11. Differentiation and Positioning

Question 1

Competitive Advantage

Answer 1

an advantage over competitors gained by offering consumers greater value
- through lower prices, more benefits that justify higher prices

Question 2

Unique Selling Proposition

Answer 2

choosing a single benefit and marketing as “best in class”

Question 3

A difference to promote should be

Answer 3

Distinctive: unique
Important: matters to buyers
Superior: better
Communicable: benefit can be shown
Preemptive: difficult to copy
Affordable: people will pay the difference
Profitable: doesn’t cost company too much to offer

Question 4

A set of competitive advantages to differentiate along the lines of

Answer 4

Product
Services
Channels
People
Image

Question 5

Product position

Answer 5

the way the product is defined by consumers on important attributes

Question 6

Positioning maps

Answer 6

show consumer perceptions of marketer’s brands vs. competing products on important buying dimensions

Question 7

Value proposition

Answer 7

the full mix of benefits upon which a brand is positioned

Question 8

Implementing a positioning strategy

Answer 8

1. identify a set of competitive advantages to build a position
2. choosing the right competitive advantage
3. select an overall positioning strategy
4. communicating and delivering the chosen position to the market

Question 9

Characteristics of positioning strategy

Answer 9

• choosing positioning is easier than implementing it
• establishing a position or changing one usually takes time
• maintaining position requires consistent communication and performance
• positioning can be connected to market share

Question 10

Positioning Statement

Answer 10

summarizes company or brand positioning using this form:

• To (target segment and need) our (brand)
• is (concept)
• that (benefits… point of difference)