on the specific products (fund, stock, or bond) themselves.

Question 5

'British Leyland was formed through a series of mergers involving a number of British car manufacturers.It did not have a clear identity because it was new and manufactured a variety of brands, including Rover, Triumph and Austin-Morris.' Which constraint associated with an intense position does this example illustrate?
A)Repositioning may result in alienating the product's current users despite the success with its newly targeted group.
B)Success in repositioning efforts may well ensure losing the current group of users.
C)The dilution of an existing intense position as a result of consolidation.
D)The temptation to overexploit the position by using the brand name on line extensions and new products.

Accepted Answer

The example of British Leyland demonstrates the dilution of an existing intense position as a result of consolidation. As the company was formed through a series of mergers and manufactured a variety of brands, it did not have a clear identity, which diluted its existing position.

Question 6

'Some people will pay considerably more for Bayer aspirin than for an unadvertised private label aspirin, even though they are essentially the same product.' What does this statement signify?
A)Consumers often know a lot about the essential physical attributes of many products, especially household products.
B)Consumers generally understand the physical attributes well enough to use them as a basis for choosing between alternatives.
C)Consumers often evaluate goods and services on factors other than physical properties, including their past experiences.
D)Consumers can typically evaluate a product better on the basis of what it is than what it does.

Accepted Answer

The statement suggests that consumers are willing to pay more for a branded product like Bayer aspirin, even though it is essentially the same as an unadvertised private label aspirin. This indicates that consumers evaluate goods and services on factors other than physical properties, such as branding, past experiences, and perceptions of quality.

Question 7

Physical positioning helps in all of the following ways except:
A)It enables buyers to evaluate industrial goods and services on the basis of what it does rather than on what it is.
B)It contributes to a better marketing-research and R&D interface by determining key physical product characteristics.
C)It helps define the structure of competition by revealing the degree of competitiveness between various brands.
D)It may indicate the presence of meaningful product gaps and thus reveal opportunities for a new product entry.

Accepted Answer

Physical positioning primarily focuses on how a product is perceived in the market in relation to competitors, emphasizing attributes, benefits, and how it fits within the competitive landscape. It does not directly enable buyers to evaluate industrial goods and services based on their functionality rather than their nature; this is more related to product design and marketing communication strategies.

Question 8

Customers are surveyed and asked their preferences among various real or hypothetical product configurations, each with attributes that are systematically varied.This is an example of:
A)conjoint analysis
B)cluster analysis
C)logit analysis
D)discriminant analysis

Accepted Answer

This scenario describes a conjoint analysis which is a commonly used market research technique to determine how customers value different features or attributes of a product. By presenting various product configurations, each with systematically varied attributes, researchers can identify the most preferred combination of features among customers.

Question 9

Marketing decision-makers, while seeking to win a particular position in a customer's mind, endow their product with various kinds of attributes.The speed of a computer system, the roominess of a car, and a product's or service's being user-friendly are examples of which type of categorisation based on such attributes?
A)simple physically based attributes
B)complex physically based attributes
C)essentially abstract attributes
D)price

Accepted Answer

The examples given (speed of a computer system, roominess of a car, user-friendliness) involve complex physically based attributes, as they cannot be easily quantified and involve multiple components. The other options (simple physically based attributes, essentially abstract attributes, price) do not fit these examples.

Question 10

Identify a limitation of physical positioning.
A)It ignores the early stages of identifying new product offerings.
B)Competitive offerings of many industrial goods and services cannot be typically evaluated on the basis of physical characteristics.
C)They are rarely useful in undertaking a positioning analysis because they are based primarily on technical rather than on market data.
D)Customers' attitudes toward a product are often based on social or psychological attributes.

Accepted Answer

Physical positioning only takes into account the physical characteristics of a product, while customers' attitudes are often based on social or psychological attributes. This is a limitation because it means that physical positioning may not accurately reflect customers' perceptions and preferences towards a product.

Question 11

Identify the incorrect statement concerning the positioning grid.
A)It provides a visual representation of the positions of various products in a competitive set.
B)Where more than two attributes are to be considered, multidimensional grids are produced.
C)It indicates how products within a category compare on the level of as many attributes as are relevant.
D)It identifies gaps that may exist either because of technical constraints or lack of prospective customers.

Accepted Answer

The answer of Identify the incorrect statement concerning the positioning...

Question 12

In entrepreneurial start-ups, there are two ongoing issues that are essential if whatever brand value that's been built is to be maintained and grown.These are:
A)brand recall and brand reinforcement
B)brand equity and brand loyalty
C)brand reinforcement and brand revitalisation
D)brand awareness and brand positioning

Accepted Answer

The answer of In entrepreneurial start-ups, there are two ongoing...

Question 13

Which of the following examples best illustrates perceptual positioning?
A)Kellogg's breakfast cereal in new chocolate and honey flavours
B)Volvo's latest SUV featuring 225 horsepower and a fuel efficiency of 7.65 kilometres per litre
C)L'Oreal's new range of water resistant lipstick in fruit flavours
D)Colgate's toothpaste with enhanced freshness of breath and sparkly teeth

Accepted Answer

Perceptual positioning refers to how a product is perceived in the minds of consumers relative to competing products. Colgate's toothpaste emphasizing enhanced freshness of breath and sparkly teeth directly addresses consumer perceptions and desires regarding oral hygiene, positioning it in a way that highlights its benefits in a relatable and desirable manner.

Question 14

Volvo's emphasis on safety, Toyota's emphasis on reliability and the Holden Monaro's promise of old magic and style in motoring highlight which determinant attribute?
A)features
B)manufacturing process
C)benefits
D)endorsements

Accepted Answer

These are examples of benefits, as they describe the advantages or positive outcomes (safety, reliability, and style) that customers can expect from using these products.

Question 15

Identify the limitation of product positioning analysis.
A)It does not tell the marketer which positions are most appealing to customers.
B)It does not include a tool to identify gaps where an opportunity for developing a new product exists.
C)It does not include a tool indicating how products within a category compare on the level of as many attributes as are relevant.
D)It does not indicate how alternative products are positioned relative to one another in customers' minds.

Accepted Answer

Product positioning analysis primarily focuses on understanding how a product is perceived in the minds of consumers relative to competitors. However, it does not inherently provide insights into which positions might be most appealing to customers, leaving marketers to deduce this from other research or analysis.

Question 16

A bank positions itself using its deposit safety attribute.Why would this positioning not create an impact in the consumer's mind?
A)Because consumers can consider only those attributes of which they are aware.
B)Because the positioning effort was kept too simple and complexity was not included.
C)Because the importance attached to the deposit safety attribute is large and uniform across various consumers.
D)Because all the alternative brands are perceived to be about equal on that dimension.

Accepted Answer

If all the alternative brands are perceived to be about equal on the deposit safety attribute, then a bank's positioning using that attribute would not create an impact in the consumer's mind. Consumers need to perceive the bank as offering something unique or superior in order for a positioning strategy to be effective.

Question 17

Michael Porter's generic business strategies are based on two broad needs (attributes) and on the size of the market segment.The two broad attributes are:
A)cost and differentiation
B)cost and positioning
C)positioning and product style
D)segmentation and targeting

Accepted Answer

Michael Porter's generic business strategies are based on achieving competitive advantage through either cost leadership (low cost) or differentiation. These strategies are applied across broad or narrow market segments.

Question 18

A firm is considering introducing a new product category in a highly competitive environment.The marketers obtain customer perceptions of the new product concept relative to likely alternatives on various determinant attributes the new product may contain.Based on this, infer what step of the positioning process is the firm at?
A)determining customers' most preferred combination of determinant attributes
B)examining the fit between preferences of market segments and current position of product
C)determining product's current location in the product space and intensity
D)identifying relevant set of competitive products serving a target market

Accepted Answer

The answer of A firm is considering introducing a new...

Question 19

Identify the incorrect statement concerning positioning.
A)It comprises both competitive and customer needs considerations.
B)This concept is applicable only for an existing brand.
C)It is essentially concerned with differentiation.
D)Generally, it is more difficult for marketers to position services than goods successfully.

Accepted Answer

Positioning can be applied to both existing and new brands.

Question 20

A company with a broad target aimed at gaining a competitive advantage through lower costs will use a:
A)differentiation-based focus strategy
B)differentiation strategy
C)cost leadership strategy
D)cost-based focus strategy

Accepted Answer

A cost leadership strategy focuses on achieving a competitive advantage through lower costs than competitors. This aligns with the company's broad target of reaching as many customers as possible, and therefore, cost leadership strategy is the best fit.

Quiz 7: Differentiation and Brand Positioning

Which positioning concept is illustrated by a clothing manufacturer claiming that their shirts are made from pure organic cotton?

Michael Porter identified three generic business strategies.These are:

Which of the following is a characteristic of physical positioning?

'At Fidelity, you're not just buying a fund, a stock, or a bond-you're buying a better way to manage it.' Identify the determinant attribute being used here.

'Some people will pay considerably more for Bayer aspirin than for an unadvertised private label aspirin, even though they are essentially the same product.' What does this statement signify?

Physical positioning helps in all of the following ways except:

Customers are surveyed and asked their preferences among various real or hypothetical product configurations, each with attributes that are systematically varied.This is an example of:

Identify a limitation of physical positioning.

Identify the incorrect statement concerning the positioning grid.

In entrepreneurial start-ups, there are two ongoing issues that are essential if whatever brand value that's been built is to be maintained and grown.These are:

Which of the following examples best illustrates perceptual positioning?

Volvo's emphasis on safety, Toyota's emphasis on reliability and the Holden Monaro's promise of old magic and style in motoring highlight which determinant attribute?

Identify the limitation of product positioning analysis.

A bank positions itself using its deposit safety attribute.Why would this positioning not create an impact in the consumer's mind?

Michael Porter's generic business strategies are based on two broad needs (attributes) and on the size of the market segment.The two broad attributes are:

Identify the incorrect statement concerning positioning.

A company with a broad target aimed at gaining a competitive advantage through lower costs will use a: