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Chapter 5 - Positioning
TRUE/FALSE
3. Positioning is about identity (i.e., who you are in the marketplace vis-à-vis the competition).
© 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.
4. Communication is one of the 5 Cs.
5. Positioning is about designing a product to have benefits that the target segment will value.
6. Alexis is in charge of designing a new product for her company. The research data she
collected suggests the benefits to her target segment will be minimal. Based on this
information, Alexis will have a difficult time positioning this new product.
8. Perceptual maps allow managers to see graphical depictions of where their brands are, and
where their competitors are, in the minds of their customers.
9. Holes in perceptual maps identify areas of fierce competition among an industry’s firms.
© 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.
10. Customer segments shown on perceptual maps offer marketing managers information about
what’s going on in the marketplace.
11. On a perceptual map, brands depicted as points in the map close together are those
perceived as similar.
12. One question always on the minds of marketers is, “Is my intended position the one that
customers perceive?”
14. Some perceptual maps contain descriptors for a single service provider.
15. With time, it’s hard for a company to resist raising prices, or letting quality settle a little
lower due to cost cutting measures.
16. Just as consumers are demanding, wanting the very best of everything, companies can be
equally irrational.
© 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.
ANS: T DIF: Easy REF: Page 56
NAT: BUSPROG Analytic LOC: DISC: Marketing Plan
TOP: The Positioning Matrix KEY: Bloom's: Knowledge
MSC: MBA: Knowledge of human behavior & society
17. Simultaneously being the “coolest” brand and offering the best value is a reasonable
positioning objective.
18. Brands occasionally come along that are priced high but offer low quality.
20. Three basic corporate strategies to creating value and achieving market stature are
operational excellence, product leadership, and customer intimacy.
21. Joe’s company prides itself on efficient production and delivery of products, in addition to
offering low prices and convenience to its customers. The strategy most likely being
employed by Joe’s company is Product Leadership.
© 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.
22. Madison serves as Vice President of Customer Experience at Company X, a large
international hospitality firm with hotels and resorts around the globe. Madison’s role
involves catering to the specific needs and preferences of Company X’s most valuable
guests. Company X is most likely engaged in a Customer Intimacy strategy to create value
among its guests.
24. If a brand has an exclusive image and distribution chain, it needs to promote it as much as
possible.
25. The three basic corporate strategies to creating value and achieving market stature were
originally described by Michael Treacy and Fred Wiersema in The Discipline of Market
Leaders.
© 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.
28. Johnson & Johnson uses a customer intimacy strategy.
31. Once it has positioned itself or its brand, a company must be able to communicate succinctly
the parameters of that position to a single audience.
32. Some positioning statements are surprising in that they may NOT reflect current
marketplace perceptions but rather the goals the company seeks to reach.
33. Managers should NOT use a positioning statement as an internal memorandum that keeps
them aligned to it as a basic guiding principle.
34. Positioning statements should be lengthy and very detailed in order to communicate
efficiently.
© 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.
NAT: BUSPROG Analytic LOC: DISC: Marketing Plan
TOP: Writing a Positioning Statement KEY: Bloom's: Analysis
MSC: MBA: Managing Strategy & Innovation
35. Mark needs to write the positioning statement for Company X. One of Mark’s colleagues
advises him that the positioning statement needs to be clearly understood by the company’s
employees, shareholders, and customers - but NOT by the general public since this group
will not be interacting with the company. Mark’s colleague has offered good advice.
36. To write a good positioning statement, you need to know who you are trying to persuade.
37. To write a good positioning statement, you do not need to know who you are competing
with. It’s irrelevant.
40. FedEx has a very straightforward positioning statement: “Dependable Solutions for Your
Shipping Needs.”
© 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.
MSC: MBA: Managing Strategy & Innovation
MULTIPLE CHOICE
© 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.
TOP: What is Positioning and Why is it Probably the Most Important Aspect of
Marketing? KEY: Bloom's: Knowledge
MSC: MBA: Knowledge of General Business Functions
5. Marketers and senior managers like to see graphical depictions of where their brands are,
and where their competitors are in the minds of their customers. What are these called?
a. histograms
b. perceptual maps
c. genograms
d. opinion charts
ANS: B DIF: Easy REF: Page 53
NAT: BUSPROG Analytic LOC: DISC: Marketing Plan
TOP: Positioning via Perceptual Maps KEY: Bloom's: Knowledge
MSC: MBA: Knowledge of General Business Functions
6. Brands depicted as points in the map close together are those perceived as _______.
a. similar
b. different
c. expensive
d. high-quality
ANS: A DIF: Easy REF: Page 53
NAT: BUSPROG Analytic LOC: DISC: Marketing Plan
TOP: Positioning via Perceptual Maps KEY: Bloom's: Comprehension
MSC: MBA: Knowledge of General Business Functions
7. _________ in perceptual maps offer(s) intriguing possibilities for new market opportunities.
a. Brands
b. Holes
c. Targeting
d. Positioning
ANS: B DIF: Moderate REF: Page 53
NAT: BUSPROG Analytic LOC: DISC: Marketing Plan
TOP: Positioning via Perceptual Maps KEY: Bloom's: Comprehension
MSC: MBA: Managing Strategy & Innovation
8. In analyzing perceptual maps, one question always on the marketer's mind is:
a. “Is my brand optimally segmented?”
b. “Is my brand experiencing holes?”
c. “Is my brand targeted correctly?”
d. “Is my brand optimally positioned?”
ANS: D DIF: Challenging REF: Page 54
NAT: BUSPROG Analytic LOC: DISC: Marketing Plan
TOP: Positioning via Perceptual Maps KEY: Bloom's: Comprehension
MSC: MBA: Knowledge of human behavior & society
© 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.
9. Dom is reviewing a perceptual map that compares a number of jeans brands based on
customer survey data. Five of the eight brands are depicted as points close together on the
map. A logical conclusion Dom can draw from this perceptual map is ________.
a. three brands are well positioned as being diverse from all other brands
b. the five brands are viewed as most interchangeable by consumers
c. the five brands identify a “hole” in the perceptual map
d. consumers will most likely purchase more of the three brands not clustered
together
ANS: B DIF: Moderate REF: Page 54
NAT: BUSPROG Analytic LOC: DISC: Marketing Plan
TOP: Positioning via Perceptual Maps KEY: Bloom's: Application
MSC: MBA: Knowledge of General Business Functions
10. Which of the following is NOT true according to this perceptual map?
11. Which of the following is NOT true based on this perceptual map?
© 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.
a. Paris and Rome are seen as places where there is lots to see and do, but they’re
relatively expensive.
b. Nassau and Tampa are perceived as beach trips that are relatively affordable.
c. The first customer segment is very well-served.
d. The second customer segment is seeking more to do on their holiday and is not
concerned about price.
ANS: D DIF: Challenging REF: Page 54
NAT: BUSPROG Analytic LOC: DISC: Marketing Plan
TOP: Positioning via Perceptual Maps KEY: Bloom's: Application
MSC: MBA: Knowledge of human behavior & society
12. If a company promotes broadly and heavily, they are probably looking to ______.
a. create a niche market
b. offer low prices
c. move a lot of merchandise
d. distribute through selective channels
ANS: C DIF: Moderate REF: Page 56
NAT: BUSPROG Analytic LOC: DISC: Promotion
TOP: The Positioning Matrix KEY: Bloom's: Analysis
MSC: MBA: Managing Strategy & Innovation
13. Which of the following combinations doesn’t make very much sense?
a. low price and low quality
b. high price and high quality
c. heavy promotion and low (exclusive) availability
d. heavy promotion and high availability
ANS: C DIF: Moderate REF: Page 56
NAT: BUSPROG Analytic LOC: DISC: Marketing Plan
© 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.
TOP: The Positioning Matrix KEY: Bloom's: Analysis
MSC: MBA: Managing Strategy & Innovation
14. If a brand has an exclusive image, it would make good sense NOT to ________.
a. over-promote it
b. charge a premium price
c. engage in light promotion
d. distribute through selective channels
ANS: A DIF: Moderate REF: Page 56
NAT: BUSPROG Analytic LOC: DISC: Marketing Plan
TOP: The Positioning Matrix KEY: Bloom's: Analysis
MSC: MBA: Managing Strategy & Innovation
15. A CEO is considering how he wants his company to be positioned. He has thought of it as
“the coolest brand” and also the one with the best value. Which of the following is true
about his predicament?
a. He should definitely try to have the coolest brand.
b. He should definitely try to have the brand with the best value.
c. He can probably achieve either of these goals, but not both.
d. He can achieve both of these goals.
ANS: C DIF: Moderate REF: Page 56
NAT: BUSPROG Analytic LOC: DISC: Marketing Plan
TOP: The Positioning Matrix KEY: Bloom's: Evaluation
MSC: MBA: Managing Strategy & Innovation
16. Which of the following positioning combinations makes the most sense?
a. low price, low quality, exclusive availability, heavy promotions
b. high price, low quality, exclusive availability, heavy promotions
c. low price, high quality, exclusive availability, light promotions
d. low price, low quality, widely available, heavy promotions
ANS: D DIF: Challenging REF: Page 56
NAT: BUSPROG Analytic LOC: DISC: Marketing Plan
TOP: The Positioning Matrix KEY: Bloom's: Evaluation
MSC: MBA: Managing Strategy & Innovation
17. Which of the following is NOT one of three basic corporate strategies for creating value and
achieving market stature?
a. operational excellence
b. product leadership
c. quality placement
d. customer intimacy
ANS: C DIF: Easy REF: Page 60
NAT: BUSPROG Analytic LOC: DISC: Strategy
TOP: The Positioning Matrix KEY: Bloom's: Knowledge
MSC: MBA: Knowledge of General Business Functions
© 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.
a. are good at production, delivery, price, and convenience
b. pride themselves on quality and innovation
c. are willing to tailor their products to particular customer needs
d. are expensive but is expected to pay off in long-term loyalty and enhanced
customer lifetime value
ANS: A DIF: Moderate REF: Page 60
NAT: BUSPROG Analytic LOC: DISC: Marketing Plan
TOP: The Positioning Matrix KEY: Bloom's: Comprehension
MSC: MBA: Managing Strategy & Innovation
21. Who originally described the three basic corporate strategies to creating value and achieving
market stature?
a. Treacy and Wiersema
b. Tracy and Wiseman
c. Thompson and Walters
d. Tisdale and Winters
ANS: A DIF: Challenging REF: Page 62
NAT: BUSPROG Analytic LOC: DISC: Strategy
TOP: The Positioning Matrix KEY: Bloom's: Knowledge
MSC: MBA: Managing Strategy & Innovation
© 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.
ANS: B DIF: Challenging REF: Page 60
NAT: BUSPROG Analytic LOC: DISC: Strategy
TOP: The Positioning Matrix KEY: Bloom's: Comprehension
MSC: MBA: Managing Strategy & Innovation
© 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.
27. In his books on Competitive Strategy, ________ discusses generic strategies driven by
keeping costs down and prices competitive, leading by differentiation (e.g., excellence in
quality or innovation), or when appropriate, niche positioning.
a. Mark Patton
b. Mitchell Paul
c. Matthew Pilsner
d. Michael Porter
ANS: D DIF: Challenging REF: Page 62
NAT: BUSPROG Analytic LOC: DISC: Strategy
TOP: The Positioning Matrix KEY: Bloom's: Knowledge
MSC: MBA: Managing Strategy & Innovation
29. The USP concept captures two things. One is how does your market offering dominate these
other providers. What is the other?
a. what is the product category
b. what is the target segment
c. where is the product positioned
d. none of these
ANS: A DIF: Moderate REF: Page 62
NAT: BUSPROG Communication LOC: DISC: Marketing Plan
TOP: Writing a Positioning Statement KEY: Bloom's: Comprehension
MSC: MBA: Managing Strategy & Innovation
30. Jen is developing the positioning statement for a new line of sunglasses. In a meeting, the
marketing team tells Jen that she has succinctly and clearly expressed the competitive
advantage of the new sunglasses brand. The team approves of the way Jen wants to express
the brand’s competitive advantage, and tells her to continue her work on fully developing
the positioning statement. Which element of crafting the positioning statement has Jen’s
team just approved?
a. positioning
b. target marketing
c. target segmenting
d. unique selling proposition
ANS: D DIF: Moderate REF: Page 62
NAT: BUSPROG Communication LOC: DISC: Marketing Plan
TOP: Writing a Positioning Statement KEY: Bloom's: Application
MSC: MBA: Managing Strategy & Innovation
© 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.
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have vastly increased the product,—would have improved and
beautified the whole face of the country; and the Moral and
Intellectual advantages thence accruing would alone have been
inestimable. A season of suspension of labor in a community is
usually one of aggravated dissipation, drunkenness, and crime.
But let me more clearly illustrate the effect of foreign competition
in raising prices to the consumer. To do this, I will take my own
calling for an example, because I understand that best; though any of
you can apply the principle to that with which he may be better
acquainted. I am a publisher of newspapers, and suppose I afford
them at a cheap rate. But the ability to maintain that cheapness is
based on the fact that I can certainly sell a large edition daily, so that
no part of that edition shall remain a dead loss on my hands. Now, if
there were an active and formidable Foreign competition in
newspapers,—if the edition which I printed during the night were
frequently rendered unsalable by the arrival of a foreign ship
freighted with newspapers early in the morning,—the present rates
could not be continued: the price must be increased or the quality
would decline. I presume this holds equally good of the production of
calicoes, glass, and penknives as of newspapers, though it may be
somewhat modified by the nature of the article to which it is applied.
That it does hold true of sheetings, nails, and thousands of articles, is
abundantly notorious.
I have not burdened you with statistics,—you know they are the
reliance, the stronghold, of the cause of Protection, and that we can
produce them by acres. My aim has been to exhibit not mere
collections of facts, however pertinent and forcible, but the laws on
which those facts are based,—not the immediate manifestation, but
the ever-living necessity from which it springs. The contemplation of
these laws assures me that those articles which are supplied to us by
Home Production alone are relatively cheaper than those which are
rivalled and competed with from abroad. And I am equally confident
that the shutting out of Foreign competition from our markets for
other articles of general necessity and liberal consumption which can
be made here with as little labor as anywhere would be followed by a
corresponding result,—a reduction of the price to the consumer at
the same time with increased employment and reward to our
Producing Classes.
But, Mr. President, were this only on one side true,—were it
certain that the price of the Home product would be permanently
higher than that of the Foreign, I should still insist on efficient
Protection, and for reasons I have sufficiently shown. Grant that a
British cloth costs but $3 per yard, and a corresponding American
fabric $4, I still hold that the latter would be decidedly the cheaper
for us. The Fuel, Timber, Fruits, Vegetables, &c., which make up so
large a share of the cost of the Home product, would be rendered
comparatively valueless by having our workshops in Europe. I look
not so much to the nominal price as to the comparative facility of
payment. And, where cheapness is only to be attained by a
depression of the wages of Labor to the neighborhood of the
European standard, I prefer that it should be dispensed with. One
thing must answer to another; and I hold that the farmers of this
country can better afford, as a matter of pecuniary advantage, to pay
a good price for manufactured articles than to obtain them lower
through the depression and inadequacy of the wages of the artisan
and laborer.
You will understand me, then, to be utterly hostile to that idol of
Free Trade worship, known as Free or unlimited Competition. The
sands of my hour are running low, and I cannot ask time to examine
this topic more closely; yet I am confident I could show that this Free
Competition is a most delusive and dangerous element of Political
Economy. Bear with a brief illustration: At this moment, common
shirts are made in London at the incredibly low price of three cents
per pair. Should we admit these articles free of duty and buy them
because they are so cheap? Free trade says Yes; but I say No! Sound
Policy as well as Humanity forbids it. By admitting them, we simply
reduce a large and worthy and suffering class of our population from
the ability they now possess of procuring a bare subsistence by their
labor to unavoidable destitution and pauperism. They must now
subsist upon the charity of relatives or of the community,—unless we
are ready to adopt the demoniac doctrine of the Free Trade
philosopher Malthus, that the dependent Poor ought to be rigorously
starved to death. Then what have we gained by getting these articles
so exorbitantly cheap? or, rather, what have we not lost? The labor
which formerly produced them is mainly struck out of existence; the
poor widows and seamstresses among us must still have a
subsistence; and the imported garments must be paid for: where are
the profits of our speculation?
But even this is not the worst feature of the case. The labor which
we have here thrown out of employment by the cheap importation of
this article is now ready to be employed again at any price,—if not
one that will afford bread and straw, then it must accept one that will
produce potatoes and rubbish; and with the product some Free-
Trader proceeds to break down the price and destroy the reward of
similar labor in some other portion of the earth. And thus each
depression of wages produces another, and that a third, and so on,
making the circuit of the globe,—the aggravated necessities of the
Poor acting and reacting upon each other, increasing the
omnipotence of Capital and deepening the dependence of Labor,
swelling and pampering a bloated and factitious Commerce, grinding
down and grinding down the destitute, until Malthus’s remedy for
Poverty shall become a grateful specific, and, amid the splendors and
luxuries of an all-devouring Commercial Feudalism, the squalid and
famished Millions, its dependants and victims, shall welcome death
as a deliverer from their sufferings and despair.
I wish time permitted me to give a hasty glance over the doctrines
and teachings of the Free Trade sophists, who esteem themselves the
Political Economists, christen their own views liberal and
enlightened, and complacently put ours aside as benighted and
barbarous. I should delight to show you how they mingle subtle
fallacy with obvious truth, how they reason acutely from assumed
premises, which, being mistaken or incomplete, lead to false and
often absurd conclusions,—how they contradict and confound each
other, and often, from Adam Smith, their patriarch, down to
McCulloch and Ricardo, either make admissions which undermine
their whole fabric, or confess themselves ignorant or in the dark on
points the most vital to a correct understanding of the great subject
they profess to have reduced to a Science. Yet even Adam Smith
himself expressly approves and justifies the British Navigation Act,
the most aggressively Protective measure ever enacted,—a measure
which, not being understood and seasonably counteracted by other
nations, changed for centuries the destinies of the World,—which
silently sapped and overthrew the Commercial and Political
greatness of Holland,—which silenced the thunder of Van Tromp,
and swept the broom from his mast-head. But I must not detain you
longer. I do not ask you to judge of this matter by authority, but from
facts which come home to your reason and your daily experience.
There is not an observing and strong-minded mechanic in our city
who could not set any one of these Doctors of the Law right on
essential points. I beg you to consider how few great practical
Statesmen they have ever been able to win to their standard,—I
might almost say none; for Huskisson was but a nominal disciple,
and expressly contravened their whole system upon an attempt to
apply it to the Corn Laws; and Calhoun is but a Free-Trader by
location, and has never yet answered his own powerful arguments in
behalf of Protection. On the other hand, we point you to the long
array of mighty names which have illustrated the annals of
Statesmanship of modern times,—to Chatham, William Pitt, and the
Great Frederick of Prussia; to the whole array of memorable French
Statesmen, including Napoleon the first of them all; to our own
Washington, Hamilton, Jefferson, and Madison; to our two
Clintons, Tompkins, to say nothing of the eagle-eyed and genial-
hearted LIVING master-spirit [Henry Clay] of our time. The opinions
and the arguments of all these are on record; it is by hearkening to
and heeding their counsels that we shall be prepared to walk in the
light of experience and look forward to a glorious National destiny.
My friends! I dare not detain you longer. I commit to you the cause
of the Nation’s Independence, of her Stability and her Prosperity.
Guard it wisely and shield it well; for it involves your own happiness
and the enduring welfare of your countrymen!
Henry A. Wise
Against Know-Nothingism, Sept. 18, 1852.
The laws of the United States—federal and state laws—declare and
defend the liberties of our people. They are free in every sense—free
in the sense of Magna Charta and beyond Magna Charta; free by the
surpassing franchise of American charters, which makes them
sovereign and their wills the sources of constitutions and laws.
In this country, at this time, does any man think anything? Would
he think aloud? Would he speak anything? Would he write anything?
His mind is free; his person is safe; his property is secure; his house
is his castle; the spirit of the laws is his body-guard and his house-
guard; the fate of one is the fate of all measured by the same common
rule of right; his voice is heard and felt in the general suffrage of
freemen; his trial is in open court, confronted by witnesses and
accusers; his prison house has no secrets, and he has the judgment of
his peers; and there is nought to make him afraid, so long as he
respects the rights of his equals in the eye of the law. Would he
propagate truth? Truth is free to combat error. Would he propagate
error? Error itself may stalk abroad and do her mischief, and make
night itself grow darker, provided truth is left free to follow, however
slowly, with her torches to light up the wreck! Why, then, should any
portion of the people desire to retire in secret, and by secret means to
propagate a political thought, or word, or deed, by stealth? Why band
together, exclusive of others, to do something which all may not
know of, towards some political end? If it be good, why not make the
good known? Why not think it, speak it, write it, act it out openly and
aloud? Or, is it evil, which loveth darkness rather than light? When
there is no necessity to justify a secret association for political ends,
what else can justify it? A caucus may sit in secret to consult on the
general policy of a great public party. That may be necessary or
convenient; but that even is reprehensible, if carried too far. But here
is proposed a great primary, national organization, in its inception—
What? Nobody knows. To do what? Nobody knows. How organized?
Nobody knows. Governed by whom? Nobody knows. How bound? By
what rites? By what test oaths? With what limitations and restraints?
Nobody, nobody knows! All we know is that persons of foreign birth
and of Catholic faith are proscribed; and so are all others who don’t
proscribe them at the polls. This is certainly against the spirit of
Magna Charta.