Chapter 4

Question 1

define positioning

Answer 1

results when an organization follows deliberate strategies to design products with characteristics distinct from those of its competitors and then communicates these differences to the targeted customers. - position strategy finds a superior position

Question 2

why do firms need a more well-conceived positioning and branding strategies

Answer 2

due to limited-attention economy

Question 3

why do firms seek a focused marketing strategy

Answer 3

ensure customer remember the brand, associate a compelling benefit with it and have favourable experiences with the product or service that reinforce the brand name and its benefits

Question 4

what does positioning require an understanding of

Answer 4

product category
customer segment
relevant purchase or usage occasion

Question 5

what’s the appeal of a central position strategy to a firm

Answer 5

appeals in a monopolistic/dominant position within their target segments

Question 6

how can a new copycat brand employ a variation on central position by inhabiting a clone position

Answer 6

delivers the same benefits as the market leader
makes the benefits easy for the customer to determine objectively
offers a product at a significantly lower price than the leader

Question 7

when might a firm choose a differentiation or edge strategy

Answer 7

if central positioning is not available

it’s a difficult strategy as it seeks to create a new product category

Question 8

what questions do managers ask to understand the competitive structure of their markets

Answer 8

how do our customers (current/potential) view our brand
which brands do these customers perceive to be our closest competitors
what product and company attributes are most responsible for these perceived differences

Question 9

what are the characteristics of perceptual maps

Answer 9

1. distances between products indicate similarities in the minds of customers, such that the shorter the distance the more similarly the products are perceived by consumers
2. a vector on the map (line w/arrow) indicates both magnitude and direction, usually to denote product attributes
3. the map axes, a special set of vectors, suggest the broad underlying dimensions that best characterize how customers differentiate among alternatives

Question 10

what’s a weakness of perceptual maps

Answer 10

says nothing about the brand locations that are most attractive to customers -

Question 11

what are attribute-based methods

Answer 11

used to derive perceptual maps from customer evaluations of competing products along pre-specified attributes

where evaluations are obtained from customers within a selected target segment of interest

Question 12

what’s the process of attribute based perceptual maps

Answer 12

1. identify products and product attributes for evaluation
2. obtain perception data from questionnaires given to defined target segments - can be organized into a matrix with customer ranking - assumption that customers in a target segments share similar perceptions about the competing alternatives
3. select a perceptual mapping method
   4, plot the resulting map

Question 13

pros and cons of attribute methods

Answer 13

pros: useful when customers understand clearly how various attributes differentiate the product alternatives, translates numerical data into a visual form

cons: cannot indicate which area of the map are most desirable to the target segments of customers - don’t have info on customer preferences.

Question 14

what maps can mao preferences

Answer 14

preference mapping 0 has mapping preferences, joint space mapping - has both perceptions and preferences

Question 15

what are some characteristics of the preference maps

Answer 15

preferences don’t necessarily change according to the magnitude of an attitude

ideal point is closest to origin

cannot indicate which attributes should be changed to make a focal product more appealing to the target segment

Question 16

what are characteristics of joint-space maps

Answer 16

have both perceptions and preferences into the same map - averaged ideal point models and averaged vector models.

requires a data matric that consists of preference ratings for a certain number of brands and respondents

Question 17

how to generate a average ideal-point model

Answer 17

required hypothetical ideal brand that appears among the set of alternatives customers can rate - averaged perceptions of the ideal brand

Question 18

how to generate averaged vector model

Answer 18

the associated vector on the map indicates the direction of increasing preference

longer vector = more preferred

Question 19

what’s the external analysis mapping method

Answer 19

assumes respondents who have common perceptions about a set of product alternatives also have differing preferences for those alternatives

model overlays the preference of each respondent onto a common perceptual map - normally derives from the same respondent and employs attribute-based approaches

external analysis creates a preference vector for each customer

Question 20

what’s the first choice rule

Answer 20

customers always choose the product they prefer the most, even if one or more other alternatives are available

Question 21

where does the first choice rule apply well in

Answer 21

product categories that are infrequently purchased, expensive, visible during use, require high-involvement decision making on the part of customers

Question 22

define share of preference rule

Answer 22

customers distribute their purchases across different product offerings proportional to their relative preferences for each

Question 23

where does first choice rule useful in product categories

Answer 23

frequently purchase, relatively inexpensive, not visible during use, doesn’t require careful decision making, customers seek variety from time to time

Question 24

what’s a reverse map

Answer 24

reposition the focal brand directly on map then assess the changes in perceptions that the firm would need to bring to achieve a new position + calculate forecasted market share at the new position