Scenario 1-2
Chug Enterprises is considering entering the already-crowded sports drink market with a line of products. The first brand will be advertised to teenagers as being the best-tasting sports drink on the market. The second brand will be advertised to adults as being the lowest calorie sports drink you can buy. The third brand will be advertised to senior citizens as containing calcium, a mineral needed to maintain a healthy bone structure. Each brand will have separate, distinctive packaging. However, the drinks inside are actually identical to one another.
-(Scenario 1-2) Chug Enterprises chose the positions of the three products to appeal to separate target markets. This was done to keep its brands from competing for market share with one another. This shows that Chug understands the importance of

Question

Quizplus · Accepted Answer

The fact that Chug Enterprises created distinct positions for each of their three sports drink brands indicates that they understand the concept of internal positioning, which involves establishing a unique product identity within a company's own product line to avoid competition and maximize market share. External positioning, on the other hand, focuses on positioning a brand against competitors in the market. Inelasticity of demand refers to the responsiveness of consumer demand to changes in price, while the functional nature of consumption pertains to the practical utility or benefits that a product provides to consumers. Neither of these concepts is relevant to the scenario described.

Scenario 1-2 Chug Enterprises Is Considering Entering the Already-Crowded Sports Drink Market