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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.
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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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ability in handling diplomatic questions, and, as a mark of our
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The Death of Chao Shu-ch’iao.—This Grand Councillor, one of the

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that his life be spared. The Grand Councillors were afraid to take the
petition to Her Majesty, but, in reply to the deputation, the President
of the Board of Punishments (who was related to Chao) declared
that his execution would be an act of monstrous injustice.
On the first day of the New Year, these rumours took more definite
shape, and on that day Her Majesty’s audience with the Grand
Council lasted from six to eleven in the morning; but even then no
decision had been come to in regard to complying with the demand
for Chao’s execution. Throughout the neighbourhood of the Drum
Tower the streets were packed with a huge crowd, who threatened
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execution. So great was the clamour that the Grand Council feared a
riot, and they determined, therefore, to beg Her Majesty to permit
Chao to commit suicide. This was done, and Tzŭ Hsi reluctantly
agreeing, issued the Decree at one o’clock on the following morning,
which fixed the hour for reporting his death to Her Majesty at five
o’clock in the afternoon of the same day. Governor Ts’en was
ordered to proceed to the prison, and read the Decree to Chao,
which he did in due form. After hearing it in silence to the end, Chao
asked: “Will there be no further Decree?” “No,” said Ts’en. “Surely,
there must be,” said Chao. At this his wife, intervening, said, “There
is no hope; let us die together!” She then gave him poison, of which
he took a little, but up till 3 p.m. it appeared to have had no effect
whatsoever, for he seemed most vigorous, and discussed at great
length with his family the arrangements to be made for his funeral.
He was much exercised in mind at the effect which his death would
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crowded by friends and colleagues; the Governor had endeavoured
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number of those present was very large. Chao, addressing them,
said: “I have been brought to this pass entirely by the fault of Kang
Yi.” The Governor, observing that his voice sounded clear and firm,
and that, at this hour, there were no signs of impending death about
him, ordered one of the attendants to give him some opium to
swallow. At 5 o’clock, the opium having apparently taken no effect,
the attendants were ordered to give him a liberal dose of arsenic,
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thereupon committed suicide. To the end, Chao could not believe
that the Empress Dowager would allow his death, and for this reason
it is probable that he purposely took an insufficient dose of opium in
order to gain time for a reprieve.
The Death of Prince Chuang.—Prince Chuang, with his concubine
and son, went to Tu Chou, in South Shansi, there to await the
decision of the Empress Dowager as to his fate. He lodged in an
official house of entertainment. When Ko Pao-hua, the Imperial
Commissioner, brought thither the Decree commanding him to
commit suicide, it was early in the morning; nevertheless, upon his
arrival, crackers were fired, in accordance with etiquette, to greet
him. The noise greatly irritated Prince Chuang, who turned savagely
upon the attendants, and asked what they meant by making such a
noise at such an hour. “An Imperial Commissioner has arrived,” they
said. “Has he come about me?” asked the Prince. “No,” they replied,
“he is merely passing through on business.” When the Imperial
Commissioner was ushered in, the Prince began to ply him with
questions about the Court, to which Ko briefly replied. After talking
for a little while Ko went off to inspect the premises, at the back of
which he found an old temple, in which he selected an unoccupied
room to be the scene of Prince Chuang’s suicide. From a beam in
the roof he hung a silken cord, and, after fastening it securely, he
directed the Prefect and the District Magistrate to send some
soldiers to keep order. Having made these preparations he returned
to the presence of the Prince, and informing him that he had an
Imperial Decree to read to him, ordered him to go down on his knees
to hear it. The Prince, drawing himself up to his full height, said, “Is it
my head that you want?” The Imperial Commissioner made no direct
reply, but proceeded to read the Decree to the Prince, who
reverently knelt.[116] When the Commissioner had finished, “So it is
suicide,” said the Prince, “I always expected they would not be
content with anything less than my life. I greatly fear that even our
Old Buddha will not be allowed to last much longer.” He next asked
the Imperial Commissioner to be permitted to bid farewell to his
family, which was allowed him. At this moment, his concubine and
his son, having learned of the Imperial Commissioner’s business,
entered the room. The Prince, addressing his son, said:
—“Remember that it is your duty to do everything in your power for
your country; at all costs, these foreigners must not be allowed to
possess themselves of the glorious Empire won for us by our
ancestors.”[117] His son, bitterly weeping, could not reply, while his
concubine passed from frantic grief to a swoon. The Prince,
unmoved, asked:—“Where is the death chamber?” The Imperial
Commissioner replied:—“Will your Highness please to come to the
empty room at the back of the house.” When the Prince, following
him, saw the silken cord hanging from the beam, he turned and said:
—“Your Excellency has indeed made most admirable and complete
arrangements.” With these words he passed the cord around his
neck, and in a very few minutes life was extinct.
The Death of Ying Nien.—Ying Nien was an arrant coward. On the
day of the issue of the first Decree, ordering his imprisonment at Hsi-
an, his family deserted him, and he remained all through the night,
weeping, in great distress of mind. To his attendants he complained
bitterly that Prince Ch’ing had not intervened to protect him. The next
day was the New Year Festival, and as everybody was busy with
preparations for the occasion, little heed was paid to him, and he
spent the day weeping. Towards midnight his crying suddenly
ceased, and on the following morning he was found by his servant,
prone upon the ground, his face covered with mud, quite dead. He
had choked himself by swallowing mud, but as the Decree ordering
him to commit suicide had not actually been issued, the fact of his
death was suppressed for forty-eight hours, after which Governor
Ts’en was informed, and he reported it to the Old Buddha.
The Decapitation of Yü Hsien.—When the Decree, commanding
his decapitation, reached Yü Hsien, he had already started under
escort for his place of banishment, but he was a sick man and could
only totter weakly along. On learning the news, he appeared as one
dazed, a very different man indeed from that fierce Governor of
Shansi, who had displayed such bloodthirsty activity. On the day
before his death he was very seriously ill, and when the time came,
he was so weak that he had to be supported to the execution
ground. On the previous day the leading citizens of Lan-chou fu
expressed their desire to offer him a valedictory banquet, but he
declined the honour with thanks, expressing his wish to spend his
last day in quietude. He wrote a pair of scrolls as an expression of
his gratitude for the courtesy thus shown to him, and the elders of
the city decided and informed him that the execution ground would
be decorated with red cloth, as for a festival, in his honour. Towards
evening, notices were placarded in the principal streets, calling on
the people to insist upon his being reprieved, but Yü Hsien knew that
this was quite useless. He composed a statement of his actions in
the form of an official proclamation, maintaining stoutly that his death
was to be regarded as a glorious and patriotic end, and bidding the
people on no account to interfere with the execution of his sentence.
Finally he wrote, with his own hand, a pair of valedictory scrolls, the
text of which was widely quoted after his death all over China. The
first may be translated as follows:—
“The Minister dies for his Sovereign; wives and concubines

die for their lord. Who shall say that this is unseemly? It is sad
that my aged mother is ninety years of age, and my little
daughter only seven. Who shall protect them in their old age
and tender youth? How shall that filial piety be fulfilled which a
man owes to his parent? The Sovereign commanded, and the
Minister obeyed. I slew others; now, in my turn, am I slain.
Why should I regret it? Only one cause for shame have I—
that I have served my Sovereign all these years, and have
held high rank in three provinces, without displaying merit
more conspicuous than a grain of sand in the desert or a drop
of water in the ocean. Alas, that I should thus unworthily
requite the Imperial bounty.”
And the second reads:—
“The Minister has by his guilt incurred the sentence of

decapitation. At this moment there is no thought in my mind
except the hope that my death may be as glorious as my life
has been honest.[118] I would far rather die than pine away
the rest of my life in degrading imprisonment. I have ill-
requited Her Majesty’s kindness. Who shall now relieve her
grief? I sincerely hope that you, the Statesmen who surround
the Throne, may yet find means to restore our fallen fortunes,
and that you will honourably fulfil your bounden duty in
ministering to the distress of their Imperial Majesties.”
On the following day, at one o’clock of the afternoon, Yü Hsien’s

head was severed from his body, in the presence of a great crowd,
which greeted his end with sounds of lamentation.
The Death of Ch’i Hsiu.—Ch’i Hsin was executed, together with
Hsü Ching-yu, outside the wall of the Tartar city, in Peking, early one
morning in February, 1901, the execution being witnessed by more
than one European. When informed that he was to die, Ch’i Hsiu’s
only question was: “By whose commands?” and when told that a
Decree had come from Hsi-an fu, he said, “It is by the will of the
Empress Dowager; I die happy then, so long as it is not by order of
the foreigners.” This Grand Councillor had been arrested several
months before by the Japanese, and Prince Ch’ing had been able to
obtain his release on the ground that his aged mother was very ill;
but when she subsequently died, he strongly advised Ch’i Hsiu “to
make his filial piety coincide with his loyalty by committing suicide.”
Coming from Prince Ch’ing, the suggestion was one hardly to be
misunderstood, but Ch’i Hsiu failed to act upon it, thereby incurring a
certain amount of criticism.
XXII
THE OLD BUDDHA PENITENT
When the wrath of the Powers had been appeased by the death
and banishment of the leading Boxers, and when the Empress
Dowager had come to realise that her future policy must be one of
conciliation and reform, she proceeded first of all to adjust the annals
of her reign for the benefit of posterity, in the following remarkable
Edict (13th February, 1901):—
“In the summer of last year, the Boxers, after bringing about
a state of war, took possession of our Capital and dominated
the very Throne itself. The Decrees issued at that time were
the work of wicked Princes and Ministers of State, who, taking
advantage of the chaotic condition of affairs, did not hesitate
to issue documents under the Imperial seal, which were quite
contrary to our wishes. We have on more than one previous
occasion hinted indirectly at the extraordinary difficulty of the
position in which we were placed, and which left us no
alternative but to act as we did. Our officials and subjects
should have no difficulty in reading between the lines and
appreciating our meaning.
“We have now punished all the guilty, and we hereby order
that the Grand Secretariat shall submit for our perusal all
Decrees issued between the 24th day of the 5th moon and
the 20th day of the 7th moon (20th June to 14th August), so
that all spurious or illegal documents may be withdrawn and
cancelled. Thus shall historical accuracy be attained and our
Imperial utterances receive the respect to which they are
properly entitled.”
Having thus secured the respect of posterity, Tzŭ Hsi proceeded to
make the “amende honorable,” (with due regard to the Imperial
“face,”) for so many of her sins as she was prepared to admit. In
another Decree, in the name of the Emperor, which gives a
Munchausen account of the Throne’s part and lot in the crisis of
1900, and a pathetic description of her own and the Emperor’s
sufferings during the flight, she makes solemn confession of error
and promise of reform. As an example of the manner in which history
is made in China, the Edict is of permanent interest and value.
“A Penitential Decree
“26th day, 12th moon of Kuang-Hsü’s 26th year (Feb. 13th,
1901).
“Last summer the Boxers sowed the seeds of rebellion,
which led to our being involved in a war with friendly Powers.
Thereafter, our Capital being thrown into a state of great
disorder, we escorted the Empress Dowager, our mother, on a
progress of inspection throughout the Western Provinces. To
Prince Ch’ing and to the Grand Secretary Li Hung-chang we
entrusted full powers, and bade them negotiate with the
foreign Ministers for the cessation of hostilities and a Treaty of
peace. These Plenipotentiaries having lately telegraphed to
us the twelve principal clauses of the proposed protocol, we
have consented thereto, but at the same time have instructed
them carefully to scrutinise their various provisions in the light
of China’s ability to fulfil them.
“It having been accorded to us to retrieve our disastrous
mistakes, we are in duty bound to promulgate this Penitential
Decree, and to let every one of our subjects know how vast
and harassing were the perplexities with which the Throne
has been beset.
“There are ignorant persons who believe that the recent
crisis was partly caused by our government’s support of the
Boxers; they must have overlooked our reiterated Decrees of
the 5th and 6th moons, that the Boxers should be
exterminated, and the Christians protected. Unfortunately
these rebels and their evil associates placed us in a position
from which it was impossible to escape; we exhausted every
possible effort of strong remonstrance, appalled at the
impending ruin of our Empire. Events moved swiftly until, on
the 21st of the 7th moon, our Capital fell; on that day, both
Her Majesty the Empress Dowager and ourselves decided to
commit suicide in the presence of the tutelary deities of our
Dynasty and the gods of the soil, thus making atonement and
offering propitiation to the spirits of our nine Imperial
ancestors. But, at the critical moment of dire lamentation and
confusion, we were seized by our Princes and Ministers, and
forcibly led away from that place where bullets fell like rain,
and where the enemies’ guns gathered thick as forest trees.
Hastily, and with souls perturbed, we started on our Western
tour. Were not all these disasters caused by the Boxers? The
imminent danger of her sacred Majesty, the overwhelming
ruin of our ancestors’ inheritance, our prosperous Capital
turned to a howling wilderness, its ravines filled with the dead
bodies of our greatest men: how can it possibly be said that
the Throne could protect the rebels who brought such
disasters upon us?
“There was, however, an explicable cause for the Boxer
movement and for its disastrous results.” (The Decree
proceeds here to ascribe blame to local Magistrates for not
administering even justice between Christians and non-
Christians, and thus producing a state of discontent and
unrest, which afforded opportunities to the Boxers. The latter
received a further impetus by reason of the inefficiency of the
Imperial troops sent to quell the first rising. Finally, references
are made to the evil advice and ignorance of the highly placed
clansmen and Ministers of State who favoured the Boxer
cause. This Decree is in fact a complete justification of the
views expressed in the three memorials by Yüan Ch’ang and
Hsü Ching-ch’eng, for which these patriotic officials laid down
their lives. After describing the entry of the Boxers into
Peking, and lamenting the position of the Throne as
resembling “a tail which is too big to wag,” the Decree
proceeds):—“Nevertheless, and while the Legations were
being besieged, we repeatedly directed our Ministers of the
Tsungli Yamên to put a stop to hostilities, and at the same
time to keep up communication with the foreign Ministers,
assuring them of our kindly and sympathetic regard. This
latter order, however, was not carried out because of the
continuous artillery and rifle fire between the besiegers and
the besieged, and it was impossible for us, under such
conditions, to insist upon its execution. Supposing, by some
horrible fatality, the Legations had actually fallen, how could
China have hoped to preserve her integrity? To the Throne’s
strenuous efforts is really due the avoidance of such a
dreadful catastrophe, and the gifts of wine, fruit and water-
melons to the besieged Legations, were an indication of Her
Majesty’s benevolent intentions. It was but natural and right
that the friendly Powers should appreciate these our feelings,
and the fact that at such a crisis they have respected the
integrity of our Empire as a Sovereign State, goes to prove
that the Allies attribute no longer any blame to the Throne.
This, however, only adds to our wrath at the ignorance and
violence of our offending subjects; when we look back upon
the past, we are filled with shame and indignation. We are
convinced that, in these peace negotiations, the foreign
Powers will not attempt to extract from us more than we are
able to concede. We have ordered Prince Ch’ing and Li
Hung-chang, negotiating this Treaty, to continue patiently in
friendly discussion, maintaining all questions of vital principle,
while recognising the special circumstances which attach to
any given case. Foreign Powers are lovers of justice, and
they are bound to consider what China is capable of doing if
they wish to see this negotiation brought to a successful
conclusion. To this end we expect that our Plenipotentiaries
will display their virtue of patriotism to the very best of their
ability.
“At the time of the terror in Peking, our provincial authorities
were ordered to keep the peace in their respective provinces,
and to take no part in provoking hostilities. If the Southern and
Eastern parts of our Empire enjoyed full protection from
disorders, the fact was solely due to our Decrees, which
insisted upon the rigid maintenance of peace. The trade of
foreign Powers was in no way injured, our Viceroys and
Governors being able to preserve normal conditions in those
parts of our Empire. As regards the Southern provinces,
however, which are always talking loudly of strengthening
their defences, it cannot be gainsaid that, upon the outbreak
of any trouble, they fall into a state of hopeless confusion.
Caring nothing for the innumerable difficulties which beset our
Throne, they stand idly by, contenting themselves with
delivering oracular opinions and catch-words, and they even
go so far as to reproach their Sovereign, the father of his
people. We would have them bear in mind that when our
Imperial chariot departed in haste from the Forbidden City, the
moaning of the wind and the cry of the heron overhead
seemed to our startled ears as the tramp of an advancing
enemy. As we fled through Ch’ang-ping chou northward to
Hsüan-hua, we personally attended on the wants of the
Empress Dowager. We were both clad in the meanest of
garments, and to relieve our hunger we were scarcely able to
obtain a dish of beans or porridge. Few of our poorest
subjects have suffered greater hardships of cold and hunger
than befell us in this pitiful plight. We wonder whether those
who call themselves our faithful Ministers and servants have
ever taken real thought of their bounden duty towards their
afflicted and outraged Sovereigns?
“To sum up the matter in a word, is it not the case that,
when either our Statesmen or our people are guilty of any
offence, it is upon our Imperial persons that the blame must
fall? In recalling this fact to mind, we do not desire to rake up
bygone offences, but rather because it is our duty to warn our
subjects against their repetition. For the past twenty years,
whenever difficulties have arisen with foreign nations, it has
been our duty to issue solemn warnings and reproofs. But the
saying which is in common use, that we ‘sleep on brushwood
and taste gall’ has, by lapse of time, become almost
meaningless; when we talk of putting our house in order, and
reforming our finances, the words have no real significance.
The time of danger once over, favouritism and the neglect of
public business go on as of old; as of old, money purchases
rank, and the Throne continues to be persistently misled. Let
our officials ask themselves in the silence of the night
watches whether, even had there been no Boxer rebellion,
China could possibly have become a great Power? Even
before these disasters occurred there was great difficulty in
maintaining our position as a nation, and now, after this awful
visitation, it must be obvious to the dullest amongst us that
our weakness and poverty have been greatly increased. To
our Ministers of State, who have received high favour from
the Throne, we would say that, at this time of our nation’s
history, it is essential to display new qualities of integrity and
patriotism. Taxation should now be re-arranged in such a
manner as to enable us to repay the foreign indemnities,
while bearing in mind the poverty of the lower classes of the
people. In the selection of officials, good character should be
considered the first essential, and men of talent should be
encouraged to the utmost.
“The whole duty of a Minister of State may be summed up
in two words: to abolish corrupt tendencies, and to put off the
abuses of former days. Justice and energy should be the
principles guiding towards economical and military efficiency;
on this the spirit of the nation and its future depend as upon
its very life blood.
“For nearly thirty years our mother, the Empress Dowager,
has laboured without ceasing to instruct us and train us in the
right way, and now, at one blow, all the results of her labour
are brought to nought. We cannot but remember the
abomination of desecration which has overthrown our
ancestral shrines and the temples of our gods. Looking to the
North, we think upon our Capital ruined and profaned, upon
the thousands of our highest officials whose families have lost
their all, of the millions of our subjects whose lives and
property have been sacrificed in this cataclysm. We can never
cease to reproach ourselves: how then should we reproach
others? Our object in issuing this solemn warning is to show
that the prosperity or the ruin of a State depends solely upon
the energy or apathy of its rulers and people, and that the
weakness of an Empire is the direct result of rottenness in its
administration. We desire to reiterate our commands that
friendly relations with foreign Powers are to be encouraged,
that at the same time our defences are to be strengthened,
that freedom of speech and the employment of trustworthy
servants are to be encouraged. We expect obedience to
these commands, and sincere patriotism from our subjects.
Earnestly the Empress Dowager and ourselves pray that it
may be brought home to our Ministers of State, that only out
of suffering is wisdom developed, and that a sense of duty
insists upon unceasing effort. Let this Decree be made known
throughout the entire Empire.”
This Edict was issued in February, coincidently with Her Majesty’s

acceptance of the conditions imposed by the Powers in the peace
negotiations at Peking. From that date until, in June, the terms of the
Protocol were definitely settled by the plenipotentiaries, her attitude
continued to be one of nervous apprehension, while the discomfort
of life at Hsi-an, as well as the advice repeatedly given her by Jung
Lu and the provincial Viceroys, combined to make her look forward
with impatience to the day when she might set out for her capital.
There remained only one source of difficulty, namely, the presence
of Prince Tuan’s son, the Heir Apparent, at her Court. Tzŭ Hsi was
well aware that she could hardly look for cordial relations with the
representatives of the Powers at Peking, or for sympathy abroad, so
long as this son of the Boxer chief remained heir to the Throne. It
would clearly be impossible, in the event of his becoming Emperor,
for him to consent to his father remaining under sentence of
banishment, and equally impossible to expect the Powers to consent
to Prince Tuan’s rehabilitation and return. Yet the youth had been
duly and solemnly appointed to succeed to the Throne, a thing not
lightly to be set aside. Once again the Old Buddha showed that the
sacred laws of succession were less than a strong woman’s will.
Politics apart, it was common knowledge that Tzŭ Hsi had for
some time repented of her choice of Prince Tuan’s ill-mannered,
uncouth son as Heir Apparent. More than once had she been
brought to shame by his wild, and sometimes disgraceful, conduct.
Even in her presence, the lad paid little heed to the formalities of
Court etiquette, and none at all to the dignity of his own rank and
future position. Tzŭ Hsi was therefore probably not sorry of the
excuse for deposing him from that high estate. In the Decree
cancelling his title to the Throne, she observed that his father, Prince
Tuan, had brought the Empire to the verge of ruin, and that the guilt
which he had thus incurred towards his august ancestors could
never be wiped out. In order to save the “face” of the Heir Apparent
and her own, in a difficult position, the Edict describes him as being
fully convinced of the impossibility of his succeeding to the Throne
under existing conditions, and that he himself had therefore
petitioned Her Majesty to cancel her previous decision. In granting
this request and directing him to remove himself forthwith from the
Palace precincts, the Empress conferred upon him the rank of an
Imperial Duke of the lowest grade, excusing him at the same time
from performance of any official duties in that capacity. By this
decision she meant to mark the contempt into which the Heir
Apparent had fallen, for the rank thus granted him was a low one,
and, without any official duties or salary, he was condemned to a life
of poverty and obscurity. This fallen Heir to the Dragon Throne is a
well-known figure to-day in the lowest haunts of the Chinese City at
Peking: a drunkard and disreputable character, living the life of a
gambler, notorious only as a swashbuckler of romantic past and
picturesque type,—one who, but for adverse fate and the accursed
foreigner, would have been Emperor of China at this moment.
Having deposed him, the Empress let it be known that the
selection of an heir to the disconsolate shade of T’ung-Chih would
be postponed “until a suitable candidate should be found,” an
intimation generally understood to mean that the vital question of
providing an heir in legitimate and proper succession to the Throne
could not well be determined until China’s foreign relations, as well
as her internal affairs, had been placed upon a basis of greater
security. It is curious to note how, in all such utterances, it appears to
have been tacitly understood that the Emperor Kuang Hsü was a
“bad life.”
Thus, in exile, the Old Buddha wore philosophically the white
sheet of penance and burned the candle of expiation, preparatory to
re-entering anon upon a new lease of power in that Peking where, as
she well knew, the memory of the foreigner is short and his patience
long. In June, 1901, the terms of peace were settled; on the 7th
September the Peace Protocol was solemnly signed by the
representatives of all the Powers, that “monument of collective
inefficiency” which was to sow the seeds of trouble to last for many
years to come. At Hsi-an “in the profound seclusion of the Palace”
she knew remorse, not unstimulated by fear; on the return journey to
her capital (from 20th October, 1901, to 6th January, 1902), while
preparing her arts and graces to captivate the barbarian, she was
still a victim to doubt and apprehension. Meanwhile, at Peking, the
mandarin world, reassured by the attitude of the peace negotiators
and their terms, was fast shedding its garments of fear and
peacocking as of yore, in renewed assurance of its own indisputable
superiority. Evidence of this spirit was to be met with on all sides,
gradually coming to its fine flower in the subsequent negotiations for
the revision of the commercial Treaties, and bringing home once
more, to those who study these things, the unalterable truth of the
discovery made years ago by one of the earliest British
representatives in China, namely, that “this people yields nothing to
reason and everything to fear.”
One of the most remarkable instances of this revival of the
mandarin’s traditional arrogance of superiority occurred, significantly
enough, in connection with the penitential mission of the Emperor’s
brother, Prince Ch’un (now Regent) to Berlin, an episode which
threatened for a moment to lead to a rupture between Germany and
China. By Article 1 of the Peace Protocol, Prince Ch’un had been
specially designated for this mission to convey in person to the
German Emperor the regrets of the Chinese Government for the
murder of Baron von Ketteler. He left Peking for the purpose on the
12th July, 1901, with definite instructions as to the manner in which
the Chinese Government’s regrets were to be expressed. The
German Emperor’s proposals as to the form of ceremony to be
followed in this matter were regarded by Prince Ch’un as
incompatible with his instructions, and it will be remembered that,
after some hesitation on the part of the German Government, the
Chinese policy of passive resistance eventually carried the day. The
following telegraphic correspondence on the subject is of permanent
interest. Prince Ch’un (whose personal name is Tsai Feng)
telegraphed from Germany on the 26th September to the Peace
Plenipotentiaries, Prince Ch’ing and Li Hung-chang, as follows:—
“I have duly received the Grand Council’s message, and

note that I am commanded to act as circumstances may
require, and that a middle course is suggested as expedient. I
fully appreciate the intelligent caution of your policy, and
fortunately had already taken steps to act in the sense
indicated. On the 14th of this moon the German Emperor had
given orders to stop preparations for the ceremony, but as I
noticed that the Royal train had not been withdrawn nor had
his aide-de-camp left my suite, I inferred that there was a
possibility of his yielding the points in dispute. Accordingly,
after a long discussion of the situation with Yin Ch’ang, I
directed him to write in German to Jeng-yintai[119] requesting
his friendly intervention at the Foreign Office with a definite
explanation that China could not possibly agree that the
mission should be received kneeling, that Germany had
nothing to gain on insisting upon such a procedure, and that
the only result of a fiasco would be to make both countries
appear extremely ridiculous. I therefore begged that the
Emperor should accede to my personal appeal and waive the
point. At the same time I requested the German gentleman
who acts as Chinese Consul for Bavaria to address the
Foreign Office to the same effect, and with a request that we
might enter upon discussion of the point. Four days later I
directed Lü Hai-huan to return to his post at Berlin to make
such arrangements as might be possible, and on the following
day I telegraphed to him a summary of the Grand Council’s
views on the matter. In the afternoon of the 20th I received the
Consul for Bavaria, who informed me that he had received a
telegram from the Foreign Office inquiring when I proposed to
start for Berlin, and hoping that I would do so speedily, as the
Emperor had now consented to waive the question of our
kneeling, but required that only Yin Ch’ang should accompany
me when presenting the letter of regret, the remainder of my
suite to remain in another place.
“The same evening I received a message from Lü Hai-
huan, stating that the Emperor would undoubtedly receive
me, and that, since all other difficult questions had been
settled, His Majesty wished to leave for the country in a few
days. Under these circumstances I did not consider it
advisable to insist too strictly on minor details of etiquette,
being pressed for time, and I therefore requested the German
Emperor’s Chamberlain to have a special train prepared for
my journey. We reached Potsdam at 3 p.m. on the 21st[120]; I
was met by a General sent by the Emperor with his state
carriage. Myself and my suite were lodged in the Palace,
where every attention was shown to us, and it was arranged
that I should fulfil my mission on the following day, after
depositing a wreath on the grave of the late Empress. On the
morning of the following day I visited her tomb, and at noon
the state carriage came to take me to the New Palace, where,
after being ushered into the Emperor’s presence, I read aloud
Their Majesties’ complimentary letter. The members of my
suite were awaiting in an adjoining apartment. After the
ceremony I was escorted back to my residence, and at 2 p.m.
the Emperor came to call upon me. He was very cordial and
remained talking with me for a long time. By his orders a
steam launch was provided for me, in which I visited the Lake
and Peacock Island; on the following day I saw a review of
the troops, and was presented to the Empress. The Emperor
begged me to remain longer in Berlin, suggesting that I
should visit the arsenals and inspect the fleet under Prince
Henry at Stettin. I could scarcely decline these polite
attentions, and after visiting the Empress I took lodging in an
hotel at Berlin. Thanks to the glorious prestige of our Empire,
matters have thus been satisfactorily settled, and the
knowledge that my mission has been satisfactorily carried out
will, I hope, bring comfort to Their Imperial Majesties in their
anxiety. I beg that you will memorialise the Throne
accordingly. Tsai Feng.”
The Empress Dowager was pleased to express her approval of

the result of this mission, which in the eyes of the Chinese
Government was undoubtedly one of those diplomatic triumphs
which China appears to attain most easily when her material
resources have completely failed. Reading the above despatch, it is
difficult to realise that the Prince’s mission had for its object the
expiation of a brutal murder committed, with the full approval of the
Chinese Government and Court, on the representative of a friendly
nation. The opinion is commonly believed, held by the Legations at
Peking, that the present Regent has learned much since he returned
from that penitential mission to the German capital. During the
present year his brothers have been engaged on missions ostensibly
intended to acquire knowledge for the sorely-needed reorganisation
of China’s army and navy, missions which have been received with
royal honours by almost every civilised Power; but there are many
close observers of the changing conditions at Peking who see in
these missions merely a repetition of farces that have often been
played before, and an attempt to gain prestige in the eyes of the
Chinese people for the Regent’s family and the Court, rather than
any definite intention or desire to reform the official system.
His Highness Prince Tsai Hsün.
Brother of the late Emperor and Present Regent—recently head of the Naval
Mission to Europe and America.
XXIII
THE RETURN OF THE COURT TO PEKING
The state of mind of the Empress Dowager during the flight from
the Capital, and subsequently while the Court remained in exile at
Hsi-an, was marked by that same quality of indecision and vacillating
impulse which had characterised her actions throughout the Boxer
crisis and the siege of Peking. This may be ascribed partly to her
advancing age and partly to the conflicting influences of astrologers
and fortune-tellers, to whose advice she attached the greatest
importance in all times of peril. We have dealt in another place with
her marked susceptibility to omens and superstitious beliefs; its
effect is most noticeable, however, at this stage of her life, and was
conspicuous in matters of small detail throughout the return journey
to Peking.
The influence of Jung Lu at Hsi-an, and that of Li Hung-chang at
Peking, had been systematically exercised to induce Her Majesty to
return to the Capital; but until the Peace Protocol conditions had
been definitely arranged, and until she had been persuaded to
decree adequate punishment upon the Boxer leaders, the
predominant feeling in her mind was evidently one of suspicion and
fear, as was shown when she ordered the hurried flight from T’ai-
yüan fu to Hsi-an. The influence of Li Hung-chang, who, from the
outset, had realised the folly committed by the Chinese Government
in approving the attack upon the Legations, was exercised to create
in the mind of Her Majesty a clearer sense of the folly of that policy.
At the height of the crisis (21st July, 1900), realising that the foreign
forces brought to bear upon China were steadily defeating both
Boxers and Imperial troops, she appointed Li Hung-chang to be
Viceroy of Chihli, and directed that he should proceed from Canton
with all haste, there being urgent need of the services of a diplomat
versed in foreign affairs. Her Majesty went so far as to suggest that

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MM – Instructor Manual

Solution Manual for MM 3rd Edition Iacobucci

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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

The Death of Chao Shu-ch’iao.—This Grand Councillor, one of the

“The Minister dies for his Sovereign; wives and concubines

And the second reads:—

“The Minister has by his guilt incurred the sentence of

On the following day, at one o’clock of the afternoon, Yü Hsien’s

This Edict was issued in February, coincidently with Her Majesty’s

“I have duly received the Grand Council’s message, and

The Empress Dowager was pleased to express her approval of

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