Chapter 10: Crafting the Brand Positioning

GENERAL CONCEPT QUESTIONS Multiple Choice

1. As part of the strategic brand management process, each company and offering must represent a distinctive ________ in the mind of the target market. a. promotion b. cell c. big idea d. ad e. organizational concept Answer: c Page: 300 Difficulty: Medium AACSB: Reflective Thinking 2. All marketing strategy is built on STPsegmentation, targeting, and ________. a. positioning b. product c. planning d. promotion e. performance Answer: a Page: 300 Difficulty: Medium AACSB: Analytic Skills 3. ________ is the act of designing the companys offering and image to occupy a distinctive place in the minds of the target market. a. Positioning b. Product conceptualization c. Promotion presentation d. Performance imaging e. Preproduct launching Answer: a Page: 300 Difficulty: Easy AACSB: Analytic Skills 4. Which of the following best describes Volvos value proposition? a. We charge a 20% premium on our cars. b. We target safety-conscious upscale families. c. We sell the safest, most durable wagon in which your family can ride. d. We make cars. e. None of the above is a value proposition. Answer: c Page: 300 Difficulty: Medium AACSB: Reflective Thinking

Part 4: Building Strong Brands

5. The result of positioning is the successful creation of ________, a cogent reason why the target market should buy the product. a. an award winning promotional campaign b. a customer-focused value proposition c. a demand channel d. everyday low pricing e. strategic window of opportunity Answer: b Page: 300 Difficulty: Hard AACSB: Reflective Thinking 6. A starting point in defining a competitive frame of reference for a brand positioning is to determine ________the products or sets of products with which a brand competes and which function as close substitutes. a. functional membership b. competitive field c. category membership d. value membership e. demand field Answer: c Page: 300 Difficulty: Medium AACSB: Analytic Skills 7. Which of the following terms is most closely associated with the following statement: attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand? a. Brand image b. Points-of-difference c. Points-of-parity d. Points of value e. Brand concept Answer: b Page: 301 Difficulty: Medium AACSB: Analytic Skills 8. ________ are associations that are not necessarily unique to the brand but may in fact be shared with other brands. a. Points-of-parity b. Points-of-difference c. Brand cells d. Brand positions e. Points of competitive field Answer: a Page: 301 Difficulty: Medium 9. To achieve a point-of-parity (POP) on a particular attribute or benefit, a sufficient number of consumers must believe that the brand is ________ on that dimension. a. most excellent b. neutral c. marginal d. good enough e. service based Answer: d Page: 303 Difficulty: Medium AACSB: Reflective Thinking

Chapter 10: Crafting the Brand Positioning

10. When BMW created ________ with its luxury and performance approach, it was able to maximize both attributes and benefits. a. its core identity b. a core competency c. deliverability criteria d. a straddle position e. competitive parity Answer: d Page: 303 Difficulty: Medium AACSB: Reflective Thinking 11. The preferred approach to positioning is to inform consumers of a brands membership before stating its ________. a. point-of-parity b. point-of-difference c. point of conflict d. point of weakness e. point of reference Answer: b Page: 303 Difficulty: Medium AACSB: Analytic Skills 12. There are three main ways to convey a brands category membership: announcing category benefits, ________, and relying on the product descriptor. a. overt publicity b. industry trade press c. buzz marketing d. preference positions e. comparing to exemplars Answer: e Page: 303 Difficulty: Hard AACSB: Communication 13. A brownie mix might claim to taste great and support this claim by including highquality ingredients or by showing users delighting in its consumption, thereby communicating its membership of the baked desserts category through ________. a. announcing category benefits b. comparing to exemplars c. relying on the product descriptor d. communicating deliverability variables e. identifying counterexamples Answer: a Page: 303 Difficulty: Medium AACSB: Communication 14. Points-of-parity are driven by the needs of category membership and ________. a. loyalty b. large margins c. guaranteed profits d. the necessity of negating competitors PODs (points-of-difference) e. the creation of PODs (points-of-difference) Answer: d Page: 303 Difficulty: Hard AACSB: Reflective Thinking

Part 4: Building Strong Brands

15. ________ are typically the least desirable level to position a brands points-ofdifference, in part because competitors can easily copy them. a. Benefits b. Attitudes c. Values d. Attributes e. Messages Answer: d Page: 305 Difficulty: Medium AACSB: Reflective Thinking 16. Marketers must decide at which level to anchor the brands points-of-differences. At the lowest level are ________. For example, Dove soap can talk about the fact that it is one-quarter cleansing cream. a. brand values b. brand attributes c. brand benefits d. brand specifications e. brand partitions Answer: b Page: 305 Difficulty: Medium AACSB: Analytic Skills 17. One common difficulty in creating a strong, competitive brand positioning is that many of the attributes or benefits that make up the points-of-parity and points-ofdifference are ________. a. negatively correlated b. positive correlated c. neither positive nor negatively correlated d. inversely correlated e. unable to be correlated Answer: a Page: 306 Difficulty: Hard AACSB: Analytic Skills 18. All of the following would be considered to be among examples of negatively correlated attributes and benefits EXCEPT ________. a. low price versus high quality b. taste versus low calories c. supply versus demand d. powerful versus safe e. nutritious versus good tasting Answer: c Pages: 307 Difficulty: Easy AACSB: Reflective Thinking 19. There are at least three key consumer desirability criteria for PODs (points-ofdifference): relevance, distinctiveness, and ________. a. believability b. presentation style c. economy d. nontechnological e. information content Answer: a Page: 306 Difficulty: Medium AACSB: Analytic Skills

Chapter 10: Crafting the Brand Positioning

20. Which of the following desirability criteria asks a question such as Is the positioning preemptive, defensible, and difficult to attack? when determining a POD (point-ofdifference)? a. feasibility b. communicability c. sustainability d. knowledgeable e. value orientation Answer: c Page: 306 Difficulty: Hard AACSB: Analytic Skills 21. For a point-of-difference to possess ________, target consumers must find it unique and superior. a. distinctiveness b. communicability c. relevance d. believability e. feasibility Answer: a Page: 306 Difficulty: Medium 22. In a positioning statement, the case for the product rests on its ________. a. product category b. points-of-difference c. target consumer d. consumer need e. brand Answer: b Page: 306 Difficulty: Hard AACSB: Analytic Skills 23. ________ is a companys ability to perform in one or more ways that competitors cannot or will not match. a. Positioning b. Deliverability c. Competitive advantage d. Distribution e. Differentiation Answer: c Page: 308 Difficulty: Medium AACSB: Analytic Skills 24. The obvious means of differentiation, and often most compelling ones to consumers, relate to aspects of the ________. a. price b. distribution process c. promotions d. product and service e. sales team responsible for the product or service Answer: d Page: 308 Difficulty: Medium AACSB: Reflective Thinking

Part 4: Building Strong Brands

25. A ________ is one that a company can use as a springboard to new advantages. a. customer advantage b. leverageable advantage c. real advantage d. realized advantage e. distinct advantage Answer: b Page: 308 Difficulty: Medium AACSB: Analytic Skills The primary explanation for Singapore Airlines extraordinary worldwide market share is that Singapore Airlines Singapore Girl persona has struck a responsive chord with much of the travelling public. This is an example of ________. a. personnel differentiation b. channel differentiation c. position differentiation d. maturity differentiation e. image differentiation Answer: e Page: 309 Difficulty: Medium
26.

27. To say that a product has a life cycle is to assert all of the following EXCEPT ________. a. products have a limited life b. product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller c. products all basically exhibit cycle-recycle growth patterns d. profits rise and fall at different stages of the product life cycle e. products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each life-cycle stage Answer: c Page: 310 Difficulty: Medium AACSB: Reflective Thinking 28. The four stages of the product life cycle include all of the following EXCEPT ________. a. decline b. learning c. maturity d. introduction e. growth Answer: b Page: 310 Difficulty: Easy AACSB: Analytic Skills 29. The ________ stage of the product life cycle is a period of rapid market acceptance and substantial profit improvement. a. introduction b. growth c. maturity d. saturation e. decline Answer: b Page: 310 Difficulty: Medium AACSB: Analytic Skills

Chapter 10: Crafting the Brand Positioning

30. According to the general bell-shaped curve used to illustrate the product life cycle, which of the following stages is generally seen when the sales curve is at its peak? a. Introduction b. Growth c. Maturity d. Decline e. Abandonment Answer: c Page: 310 Difficulty: Easy 31. According to the illustrations describing the product life cycle, during which stage of the cycle is there a strong likelihood that negative profits will be the norm? a. Introduction b. Growth c. Maturity d. Decline e. Abandonment Answer: a Page: 310 Difficulty: Medium AACSB: Analytic Skills 32. Which of the following common product life-cycle patterns would be characterized as being one where sales grow rapidly when the product is first introduced and then fall to a petrified level that is sustained by late adopters buying the product for the first time and early adopters replacing the product? a. Cycle-recycle pattern b. Scalloped pattern c. Growth-slump-maturity pattern d. Reverse-cycle pattern e. Inverse-cycle pattern Answer: c Page: 311 Difficulty: Medium 33. A product such as nylon (e.g., numerous usesparachutes, hosiery, shirts, carpeting, et cetera) has been characterized as having a ________ pattern to its product lifecycle. a. growth-slump-maturity b. scalloped c. cycle-recycle d. triangular e. fad Answer: b Page: 311 Difficulty: Hard AACSB: Analytic Skills When Mrs Tam chose his new home, he picked a Tudor design. Tudor is best described as a(n) ________ in home design. a. style b. fashion c. fad d. ideation e. technological Answer: a Page: 311 Difficulty: Medium AACSB: Analytic Skills
34.

Part 4: Building Strong Brands

35. ________ do not normally survive (as a special category product life cycle) because they do not normally satisfy a strong need. a. Styles b. Fashions c. Fads d. Intra-brands e. Trends Answer: c Page: 311 Difficulty: Easy 36. Which of the following product life-cycle stages would be appropriately described as being one where firms focus mainly on buyers from higher-income groups and prices tend to be high because costs are high? a. Introduction stage b. Growth stage c. Maturity stage d. Saturation stage e. Decline stage Answer: a Page: 312 Difficulty: Medium AACSB: Reflective Thinking 37. Most studies indicate, with respect to the product life cycle in its introductory stage, that the ________ gains the greatest advantage. a. market pioneer b. market nicher c. market reverser d. market follower e. market challenger Answer: a Page: 312 Difficulty: Hard 38. Tellis and Golder identified five factors as underpinning long-term market leadership. Which of the following is NOT one of those factors? a. Vision of mass market b. Persistence c. Slash-and-burn tactics d. Relentless innovation e. Asset leverage Answer: c Page: 314 Difficulty: Medium AACSB: Reflective Thinking 39. Which of the following product life cycle stages is characterized as being one where a rapid climb in sales occurs, new product features are introduced by new competitors, and distribution is expanded? a. Prepioneering b. Introduction c. Saturation d. Growth e. Maturity Answer: d Page: 314 Difficulty: Medium AACSB: Analytic Skills

Chapter 10: Crafting the Brand Positioning

40. All of the following strategies have been suggested as proper for sustaining rapid market growth during the growth stage of the product life cycle EXCEPT ________. a. improving product quality and adding new product features and improved styling b. entering into new market segments c. lowering prices to attract the next layer of price-sensitive buyers d. shifting from product-awareness advertising to product-preference advertising e. moving to sue all new entrants into the marketplace Answer: e Pages: 314 Difficulty: Medium AACSB: Reflective Thinking 41. Today, most products are in the ________ of the life cycle, and most marketing managers must cope with the problems and challenges of this stage. a. prepioneering stage b. introduction stage c. growth stage d. maturity stage e. decline stage Answer: d Page: 315 Difficulty: Medium AACSB: Analytic Skills 42. The maturity stage of the product life cycle can be divided into three distinct phases. If the absolute level of sales starts to decline and customers begin switching to other products, the product is most likely in the ________ phase of the maturity stage. a. growth b. decaying maturity c. stable d. competitive vulnerability e. abandonment Answer: b Page: 315 Difficulty: Medium AACSB: Reflective Thinking 43. A company might try to expand the market for its mature brand by working with the two factors that make up sales volume. Volume equals (=) ________. a. supply times (X) demand b. number of brand users times (X) amount of money spent on each purchase c. number of brand users times (X) usage rate per user d. price level of the product times (X) the number of items purchased e. price level of the product times (X) the number in the market segment selected for targeting Answer: c Page: 315 Difficulty: Hard AACSB: Analytic Skills 44. When Campbells soups began advertising its soups as excellent snacks, it was using which of the following volume-oriented brand usage strategies? a. Use the product on more occasions. b. Use more of the product on each occasion. c. Use the product in new ways. d. Use improved quality to attract new users. e. Use the product in older, more traditional ways. Answer: a Page: 317 Difficulty: Medium AACSB: Reflective Thinking

Part 4: Building Strong Brands

45. Managers try to stimulate sales by modifying the products characteristics. Which of these modifications has as its aim to increase the products functional performance? a. Feature improvement b. Style improvement c. Fashion improvement d. Packaging improvement e. Quality improvement Answer: e Page: 318 Difficulty: Hard AACSB: Reflective Thinking 46. When Vlasic created a cucumber 10 times larger than the traditional pickle cucumber (e.g., Hamburger Stackers), it used ________ as a means of modifying its product so additional customers might be attracted to the brand. a. quality improvement b. feature improvement c. style improvement d. packaging improvement e. idea improvement Answer: b Page: 318 Difficulty: Medium 47. Marketing programs can be modified to stimulate sales. Which of the following forms of marketing program modification might seek to speed delivery or extend more credit? a. Pricing b. Distribution c. Advertising d. Personal selling e. Services Answer: e Page: 319 Difficulty: Medium AACSB: Reflective Thinking 48. In the decline phase of the product life cycle, if a firm milks the firms investment to recover cash quickly, it is using a strategy called ________. a. positioning b. reverse engineering c. psychological divestment d. harvesting e. abandonment Answer: d Page: 319 Difficulty: Medium AACSB: Analytic Skills 49. If an organization chooses harvesting as a decline stage PLC strategy, the first step in using such a strategy would likely be to ________. a. rejuvenate the brand or product b. cut R&D costs and plant and equipment investment c. cut all promotional expenses d. cancel distribution contracts e. require that all distributors reduce inventory of older models of the product Answer: b Page: 320 Difficulty: Hard AACSB: Reflective Thinking

Chapter 10: Crafting the Brand Positioning

50. Markets are similar to products with respect to life-cycle concepts. All of the following are considered to be stages that markets pass through in market evolution EXCEPT ________. a. emergence b. growth c. decline d. maturity e. destruction Answer: e Page: 323 Difficulty: Easy 51. Which of the following is a popular criticism of product life-cycle theory? a. It is too costly to implement. b. It has few actual examples that can be benchmarked. c. It works only in the U.S. market. d. Life-cycle patterns are too variable in shape and duration. e. Stages often follow fad trends. Answer: d Page: 322 Difficulty: Medium AACSB: Analytic Skills Which of the following stages of the product life cycle (PLC) is characterized as being one where there are low sales, high cost per customer, negative profits, and few competitors? a. Introduction b. Growth c. Maturity d. Decline e. Abandonment Answer: a Page: 321 Difficulty: Medium AACSB: Analytic Skills
52.

53. During which of the following stages of the product life cycle (PLC) would we expect a marketing manager to pursue a marketing objective of maximizing market share? a. Introduction b. Growth c. Maturity d. Decline e. Abandonment Answer: b Page: 321 Difficulty: Hard AACSB: Analytic Skills 54. When sales peak, there is a low cost per customer, profits are high, and the marketing manager attempts to maximize profit while defending market share, the product is most likely in the ________ stage of the product life cycle (PLC). a. introduction b. prepioneering c. growth d. maturity e. decline Answer: d Page: 321 Difficulty: Medium

Part 4: Building Strong Brands

55. A manufacturer of calculators finds that there is an even split between customers who want small handheld calculators and those that want large ones. This type of market, in which buyer preferences scatter evenly, is called a(n) ________ market. a. emerging b. mass market c. diffused-preference d. niche e. standardized Answer: c Page: 321 Difficulty: Medium AACSB: Analytic Skills 56. Francis Kelly and Barry Silverstein define a ________ as one that stands out, not just in its own product category but from all other brands, and that achieves significant results in the marketplace. a. point-of-difference b. breakaway brand c. point-of-parity d. negatively correlated brand attribute e. fragmented market Answer: b Page: 322 Difficulty: Medium AACSB: Analytic Skills 57. If an entrepreneur discovers that her firms market is one of diffused preferences, she can use a ________ to expand sales while keeping costs low. a. mass-market strategy b. multiple-niche strategy c. bipolar design strategy d. standardized niche strategy e. single-niche strategy Answer: e Page: 323 Difficulty: Hard AACSB: Reflective Thinking 58. During the ________ phase of market evolution, if a new product sells well, new firms enter the market. a. induction b. emergence c. growth d. maturity e. decline Answer: c Page: 323 Difficulty: Medium 59. As market growth slows during the maturity stage of market evolution, the market splits into finer segments and high ________ occurs. a. market ideation b. market consolidation c. market fragmentation d. market deflation e. market escalation

Chapter 10: Crafting the Brand Positioning

Answer: c

Page: 323

Difficulty: Medium AACSB: Analytic Skills

Part 4: Building Strong Brands

60. Market fragmentation in the market evolution process is often followed by ________ caused by the emergence of a new attribute that has strong appeal. a. a market consolidation b. a market dissolution c. a market expansion d. a market abandonment e. a market harvesting Answer: a Page: 324 Difficulty: Medium AACSB: Reflective Thinking 111. Its not delivery, its DiGiorno! This ad campaign helped DiGiornos pizza become the frozen pizza leader. Which of the following terms is most associated with the companys promotional success strategy? a. Price leader b. Value relationships c. Vertical integration d. Superior quality control e. Clever positioning Answer: e Page: 300 Difficulty: Medium AACSB: Reflective Thinking 112. ________ may be based on virtually any type of attribute or benefit. For example, FedEx uses guaranteed overnight delivery and Nike uses performance. a. Points-of-parity b. Points-of-difference c. Points of conflict d. Points of defensibility e. Points of service Answer: b Page: 301 Difficulty: Medium AACSB: Analytic Skills

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113.

Consumers might not consider a travel agency truly a travel agency unless it is able to make air and hotel reservations, provide advice about leisure packages, and offer various ticket payment and delivery options. These service elements are considered ________. a. competitive points-of-difference b. competitive points-of-parity c. category points-of-difference d. category points-of-parity e. conceptual points-of-parity Answer: d Page: 303 Difficulty: Medium AACSB: Analytic Skills 114. As a marketing manager, which of the following would be the best purpose for your organizations competitive points-of-parity? a. To point out competitive points-of-difference b. To emphasize competitive points-of-difference c. To rationalize competitive points-of-difference d. To globalize competitive points-of-difference e. To negate competitive points-of-difference Answer: e Page: 303 Difficulty: Medium 115. If your task was to construct a positioning statement for a new product that your company was considering as an addition to your product portfolio, what would be the best first step for you to take? a. State the products cost b. State the products membership in a category c. State who manufactured the product d. State the image of the product e. State who would distribute the product Answer: b Page: 304 Difficulty: Hard AACSB: Reflective Thinking 116. Tums claims to have the most acid-reducing components of any antacid. In what way is the brands category membership being conveyed? a. Comparing to exemplars b. Relying on the product descriptor c. Announcing category benefits d. Focusing on reliability e. Persuasion based on believability Answer: c Page: 305 Difficulty: Medium AACSB: Communication

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117.

A marketer that wants to anchor a point-of-difference for Dove soap on brand benefits might emphasize which of the following? a. The soap is one-quarter cleansing cream. b. Dove products include bar soaps and shampoos. c. Dove soap helps users have softer skin. d. The Dove brand is widely available. e. None of the above. Answer: c Page: 306 Difficulty: Medium AACSB: Reflective Thinking 118. Assume that you are in a position to develop your organizations points-ofdifference for an upcoming promotional campaign. Which of the following sets of consumer desirability criteria would best fit your promotional task? a. Value, location, service b. Loyalty, customization, status c. Value, reliability, dependability d. Relevance, distinctiveness, believability e. Licensing opportunities, promotional protection, and believability Answer: d Page: 306 Difficulty: Hard AACSB: Analytic Skills 119. Equal sugar substitute became a category leader by differentiating itself on its authenticity as a product derived from sugar. This POD demonstrates ________ because target consumers found it to be unique and superior. a. believability b. relevance c. feasibility d. communicability e. distinctiveness Answer: e Page: 306 Difficulty: Medium AACSB: Analytic Skills 120. A marketing manager asks a subordinate, Can the favorability of the new brand association we just created in our recent ad campaign be reinforced and strengthened over time? Which of the following delivery criteria used for choosing points-of-difference would be most appropriate to the question asked? a. Relevance b. Communicability c. Sustainability d. Feasibility e. Comparisons Answer: c Page: 306 Difficulty: Hard

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121.

A ________ should follow the form: To (target group and need), our (brand) is (the concept) that (what the point-of-difference is or does). a. feasibility statement b. positioning statement c. breakaway branding campaign d. brand specification e. category membership mechanism Answer: b Page: 307 Difficulty: Medium AACSB: Analytic Skills 122. Which of the following is NOT a negatively correlated attribute and benefit? a. Efficacious versus mild b. Varied versus simple c. Powerful versus safe d. Nutritious versus good tasting e. Low price versus low quality Answer: e Page: 307 Difficulty: Medium AACSB: Analytic Skills 123. Your products profit curve is in the negative. Which of the following stages of the product life cycle is your product most likely in? f. Introduction g. Growth h. Maturity i. Decline j. Abandonment Answer: a Page: 321 Difficulty: Medium 124. While looking a series of special-case product life cycles, you observe that one of the life cycles has had a rapid growth in sales resulting in a severe peak of the sales curve followed by a rapid decline. Which of the following product life-cycle curves is most likely represented by the above illustration? a. Style life cycle b. Fashion life cycle c. Fad life cycle d. Niche life cycle e. Techno life cycle Answer: c Page: 311 Difficulty: Medium AACSB: Analytic Skills

Part 4: Building Strong Brands

The pioneer advantage does not always ensure success in the marketplace. All of the following are reasons cited by the text that a market pioneers product might not be successful EXCEPT ________. a. the new product was too crude b. the new product was improperly positioned c. the new product appeared when there was strong demand d. the product-development costs exhausted the innovators resources e. managerial incompetence Answer: c Page: 312 Difficulty: Medium AACSB: Reflective Thinking 126. While Wikipedia has ridden its pioneer advantage to become as familiar as eBay and Google, Citizendium believes it can overtake Wikipedia as the most popular online collaborative Internet encyclopedia because its ________ includes significantly reduced R&D time. a. product life cycle b. leverageable advantage c. core competency d. channel differentiation e. second mover advantage Page: 312 Difficulty: Medium

125.

Answer: e 127.

Markets often need modification to be able to grow and flourish. When AARP began to recruit members that were 5055 years of age instead of pursuing their normal target market of 65+ seniors, it was using a market modification strategy called ________. a. converting nonusers b. entering new market segments c. winning competitors customers d. value vision e. age discounting Answer: b Page: 317 Difficulty: Medium AACSB: Analytic Skills 128. A firm in the growth stage faces a trade-off between ________ and ________. a. high market share; high current profit b. high valuation; high current profit c. high growth potential; high market share d. high current profit; high growth potential e. high market share; high valuation Page: 321 Difficulty: Hard AACSB: Analytic Skills

Answer: a

Chapter 10: Crafting the Brand Positioning

As an entrepreneur you have decided to launch two products simultaneously to capture two different parts of the market. You are employing a(n) ________. a. single-niche strategy b. multiple-niche strategy c. standardization strategy d. mass-market strategy e. adaptive strategy Answer: b Page: 317 Difficulty: Easy 130. The energy-bar market created by PowerBar ultimately split into a variety of subcategories, including those directed at specific segments and some possessing specific attributes. This is an example of ________. a. market consolidation b. consumer determinism c. breakaway marketing d. market fragmentation e. channel differentiation Page: 320 Difficulty: Hard AACSB: Analytic Skills

129.

Answer: d