MM 4 4th Edition Dawn Iacobucci Solutions Manual 1

MM – Instructor Manual
Solution Manual for MM 4 4th Edition Iacobucci

1133629385 9781133629382
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CHAPTER 5 – POSITIONING
KNOWLEDGE OBJECTIVES
1. Understand the concept of positioning and its importance.

2. Learn how perceptual maps facilitate an understanding of a company’s or brand’s
position in the marketplace.
3. Introduce the positioning matrix.
4. Identify the essential elements of a positioning statement.
CHAPTER OUTLINE
▪ What is Positioning and Why is it Probably the Most Important Aspect of

Marketing?
▪ Managerial Recap
1. What is Positioning and Why is it Probably the Most important Aspect of

Marketing?
This section relates to knowledge objective #1
Positioning is about identity—who your brand or company is in the marketplace, vis-à-

vis the competition, and in the eyes of the customer. It involves all the marketing mix
variables: product, price, place and promotion.
TEACHING NOTE: Ask students to say the first words that come to their mind when
the following brands are mentioned: Omega, the Gap, Starbucks, IKEA,
BlackBerry,and Target. Note down their answers on a whiteboard and then discuss
their responses. This activity will help students understand how these companies have
positioned their products in the minds of customers.
1
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Positioning via Perceptual Maps
Perceptual maps are graphical depictions of the positioning of particular brands with
respect to their competitors. These pictures help marketers envision how customers think
about their brands.
Figure 5.1 Competition in Perceptual Maps
Figure 5.1 shows a perceptual map of four hybrid car models (Toyota Prius, Lincoln
MKZ, Lexus RX450h and Tesla Model S). Brands presented close together are perceived
to be similar (Lexus and Lincoln), whereas brands farther apart are seen as more different
(Prius and Tesla). The Lexus and Lincoln would be preferred by consumer segment 1.
But the customers in segment 2 seek nice luxury at inexpensive prices. Thus, a car
company might not find this position profitable, or the image desirable.
TEACHING NOTE: Students could be asked to draw a perceptual map for five
electronic gadget manufacturers to highlight their competitive positions. Students can
rate these companies on dimensions such as affordability, quality, innovativeness,
durability, and the like.
Figure 5.2 Positioning Via Perceptual Maps
This figure is a perceptual map of cities in which a large, global hotel company has
resorts. The company wants to know more about its customers’ travel needs, because
they’re trying to redesign some of their vacation packages. The factors considered here
are price, beaches, and points of interest. The map also identifies two customer segments.
Analyzing the map in detail will help understand the hotel’s current positioning and the
needs of its customers.
TEACHING NOTE: The instructor could ask the students to redraw Figure 5.2 by
retaining the price dimension and changing the other dimension to “seasons of the
year.” Ask them to observe the changes that occur in the figure and discuss how this
would impact the positioning of each of the resort.
TEACHING NOTE: Should a firm change its positioning depending on the market?
What are the potential advantages and disadvantages of doing this? Ask students for
their viewpoints and discuss.
2
Figure 5.3 Perceptual Map: Strengths and Weaknesses of Gym 1
Figure 5.3 contains descriptors for a single service provider, a health club. Patrons have
rated the gym on a number of qualities: the convenience of the location, the variety of the
machines it offers, are there plentiful new machines so that there’s never a long wait, and
finally, whether the staff is helpful, friendly, and trained to give good work-out
instructions. Customers have also given their judgments on the importance of each of the
qualities when choosing a gym. The figure tells us that the gym is conveniently located
but people don’t care much about this attribute. The staff isn’t great, but people are ok
with this too. What people really care about is the number of machines and this particular
gym is not well stocked in that respect. So, the gym has to do something in this regard.
Figure 5.4 Perceptual Map: Competition
This figure allows us to determine the perceived strengths and weaknesses of Gym 1
compared with gyms 2 and 3. Gym 1 is seen as relatively expensive. On the attribute of
machines, it is dominated by both gyms 2 and 3.
One of the limitations of perceptual maps is that they typically look at only two attributes
at a time.
Figure 5.5 Competitor Analysis
The figure is a bar chart comparing the three gyms on four attributes – price, location,
staff, and number of machines. This figure shows that there are alternative ways of
conducting a competitor analysis. The graph clearly shows that Gym1 has a competitive
advantage in terms of location, but not in terms of staff or machines.
The Positioning Matrix
Figure 5.6 Marketing Management Framework Product Quality by Price
This figure shows the juxtaposition of product and price. The basic 2×2 matrix shows that
a match of low-low and high-high makes sense. Brands that offer high quality at low
prices and vice-versa have a short life.
Figure 5.7 Marketing Management Framework Promotion by Distribution
This figure shows an analogous 2×2 matrix for promotion and distribution. If a company
promotes broadly and heavily, they are probably looking to move a lot of merchandise,
and so it would be smart to make the goods widely available. Similarly, if a brand has a
more exclusive image and distribution chain, it would make better sense not to overly
promote it.
3
Figure 5.8 Marketing Management Framework: All 4Ps: Product by Price by Promotion
by Place
This figure shows all 16 combinations of the 4Ps.
Figure 5.9 Some Strategies Don’t Make Sense
The figure suggests eliminating the “low price” and “exclusive distribution”
combinations.
Figure 5.10 Some Strategies Don’t Make Sense
This figure indicates the possibility of eliminating the combinations that involve the
“high price” and “low quality” strategies.
Figure 5.11 Other Strategies Also Don’t Make Sense
The figure suggests that the “heavy promotions” and “exclusive distribution”
combinations should also be eliminated.
Figure 5.12 Some Strategies Are Hard to Sustain
The figure shows that the “good value” purchases—high quality at relatively low prices
—is a position that is hard to sustain.
Figure 5.13 Other Strategies Are Also Hard to Sustain
This figure shows that the “wide distribution” and “light promotion” combinations are
rather inactive strategies.
Figure 5.14 Quality and Price Tend to Realign (see Figures 5.10 and 5.12)
This figure shows that we don’t often see overpriced or good value products. We more
often see “basics” (low price, low quality) or “high-end” products (high price, high
quality).
Figure 5.15 Promotion and Distribution Tend to Realign (see Figures 5.11 and 5.13)
This figure shows that we usually see a match on heaviness of promotion with greater
availability in the marketplace.
TEACHING NOTE: Students could be asked to identify 10 FMCG companies, and,

using Figure 5.14 and/or Figure 5.15, plot them according to their use of any of the 8
strategies (other than those subsequently listed in figure 5.17).
Students should be able to identify “basics,” “high-end,” “mass,” and “niche”
positioning strategies.
4
Figure 5.16 Two Strategies Make Perfect Sense
This figure depicts the following two strategies:

• low price, low quality, widely available, heavy promotions, and
• high price, high quality, exclusive availability, light promotions.
Figure 5.17 Example Brands in the Framework
This figure shows that many brands may be classified in the extreme upper-left and
lower-right cells—the optimal combinations. But there can be exceptions. Some brands
appear in all the other suboptimal combinations.
There are other management strategies that are consistent with the two basic positioning
strategies proposed.
Michael Treacy and Fred Wiersema in The Discipline of Market Leaders identify three
basic corporate strategies to creating value and achieving market stature:
• operational excellence (Dell and Southwest Airlines),
• product leadership (Johnson & Johnson and Sony), and
• customer intimacy (Nordstrom and Amazon)
In the matrix, operations and products would map roughly onto the low costs and high
quality cells, respectively. Customer intimacy is simply good service so that can be
classified in the high quality cell as well.
Michael Porter in his books on Competitive Strategy discusses generic strategies driven
by keeping costs down and prices competitive, leading by differentiation or when
appropriate, niche positioning. The latter is merely a matter of exclusivity and size, and
the first two can be mapped onto the low price vs. high-quality basic combinations.
Writing a Positioning Statement
Once a company has decided upon its positioning, either for the corporation as a whole,
or for one of its brands, it must be able to communicate succinctly the parameters of that
position to a number of different audiences (to customers, employees, shareholders,
general public, etc.).
A positioning statement includes the specification of the target segment(s). Another

important element is the unique selling proposition (USP). The idea is to express a
brand’s competitive advantage clearly and succinctly. The positioning statements of
Volvo, FedEx, YouTube, Club Med, Honda, and several others are given as examples.
5
The positioning statement can serve as an internal memorandum keeping all managers
aligned as a basic guiding principle in all their collective decisions, so as to enhance the
likelihood of consistencies in the results of those decisions. They can also serve as the
foundation of the communications offered to external audiences, including customers,
shareholders, and the like as advertising taglines, or more extensive messages.
2. Managerial Recap
Positioning is central to the marketing manager’s activities. Perceptual maps facilitate an

understanding of a company’s or brand’s position in the marketplace. The positioning
matrix identifies the combinations that make the most sense. Positioning statements help
guide marketing strategies and tactical actions.
SUGGESTED ANSWERS TO MARKETING PLAN QUESTIONS
Encourage students to download an Excel ® spreadsheet on the book’s website at

www.cengagebrain.com, that contains all of these Chapter 17 tables to assist them in
developing a marketing plan. A set of marketing plan questions is provided in the
Instructor’s Manual as a guide to help students develop a marketing plan as they take the
course and work through the chapters. By chapter 17, all of the pieces will have come
together and created a marketing plan if the students work through each section as they
study each chapter. The Marketing Plan tear-out reference card in the student edition of
MM serves as a chapter guide for the students to know when to fill out each section of the
Marketing Plan.
Positioning: fill in descriptions here:

Strategically choose hi-quality/hi-price or basic-product/low-price position: Position1
Show how strategic position compares to competitors’ positions: Position2
Sketch distribution (wide or exclusive) and promotion plans (mass, light): Position3
Position 1:
Strategically choose hi-quality/hi-price or basic-product/low-price position:
Given the suggested concept of an energy drink for women, it is unlikely that the product
would be positioned as a basic product/low-priced product. It would more than likely be
positioned as a high-quality/high priced product. The rationale is to simply ask students
these 2 questions. For an energy drink what attributes or benefits would comprise low
quality? Then ask would you drink an energy drink that was lacking those
dimensions/attributes? It is possible that the product “could” be lower in caffeine. So
that it is positioned for example with 60mg of caffeine per serving rather than the 80 mg
per serving that most other brands have (RockStar, Red Bull, Full Throttle, Monster,
AMP, etc). Question would be why the firm would intentionally market the product with
less caffeine? The product could also be marketed with less sugar, but that does NOT
necessarily mean that the product is viewed as being less quality. Although sugar is
energy. So less sugar, less energy. Most products are priced between $1.99 and $2.99 per
unit. The question is how much further below the $1.99 would the product have to be
priced to be viewed as low priced? $.10 ? 10%? Get students to reflect upon that.
6
Position 2:
Show how strategic position compares to competitors’ positions:
Students should develop a 2 dimensional perceptual map.
Aggressive/threatening versus passive/accommodating could be one dimension and
caffeine or calories or grams of sugar could be the other dimension. It would most likely
be that the new product would be in a quadrant by itself, with possibly Red Bull being the
closest competitor?
Position 3:
Sketch distribution (wide or exclusive) and promotion plans (mass, light):
Students would likely comment that wide distribution would mimic a distribution strategy
similar to Red Bull, utilizing convenience outlets, grocery stores, and large multi-format
stores like Target and Walmart in which multi-packs and single cans would be available.
Conversely, an exclusive distribution strategy would focus on a single style of outlet,
mainly health clubs, or boutique grocery stores, or convenience stores only (such as your
local gas-n-go). Mass promotion plans would simply entail a media blitz of most outlets
available TV, print, Web, event sponsorship, product placement and the like. A light
promotion plan would quite possibly focus on print (magazine) only to niche vehicles
(Self or More magazines).
SUGGESTED ANSWERS TO DISCUSSION QUESTIONS
1. If you were to create a perceptual map for the product category of watches, what
attributes should you include to illustrate both the similarities and differences
among the brands?
Answer:
Brand, price point, watches for men (high-tech looking and lots of gadgets) or
women (looking like jewelry).
BUSPROG: Reflective Thinking
Tier II: DISC: Strategy
Tier III: MBA: Generative thinking
Bloom’s: Analysis
Topic: Positioning via Perceptual Maps
Difficulty: Moderate
2. Find a company that is struggling. Where is it in the positioning matrix? Could

the company be more successful if it changed any of its Ps (e.g., to head to the
low/ low/ low/ low or high/ high/ high/ high cells)?
Answer:
Take one of the big American car companies (what a sad story!). Within that, take
one of their car lines. Is the car high quality or low? Reasonably priced or too
high? etc. Post-bailout, see if the students can recognize that it’s still salvageable,
if the Ps were modified.
BUSPROG: Reflective Thinking
Tier III: MBA: Generative thinking
7
Bloom’s: Analysis
Topic: The Positioning Matrix
3. Write a position statement for yourself to convince your favorite company to hire
you.
Answer:
This will obviously depend on the student, but should include the target audience
(that company, or that industry, or that kind of job regardless of company or
industry), and the student’s particular strengths.
BUSPROG: Communication
Tier II: DISC: Creativity
Tier III: MBA: Generative Thinking
Bloom’s: Application
Topic: Writing a Positioning Statement
SUGGESTED ANSWERS TO MINI-CASE: POSITIONING HEALTH CARE
1. Well-Health sounds high quality, high cost, exclusive distribution, and low
promotion. MarksHealth seems low cost, wider distribution, higher promotion and
perhaps lower quality (due to volume and a larger set and assortment of front-line
practitioners).
BUSPROG: Analytic
Tier III: MBA: Strategic & systems skills
Bloom’s: Analysis
2. The health care group and hospital probably see each other as threats solely a function
of proximity (same town, have to listen to each other’s radio ads, etc.).
BUSPROG: Analytic
Bloom’s: Analysis
3. Backlog is a little disconcerting. Perhaps it could further distinguish itself by focusing

on servicing only certain ailments or body parts. Wouldn’t hurt to do some local
event sponsorship to diminish perceptions that they’re snobs. Of course, these are
actions MarksHealth could take as well. Competitive advantages are usually short-
lived in services sectors.
BUSPROG: Analytic
8

Bloom’s: Analysis
SUGGESTED ANSWERS TO ONLINE MINI-CASE: “VALUE” AND

“QUALITY” – SEEKING SEGMENTS IN THE POSITIONING MATRIX
As we now know, when marketers talk about segments, it’s nothing mysterious.
Segments are just groups of customers who seek similar benefits. A product’s price is
definitely one of its most important attributes. A low price can be a benefit. A high price
can still provide a benefit if the customer thinks that product delivers good value (i.e., is
worth the price).
In the positioning matrix, price means every effort the customer expends. Thus,
price definitely includes the financial cost to the customer but also things like:
• How far did they have to drive to a store?
• How much time did they have to spend researching (e.g., online, in newspaper
weekend supplements, clipping coupons, etc.)?
• Were the salespeople at the store or on the phone helpful or rude?
• Was the parking lot crowded?
• If the purchase was online, was the website difficult or easy to navigate.
By the quality or value of the purchase obtained, we mean everything good the
customer gets, such as:
• They get the product.
• They might feel good about the brand.
• They might have their friends compliment them.
• The product might last a long time because it is reliable, etc.
The following figure has four segments:

A. Rare: Those who are willing to pay a high price and obtain low quality.
B. Loyals: Those who seek high quality and are willing to pay a high price.
C. Convenience: Those who seek low price and are willing to take low
quality.
D. Value: Those who seek low price and look for high quality.
As discussed in the chapter, products mostly appear in the low-price/low-quality and

high-price/high-quality quadrants. Thus, few products will be available for the “Rare”
and “Value” segments. Pick any product category that you like and map some products
into both the "Loyals" and "Convenience-seekers" quadrants.
LOYALS: Swiss-made watches (ROLEX), Luxury Automobiles, Fine Wines, hand-rolled

Cuban cigars, 5 star hotels, and 5 star restaurants. Convenience: Little Debbie Snack
Foods, B-Bats taffy candy pops, Tootsie Pops, fast food restaurants dollar menu items.
9
A. If you were a brand manager of one of the products you just mapped, who would
you target first? Why?
LOYALS: Loyals want quality and are WILLING TO PAY FOR IT! This means a
higher margin per transaction. It also means prestige in the market place.
BUSPROG: Analytic
Bloom’s: Analysis
B. Who would target next? Why?

While some of this depends on the size of the segment, RARES would seem a likely
choice because of their willingness to pay a high price. Given that, it would seem
reasonable that they would be willing to accept high quality in lieu of low quality
and would be willing to pay for high quality. This would NOT require any
marketing mix adjustment. By serving the first segment, you should also be able to
serve the second. The least desired segment is the value segment. They will seek a
bargain and will be demanding as they seek quality, but don’t want to pay for it.
High
Price A B
C D
Low
Low High
Quality
BUSPROG: Analytic
Bloom’s: Analysis
© Cengage Learning 2013
VIDEO CASE & DISCUSSION QUESTIONS
Targeting and Positioning at Numi Organic Tea
10
Numi Tea founders, siblings Ahmed and Reem Rahim, immigrated to the United States
when they were young children and grew up in Cleveland, Ohio. Reem became a
biomedical engineer. Ahmed traveled the world as a photographer and settled for a time
in Prague where he opened two tea shops. Reem eventually left her career to pursue life
as an artist. In 1999, the two reconnected in Oakland, California, and started Numi Tea in
Reem’s apartment.
“I think in the positioning of our brand, we wanted to target a certain type of customer
base, from the natural health food stores, to fine dining and hotels, to universities and
coffee shops, gourmet stores,” says Ahmed. “What I’ve been most surprised about in our
growth is the mass market consumer.” In recent years, demand by the average American
consumer for organic and ethically produced products has exploded. At the same time,
economic influences have driven the more affluent and natural foods consumers to large
discounters such as Target, super-size grocery chains, warehouse clubs and online
shopping.
Today, explains Jennifer Mullin, vice president of marketing for Numi Tea, the average
Numi consumer is female, college educated, and buys two to three boxes of tea per
month, usually green tea. She also buys organic products whenever possible. All of these
details, while not surprising, are fairly new. Until Mullin joined the team and formalized
their marketing department, Numi assumed their customers fit the same profile as the
staff—young, cool, and urban. While many of Numi tea drinkers are all these things,
Mullin’s findings proved that the company needed to put some additional energy toward
targeting the younger, college market. They launched an initiative to raise awareness of
the product on campuses where people are more inclined to be interested in issues of
sustainability, fair-trade, and organics. Because Numi teas are considered a premium
product, they do have an affordable, but still higher price point than conventionally
produced teas. College students in general have less money to spend, so Numi
approached the food service departments of universities such as Stanford to serve the tea
as part of their prepaid meal plans. Not only does the food service contract represent a
giant account, it encourages trial. Sampling is Numi’s most successful marketing activity
for attracting new users. Students can learn to love the product, essentially for free.
The most compelling reason for drinking Numi tea is its health benefits. The company
found that they don’t need to spend much time talking up the organic aspect of their
product. In the premium and natural foods space where Numi operates, organic is
expected. There is the threat that as the terms “organic” and “natural” invade the
mainstream marketplace, a lack of trust or cynicism may arise as some products will
inevitably fail to live up to their labels’ claims. This is why Numi relies heavily on
educating its consumers about the product. When targeting women, their most valued
consumer, says Jennifer, “we have an in-house PR team that works a lot with editors [of
women’s magazines] to educate them on tea and make sure they understand the healthy
properties of tea.” They follow up with sampling at Whole Foods or events targeted
toward environmentally conscious moms. Numi rounds out the education efforts on its
website with more health information as well as in-depth articles on the benefits of
specific teas.
11
Although still young, the Numi brand is expanding rapidly and has enjoyed success
overseas as well. Whatever the marketing and PR teams do—store sampling,
environmental events, or partnerships with like-minded companies such as Clif Bar—
they continue to survey and assess the demographic and psychographic profiles of their
consumer.
1. Describe Numi’s product line in terms of the four Ps of marketing ⎯ product,

price, place, and promotion.
Answer:
The product component of the marketing mix is a high-quality tea that is
formulated using premium, organically grown ingredients. The price component
reflects Numi’s organic tea being priced as a premium or upscale product. The
place component has focused primarily on upscale outlets ⎯ namely, natural and
health food stores, fine dining restaurants and hotels, universities, and coffee
shops. Recently, however, Numi has broadened the place component by
distributing its teas through grocery stores, club stores, and website sales. The
promotion component focuses on providing product samples and participating in
events that promote various kinds of organic and fair-traded products; this helps
in positioning Numi organic teas as a premium tasting, premium quality product.
BUSPROG: Analytic
Tier III: MBA: Strategic and systems skills
Bloom’s: Analysis
Topic: What is Positioning and Why is it Probably the Most Important Aspect of
Marketing?
2. Combining product, price, place, and promotion together into the strategic
marketing management framework, describe the strategic positioning of Numi’s
product line.
Answer:
The product by price by place by promotion matrix is an analytical tool for
determining viable strategic marketing strategies. Given that Numi organic teas
are high quality, premium teas (i.e., product) sold at a premium price, any
strategy involving either low quality or low price would not be a viable marketing
strategy. Therefore, in the following positioning matrix, the cells marked with
“X” are not viable strategies. This eliminates 12 possible strategies; leaving four
strategies that Numi can pursue. These four strategies differ in terms of
distribution (i.e., place) and promotion. Numi is not a heavily promoted product
as it is promoted by providing product samples and participating in events that
promote various kinds of organic and fair-traded products; therefore the cells
containing “YY’ can be eliminated. This leaves distribution (i.e., place) as the
determining marketing mix variable. Numi had been pursuing the strategy of
exclusive distribution of a lightly promoted, high priced, high quality product (see
the cell labeled AAA). More recently, surprising growth in the mass marketing of
12
Numi organic teas has occurred at grocery stores and club stores in the United
States and on websites. This strategy reflects the wide distribution of a lightly
promoted, high priced, high-quality product (see the cell labeled BBB).
Wide Distribution Exclusive Distribution

Low High Low High
Quality Quality Quality Quality
Heavy Low Price X X X X
Promotion High Price X YY X YY
Light Low Price X X X X
Promotion High Price X BBB X AAA
BUSPROG: Analytic
Bloom’s: Synthesis
Marketing?
Difficulty: Challenging
3. Does this strategic positioning make good marketing management sense or not?
Explain your answer.
Answer:
The dual strategy makes sense because this enables Numi to significantly grow its
sales volume by expanding distribution. Although wide versus exclusive
distribution are in conflict, according to Numi’s managers, the key to dealing with
this conflict lies in knowing who the company’s customers are and where they are
shopping. In short, customers who want premium teas are willing to pay a
premium price, and who do not need to be solicited through heavy promotion, do
indeed shop at grocery stores and club stores as well as online. Most of these
people do not shop only at exclusive outlets.
BUSPROG: Analytic
Bloom’s: Evaluation
Marketing?
From BOONE/KURTZ. Contemporary Marketing, 14E. © 2010 South-Western, a part of Cengage

Learning, Inc. Reproduced by permission. www.cengage.com/permissions
Concepts Illustrated:
• Positioning
• Positioning matrix
• Product component of positioning matrix
13
• Price component of positioning matrix

• Place component of positioning matrix
• Promotion component of positioning matrix
• Positioning statement
14

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MM – Instructor Manual

Solution Manual for MM 4 4th Edition Iacobucci

Download full test bank at:

1. Understand the concept of positioning and its importance.

▪ What is Positioning and Why is it Probably the Most Important Aspect of

1. What is Positioning and Why is it Probably the Most important Aspect of

This section relates to knowledge objective #1

Positioning is about identity—who your brand or company is in the marketplace, vis-à-

Positioning via Perceptual Maps

This section relates to knowledge objective #2

Figure 5.1 Competition in Perceptual Maps

Figure 5.2 Positioning Via Perceptual Maps

Figure 5.3 Perceptual Map: Strengths and Weaknesses of Gym 1

Figure 5.4 Perceptual Map: Competition

Figure 5.5 Competitor Analysis

The Positioning Matrix

This section relates to knowledge objective #3

Figure 5.6 Marketing Management Framework Product Quality by Price

Figure 5.7 Marketing Management Framework Promotion by Distribution

This figure shows all 16 combinations of the 4Ps.

Figure 5.9 Some Strategies Don’t Make Sense

Figure 5.10 Some Strategies Don’t Make Sense

Figure 5.11 Other Strategies Also Don’t Make Sense

Figure 5.12 Some Strategies Are Hard to Sustain

Figure 5.13 Other Strategies Are Also Hard to Sustain

TEACHING NOTE: Students could be asked to identify 10 FMCG companies, and,

Figure 5.16 Two Strategies Make Perfect Sense

This figure depicts the following two strategies:

Figure 5.17 Example Brands in the Framework

Writing a Positioning Statement

This section relates to knowledge objective #4

A positioning statement includes the specification of the target segment(s). Another

Positioning is central to the marketing manager’s activities. Perceptual maps facilitate an

SUGGESTED ANSWERS TO MARKETING PLAN QUESTIONS

Encourage students to download an Excel ® spreadsheet on the book’s website at

Positioning: fill in descriptions here:

SUGGESTED ANSWERS TO DISCUSSION QUESTIONS

2. Find a company that is struggling. Where is it in the positioning matrix? Could

SUGGESTED ANSWERS TO MINI-CASE: POSITIONING HEALTH CARE

3. Backlog is a little disconcerting. Perhaps it could further distinguish itself by focusing

Tier III: MBA: Strategic & systems skills

SUGGESTED ANSWERS TO ONLINE MINI-CASE: “VALUE” AND

The following figure has four segments:

As discussed in the chapter, products mostly appear in the low-price/low-quality and

LOYALS: Swiss-made watches (ROLEX), Luxury Automobiles, Fine Wines, hand-rolled

B. Who would target next? Why?

VIDEO CASE & DISCUSSION QUESTIONS

Targeting and Positioning at Numi Organic Tea

1. Describe Numi’s product line in terms of the four Ps of marketing ⎯ product,

Wide Distribution Exclusive Distribution

From BOONE/KURTZ. Contemporary Marketing, 14E. © 2010 South-Western, a part of Cengage

• Price component of positioning matrix

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