Second Edition by Daniel W. Baack, Barbara Czarnecka and Donald Edward Baack Student Resources
Review and Discussion Questions Enhance your understanding further with the following review and discussion questions. Review questions 1. Define product positioning. Answer: Product positioning is creating a perception in the consumer’s mind regarding the nature of a company and its products relative to competitors. The positioning process creates a unique place for the product in comparison to competitors. 2. What are the two key elements of product positioning? Answer: Two key elements of product position are: (1) the way customers view the product and (2) the product’s standing relative to competitors. 3. Define differentiation. What are some examples? Answer: a. Differentiation results from emphasizing a unique benefit or component of a product that separates it from competitors. Differentiation notes the specific benefit or attribute that makes the product unique when compared to competitors. This differentiation typically applies across various target markets. When performed correctly, marketers establish a point of difference and value proposition that applies to all markets segments, including global target markets. b. For example, Nyquil is a differentiated cold medicine – differentiated based upon the fact it is to be used at night-time. Netflix differentiated their products by offering delivery and streaming movies – this was very different than the original Blockbuster way of renting movies. The Ritz Carleton is differentiated from Marriotts. 4. How does differentiation help create brand equity? Answer: Brand equity is the unique benefits that a product enjoys due solely to its brand name. These benefits can be created or highlighted using differentiation. The sources of differentiation or points of difference are the strong, favorable, and unique associations consumers have with the brand. 5. Define brand parity and give an example. Answer: Brands without points of difference or unique benefits are inclined to experience perceptions of brand parity. Brand parity exists when brands within one product category are viewed as similar or undifferentiated. Commodities such as sugar are often viewed as brand with parity – how will Dixie sugar separate itself from the competition – sugar is often seen as just being sugar. Flour is another example. 6. In what ways does technology influence global positioning? Answer: International positioning has been strongly influenced by the development of new technologies, some of which improve a nation's infrastructure. One of the primary changes has been that marketing messages transmitted in one country will be seen in others. Television and radio signals in Italy are likely to reach Switzerland, Austria, and France. Consequently, consistency has become a key element in successful international product and brand positioning. Positioning statements help maintain consistency. Technological differences and comfort levels with new technologies can also influence how a product is positioned in global markets. Less developed economies suffer from the digital divide, or the gap in technology that limits the ability of countries and regions to develop. One example comes from personal computer usage. It is estimated that in three-quarters of low-income countries, there are fewer than 15 personal computers per 1,000 people. Cases have been reported in which ants have eaten through hard drives. Oftentimes earthquakes disrupt Internet service for entire regions. Positioning personal computers with these limiting forces changes the methods a marketing team might employ. Consumer reluctance also plays a role – many consumers have never seen products which marketers may view as a part of everyday life, for example, a digital camera. This will affect global positioning. 7. Define the country-of-origin effect. Answer: The country-of-origin effect summarizes the response a consumer has to a product due to the country that is the source, in the consumer’s mind, of the product. Depending on the home country and the country being entered, the country-of-origin effect can drastically alter the position of the product in the minds of consumers. Country-of-origin effects originate in four different conceptual areas
8. What do the terms animosity and ethnocentrism mean? Answer: a. Ethnocentrism is the view that one’s home country is the best and that it is better than other countries. Consumers exhibiting high levels of ethnocentrism, the attitude that their country is better than others, pay more attention to country-of-origin labels and are more likely to buy products produced in their home countries b. Animosity is anger towards another country. Animosity can be worsened by political, economic, or military conflicts between countries. Consumers will often avoid products that come from countries that they have animosity towards. 9. Define nationalism. How is it different from animosity? Answer: a. Nationalism refers to the strong pride and devotion citizens have in a country or nation. b. Nationalism is not necessarily negative, which makes it different than animosity which is always negative. 10. Define sovereignty. Answer: Sovereignty means that the government has authority or control within its state. Foreign businesses must respect this sovereignty and follow the regulations and rules within the countries entered. 11. What are the different country-of-origin label options? Answer: a. Product of b. Made in c. Designed in d. Packaged in e. Assembled in f. Certified made in 12. What are the complicating factors for identifying country-of-origin? Answer: a. Some products are ‘produced’ or handled in many countries. This creates the complication of which country to put on the label. b. A product may contain a label that has one country on it, but the product may have been worked on in other countries. 13. What is product versus product positioning? Answer: At the most basic level, a product first competes with similar products. This is when your product is positioned against other similar products. Fast food versus fast food. Mid-priced sedans against mid-priced sedans. Soda versus soda. 14. Define product line. Answer: A product line consists of similar products within a particular category. 15. What is product line versus product line positioning? Answer: When companies have similar product lines they compete based on product lines versus product line positioning. Product lines compete with depth and breadth, both of which affect positioning. Depth and breadth also contribute to positioning at the product line versus product line level of competition. As depth and breadth expand, customers have more choices and can rely on a brand when shopping, reducing purchase time and quickly eliminating other purchase alternatives. 16. What is the difference between brand versus brand positioning and company versus company positioning? Answer: Brand versus brand positioning is between well-known brands with brand equity. Company versus company is more likely to be based upon the country where the company is based. Here foreign companies often try to compete with local companies. 17. How does positioning relate to price? Answer: Price is often used to represent price/quality inferences. The higher the price, the higher assumed quality the product is. 18. Describe tangible product benefits and intangible product benefits concepts. Answer: a. Tangible product benefits are the value drawn from the physical components of the product. Taste is a tangible benefit. b. Intangible product benefits are the value drawn from the social, emotional, and non-physical aspects of consumption. Prestige is an intangible benefit. 19. How do positioning maps show differentiation? Answer: Product attributes can be used on the axes to show differences in consumers attitudes about multiple products. Positioning maps should be designed to identify attitudes related to a company’s source of differentiation. 20. What is the difference between share of mind and share of heart? Answer: a. Share of mind refers to the product’s position in terms of brand awareness. A product with low share of mind is not readily recalled when a consumer considers brands in a product category. A brand with high share of mind will immediately come to mind when a consumer thinks about the same category. b. Share of heart focuses more on the emotional components of the consumer attitudes. These include the ways consumers experience the product and its social context. Share of heart suggests that relationships, emotions, and experiences are part of a product's position. c. Share of mind is brand awareness, whereas share of heart is more of an emotional connection towards a brand. Example: when someone says think of a fast food restaurant – I may say McDonalds first (even if I don’t like it), but next I may say Chic-Fil-a which I love. McDonalds would be share of mind and Chic Fil a share of heart. 21. What are the different ways to enhance a product’s position? Answer: a. Enhancing position involves all standard and non-traditional marketing approaches. b. Reinforce or enhance the original position c. Highlight a unique attribute and create a competitive advantage d. Position yourself against your competitors e. Enhancing use or application positioning – give consumers new ways to use your product. f. Price-quality relationship positioning may be emphasized through various tactics aimed at the position chosen. g. Product user positioning in international marketing may center on psychological, sociological, or spiritual values held by potential consumers. h. Product class international positioning may rely on a universal endorsement, such as ISO (International Organization for Standardization) 9000 or 14,000 standards. i. Cultural symbol positioning may be based on a local icon. j. Bottom-of-the-pyramid positioning 22. Define repositioning. Answer: Repositioning is the process of changing consumer perceptions of a brand relative to competitors. It involves a sweeping process that must be implemented at the strategic level, thereby affecting every part of the company. 23. Define greenwashing and name the seven deadly sins of greenwashing. Answer: a. Greenwashing is the practice where company leaders exaggerate or even fabricate the degree of the sustainable or green activities taking place in the organization. Treating sustainability as a fad, instead of a core value of the company, can lead to greenwashing. b. A hidden trade-off, no proof, vagueness, worshiping false labels, irrelevance, lesser of two evils, and fibbing. 24. What is the change in focus some companies need to make when positioning at the bottom-of-the pyramid? Answer: Make sure these consumers believe they can afford the product. Positioning in the bottom-of-the pyramid involves educating consumers about the steps the company has taken to adapt to the consumer's level of income. Doing so requires repositioning the product or brand as being attainable in terms of price without losing the differentiation in terms of quality or product features. It may entail the introduction of a new brand that can be then be positioned in the minds of consumers. Every positioning activity will be pursued while looking for the most low cost approach. 25. What ethical concerns does positioning present? Answer: a. In the area of positioning, two ethical concerns have arisen. The first is the role of positioning can play in encouraging consumption. This may drive consumers to purchase things they do not need or to envy those who can afford the product. In essence, positioning may be viewed as leading to envy and greed. b. Second, many times positioning seems to make the promise that the consumer will become younger, prettier, or more popular. The ethical issue is in regard to body image and self-image when products are marketed in terms of intangible benefits that are social- or esteem-based. Positioning based on social status has been criticized as unethical and a driver of low self-esteem. Instead, critics argue, products should be differentiated in terms of benefits present in the product or its use that are not based on social status or unrealistic hopes for improved personal appearance. The issue becomes magnified when consumers in less or least developed countries are the target market.
Discussion questions 1. There are at least six effective methods for positioning products: (1) competitors, (2) use or application, (3) price-quality relationship, (4) product user, (5) product class, and (6) cultural symbol. Identify two brands associated with the following countries: United States, Mexico, United Kingdom, Japan and Holland. Identify the positioning strategy each uses. Then, suggest an alternative strategy. Answer:
2. Choose a product category and make a list of five brands, three of which are not made in the United States. Identify two attributes that are common across these five brands. Using the perspective of a college student (meaning you are part of the target market), create a positioning map for these brands. Then interpret the map. Answer:
3. Identify two products that compete at each of the following levels, in at least two countries besides the United States. Explain how the competition might influence positioning strategies. Answer:
4. Ethnocentrism, animosity, nationalism, and religiosity all influence consumer perceptions of products. Consider how these factors influence positioning for the following brands when entering France, Thailand, and Saudi Arabia: Answer:
5. Visit a local retailer and find five products with country-of-origin labels. What countries are they from? How does country-of-origin relate to product attributes or sophistication? How does it influence the position for the product? Which of the following is true of a global brand?Answer and Explanation: The correct answer is choice a. Global brand is defined as a brand that is recognized worldwide.
Which of the following best describes product positioning quizlet?Which of the following best describes product positioning? arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
Which of the following best describes international strategy quizlet?Which of the following best describes international strategy? It consists of the steps by which companies manage differences across borders to create advantages over their competitors.
Which of the following best describes market positioning?Which of the following best describes the notion of market positioning? The position that a company holds in the market in terms of size relative to its competitors.
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