Chapter 10 Crafting The Brand Positioning

Marketing Management, 15e (Kotler)
Chapter 10 Crafting the Brand Positioning
1) All marketing strategy is built on STP: segmentation, targeting, and ________.

A) positioning
B) product
C) planning
D) promotion
E) performance
Answer: A
Diff: 1
LO: 10.1: How can a firm develop and establish an effective positioning in the market?
AACSB: Analytical thinking
2) ________ is the act of designing the company's offering and image to occupy a distinctive
place in the minds of the target market.
A) Positioning
B) Valuation
C) Pricing
D) Commercialization
E) Launching
Answer: A
Diff: 1
3) The goal of positioning is to ________.

A) locate the brand in the minds of consumers to maximize the potential benefit to the firm
B) discover the different needs and groups existing in the marketplace
C) target those customers marketers can satisfy in a superior way
D) collect information about competitors that will directly influence the firms' strategy
E) help the firm anticipate what the actions of its competitors will be
Answer: A
Diff: 2
AACSB: Reflective thinking
1
4) The result of positioning is the successful creation of ________, which provides 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) employee value proposition
Answer: B
Diff: 1
5) Which of the following best describes a car company's value proposition?

A) We charge a 20 percent premium on our cars.
B) We target safety-conscious upscale families.
C) We sell the safest, most durable wagon.
D) We are the market leader in the small car category.
E) We focus on expanding in faster-growing markets.
Answer: C
Diff: 2
AACSB: Analytical thinking; Application of knowledge
6) Perdue's cogent reason why a target market should buy its chicken is "More tender golden
chicken at a moderate premium price," also known as its ________.
A) customer-focused value proposition
B) competitive frame of reference
C) points-of-parity
D) straddle positioning
E) perceptual map
Answer: A
Diff: 3
AACSB: Application of knowledge
7) Which of the following best describes BR Chicken's value proposition?

A) We sell chicken at most major malls.
B) We undertake home delivery services.
C) We target quality-conscious consumers of chicken.
D) We sell tender golden chicken at a moderate price.
E) We charge a 10 percent premium on our chicken.
Answer: D
Diff: 2
2
8) The ________ defines which other brands a brand competes with and therefore which brands
should be the focus of competitive analysis.
A) consumer profitability analysis
B) competitor indexing
C) service blueprint
D) competitive frame of reference
E) cluster analysis
Answer: D
Diff: 2
9) ________ are defined as companies that satisfy the same customer need.
A) Communities
B) Competitors
C) Trendsetters
D) Industries
E) Task groups
Answer: B
Diff: 1
10) A(n) ________ is a group of firms offering a product or class of products that are close
substitutes for one another.
A) community
B) task force
C) industry
D) focus group
E) umbrella brand
Answer: C
Diff: 1
11) All marketing strategy is built on segmentation, targeting, and positioning.

Answer: TRUE
Diff: 1
12) Positioning is the act of designing the company's offering and image to occupy a distinctive
place in the minds of the target market.
Answer: TRUE
Diff: 1
3
13) The result of positioning is the successful creation of an employee-focused value proposition.
Answer: FALSE
Diff: 1
14) Positioning requires that marketers define and communicate only the differences between
their brand and its competitors.
Answer: FALSE
Diff: 1
15) The competitive frame of reference defines which other brands that a brand competes with.
Answer: TRUE
Diff: 2
16) What are the requirements for deciding on a positioning strategy?

Answer: Positioning requires that marketers define and communicate similarities and
differences between their brand and its competitors. Specifically, deciding on a positioning
requires:
• determining a frame of reference by identifying the target market and relevant competition
• identifying the optimal points-of-parity and points-of-difference brand associations given that
frame of reference
• creating a brand mantra to summarize the positioning and essence of the brand
Diff: 2
17) ________ refers to the products or sets of products with which a brand competes and which
function as close substitutes.
A) Consumer profitability analysis
B) Competitive frame of reference
C) Category membership
D) Value membership
E) Demand field
Answer: C
Diff: 1
LO: 10.2: How do marketers identify and analyze competition?
4
18) When Coca-Cola determines the bottled-water competitors for its Dasani brand by
identifying the products or sets of products with which a brand competes and which function as
close substitutes, it is determining Dasani's ________.
A) customer-focused value proposition
B) points-of-parity
C) points-of-difference
D) category membership
E) brand mantra
Answer: D
Diff: 2
19) When Coca-Cola focused on developing its soft drink business but missed seeing the market
for coffee bars and fresh-fruit-juice bars that eventually impinged on its soft-drink business, it
was suffering from ________ because it defined competition in traditional category and industry
terms.
A) factor elimination
B) marketing myopia
C) factor reduction
D) category points-of-parity
E) reliance on product description
Answer: B
Diff: 2
20) Category membership is seen as the products that function as close substitutes of a brand.
Answer: TRUE
Diff: 1
21) A company is more likely to be hurt by current competitors than by emerging competitors or
new technologies.
Answer: FALSE
Diff: 2
22) The industry concept of competition reveals a broader set of actual and potential competitors
than competition defined in just the market concept.
Answer: FALSE
Diff: 2
23) Using the industry approach, competitors are defined as companies that satisfy the same
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customer need.
Answer: FALSE
Diff: 2
24) To analyze its competitors, a company needs to gather information about both the real and
the perceived strengths and weaknesses of each competitor.
Answer: TRUE
Diff: 1
25) With the help of an example, explain why a company's competition may not be from
companies in the same category.
Answer: Student answers will vary. Category membership includes the products or sets of
products with which a brand competes and which function as close substitutes.
After having spent billions of dollars building their networks, cell phone carriers AT&T, Verizon
Wireless, and Sprint face the threat of new competition emerging as a result of a number of
changes in the marketplace: Skype and the growth of Wi-Fi hotspots, municipal Wi-Fi networks
built by cities, and dual mode phones that can easily switch networks.
Diff: 2
26) Belling is a chain of coffee shops. List possible competitors first from an industry point of
view and then from the market point of view.
Answer: Student answers will vary. From an industry point of view, Belling's competitors will
be other coffee shops, coffee machines, and outlets that sell coffee in addition to other foods.
From a market point of view, Belling's competitors could be anything from restaurants to
supermarkets selling ready-to-drink coffee.
Diff: 2
6
27) Which of the following terms is most closely associated with the 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) points-of-inflection
B) points-of-difference
C) points-of-parity
D) points-of-value
E) points-of-presence
Answer: B
Diff: 2
LO: 10.3: How are brands successfully differentiated?
28) Points-of-________ are product associations that are not necessarily unique to the brand but
may in fact be shared with other brands.
A) parity
B) difference
C) inflection
D) presence
E) divergence
Answer: A
Diff: 1
29) The three criteria that determine whether a brand association can truly function as a point-of-
difference are ________.
A) comparability, authenticity, deliverability
B) desirability, peculiarity, deliverability
C) deviance, peculiarity, deformity
D) desirability, deliverability, differentiability
E) differentiability, authenticity, desirability
Answer: D
Diff: 1
30) The three criteria that determine whether a brand association can truly function as a point-of-
difference include desirability, ________, and differentiability.
A) discrimination
B) customerization
C) implementation
D) deliverability
E) demand
Answer: D
Diff: 2
7
31) Which of the following criteria relates to consumers seeing the brand association as
personally relevant to them?
A) deliverability
B) authenticity
C) desirability
D) differentiability
E) feasibility
Answer: C
Diff: 1
32) Which of the following criteria relates to the company having the internal resources and
commitment to feasibly and profitably create and maintain the brand association in the minds of
consumers?
A) differentiability
B) peculiarity
C) desirability
D) believability
E) deliverability
Answer: E
Diff: 1
33) Which of the following criteria relates to consumers seeing the brand association as
distinctive and superior to relevant competitors?
A) desirability
B) differentiability
C) believability
D) deliverability
E) deviance
Answer: B
Diff: 1
34) A brand must demonstrate ________, for it to function as a true point-of-difference.

A) clear superiority of an attribute or benefit
B) clear profitability to the company
C) clear similarity to the attributes of other brands
D) technological advances for an attribute or benefit
E) exploitation of competitors' weakness
Answer: A
Diff: 2
8
35) The two basic forms of points-of-parity are ________ points-of-parity and ________ points-
of-parity.
A) conceptual; competitive
B) strategic; conceptual
C) category; deliverable
D) competitive; peculiar
E) category; competitive
Answer: E
Diff: 1
36) ________ are attributes or benefits that consumers view as essential to a legitimate and
credible offering within a certain product or service class.
A) Category points-of-difference
B) Conceptual points-of-parity
C) Competitive points-of-parity
D) Category points-of-parity
E) Competitive points-of-difference
Answer: D
Diff: 1
37) Philip Morris bought Miller Brewing and launched low-calorie beer, at a time when
consumers had the impression that low-calorie beer does not taste as good as normal beer. What
does the company assure by stating that the beer tastes good?
A) points-of-difference
B) points-of-presence
C) points-of-parity
D) points-of-conflict
E) points-of-inflection
Answer: C
Diff: 2
9
38) When BMW first made its strong competitive push into the US market in the early 1980s, it
positioned the brand as the only automobile that offered both luxury (competing with Cadillac)
and performance (competing with the Corvette), which is known as ________ because it uses
points-of-difference and points-of-parity across categories.
A) a competitive frame of reference
B) zone of tolerance positioning
C) straddle positioning
D) red-ocean thinking
E) perceptual mapping
Answer: C
Diff: 2
39) Philip Morris bought Miller Brewing and launched low-calorie beer, at a time when
consumers had the impression that low-calorie beer does not taste as good as normal beer. What
did the company try to build when they conveyed the fact that the beer contained one third less
calories and hence it is less filling?
A) points-of-difference
B) points-of-conflict
C) points-of-parity
D) points-of-presence
E) points-of-inflection
Answer: A
Diff: 2
40) Consumers might not consider a hand sanitizer truly a hand sanitizer unless they are gels
designed to apply topically, contain alcohol that kills the germs present on the skin, and
developed for use after washing hands or for those times when soap and water are not available.
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
Diff: 2
10
41) Nivea became the leader in the skin cream class on the "gentle," "protective," and "caring"
platform. The company further moved into classes such as deodorants, shampoos, and cosmetics.
Attributes like gentle and caring were of no value unless consumers believed that its deodorant
was strong enough, its shampoo would cleanse, and its cosmetics would be colorful enough. This
is an example of ________.
A) competitive points-of-parity
B) competitive points-of-difference
C) category points-of-parity
D) category points-of-difference
E) competitive points-of-presence
Answer: C
Diff: 2
42) ________ are associations designed to overcome perceived weaknesses of the brand.
A) Conceptual points-of-parity
B) Category points-of-difference
C) Competitive points-of-parity
D) Competitive points-of-difference
E) Category points-of-parity
Answer: C
Diff: 1
43) As a marketing manager, which of the following would be the best purpose for your
organization's competitive points-of-parity?
A) to point out competitors' points-of-difference
B) to emphasize competitors' points-of-difference
C) to rationalize competitors' perceived points-of-difference
D) to globalize competitors' perceived points-of-difference
E) to negate competitors' perceived points-of-difference
Answer: E
Diff: 2
11
44) 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 soap brand has global presence.
E) The brand has recently launched soap for men.
Answer: C
Diff: 2
45) Marketers typically focus on brand ________ in choosing the points-of-parity and points-of-
difference
that make up their brand positioning.
A) equity
B) awareness
C) benefits
D) architecture
E) extensions
Answer: C
Diff: 1
46) ________ are visual representations of consumer perceptions and preferences.

A) Brand narratives
B) Share of mind variables
C) Perceptual maps
D) Exemplars
E) Points-of-parity
Answer: C
Diff: 1
47) Straddle positions ________.

A) help firms to analyze who their competitors are
B) allow brands to expand their market coverage and potential customer base
C) are a necessity while creating a firm's vision and mission statement
D) assist firms in collecting information on competitors that will directly influence their strategy
E) are ambiguous moral principles behind the operation and regulation of marketing
Answer: B
Diff: 2
12
48) Which of the following statements about brand mantras is true?
A) They guide only major decisions, they have no influence on mundane decisions.
B) Their influence does not extend beyond tactical concerns.
C) They must economically communicate what the brand is and avoid communicating what it is
not.
D) They can provide guidance about what ad campaigns to run and where and how to sell the
brand.
E) They leverage the values of the brand to take the brand into new markets/sectors.
Answer: D
Diff: 1
49) American Express' "World-Class Service, Personal Recognition," Mary Kay's "Enriching
women's lives," Hallmark's "Caring Shared," and Starbucks' "Rewarding Everyday Moments"
are examples of brand ________.
A) mantras
B) parity
C) identity
D) architecture
E) extension
Answer: A
Diff: 2
50) Brand ________ are short, three- to five-word phrases that capture the irrefutable essence or
spirit of the brand positioning and ensure that the company's own employees understand what the
brand represents.
A) mantras
B) symbols
C) logos
D) alliances
E) extensions
Answer: A
Diff: 1
13
51) A brand ________ is a translation of the brand mantra that attempts to creatively engage
consumers and others external to the company.
A) vision
B) extension
C) architecture
D) slogan
E) alliance
Answer: D
Diff: 1
52) BMW's "The ultimate driving machine," American Express' "Don't leave home without it,"
New York Times' "All the news that's fit to print," and AT&T's "Reach out and touch someone"
are all examples of brand ________.
A) slogan
B) personality
C) mission
D) architecture
E) vision
Answer: A
Diff: 2
53) A brand mantra should be ________.

A) original, ambiguous, and straightforward
B) unique, complex, and inspirational
C) communicative, simple, and inspirational
D) competitive, sensitive, and simple
E) unique, sensitive, and explanatory
Answer: C
Diff: 1
54) Brand mantras typically are designed to capture the brand's points-of-________, that is, what
is unique about the brand.
A) conflict
B) parity
C) inflection
D) difference
E) presence
Answer: D
Diff: 1
14
55) Points-of-parity are important while designing brand mantras for brands facing ________.
A) rapid growth
B) market saturation
C) slow and steady growth
D) rapid decline
E) stability in sales volume
Answer: A
Diff: 2
56) For brands in more stable categories where extensions into more distinct categories are less
likely to occur, the brand mantra may focus more exclusively on points-of-________.
A) difference
B) presence
C) inflection
D) parity
E) conflict
Answer: A
Diff: 2
57) 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-of-difference are
________.
A) negatively correlated
B) always correlated
C) directly proportional
D) never correlated
E) positively correlated
Answer: A
Diff: 1
58) ________ is a company's ability to perform in one or more ways that competitors cannot or
will not match.
A) Brand positioning
B) Market research
C) Competitive advantage
D) Competitor analysis
E) Competitive intelligence
Answer: C
Diff: 1
15
59) A ________ advantage is one that a company can use as a springboard to new advantages.
A) sustainable
B) leverageable
C) realistic
D) rational
E) distinct
Answer: B
Diff: 2
60) Which of the following types of differentiation relates to companies having better-trained
personnel who provide superior customer service?
A) channel differentiation
B) services differentiation
C) employee differentiation
D) image differentiation
E) product differentiation
Answer: C
Diff: 2
61) Singapore Airlines is well regarded in large part because of the excellence of its flight
attendants. This is an example of ________ differentiation.
A) image
B) services
C) product
D) employee
E) channel
Answer: D
Diff: 2
62) Which of the following types of differentiation refers to companies effectively designing
their distribution medium's coverage, expertise, and performance to make buying the product
easier and more enjoyable and rewarding?
A) services differentiation
B) channel differentiation
C) image differentiation
D) product differentiation
E) employee differentiation
Answer: B
Diff: 1
16
63) Dayton, Ohio-based Iams found success selling premium pet food through regional
veterinarians, breeders, and pet stores. This is an example of ________ differentiation.
A) service
B) employee
C) image
D) product
E) channel
Answer: E
Diff: 2
64) Which of the following is an example of channel differentiation?

A) Berry's has an intensive training program for its customer-facing employees, to ensure a
consistent service standard.
B) The Swan Hotels use a distinctive signature fragrance in all outlets so that customers can
associate the fragrance with the hotel.
C) JEK's sophisticated customer database allows the company to handle queries and product
returns much faster than competitors.
D) RTZ shifted its products from supermarket aisles to exclusive stores as it realized that
customers were willing to pay more in stores.
E) Hayley's found success by allowing buyers to customize the color and some features of its
appliances before buying them.
Answer: D
Diff: 2
65) Which of the following is an example of image differentiation?

A) Berry's has an intensive training program for its customer-facing staff, to ensure a consistent
service standard.
B) The Swan Hotels use a distinctive signature fragrance in all outlets so that customers can
associate the fragrance with the hotel.
C) JEK's sophisticated customer database allows the company to handle queries and product
returns much faster than competitors.
D) RTZ shifted its products from supermarket aisles to exclusive stores as it realized that
customers were willing to pay more in stores.
E) Hayley's found success by allowing buyers to customize the color and some features of its
appliances before buying them.
Answer: B
Diff: 3
17
66) If Starbucks considers quick-serve restaurants and convenience shops in its competitive
frame of reference, then intended ________ might be quality, image, experience and variety,
while intended ________ might be convenience and value.
A) PODs; POPs
B) POPs; PODs
C) substantiators; image variables
D) design variables; personality variables
E) image variables; personality variables
Answer: A
Diff: 2
67) If a brand is developing an offering with multiple frames of reference, which of the
following is NOT advisable?
A) create a combined positioning that addresses all competitors
B) prioritize competitors
C) choose the most important set of competitors to serve as the competitive frame
D) adopt lowest common denominator positioning
E) develop the best possible positioning for each type or class of competitors
Answer: D
Diff: 2
68) Subway restaurants are positioned as offering healthy, good-tasting sandwiches. When the
competitive frame of reference is quick-serve restaurants like McDonald's, what is the POD?
A) health
B) taste
C) convenience
D) price
E) brand
Answer: A
Diff: 2
18
69) Suppliers who are dependable in their on-time delivery, order completeness, and order-cycle
time are most likely to be differentiated based on ________.
A) resilience
B) innovativeness
C) insensitivity
D) reliability
E) expertise
Answer: D
Diff: 2
70) Suppliers who are better at handling emergencies, product recalls, and inquiries are most
likely to be differentiated based on their ________.
A) innovativeness
B) thoroughness
C) resilience
D) insensitivity
E) reliability
Answer: C
Diff: 2
71) A supplier creates better information systems, and introduces barcoding, mixed pallets, and
other methods of helping the consumer. The supplier is most likely to be differentiated on its
________.
A) innovativeness
B) reliability
C) insensitivity
D) resilience
E) accuracy
Answer: A
Diff: 2
72) Associations that make up points-of-difference are based exclusively on product features.
Answer: FALSE
Diff: 1
19
73) Points-of-parity are attributes or benefits consumers strongly associate with a brand and
believe that they could not find to the same extent with a competitive brand.
Answer: FALSE
Diff: 1
74) Points-of-parity may be shared among two or more brands.

Answer: TRUE
Diff: 1
75) Category points-of-parity are unique to a brand.

Answer: FALSE
Diff: 1
76) Category points-of-parity may change over time due to technological advances, legal
developments, or consumer trends.
Answer: TRUE
Diff: 2
77) Category points-of-parity are associations designed to overcome perceived weaknesses of the
brand.
Answer: FALSE
Diff: 2
78) A competitive point-of-parity negates competitors' perceived points-of-difference.

Answer: TRUE
Diff: 2
79) Trying to be all things to all people leads to highest-common-denominator positioning,

which is typically effective.
Answer: FALSE
Diff: 1
20
80) Straddle positioning refers to a brand using different positioning with different categories of
competitors.
Answer: FALSE
Diff: 1
81) Occasionally, a company will be able to straddle two frames of reference with one set of
points-of-difference and points-of-parity.
Answer: TRUE
Diff: 1
82) Perceptual maps provide quantitative portrayals of market situations and the way consumers
view different products, services, and brands along various dimensions.
Answer: TRUE
Diff: 1
83) The purpose of brand mantras is to ensure that employees and external marketing partners
understand what the brand is in order to represent it to the customers.
Answer: TRUE
Diff: 2
84) Brand mantras must communicate both what a brand is and what it is not.
Answer: TRUE
Diff: 2
85) Brand mantras are typically designed to capture the brand's points-of-parity, that is, what is
unique about the brand.
Answer: FALSE
Diff: 1
86) Brands are never affiliated with categories in which they do not hold membership.
Answer: FALSE
Diff: 1
21
87) There are situations in which consumers know a brand's category membership but may not
be convinced the brand is a valid member of the category.
Answer: FALSE
Diff: 2
88) The typical approach to positioning is to inform consumers of a brand's membership before
stating its point-of-difference.
Answer: TRUE
Diff: 1
89) Competitive advantage is a company's ability to perform in one or more ways that
competitors cannot or will not match.
Answer: TRUE
Diff: 1
90) The means of differentiation that are often most compelling to consumers relate to aspects of
the product and service.
Answer: TRUE
Diff: 1
91) Companies cannot achieve differentiation by differentiating their channels, as this is not the
purpose of a distribution channel.
Answer: FALSE
Diff: 1
92) A good positioning should contain points-of-difference and points-of-parity that have
rational but not emotional components.
Answer: FALSE
Diff: 2
22
93) With respect to positioning, explain points-of-parity and points-of-difference.
Answer: Points-of-difference (PODs) are 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. Points-of-parity (POPs), on the other hand, are associations that are not
necessarily unique to the brand but may in fact be shared with other brands.
Diff: 2
94) With the help of an example, explain straddle positioning.

Answer: Student answers will vary. Occasionally, a company will be able to straddle two frames
of reference with one set of points-of-difference and points-of-parity. In these cases, the points-
of-difference for one category become points-of-parity for the other and vice versa. Subway
restaurants are positioned as offering healthy, good-tasting sandwiches. This positioning allows
the brand to create a POP on taste and a POD on health with respect to quick-serve restaurants
such as McDonald's and Burger King and, at the same time, a POP on health and a POD on taste
with respect to health food restaurants and cafés. Straddle positions allow brands to expand their
market coverage and potential customer base.
Diff: 2
95) Provide an example of a leverageable advantage.

Answer: A leverageable advantage is one that a company can use as a springboard to new
advantages. Examples may vary, but the text notes that Microsoft has leveraged its operating
system to Microsoft Office and then to networking applications. In general, a company that
hopes to endure must be in the business of continuously inventing new advantages that can serve
as the basis of points-of-difference.
Diff: 3
96) Explain three variables a firm should consider when analyzing potential threats posed by
competitors.
Answer: In general, the firm should monitor three variables when analyzing potential threats
posed by competitors:
1. Share of market — competitors' share of the target market.
2. Share of mind — percentage of customers who named the competitor in responding to the
statement, "Name the first company that comes to mind in this industry."
3. Share of heart — percentage of customers who named the competitor in responding to the
statement, "Name the company from which you would prefer to buy the product."
Diff: 2
23
97) There are three key consumer criteria that determine whether a brand association can truly
function as a point-of-difference. When the Westin Stamford hotel in Singapore advertised that it
was the world's tallest hotel, it attempted to create a point-of-difference (POD). Explain why the
hotel may not have been successful in its attempt to create its POD.
Answer: Student answers will vary. Consumers must see the brand association as personally
relevant to them. Staying in the tallest hotel might not be a necessary need for most tourists;
there might be other factors that are more important. The hotel was not successful in its attempt
to create its POD because of the desirability criteria associated with PODs.
Diff: 2
98) Belling is a chain of coffee shops. Give an example of a category point-of-parity and a
competitive point-of-parity for the company.
Answer: Student answers will vary. A category point-of-parity for Belling could be its freshly
brewed coffee and friendly atmosphere. A competitive point-of-parity could be its fast customer
service times.
Diff: 2
99) Belling is a chain of coffee shops. Give an example of a point-of-parity and a point-of-
difference for the company.
Answer: Student answers will vary. Points-of-parity for Belling could be its freshly brewed
coffee or friendly atmosphere. Points-of-difference could be its unusual interior design or laid-
back attitude.
Diff: 1
100) Give an example of the use of straddle positioning.

Answer: Student answers will vary. Subway restaurants are positioned as offering healthy,
good-tasting sandwiches. This positioning allows the brand to create a POP on taste and a POD
on health with respect to quick-serve restaurants such as McDonald's and Burger King and, at the
same time, a POP on health and a POD on taste with respect to health food restaurants and cafés.
Diff: 2
101) Define a brand mantra and provide an example of a brand mantra.

Answer: Student answers will vary. A brand mantra is an articulation of the heart and soul of the
brand and is closely related to other branding concepts like "brand essence" and "core brand
promise." Brand mantras are short, three- to five-word phrases that capture the irrefutable
essence or spirit of the brand positioning. American Express's "World Class Service, Personal
Recognition," is an example of a brand mantra.
Diff: 2
24
102) Define leverageable advantage with an example.
Answer: A leverageable advantage is one that a company can use as a springboard to new
advantages, much as Microsoft has leveraged its operating system to Microsoft Office and then
to networking applications. In general, a company that hopes to endure must be in the business of
continuously inventing new advantages.
Diff: 2
103) How does a company differentiate its market offerings using employee differentiation?
Provide an example of a company using employee differentiation.
Answer: Student answers will vary. A company differentiating its market offerings using
employee differentiation, does so by having better-trained personnel who provide superior
customer service. Singapore Airlines is well regarded in large part because of its flight
attendants.
Diff: 2
104) Companies can achieve competitive advantage through the way they design their
distribution channel. What three areas are considered in this design process?
Answer: Considerations to achieve competitive advantage in the distribution channel are in the
areas of coverage, expertise, and performance.
Diff: 2
105) Belling wants to analyze the threats posed by its competitors. Which three variables must it
monitor to achieve this?
Answer: To analyze the threats posed by its competitors, Belling must monitor the competitors'
share of the market, share of mind and share of heart.
Diff: 2
106) Sally's is a boutique bakery that specializes in cupcakes. How can Sally's create channel
differentiation to stand apart from its competitors?
Answer: Student answers will vary. Sally's can more effectively and efficiently design its
distribution channels' coverage, expertise, and performance to make buying the product easier
and more enjoyable and rewarding. It can set up an online store or undertake home deliveries.
Diff: 2
25
107) Sally's is a boutique bakery that specializes in cupcakes. How can Sally's create image
differentiation to stand apart from its competitors?
Answer: Student answers will vary. Sally's can use innovative and distinctive packaging for its
products, or use interior design to give the store a distinctive look.
Diff: 2
108) Subway restaurants are positioned as offering healthy, great-tasting sandwiches. ________
positioning allows the brand to create a point-of-parity (POP) on taste and a point-of-difference
(POD) on health with respect to quick-serve restaurants such as McDonald's and Burger King
and, at the same time, a POP on health and a POD on taste with respect to health food restaurants
and cafés.
A) Category-based
B) Need-based
C) Noncomparitive
D) Straddle
E) Price-quality
Answer: D
Diff: 2
LO: 10.4: How do firms communicate their positioning?
109) Tums claims to have the most acid-reducing components of any antacid. In what way is the
brand's 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
Diff: 2
110) The typical approach to positioning is to inform consumers of a brand's category

membership before stating its point-of-________.
A) parity
B) difference
C) conflict
D) weakness
E) presence
Answer: B
Diff: 2
111) In which of the following examples is a company communicating category membership

26
using a product descriptor?
A) Use Zipex for quick and thorough cleaning.
B) Barry's Oats, when you want nutrition and flavor.
C) Clarity offers you the best prices for the best quality.
D) Choose Grissom's for an unparalleled shopping experience.
E) Chloe: All you need for a beautiful you.
Answer: B
Diff: 2
112) Industrial tools claiming to have durability, and antacids announcing their efficacy convey a
brand's category membership by ________.
A) relying on the product descriptor
B) comparing to exemplars
C) announcing category benefits
D) communicating deliverability variables
E) identifying counter examples
Answer: C
Diff: 2
113) A well-known car manufacturing company introduces a new hatchback model by

describing its distinctive features and then stressing the speed and safety qualities of the car.
Which of the following is the company using to convey its membership in the hatchback
segment?
A) announcing category benefits
C) relying on the product descriptor
D) using channel differentiation
E) maximizing negatively correlated attributes
Answer: A
Diff: 2
27
114) Which of the following ways to convey a brand's category membership relates to well-
known, noteworthy brands in a category helping a brand specify its category membership?
A) comparing to exemplars
B) communicating deliverability variables
C) identifying counter examples
D) announcing category benefits
E) relying on the product descriptor
Answer: A
Diff: 1
115) SJC is a new retailer that targets the youth market. SJC needs to make an impression using
advertising, and decides to use funny or irreverent ads to get its point across. Each ad features
one of SJC's competitors and conveys an advantage SJC has over that competitor. Which of the
following is the company using to convey its membership in the retail segment?
D) using channel differentiation
E) maximizing negatively correlated attributes
Answer: B
Diff: 2
116) When Tommy Hilfiger was an unknown brand, advertising announced his membership as a
great US designer by associating him with Geoffrey Beene, Stanley Blacker, Calvin Klein, and
Perry Ellis, who were recognized members of that category. Tommy Hilfiger conveyed the
brand's category membership by ________.
A) relying on the product descriptor
B) focusing on reliability
C) comparing to exemplars
D) announcing category benefits
E) identifying counter examples
Answer: C
Diff: 2
28
117) Ford Motor Co. invested more than $1 billion on a radical new 2004 model called the X-
Trainer, which combined the attributes of an SUV, a minivan, and a station wagon. To
communicate its unique position — and to avoid association with its Explorer and Country
Squire models — the vehicle, eventually called Freestyle, was designated a "sports wagon."
According to the given scenario, Ford Motor Co. conveyed their brand's category membership by
________.
B) identifying counter examples
D) focusing on reliability
E) comparing to exemplars
Answer: C
Diff: 2
118) The product descriptor that follows the brand name is often a concise means of conveying
category origin.
Answer: TRUE
Diff: 2
119) If Barry compares his organization's products to those of leaders in the field, then he is
conveying category membership by "comparing to exemplars."
Answer: TRUE
Diff: 2
120) A good illustration of negatively correlated attributes or benefits is good taste versus bad
taste.
Answer: FALSE
Diff: 2
121) A leverageable advantage is one that a company can use as a springboard to new
advantages.
Answer: TRUE
Diff: 2
29
122) In the context of Starbucks, 24-hour training program for baristas, stock options/health
benefits, triple filtrated water, and a totally integrated system are examples of brand mantras
within the brand positioning bull's-eye.
Answer: FALSE
Diff: 2
123) One of the ways to communicate category membership is to rely on the product descriptor,
like when Ford positioned its Freestyle automobile, which combined the attributes of an SUV, a
mini-van, and a station wagon, as a "sports wagon."
Answer: TRUE
Diff: 3
124) Describe three methods by which a brand can communicate category membership.
Answer: There are three main ways to convey a brand's category membership:
1. Announcing category benefits. To reassure consumers that a brand will deliver on the
fundamental reason for using a category, marketers frequently use benefits to announce category
membership.
2. Comparing to exemplars. Well-known, noteworthy brands in a category can also help a brand
specify its category membership.
3. Relying on the product descriptor. The product descriptor that follows the brand name is
often a concise means of conveying category origin.
Diff: 2
125) Give an example of how a brand can be affiliated with a category in which it does not hold
membership.
Answer: Student answers will vary. DiGiorno's frozen pizza has adopted a positioning strategy
that identifies with a different category from its own — instead of putting it in the frozen pizza
category, the marketers have positioned it in the delivered pizza category with ads that claim,
"It's Not Delivery, It's DiGiorno!"
Diff: 2
126) Belling begins most advertising messages by announcing category benefits and then
moving on to its specific positioning. Offer one reason why Belling may adopt this strategy.
Answer: Student answers will vary. To reassure consumers that a brand will deliver on the
fundamental reason for using a category, marketers such as Belling frequently use benefits to
announce category membership.
Diff: 2
30
127) How can coffee shop chain Belling convey its category membership? List the methods it
can use to achieve this.
Answer: The three main ways to convey a brand's category membership are: announcing
category benefits; comparing to exemplars; and relying on the product descriptor.
Diff: 2
128) As a company seeks to establish a category membership designation, how does the
company approach points-of-difference? What is done first?
Answer: The typical approach to positioning is to inform consumers of a brand's membership
before stating its point-of-difference. Presumably, consumers need to know what a product is and
what function it serves before deciding whether it dominates the brands against which it
competes.
Diff: 1
129) Provide three examples of negatively correlated attributes and benefits.

Answer: Student answers will vary. Some examples of negatively correlated attributes and
benefits are: low price versus high quality, taste versus low calories, strong versus refined,
powerful versus safe, and ubiquitous versus exclusive.
Diff: 2
130) What are the three main ways to convey a brand's category members? Provide an example
of each.
Answer: Announcing category benefits (e.g., a brownie mix might attain membership in the
baked desserts category by claiming the benefit of great taste and support this claim by including
high-quality ingredients [performance] or by showing users delighting in its consumption
[imagery]); comparing to exemplars (e.g., when Tommy Hilfiger was an unknown, advertising
announced his status as a great US designer by associating him with recognized members of the
category); relying on the product descriptor (e.g., Ford's X-Trainer/Freestyle was designated a
sports wagon).
Diff: 2
31
131) Randall Ringer and Michael Thibodeau see ________ as based on deep metaphors that
connect to people's memories, associations, and stories.
A) cultural branding
B) narrative branding
C) brand journalism
D) emotional branding
E) personal branding
Answer: B
Diff: 2
LO: 10.5: What are some alternative approaches to positioning?
132) Which element of a brand story framework do Randall Ringer and Michael Thibodeau
relate to the time, place, and context of the brand story?
A) cast
B) pitch
C) narrative arc
D) setting
E) language
Answer: D
Diff: 2
relate to the way the narrative logic unfolds over time, including actions, desired experiences,
defining events, and the moment of epiphany?
A) language
B) pitch
C) cast
D) setting
E) narrative arc
Answer: E
Diff: 2
relate to the authenticating voice, metaphors, symbols, themes, and leitmotifs?
A) narrative arc
B) context
C) language
D) setting
E) cast
Answer: C
Diff: 2
32
135) Brand storytelling is a less-structured approach to brand positioning.
Answer: TRUE
Diff: 2
136) Narrative branding is based on deep metaphors that connect to people's memories,
associations, and stories.
Answer: TRUE
Diff: 1
137) ESPN Zone restaurants tap into competitive masculinity and American Girl dolls tap into
mother-daughter relationship and the cross-generational transfer of femininity. These are
examples of narrative arcs.
Answer: FALSE
Diff: 3
138) Cultural branding is essential for small firms, but ineffective for large companies.
Answer: FALSE
Diff: 1
139) Name and briefly explain three less-structured alternatives to competitive brand positioning.
Answer: Three alternatives to competitive branding are as follows:
1. Brand narratives and storytelling: Rather than outlining specific attributes or benefits, some
marketing experts describe positioning a brand as telling a narrative or story.
2. Brand journalism: Just as editors and writers for newspapers and magazines tell many facets
of a story to capture the interests of diverse groups of people, marketers should communicate
different messages to different market segments, as long as they at least broadly fit within the
basic broad image of the brand.
3. Cultural branding: For companies to build iconic, leadership brands, they must assemble
cultural knowledge, strategize according to cultural branding principles, and hire and train
cultural experts.
Diff: 2
33
140) What are the five elements of narrative branding as described by Randall Ringer and
Michael Thibodeau?
Answer: Randall Ringer and Michael Thibodeau see narrative branding as based on deep
metaphors that connect to people's memories, associations, and stories. They identify five
elements of narrative branding:
1. the brand story in terms of words and metaphors
2. the consumer journey in terms of how consumers engage with the brand over time and touch
points where they come into contact with it
3. the visual language or expression for the brand
4. the manner in which the narrative is expressed experientially in terms of how the brand
engages the senses
5. the role/relationship the brand plays in the lives of consumers
Diff: 2
141) Randall Ringer and Michael Thibodeau see narrative branding as based on deep metaphors
that connect to people's memories, associations, and stories. Briefly describe their framework for
a brand story.
Answer: Based on literary convention and brand experience, Randall Ringer and Michael
Thibodeau offer the following framework for a brand story:
• Setting. The time, place, and context
• Cast. The brand as a character, including its role in the life of the audience, its relationships
and responsibilities, and its history or creation myth
• Narrative arc. The way the narrative logic unfolds over time, including actions, desired
experiences, defining events, and the moment of epiphany
• Language. The authenticating voice, metaphors, symbols, themes, and leitmotifs
Diff: 2
142) Which of the following statements about the branding guidelines for a small business is
true?
A) A small business must creatively conduct low-cost marketing research.
B) A small business must avoid leveraging secondary brand associations.
C) A small business must separate the well-integrated brand elements to enhance both brand
awareness and brand image.
D) A small business must disintegrate the brand elements to maximize the contribution of each
of the three main sets of brand equity drivers.
E) A small business must focus on building more than two strong brands based on a number of
associations.
Answer: A
Diff: 2
LO: 10.6: What are the differences in positioning and branding for a small business?
34
143) Which of the following is NOT one of the specific branding guidelines for small
businesses?
A) Creatively conduct low-cost marketing research.
B) Leverage as many secondary associations as possible.
C) Focus on building one or two strong brands based on one or two key associations.
D) Create buzz and a loyal brand community.
E) Use a trial-and-error approach.
Answer: E
Diff: 2
144) Small businesses must focus on building one or two strong brands based on one or two key
associations.
Answer: TRUE
Diff: 1
145) While creating a loyal brand community is useful for large companies, it is not cost-
effective for small firms.
Answer: FALSE
Diff: 1
146) How does a loyal brand community support the positioning and branding of a small
business? Provide an example to support your explanation.
Answer: Student answers will vary. Creating a vibrant brand community among current and
prospective customers can be a cost-effective way to reinforce loyalty and help spread the word
to new prospects. Web browser Mozilla Firefox is able to compete with Microsoft's Internet
Explorer in part because of its dedicated volunteer group of 10,000 programmers who work on
its open source coding. Twelve fans of the brand felt so strongly about it they used two-by-fours
and rope to hollow out a 30,000-square-foot impression of the brand's logo in an oat field outside
Salem, Oregon!
Diff: 2
147) Sally's is a boutique bakery that specializes in cupcakes. Give one method by which Sally's
can conduct low-cost marketing research.
Answer: Student answers will vary. There are a variety of low-cost marketing research methods
that help small businesses connect with customers and study competitors. One way is to set up
course projects at local colleges and universities to access the expertise of both students and
professors.
Diff: 2
35
148) Sally's is a boutique bakery that specializes in cupcakes. Give some methods by which
Sally's can position itself without spending a lot on promotions.
Answer: Student answers will vary. Because small businesses often must rely on word of mouth
to establish their positioning, public relations, social networking, and low-cost promotions and
sponsorship can be inexpensive alternatives for Sally's. Creating a vibrant brand community
among current and prospective customers can also be a cost-effective way to reinforce loyalty
and help spread the word to new prospects.
Diff: 2
36

Chapter 10 Crafting The Brand Positioning

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Marketing Management, 15e (Kotler)

Chapter 10 Crafting the Brand Positioning

1) All marketing strategy is built on STP: segmentation, targeting, and ________.

3) The goal of positioning is to ________.

5) Which of the following best describes a car company's value proposition?

7) Which of the following best describes BR Chicken's value proposition?

11) All marketing strategy is built on segmentation, targeting, and positioning.

16) What are the requirements for deciding on a positioning strategy?

34) A brand must demonstrate ________, for it to function as a true point-of-difference.

46) ________ are visual representations of consumer perceptions and preferences.

47) Straddle positions ________.

53) A brand mantra should be ________.

64) Which of the following is an example of channel differentiation?

65) Which of the following is an example of image differentiation?

74) Points-of-parity may be shared among two or more brands.

75) Category points-of-parity are unique to a brand.

78) A competitive point-of-parity negates competitors' perceived points-of-difference.

79) Trying to be all things to all people leads to highest-common-denominator positioning,

94) With the help of an example, explain straddle positioning.

95) Provide an example of a leverageable advantage.

100) Give an example of the use of straddle positioning.

101) Define a brand mantra and provide an example of a brand mantra.

110) The typical approach to positioning is to inform consumers of a brand's category

111) In which of the following examples is a company communicating category membership

113) A well-known car manufacturing company introduces a new hatchback model by

129) Provide three examples of negatively correlated attributes and benefits.

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