Exam

Name___________________________________

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) All marketing strategy is built on STP segmentation, targeting, and ________.
A) positioning
B) product
C) planning
D) promotion
E) performance
Answer: A

2) ________ is the act of designing the company's offering and image to occupy a distinctive place in the minds
of the target market.
A) Positioning
B) Valuation
C) Pricing
D) Commercialization
E) Launching
Answer: A

3) The goal of positioning is ________.

A) to locate the brand in the minds of consumers to maximize the potential benefit to the firm
B) to discover the different needs and groups existing in the marketplace
C) to target those customers marketers can satisfy in a superior way
D) to collect information about competitors that will directly influence the firms' strategy
E) to help the firm anticipate what the actions of its competitors will be
Answer: A

5) Which of the following best describes a car company's value proposition?

A) We charge a 20% premium on our cars.
B) We target safety-conscious upscale families.
C) We sell the safest, most durable wagon.
D) We are the market leader in the small car category.
E) We focus on expanding in faster-growing markets.
Answer: C

7) The ________ defines which other brands a brand competes with and therefore which brands should be the
focus of competitive analysis.
A) consumer profitability analysis
B) competitor indexing
C) service blueprint
D) competitive frame of reference
E) cluster analysis
Answer: D

8) ________ refers to the products or sets of products with which a brand competes and which function as close
substitutes.
A) Consumer profitability analysis
B) Competitive frame of reference
C) Category membership
D) Value membership
 E) Demand field
Answer: C

9) ________ are defined as companies that satisfy the same customer need.
A) Communities
B) Competitors
C) Trendsetters
D) Industries
E) Task groups
Answer: B

12) Which of the following terms is most closely associated with the statement: "attributes or benefits consumers
strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent
with a competitive brand"?
A) points-of-inflection
B) points-of-difference
C) points-of-parity
D) points-of-value
E) points-of-presence
Answer: B

13) ________ are product associations that are not necessarily unique to the brand but may in fact be shared with
other brands.
A) Points-of-parity
B) Points-of-difference
C) Points-of-inflection
D) Points-of-presence
E) Points-of-divergence
Answer: A

14) The three criteria that determine whether a brand association can truly function as a point-of-difference are
________.
A) comparability, authenticity, deliverability
B) desirability, peculiarity, deliverability
C) deviance, peculiarity, deformity
D) desirability, deliverability, differentiability
E) differentiability, authenticity, desirability
Answer: D

15) Which of the following criteria relates to consumers seeing the brand association as personally relevant to
them?
A) deliverability
B) authenticity
C) desirability
D) differentiability
E) feasibility
Answer: C

17) Which of the following criteria relates to consumers seeing the brand association as distinctive and superior
to relevant competitors?
A) desirability
 B) differentiability
C) believability
D) deliverability
E) deviance
Answer: B

18) The brand must demonstrate ________, for it to function as a true point-of-difference.
A) clear superiority on an attribute or benefit
B) clear profitability to the company
C) clear similarity to the attributes of other brands
D) technological advances for an attribute or benefit
E) exploitation of competitors' weakness
Answer: A

19) The two basic forms of points-of-parity are ________ and ________.
A) conceptual points-of-parity; competitive points-of-parity
B) strategic points-of-parity; conceptual points-of-parity
C) category points-of-parity; deliverable points-of-parity
D) competitive points-of-parity; peculiar points-of-parity
E) category points-of parity; competitive points-of-parity
Answer: E

20) ________ are attributes or benefits that consumers view as essential to a legitimate and credible offering
within a certain product or service class.
A) Category points-of-difference
B) Conceptual points-of-parity
C) Competitive points-of-parity
D) Category points-of-parity
E) Competitive points-of-difference
Answer: D

21) Consumers might not consider a hand sanitizer truly a hand sanitizer unless they are gels designed to apply
topically, contain alcohol that kills the germs present on the skin, and developed for use after washing hands
or for those times when soap and water are not available. These service elements are considered ________.
A) competitive points-of-difference
B) competitive points-of-parity
C) category points-of-difference
D) category points-of-parity
E) conceptual points-of-parity
Answer: D

22) Nivea became the leader in the skin cream class on the "gentle", "protective" and "caring" platform. The
company further moved into classes such as deodorants, shampoos and cosmetics. Attributes like gentle and
caring were of no value unless consumers believed that its deodorant was strong enough, its shampoo would
cleanse and its cosmetics would be colorful enough. This is an example of ________.
A) competitive points-of-parity
B) competitive points-of-difference
C) category points-of-parity
D) category points-of-difference
E) competitive points-of-presence
Answer: C
23) ________ are associations designed to overcome perceived weaknesses of the brand.
A) Conceptual points-of-parity
B) Category points-of-difference
C) Competitive points-of-parity
D) Competitive points-of-difference
E) Category points-of-parity
Answer: C

24) As a marketing manager, which of the following would be the best purpose for your organization's
competitive points-of-parity?
A) to point out competitors' points-of-difference
B) to emphasize competitors' points-of-difference
C) to rationalize competitors' perceived points-of-difference
D) to globalize competitors' perceived points-of-difference
E) to negate competitors' perceived points-of-difference
Answer: E

25) A marketer that wants to anchor a point-of-difference for Dove soap on brand benefits might emphasize
which of the following?
A) The soap is one-quarter cleansing cream.
B) Dove products include bar soaps and shampoos.
C) Dove soap helps users have softer skin.
D) The soap brand has global presence.
E) The brand has recently launched soap for men.
Answer: C

28) Marketers typically focus on ________ in choosing the points-of-parity and points-of-difference
that make up their brand positioning.
A) brand equity
B) brand awareness
C) brand benefits
D) brand architecture
E) brand extensions
Answer: C

31) Which of the following statements about brand mantras is true?

A) They guide only major decisions, they have no influence on mundane decisions.
B) Their influence does not extend beyond tactical concerns.
C) They must economically communicate what the brand is and avoid communicating what it is not.
D) They can provide guidance about what ad campaigns to run and where and how to sell the brand.
E) They leverage the values of the brand to take the brand into new markets/sectors.
Answer: D

32) American Express'- "Worldclass Service, Personal Recognition," Mary Kay's - "Enriching women's lives,"
Hallmark's- "Caring Shared," and Starbucks'-"Rewarding Everyday Moments" are examples of ________.
A) brand mantras
B) brand parity
C) brand identity
D) brand architecture
E) brand extension
Answer: A
33) ________ are short, three- to five-word phrases that capture the irrefutable essence or spirit of the brand
positioning and ensure that the company's own employees understand what the brand represents.
A) Brand mantras
B) Brand symbols
C) Brand logos
D) Brand alliances
E) Brand extensions
Answer: A

34) A ________ is a translation of the brand mantra that attempts to creatively engage consumers and others
external to the company.
A) brand vision
B) brand extension
C) brand architecture
D) brand slogan
E) brand alliance
Answer: D

35) BMW's "The ultimate driving machine," American Express' "Don't leave home without it," New York Times'
"All the news that's fit to print," and AT&T's "Reach out and touch someone" are all examples of ________.
A) brand slogan
B) brand personality
C) brand mission
D) brand architecture
E) brand vision
Answer: A

36) A brand mantra should be ________.

A) original, ambiguous, and straightforward
B) unique, complex, and inspirational
C) communicative, simple, and inspirational
D) competitive, sensitive, and simple
E) unique, sensitive, and explanatory
Answer: C

37) Brand mantras typically are designed to capture the brand's ________, that is, what is unique about the
brand.
A) points-of-conflict
B) points-of-parity
C) points-of-inflection
D) points-of-difference
E) points-of-presence
Answer: D

41) The typical approach to positioning is to inform consumers of a brand's category membership before stating
its ________,
A) point-of-parity
B) point-of-difference
C) point-of-conflict
D) point-of-weakness
E) point-of-presence
Answer: B
43) Industrial tools claiming to have durability, and antacids announcing their efficacy convey a brand's
category membership by ________.
A) relying on the product descriptor
B) comparing to exemplars
C) announcing category benefits
D) communicating deliverability variables
E) identifying counter examples
Answer: C

44) A well-known car manufacturing company introduces a new hatchback model by describing its distinctive
features and then stressing the speed and safety qualities of the car. Which of the following is the company
using to convey its membership in the hatchback segment?
A) announcing category benefits
B) comparing to exemplars
C) relying on the product descriptor
D) using channel differentiation
E) maximizing negatively correlated attributes
Answer: A

50) ________ is a company's ability to perform in one or more ways that competitors cannot or will not match.
A) Brand positioning
B) Market research
C) Competitive advantage
D) Competitor analysis
E) Competitive intelligence
Answer: C

52) Which of the following types of differentiation relates to companies having better-trained personnel
who provide superior customer service?
A) channel differentiation
B) services differentiation
C) employee differentiation
D) image differentiation
E) product differentiation
Answer: C

53) Singapore Airlines is well regarded in large part because of the excellence of its flight attendants. This is an
example of ________ differentiation.
A) image
B) services
C) product
D) employee
E) channel
Answer: D

54) Which of the following types of differentiation refers to companies effectively designing their distribution
medium's coverage, expertise, and performance to make buying the product easier and more enjoyable and
rewarding?
A) service differentiation
B) channel differentiation
C) image differentiation
D) product differentiation
 E) employee differentiation
Answer: B

56) Which of the following is an example of channel differentiation?

A) Berry's has an intensive training program for its customer-facing employees, to ensure a consistent
service standard.
B) The Swan Hotels use a distinctive signature fragrance in all outlets so that customers can associate the
fragrance with the hotel.
C) JEK's sophisticated customer database allows the company to handle queries and product returns much
faster than competitors.
D) RTZ shifted its products from supermarket aisles to exclusive stores as it realized that customers were
willing to pay more in stores.
E) Hayley's found success by allowing buyers to customize the color and some features of its appliances
before buying them.
Answer: D

57) Which of the following is an example of image differentiation?

A) Berry's has an intensive training program for its customer-facing staff, to ensure a consistent service
standard.
B) The Swan Hotels use a distinctive signature fragrance in all outlets so that customers can associate the
fragrance with the hotel.
C) JEK's sophisticated customer database allows the company to handle queries and product returns much
faster than competitors.
D) RTZ shifted its products from supermarket aisles to exclusive stores as it realized that customers were
willing to pay more in stores.
E) Hayley's found success by allowing buyers to customize the color and some features of its appliances
before buying them.
Answer: B

58) Which of the following is an example of services differentiation?

A) Berry's has an intensive training program for its customer-facing staff, to ensure a consistent service
standard.
B) The Swan Hotels use a distinctive signature fragrance in all outlets so that customers can associate the
fragrance with the hotel.
C) JEK's sophisticated customer database allows the company to handle queries and product returns much
faster than competitors.
D) RTZ shifted its products from supermarket aisles to exclusive stores as it realized that customers were
willing to pay more in stores.
E) Hayley's found success by allowing buyers to customize the color and some features of its appliances
before buying them.
Answer: C

59) A radio ad by the dairy farmers of Washington State stated that the milk produced in the state was of higher
quality because of the way the farmers treat their cows. They said that the difference comes from how
comfortable they make their cows. Among others, this differentiation could certainly appeal to animal lovers
and those moving toward organic products. This is an example of ________.
A) personnel differentiation
B) channel differentiation
C) service differentiation
D) product differentiation
E) image differentiation
Answer: E
 60) A company which can differentiate itself by designing a better and faster delivery system that provides more
effective and efficient solutions to consumers is most likely using ________ differentiation.
A) services
B) channel
C) image
D) product
E) employee
Answer: A

61) Suppliers who are dependable in their on-time delivery, order completeness, and order-cycle time are most
likely to be differentiated based on ________.
A) resilience
B) innovativeness
C) insensitivity
D) reliability
E) expertise
Answer: D

TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.

73) Positioning is the act of designing the company's offering and image to occupy a distinctive place in the
minds of the target market.
Answer: True False

74) The result of positioning is the successful creation of an employee-focused value proposition.
Answer: True False

75) Positioning requires that marketers define and communicate only the differences between their brand and its
competitors.
Answer: True False

76) The competitive frame of reference defines which other brands a brand competes with.
Answer: True False

77) Category membership is seen as the products which function as close substitutes of a brand.
Answer: True False

78) A company is more likely to be hurt by current competitors than by emerging competitors or new
technologies.
Answer: True False

81) To analyze its competitors, a company needs to gather information about both the real and the perceived
strengths and weaknesses of each competitor.
Answer: True False

83) Points-of-parity are attributes or benefits consumers strongly associate with a brand and believe that they
could not find to the same extent with a competitive brand.
Answer: True False

84) Points-of-parity may be shared among two or more brands.

 Answer: True False

85) Category points-of-parity are unique to a brand.

Answer: True False

86) Category points-of-parity may change over time due to technological advances, legal developments, or
consumer trends.
Answer: True False

87) Category points-of-parity are associations designed to overcome perceived weaknesses of the brand.
Answer: True False

88) A competitive point-of-parity negates competitors' perceived points-of-difference.

Answer: True False

93) The purpose of brand mantras is to ensure that employees and external marketing partners understand what
the brand is to represent to the customers.
Answer: True False

94) Brand mantras must communicate both what a brand is and what it is not.
Answer: True False

95) Brand mantras are typically designed to capture the brand's points-of-parity, that is, what is unique about
the brand.
Answer: True False

96) Brands are never affiliated with categories in which they do not hold membership.
Answer: True False

97) There are situations in which consumers know a brand's category membership but may not be convinced the
brand is a valid member of the category.
Answer: True False

98) The typical approach to positioning is to inform consumers of a brand's membership before stating its
point-of-difference.
Answer: True False

103) Competitive advantage is a company's ability to perform in one or more ways that competitors cannot or will
not match.
Answer: True False

104) The means of differentiation that are often most compelling to consumers relate to aspects of the product and
service.
Answer: True False

105) Companies cannot achieve differentiation by differentiating their channels, as this is not the purpose of a
distribution channel.
Answer: True False

106) A good positioning should contain points-of-difference and points-of-parity that have rational but not
emotional components.
Answer: True False
73) TRUE

74) FALSE

75) FALSE

76) TRUE

77) TRUE

78) FALSE

81) TRUE

82) FALSE

83) FALSE

84) TRUE

85) FALSE

86) TRUE

87) FALSE

88) TRUE

93) TRUE

94) TRUE

95) FALSE

96) FALSE

97) FALSE

98) TRUE

103) TRUE

104) TRUE

105) FALSE

106) FALSE