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MALAWI ASSEMBLIES OF GOD UNIVERSITY

FACULTY OF COMMERCE AND MANAGEMENT

DEPARTMENT OF MANAGEMENT STUDIES

END OF SEMESTER EXAMINATION

MKT 3053: PRODUCT AND BRAND MANAGEMENT

Date: June, 2017 Time allowed: 3hours

General Instructions

1. There are 14 pages in this paper. Please check!


2. This paper has four sections, A, B, C and D. Please check!
3. Follow the instructions for each section.
4. Fill in your details on the answer book provided.
5. Write your name on the top of each page of the answer sheets provided.
6. Write on both sides of the answer sheets.
7. Do not tear any paper from the answer book or question paper.

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MALAWI ASSEMBLIES OF GOD UNIVERSITY
PRODUCT AND BRAND MANAGEMENT:
COURSE CODE: MKT 3053
END SEMESTER EXAMINATION JUNE 2017

EXAMINATION INSTRUCTIONS
TIME ALLOCATION: THREE HOURS (3HRS)
THIS PAPER CONTAINS 14 PAGES, PLEASE CHECK
ANSWER ALL QUESTIONS ON THE ANSWER SHEET PROVIDED

SECTION A: MULTIPLE CHOICE


SECTION INSTRUCTIONS
THIS SECTION CARRIES THIRTY MARKS
ALL QUESTIONS CARRY HALF A MARK EACH
ANSWER ALL QUESTIONS IN THIS SECTION
ANSWER BY INDICATING YOUR CHOICE BY WRITING A, B, C OR D.

1. Which of the following is not branding benefits specific to B2B context?


A. Functional and product use benefits.
B. Self-expressive.
C. Ethical advantages.
D. Emotional advantages.

2. ______________ defines what the brand thinks about the consumer, as per the consumer.
A. Brand attitude.
B. Brand positioning.
C. Brand relationship.
D. Brand image.

3. Which of the following is not one of the core elements to develop a business brands?
A. Communication.
B. Services.
C. Symbolic devices.
D. Behaviour.

4. ____________ includes all that is linked up in memory about the brand. It could be
specific to attributes, features, benefits or looks of brand.
A. Brand association.
B. Brand attitude.
C. Brand image.
D. Brand relationship.

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5. Which of the following includes two visual signals of a brand (its character and its logo),
and both being elements of brand identity.
A. Brand symbol.
B. Brand attitude.
C. Brand image.
D. Brand positioning.

6. ____________ can be thought as a perceptual map in which like products of the same
company (e.g. biscuits or sweets) are positioned very close to one another and compete
more with one another than with brands of other companies.
A. Cannibalization.
B. Positioning.
C. Brand comparison.
D. Brand association.

7. Which of following needs to be understood by the marketer as part of some general traits
of a brand name.
A. Easy to recognize.
B. Difficult to recognize.
C. Difficult to pronounce.
D. Difficult to recall.

8. Close up, litchi Frozzy, Zero coke, and Fair & Lovely, are examples of ______________.
A. Descriptive brand name.
B. Suggestive brand name.
C. Free standing brand name.
D. Indicative brand name.

9. Vaseline-petroleum jelly sold as a lip-bum and moisturizer is an example of


_______________.
A. Category related positioning.
B. Price quality positioning.
C. Benefit related positioning.
D. Positioning by usage occasion and time of use.

10. “Protex kills the germs you cannot see”, is an example of ______________.
A. Functional benefit positioning.
B. Emotional benefit positioning.
C. Usage occasion related positioning.
D. Health related positioning.

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11. Which of the following is not associated with brand equity?
A. Brand value
B. Brand heritage
C. Brand strength
D. Brand description

12. The strategy of using individual family brand names is referred to as ___________.
A. House of products.
B. Extended Strategy.
C. House of brands.
D. Strategy house.

13. Which of the following is not a branding strategy alternatively used by marketers.
A. Individual brand names.
B. Company brand name.
C. Variant brands.
D. Sub-brand name.

14. Offering of all brands and brand lines by a particular company is considered as
______________.
A. Company portfolio.
B. Brand line portfolio.
C. Brand portfolio.
D. Corporate portfolio.

15. In designing brand portfolio, focus is always on _______________.


A. Categorizing market coverage.
B. Minimum market coverage.
C. Maximum market coverage.
D. Brand house coverage.

16. When brands are introduced to compete with competitors they are classified as
_______________.
A. Variant brands.
B. Competitive.
C. Flankers.
D. Sub variant brands.

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17. Which of these is at the center of a brand’s characteristics.
A. Identity.
B. Image.
C. Value.
D. Positioning.

18. Which of the following reasons led to the formation brand management _____________.
A. Companies wanted to achieve scale economies.
B. It supplemented financial management practices.
C. It suited production and operations personnel.
D. Companies wanted to differentiate their products and highlight distinctions in a
competitive environment.

19. Brands must stay contemporary because of ____________.


A. Upholding the contract.
B. Staying attractive.
C. Competition.
D. Environment.

20. Features and attributes of brands translate into benefits and _____________ are also
fulfilled along with these benefits.
A. Customer values.
B. Brand values.
C. Organizational goals.
D. Brand associations.

21. A good brand contract does not _____________.


A. Keep customer perspective in view.
B. Delivers promises made to customers.
C. Compromise on promise.
D. Unearths negative promises.

22. Continuously renewing the difference makes your product ____________.


A. Not to conform with market standards of evolving changes.
B. Highly unacceptable.
C. Look superior.
D. Conform to the changing behavior and beliefs of customers.

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23. A brand-based model does not reveal ______________.
A. Why customers buy the brands they buy?
B. What are the underlying motives for their purchasing brands of their preference?
C. Why companies keep their brands contemporary?
D. The impact of word of mouth in purchasing.

24. The most important factor in brand management is to ensure that your
_____________ must be matching with consumers’ perceptions.
A. Brand pinnacle.
B. Brand’s persona.
C. Brand associations.
D. Brand value.

25. While developing the brand picture, first of all, you envision _______________
A. Attributes.
B. Obsessions.
C. Benefits.
D. All of the given options.

26. To have value, a brand must offer ______________.


A. A simple product range with a defined set of features.
B. A complex product range with a defined set of features.
C. Consistency, a reduced level of perceived risk for the buyer, and a range
of functional and emotional attributes which are of value to buyers.
D. An identity through which the customer can trace the party responsible for supplying
the product.

27. The elasticity of demand to sales promotion is __________ that of advertising.


A. Less than.
B. Equal to.
C. Greater than.
D. Inversely proportional to.

28. A mix of different communication tools has a better chance of achieving ____________.
A. Objectives.
B. Synergy.
C. Efficiency.
D. Effectiveness.

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29. If two different brands are distributed by one company, it is considered
under____________.
A. Wholesale.
B. Co-branding.
C. Joint venture.
D. Merger.

30. Which of the following information forms available to the marketing manager can
usually be accessed more quickly and cheaply than other information sources?
A. Marketing intelligence
B. Marketing research
C. Customer profiles
D. Internal databases

31. All of the following are considered to be drawbacks of local marketing except
_____________
A. It can drive up manufacturing and marketing costs by reducing economies of
scale.
B. It can create logistical problems when the company tries to meet varied requirements.
C. It can attract unwanted competition.
D. It can dilute the brand's overall image.

32. The power based on a channel member’s superior knowledge and information about his
products is called ____________
A. Expert power
B. Legitimate power
C. Coercion
D. Retailer power

33. The company that overlooks new and better ways to do things will eventually lose
customers to another company that has found a better way of serving customer needs.
This is a major tenet of ______________.
A. Innovative marketing.
B. Consumer-oriented marketing.
C. Value marketing.
D. Sense-of-mission marketing.

34. Advertising _____________ is capable to attract consumers only if it is based on their


needs.
A. Reach.
B. Copy.
C. Frequency.
D. Media.

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35. The biggest or greatest amount of involvement in a foreign market comes through
_______________.
A. Exporting.
B. Joint venturing.
C. Licensing.
D. Direct investment.

36. Mostly, the major source of power throughout the distribution channel is ____________.
A. The company.
B. The brand.
C. The distributor.
D. The customer.

37. A great effort in terms of time and money is required for __________; and despite the
effort, results are not guaranteed.
A. Growth.
B. Profitability.
C. Branding.
D. Promotion.

38. A Brand is not born out of this strategy _______________.


A. Segmentation and differentiation strategies
B. Promotion strategies
C. Good purchasing and supply chain strategies
D. Good public relations strategy.

39. Brand identity is followed by ____________, which is a reflection of what marketers


planned to send to the public.
A. Brand value.
B. Brand image.
C. Advertising.
D. Brand personality.

40. Right branding increases ______________ of the product, which should be more than
that of the generic product.
A. Consumer revolt.
B. Market share.
C. Profit.
D. Value.

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41. ____________ are incurred by brands because of failures and questionable business
practices that may increase costs and liabilities.
A. Brand assets.
B. Brand liabilities.
C. Brand equities.
D. Market failures.

42. Introduction of more brands and extensions leads to ____________ with


no new benefits to consumers.
A. Higher cost.
B. Greater revenue.
C. Brand proliferation.
D. Increased competition.

43. _____________are products bought by individuals and organizations for further


processing or for use in conducting a business.
A. Consumer products.
B. Services.
C. Industrial products.
D. Specialty products.

44. The difference between company’s present financial position and the financial objectives
is known as _____________.
A. Contribution gap.
B. Contribution margin.
C. Financial objectives’ failure.
D. Low demand in market.

45. ________________ has to answer the questions like “what would be the short of market
if our brand is not there?”
A. Brand image.
B. Brand picture.
C. Brand manager.
D. Brand association.

46. _____________ describes changes in an individual's behavior arising from experience.


A. Modeling.
B. Motivation.
C. Perception.
D. Learning.

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47. What do you call a person within a reference group who, because of special skills,
knowledge, personality, or other characteristics, exerts influence on others?
A. Facilitator.
B. Referent actor.
C. Opinion leader.
D. Social role player.

48. Successful companies today have one thing in common, which is __________.
A. Dedication to the bottom line.
B. An interest in the environment.
C. Commitment to customer focus and marketing.
D. Ethical marketing practices.

49. The advent of the Internet has directly benefited companies by _____________.
A. Giving them access to more consumers at a relatively low cost
B. Allowing them to surf the net
C. Increasing sales to computer literate consumers
D. Giving them access to a fad which is already on the way out

50. Blackberry was a growing mobile company facing increased competition from US
imports. It hired a consultant to provide direction for the future. The first thing the
consultant noticed was the company had no formal plan. This is _______________
A. Highly unusual for companies trying to stay competitive
B. Typical of large corporations
C. Common for many companies
D. Only evident in non-profit organizations

51. Which of the following describes changes in an individual's behavior arising from
experience.
A. Modeling.
B. Motivation.
C. Perception.
D. Learning.

52. Concerns that the manufacturers of harmful products such as tobacco have influence on
lawmakers to the detriment of the public interest is used as evidence of which criticism of
marketing?
A. Too much advertising.
B. Too few social goods.
C. Cultural pollution.
D. Too much political power.

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53. In terms of execution styles, a family seated at the dinner table eating supper and
enjoying the advertised product, would be an example of which of the following types of
advertising?
A. Slice of life.
B. Lifestyle.
C. Mood or imagery.
D. Personality symbol.

54. In seeking to identify new demographic groups which can be encouraged to buy Levi
Strauss products for the first time, the company ___________________.
A. Demographic development.
B. Market development.
C. Product development.
D. Diversification.

55. Firms such as Mr. Submarine aggressively seek to gain market share at the expense of
their competition. Firms like these might attack firms with more share, about the same
share, or smaller share than their own. This type of competitive marketing strategy is
typical of ______________.
A. Market leaders.
B. Market challengers.
C. Market protagonists.
D. Market nichers.

56. The brand manager changed the combination of goods and services that company offered
to its target market. Which element of the marketing mix does this emphasize?
A. Product.
B. Price.
C. Place.
D. Promotion.

57. _____________ has the contractual authority to sell a manufacturer's entire output.
A. Selling agents.
B. Rack jobbers.
C. Manufacturer's agents.
D. Purchasing agents.

58. _____________ includes practices such as overstating the product's features or


performance, luring the customer to the store for a bargain that is out of stock, or running
rigged contests.
a. Deceptive promotion.
b. Deceptive packaging.
c. Deceptive pricing.

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d. Deceptive cost structure.

59. Within a corporation, significant changes in the environment are identified by


______________.
A. Corporate communications.
B. The public relations department.
C. Marketers.
D. Economic policy makers.

60. When looking for information on demographics, one is best advised to contact
_____________.
A. The Demographic Society of Malawi.
B. The Statistics Office.
C. Market Research Demographics.
D. The Foundation for Access to Public Information.

SECTION B: TRUE OR FALSE


SECTION INSTRUCTIONS
THIS SECTION CARRIES TEN MARKS
ALL QUESTIONS CARRY HALF A MARK EACH
ANSWER ALL QUESTIONS IN THIS SECTION
ANSWER BY INDICATING YOUR CHOICE BY WRITING A or B.

61. A brand is a name, term, sign, symbol or design, or a combination of all of them,
intended to identify the goods or services of one seller or group of sellers and to
differentiate them from those of competitors. Is this statement true or false?
A. True
B. False

62. A product is something made in a factory; a brand is something that is bought by a


customer. Is this statement true or false?
A. True
B. False

63. A branded product cannot be copied by a competitor because a brand is unique. Is this
statement true or false?
A. True
B. False

64. A product can be quickly outdated but a successful brand is timeless. Is this statement
true or false?
A. True
B. False

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65. Branding is endowing products and services with the power of the brand. Is this
statement true or false?
A. True
B. False

66. Brand equity is based on consumer attitudes about positive brand attributes and favorable
consequences of brand use. Is this statement true or false?
A. True
B. False

67. According to David Aaker, brand equity is a set of assets and liabilities linked to a brand,
its name, and symbol that adds to or subtracts from the value provided by a product or
service to a firm or to that firm’s customers. Is this statement true or false?
A. True
B. False

68. Brand salience refers to how often and how easily customers think of the brand under
various purchase or consumption situations. Is this statement true or false?
A. True
B. False

69. Brand performance is how well the product or service meets customers’ financial needs.
Is this statement true or false?
A. True
B. False

70. Brand imagery describes the extrinsic properties of the product or service, including the
ways in which the brand attempts to meet the customers’ psychological or social needs. Is
this statement true or false?
A. True
B. False

71. Brand judgment focus on customers’ own personal opinions and evaluations. Is this
statement true or false?
A. True
B. False

72. Brand feelings refers to customers’ emotional response and reactions with respect to the
brand. Is this statement true or false?
A. True
B. False

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73. Brand resonance is the nature of the relationship customers have with the brand and the
extent to which they feel they’re “in sync” with it. Is this statement true or false?
A. True
B. False

74. In building a brand one has to consider the product and service and all accompanying
marketing activities and supporting marketing programs. Is this statement true or false?
A. True
B. False

75. Brand audits consists of consumer-focused series of procedures to assess the health of the
brand, uncover its source of brand equity, and suggest ways to improve and leverage its
equity. Is this statement true or false?
A. True
B. False

76. Brand tracking Audits collects quantitative data from consumers over time to provide
consistent, baseline information about how brands and marketing programs are
performing. Is this statement true or false?
A. True
B. False

77. Brand valuation is the job of estimating the total financial value of the brand. Is this
statement true or false?
A. True
B. False

78. Marketers can reinforce brand equity by consistently conveying the brand’s meaning in
terms of what products it represents, what core benefits it supplies, and what needs it
satisfies. Is this statement true or false?
A. True
B. False

79. Brand revitalization includes products that have fallen on hard times but managed to turn
around and come back to the market. Is this statement true or false?
A. True
B. False

80. Customer equity is not the total of discounted lifetime values of all of the firms’
customers. Is this statement true or false?
A. True
B. False

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SECTION C: STRUCTURED QUESTIONS
SECTION INSTRUCTIONS
THIS SECTION CARRIES TWENTY MARKS
ALL QUESTIONS CARRY FIVE MARKS EACH
ANSWER ALL QUESTIONS IN THIS SECTION
ANSWER BY WRITING ON THE GIVEN ANSWER

81. List down four roles of a brand. (4 Marks)


 Identify the source of the product / Maker
 Signify the quality
 Offers legal protection
 Serve as a competitive advantage
 Emphasizes the bases of differentiation
 Reduces the primacy of price upon the purchase decision
82. Define Brand equity. (2 Marks)
 It is the added value endowed on products and services, which may be
reflected in the way consumers, think, feel, and act with respect to the brand.
83. Briefly discuss four pillars of brand equity. (4 Marks)
 Brand trial
 Brand awareness
 Brand loyalty
 Brand preference
 Brand recognition
84. List down five categories of brand assets and liabilities which add value to the product. (5
Marks)
 Brand Awareness
 Perceived Quality
 Brand Loyalty
 Brand Associations
 Other proprietary assets
85. Briefly discuss five steps developed by Millward Brown in brand equity model.(5
Marks)
 Presence
 Relevance
 Performance
 Advantage
 Bonding
SECTION D: ESSAY QUESTIONS
SECTION INSTRUCTIONS
THIS SECTION CARRIES SIXTY MARKS
EACH QUESTION CARRIES TWENTY MARKS EACH
QUESTIONS 85 IS COMPUSURY. ANSWER ANY TWO BETWEEN 86, 87, & 88.
ANSWER BY WRITING ON THE GIVEN ANSWER

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86. Discuss four reasons why brands should be managed as valuable and long-term corporate
assets. (20 Marks)
 When firms adopt this asset view of branding, marketing is no longer perceived as a
tactical arm of the business run by middle and lower-level managers (or an outside
agency) in order to generate short-term sales for a single brand, offering and
organizational unit. Rather, marketing is seen as.
 Strategic and visionary Marketing contributes to the business strategy through its
first-hand knowledge of customer insights and marketplace trends, plus its expertise
with respect to segmentation, brand portfolio strategies, the value proposition,
growth strategies and global brand strategies.
 Being managed by top executive From a strategic view, the brand is usually
managed by people higher in the organization, often the top marketing professionals
in the business organization. For marketing-driven organizations, the ultimate
brand champion can be the CEO. In any case, marketing now gets a seat at the
strategy table becoming a participant at creating and managing the business
strategy.
 Charged with building brand assets Shifting the emphasis from tactical measures
such as short-term sales to strategic measures of brand equity and other indicators
of long-term financial performance is a monumental change. The guiding premise is
that strong brands can be the basis of competitive advantage and long-term
profitability going forward. A primary brand-building goal will be to build, enhance
or leverage brand equity, the major dimensions of which are awareness, associations
and loyalty of the customer base.
 Leveraging brand assets When a brand is viewed as an asset, the opportunity will
arise to leverage that asset to generate growth. It can be used as a master brand or
perhaps as an endorser to support a vertical extension or a strategic entry into
another product class by providing awareness, credibility, customer relationships
and positive associations. It can also be used to frame a subcategory, thereby
rendering competitor brands less relevant.
 Managing the brand portfolio As offerings and brands proliferate, it’s clear that
marketing needs to manage the brand family to foster clarity, synergy, energy,
relevance and leverage. That means that each brand needs to be assigned well-
defined role sets and managed so that they are successful in those roles. The possible
brand roles include strategic brands, cash-cow brands, master brands, endorser
brands sub-brands and more.
 Addressing the organizational silo issues Nearly all brands span different silo
organizations defined by products, markets or countries. Marketing is charged with
fostering communication and cooperation across silos without which there can be
inefficiencies, lost opportunities to scale effective programs and brand diminution.
The brand-as-asset view has faced resistance for various reasons. The power of
short-term financials is overwhelming and pay-off from brand building is difficult
to quantify, especially in the short-term. Building brand assets is no easy feat.
Nevertheless, the time has come to prioritize brands as assets – its impact on
marketing can be transformational.

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87. Discuss the four difference between brand equity and customer equity. (20 Marks)
 Brand Equity and Customer Equity have two things in common-
 Both stress on significance of customer loyalty to the brand

 Both stress upon the face that value is created by having as many customers as
possible paying as high price as possible.

 But conceptually both brand equity and customer equity differ.


 While customer equity puts too much emphasis on lower line financial value got
from the customers, brand equity attempts to put more emphasis on strategic
issues in managing brands.

 Customer Equity is less narrow alternative. It can overlook a brands optional


value and their capacity effect revenues and cost beyond the present marketing
environment.

 Just as customer equity can persist without brand equity, brand equity may also
exist without customer equity. For instance I may have positive attitude towards
brands - McDonald and Burger King, but I may only purchase from McDonald’s
brand consistently.

 To conclude, we can say brands do not exist without consumer and consumer do not
exist without brands. Brands serve as a temptation that utilizes other intermediaries
to lure the customers from whom value is extracted. Customers serve as a profit-
medium for brands to encash their brand value. Both the concepts are highly co-
related.

88. Discuss the four implications of taking a brand perspective versus a customer perspective
in designing and implementing a marketing program. (20 Marks)
 Customer and brand asset perspectives provide the firm with several mechanisms
for growing overall profitability. It is interesting to examine the extent to which
brand and customer perspectives interact in growing firm profitability and the
specific areas in which they appear to act independently. Both brands and customers
influence the firm’s ability to grow in four specific areas: (a) its ability to acquire
new customers for current offerings, (b) its ability to encourage cross-buying from
current customers, (c) its ability to charge a price premium for its products and
services, and (d) reduced marketing costs. However, the brand asset perspective
appears to place more emphasis on its ability to enable the firm to extend into new
product areas and to acquire new customers in these new areas. The customer asset
perspective, on the other hand, appears to place more emphasis on its ability to
enable the firm to gain increased purchases of current offerings from existing
customers.

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89. Using brand positioning model, discuss four ways on how marketers can establish a
competitive advantage in the mind of customers. (20 Marks)
 Typically, organizations have several positions available to them. A strong brand
position can pass through these four filters:
Relevance: Does the target audience care about your differentiation? Is it important in
their purchase decision making?
Differentiation: Does the target market really believe you are different (superior) to
your competitors? Are your competitors able to make the same claim? (One of the
ways commonly used to test positioning statements is to substitute your competitor’s
brand name for yours. If it is still a true statement, then it is not a strong position. For
example, a university said its differentiation was that they were “the only place where
students can use their gifts.” As that would also be true for just about any institute of
higher education, this is not a strong positioning statement.)
Delivery: Can you actually deliver on the differentiation? Is this a promise you will be
able to keep over time? There is a story of a bank who decided to position themselves
as fast, the bank where you could get your business done quickest. It seemed like a
good idea: after all, consumers wanted a fast bank and none of their competitors were
making the claim that they were fastest. However, after looking at the financial
analysis of what it would take in terms of additional staff, additional branches and
additional ATMs, it became clear that there was no way to be the “fast bank” and still
stay in business. The position was not deliverable.
Communication: I have no doubt that all marketers are able to communicate their
positions — but the challenge may be the amount of resources it will take to
communicate your position to the target market. If you have a highly technical
position, will need to educate the market on your position or if you are going to have
consumers change the way they do something, you had better plan on having
significant resources available to achieve your position. Consider your company’s
typical marketing spend — and the likelihood of increasing it — when determining
which position is optimal for your brand

Another way of looking at evaluating positions comes from Jennifer Rice, of Fruitful
Strategy, who recommends the “4D’s Rule” of strong brand positioning: Is it desirable
by consumers? Is it deliverable by the company? Is it distinctive by the competition?
Is it durable over time?

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