Question 1

A retro brand is a brand that has been successfully repositioned after experiencing a steep decline in market responses.

Accepted Answer

A retro brand is a brand that has been given new life by returning to its roots, or to the original strategy that made it successful. This can include vintage branding or imagery, or a renewed emphasis on quality or craftsmanship. Retro brands are often successful because they tap into nostalgia and a desire for authenticity in a world that can feel increasingly disconnected and artificial. Therefore, a retro brand is often the result of successful repositioning after experiencing a decline in market responses.

Question 2

Holiday Inn has divided the total customer market into smaller segments and selected the most promising segments. Deciding what position it wants to occupy in these segments is called targeting.

Accepted Answer

The process described is segmentation and targeting, but deciding the position it wants to occupy in these segments is called positioning, not targeting. Targeting is the process of selecting the segments to focus on.

Question 3

Why might a marketer of laundry detergent be interested in viewing a perceptual map?

Accepted Answer

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Question 4

Zappos, the online shoe and clothing marketer, promises free shipping and free returns on any of its products, no questions asked. This is an example of how Zappos has a strong competitive advantage through ________.
A) image
B) people
C) services
D) product features
E) cost

Accepted Answer

Zappos' competitive advantage comes from their superior customer service, particularly in their policy of free shipping and returns, which makes it easier for customers to shop with them without the fear of losing money if they are not happy with their purchase. This helps them stand out in the market and attract more customers.

Question 5

Competitive advantage can be created by offering a lower price for a product that is similar to the competition's product.

Accepted Answer

By offering a lower price, a company can attract customers who are price-sensitive and gain a competitive advantage over competitors who offer similar products at a higher price. However, offering a lower price is not the only way to create competitive advantage. Companies can also differentiate their products through quality, features, branding, customer service, or other factors.

Question 6

Once a brand's position is established, marketers rarely attempt to change it.

Accepted Answer

Marketers may attempt to change a brand's position if they feel it is necessary to stay relevant or competitive in the market. However, it is a careful process and can be risky, as it can alienate existing customers who are loyal to the brand's current position.

Question 7

Which of the following is true of perceptual maps?
A) They are only used during the new product development process.
B) They are the most effective method for predicting product success.
C) They identify consumer shopping preferences in terms of retail and nonretail locations.
D) They are not useful in business-to-business marketing.
E) They cannot be created without consumer research.

Accepted Answer

Perceptual maps require consumer research to understand how consumers perceive different brands in the market. Without consumer research, it is impossible to create an accurate and effective perceptual map. The other options are incorrect as perceptual maps are not limited to new product development, are not the most effective method for predicting product success, can be used to identify consumer preferences beyond shopping locations, and can also be used in business-to-business marketing.

Question 8

Identify three forms of competitive advantage a product could offer.

Accepted Answer

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Question 9

Explain the concept of positioning and the steps marketers take to develop and implement a positioning strategy.

Accepted Answer

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Question 10

Why is it important for marketers to analyze the positions of both direct and indirect competitors? Give an example of direct and indirect competitors for a supermarket.

Accepted Answer

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Quiz 7: Segmentation, Target Marketing, and Positioning