Chapter 10 PDF

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
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
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
8. ________ are associations that are not necessarily unique to the brand but may in fact
be shared with other brands.
a. Points-of-parity
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
Part 4: Building Strong Brands
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
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
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
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
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
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
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
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
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
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
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
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
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
26. 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
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
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
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
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
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
34. 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
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
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
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
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
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
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
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
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
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
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
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
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
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
52. 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
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
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
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
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
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
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
Answer: c
Page: 323
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
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
111.
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
c. Points of conflict
d. Points of defensibility
e. Points of service
Answer: b
Page: 301
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
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
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
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
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
118.
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
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
120.
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
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
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
123.
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
125.
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
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
Answer: e
Page: 312
Difficulty: Medium
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
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
Answer: a
Page: 321
Difficulty: Hard
129.
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
Answer: d
Page: 320
Difficulty: Hard

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Chapter 10: Crafting the Brand Positioning

GENERAL CONCEPT QUESTIONS

Chapter 10: Crafting the Brand Positioning

Part 4: Building Strong Brands

Chapter 10: Crafting the Brand Positioning

Part 4: Building Strong Brands

Chapter 10: Crafting the Brand Positioning

Part 4: Building Strong Brands

Chapter 10: Crafting the Brand Positioning

Part 4: Building Strong Brands

Chapter 10: Crafting the Brand Positioning

Part 4: Building Strong Brands

Chapter 10: Crafting the Brand Positioning

Part 4: Building Strong Brands

Chapter 10: Crafting the Brand Positioning

Part 4: Building Strong Brands

A marketer that wants to anchor a point-of-difference for Dove soap on brand

Equal sugar substitute became a category leader by differentiating itself on its

Chapter 10: Crafting the Brand Positioning

Which of the following is NOT a negatively correlated attribute and benefit?

Part 4: Building Strong Brands

Chapter 10: Crafting the Brand Positioning

As an entrepreneur you have decided to launch two products simultaneously to

The energy-bar market created by PowerBar ultimately split into a variety of

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