Question 1

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

Accepted Answer

Identifying a relevant set of competitive products is essential in the positioning process as it helps a company understand the market landscape, including direct and indirect competitors, which is crucial for developing a unique value proposition and differentiating the product in the market.

Question 2

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

If a market is dominated by a few strong brands, it can be difficult for a new competitor to gain market share in those established segments. However, there are often niche segments or underserved customer needs that can provide an opportunity for a new brand to succeed. By focusing on a specific market segment, a new brand can differentiate itself from the dominant players and offer unique value to customers.

Question 3

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

Accepted Answer

The answer of What are positioning statements and value propositions?...

Question 4

Differentiation is where a product offering has a unique attribute that customers value and on which they base their decision to make their purchase.

Accepted Answer

This statement is true. Differentiation is a marketing strategy that aims to make a product or service stand out from its competitors by offering unique features or attributes that are valued by customers. These unique features can be related to quality, price, design, functionality, customer service, or any other aspect that sets the product apart from others in the market. By offering a differentiated product, companies can attract customers who are willing to pay more for the added value that the product provides.

Question 5

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

Accepted Answer

There are more than three tools for analyzing the current positions of products in the competitive set, including SWOT analysis, Porter's Five Forces, PESTEL analysis, and the BCG matrix, among others.

Question 6

Positioning perfume as sexy and wine as being of superior quality are examples of complex physically based attributes.

Accepted Answer

Positioning perfume as sexy and wine as being of superior quality are examples of abstract attributes, as they relate to perceptions and subjective opinions rather than tangible, physical characteristics.

Question 7

Using price as one dimension of a positioning grid, or as a key dimension on which a product is positioned, is very useful because price is a key driver of any marketing strategy.

Accepted Answer

Using price as a key driver of the marketing strategy is an unsound option because first, price is easily imitated by competitors and second, claims that one's product—whether a good or a service—is low-priced can lack credibility because most marketers claim this.

Question 8

Both positioning statements and value propositions should generally reflect a unique selling proposition (USP) that the product embodies.

Accepted Answer

Both positioning statements and value propositions are designed to communicate the unique value that a product or service provides to customers, which is often encapsulated in a USP.

Question 9

Jared Fogle's successful weight loss diet consisting of Subway's new healthier sandwiches had inadvertently provided Subway the opportunity to successfully communicate its strategy of repositioning its brand image.

Accepted Answer

Jared Fogle's weight loss with Subway's healthier sandwiches was a marketing campaign that helped Subway reposition its brand image as a healthier alternative to traditional fast food.

Question 10

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

Accepted Answer

Brand equity is created by a firm's ability to differentiate its brand from competitors in a meaningful way to consumers. This differentiation can come from various sources such as quality, design, customer service, or other factors that make the brand stand out in the mind of the consumer. As a result, consumers are willing to pay more for the brand, are loyal to it, and associate positive attributes with it.

Question 11

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

Accepted Answer

Research generally shows that consumers can recall between 3 to 7 brands for a given product category, not 10. This range is more consistent with the limitations of short-term memory as described by Miller's Law.

Question 12

Effective positioning assists in:
A)building brand equity.
B)product recalls.
C)the research and development process.
D)enabling price increases to be implemented regularly.

Accepted Answer

Effective positioning helps in building brand equity by creating a distinct image and value perception in the minds of consumers, which can enhance brand loyalty and recognition.

Quiz 7: Differentiation and Brand Positioning