Scenario 1-1
In 1996, a graduate from the University of Maryland, Kevin Plank, founded Under Armour, a performance apparel company that now competes with some of the top apparel brands in the industry. During its first ten years of operations, the company was known primarily for its sweat-wicking clothing line. In late 2010, however, Under Armour released its first line of basketball shoes. "Along with the new product line, the company must have a new brand image," said Plank. "I called our marketing team and asked them to go through this building and find anything that says that we are only an apparel brand and throw it away." The company also removed all advertisements carrying the word "apparel," and began exploring new ways to promote the brand. The company hopes its new efforts will allow the company to be viewed as an overall "performance" company, which will ultimately enable it to compete with footwear powerhouses Nike and Adidas, and will help increase its current 1.1 percent market share.
-(Scenario 1-1)The marketing team of Under Armour has come up with a strategy to advertise their shoes as a product that makes walking and running pleasurable.Marketing the shoes in this manner creates a perceived difference in the minds of customers.This is an example of _______.

Question

Scenario 1-1
In 1996, a graduate from the University of Maryland, Kevin Plank, founded Under Armour, a performance apparel company that now competes with some of the top apparel brands in the industry. During its first ten years of operations, the company was known primarily for its sweat-wicking clothing line. In late 2010, however, Under Armour released its first line of basketball shoes. "Along with the new product line, the company must have a new brand image," said Plank. "I called our marketing team and asked them to go through this building and find anything that says that we are only an apparel brand and throw it away." The company also removed all advertisements carrying the word "apparel," and began exploring new ways to promote the brand. The company hopes its new efforts will allow the company to be viewed as an overall "performance" company, which will ultimately enable it to compete with footwear powerhouses Nike and Adidas, and will help increase its current 1.1 percent market share. 
-(Scenario 1-1)The marketing team of Under Armour has come up with a strategy to advertise their shoes as a product that makes walking and running pleasurable.Marketing the shoes in this manner creates a perceived difference in the minds of customers.This is an example of _______.

Quizplus · Accepted Answer

Differentiation means creating a perceived difference in the minds of customers, which is exactly what the marketing team of Under Armour is doing by promoting their shoes as a product that makes walking and running pleasurable. Internal positioning is about how a company positions its different products, which is not the case here as Under Armour is focused on promoting its shoes as a performance product. Brand extension refers to a company using its existing brand to launch new products or product lines, which is not the case here as Under Armour is not launching a new product line. Market segmentation refers to dividing a market into smaller segments based on different criteria, which is not relevant in this context.

Scenario 1-1 In 1996, a Graduate from the University of Maryland, Kevin