Question 1

Research suggests that on average, consumers are able to remember at least 10 different brands for any given product class.

Accepted Answer

A) True 
 B)False

Question 2

The first step in the positioning process is to identify a relevant set of competitive products.

Accepted Answer

A) True 
 B)False

Question 3

Identify a limitation of physical positioning.

Accepted Answer

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.E) C) and D)
F) B) and D)

Question 4

Brand equity is the result of a firm's ability to:

Accepted Answer

A)  create differences that consumers find meaningful between their brands and other brands
B)  maintain high levels of customer service coupled with competitive pricing
C)  expend resources on advertising and promotion
D)  capitalise on a niche-market, thereby securing a unique position in relation to competitorsE) A) and B)
F) A) and C)

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?

Accepted Answer

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.E) B) and C)
F) None of the above

Question 6

Which of the following is a characteristic of physical positioning?

Accepted Answer

A)  large number of dimensions
B)  consumer orientation
C)  represents impact of product specs
D)  represents impact of communicationE) A) and B)
F) A) and C)

Question 7

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:

Accepted Answer

A)  cost and differentiation
B)  cost and positioning
C)  positioning and product style
D)  segmentation and targetingE) All of the above
F) B) and C)

Question 8

Which of the following examples best illustrates perceptual positioning?

Accepted Answer

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 teethE) A) and C)
F) B) and D)

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?

Accepted Answer

A)  simple physically based attributes
B)  complex physically based attributes
C)  essentially abstract attributes
D)  priceE) C) and D)
F) A) and D)

Question 10

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:

Accepted Answer

A)  brand recall and brand reinforcement
B)  brand equity and brand loyalty
C)  brand reinforcement and brand revitalisation
D)  brand awareness and brand positioningE) A) and B)
F) B) and D)

Question 11

Effective positioning assists in:

Accepted Answer

A)  building brand equity.
B)  product recalls.
C)  the research and development process.
D)  enabling price increases to be implemented regularly.E) B) and C)
F) None of the above A

Question 12

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?

Accepted Answer

A)  features
B)  manufacturing process
C)  benefits
D)  endorsementsE) All of the above
F) A) and D)

Question 13

There are three useful tools for analysing the current positions of products in the competitive set.

Accepted Answer

A) True 
 B)False

Question 14

Michael Porter identified three generic business strategies.These are:

Accepted Answer

A)  cost leadership, differentiation, focus
B)  cost leadership, positioning, focus
C)  strategic intent, differentiation, cost leadership
D)  segmentation, targeting, positioningE) A) and C)
F) A) and B)

Question 15

'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.

Accepted Answer

A)  parentage
B)  comparison
C)  ingredients
D)  pro-environmentE) A) and C)
F) B) and C)

Question 16

Physical positioning helps in all of the following ways except:

Accepted Answer

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.E) None of the above
F) B) and D)

Question 17

What are positioning statements and value propositions? Briefly explain their features.

Accepted Answer

Positioning statement: a succinct statement that identifies the target market for which the product is intended and the product category in which it competes and states the unique benefit the product offers.
Value proposition: states what the product does for the customer, includes information about pricing relative to competitors, and states a product's positioning.
Both statements should reflect a unique selling proposition (USP) that the product embodies.A value proposition typically looks like this: (1) target market; (2) benefits offered (and not offered); (3) price range (relative to competitors).Both these statements should state benefits of the product, rather than its features.When used internally and by others, they are typically not written in catchy consumer language, though catchy slogans and tag lines for communication with customers often follow.They are most commonly written for a product line or a brand, but sometimes for a single product or for a business as a whole.When used at the business level, they should articulate the strategic direction for the company.

Question 18

In a market where customers perceive one brand or a limited number of brands as dominant, the best chance of survival for a competitor's offerings lies in obtaining a profitable position within a market segment not dominated by a leading brand.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

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.E) A) and B)
F) A) and C)

Question 20

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

Accepted Answer

A)  differentiation-based focus strategy
B)  differentiation strategy
C)  cost leadership strategy
D)  cost-based focus strategyE) C) and D)
F) None of the above C

Exam 7: Differentiation and Brand Positioning

Research suggests that on average, consumers are able to remember at least 10 different brands for any given product class.

Correct Answer
verified

The first step in the positioning process is to identify a relevant set of competitive products.

Correct Answer
verified

Identify a limitation of physical positioning.

Correct Answer
verified

Brand equity is the result of a firm's ability to:

Correct Answer
verified

Correct Answer
verified

Which of the following is a characteristic of physical positioning?

Correct Answer
verified

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:

Correct Answer
verified

Which of the following examples best illustrates perceptual positioning?

Correct Answer
verified

Correct Answer
verified

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:

Correct Answer
verified

Effective positioning assists in:

Correct Answer
verified
A

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?

Correct Answer
verified

There are three useful tools for analysing the current positions of products in the competitive set.

Correct Answer
verified

Michael Porter identified three generic business strategies.These are:

Correct Answer
verified

'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.

Correct Answer
verified

Physical positioning helps in all of the following ways except:

Correct Answer
verified

What are positioning statements and value propositions? Briefly explain their features.

In a market where customers perceive one brand or a limited number of brands as dominant, the best chance of survival for a competitor's offerings lies in obtaining a profitable position within a market segment not dominated by a leading brand.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified
C

Exam 7: Differentiation and Brand Positioning

Research suggests that on average, consumers are able to remember at least 10 different brands for any given product class.

Correct AnswerverifiedShow Answer

The first step in the positioning process is to identify a relevant set of competitive products.

Correct AnswerverifiedShow Answer

Identify a limitation of physical positioning.

Correct AnswerverifiedShow Answer

Brand equity is the result of a firm's ability to:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is a characteristic of physical positioning?

Correct AnswerverifiedShow Answer

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:

Correct AnswerverifiedShow Answer

Which of the following examples best illustrates perceptual positioning?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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:

Correct AnswerverifiedShow Answer

Effective positioning assists in:

Correct AnswerverifiedA

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?

Correct AnswerverifiedShow Answer

There are three useful tools for analysing the current positions of products in the competitive set.

Correct AnswerverifiedShow Answer

Michael Porter identified three generic business strategies.These are:

Correct AnswerverifiedShow Answer

'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.

Correct AnswerverifiedShow Answer

Physical positioning helps in all of the following ways except:

Correct AnswerverifiedShow Answer

What are positioning statements and value propositions? Briefly explain their features.

In a market where customers perceive one brand or a limited number of brands as dominant, the best chance of survival for a competitor's offerings lies in obtaining a profitable position within a market segment not dominated by a leading brand.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedC

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A

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C