Archive for April 2019

The overall challenge for marketers when developing packaging is to

The overall challenge for marketers when developing packaging is to


a. make it as attractive as possible to the target market of the product.
b. create effective, convenient packaging that appeals to customers and keeps costs low.
c. find ways to reduce costs as much as possible for packaging without letting safety suffer.
d. always be more innovative than the competitors in order to make a product stand out.
e. ensure that product damage is minimized during distribution.


Answer: b

Multiple packaging encourages

Multiple packaging encourages


a. the consumer to try the product several times.
b. higher consumption of all products.
c. infrequent purchases.
d. easier handling and storing of all products.
e. environmentally responsible behaviour.


Answer: a

Twin-packs and six-packs are examples of

Twin-packs and six-packs are examples of


a. family packaging.
b. group packaging.
c. package bundling.
d. family branding.
e. multiple packaging.


Answer: e

Multiple packaging is

Multiple packaging is


a. likely to decrease serving size.
b. the same as family packaging.
c. likely to increase demand.
d. the most effective type of packaging for decreasing demand.
e. the most expensive type of packaging.


Answer: c

A secondary-use package is defined as one that

A secondary-use package is defined as one that


a. can be used as a promotional tool.
b. can be reused for purposes other than its initial use.
c. facilitates transportation, storage, and handling for middlemen.
d. is recyclable and environmentally safe.
e. promotes an overall company image.


Answer: b

The packaging is most important, as a strategic tool, for

The packaging is most important, as a strategic tool, for


a. consumer convenience products.
b. consumer shopping products.
c. industrial products.
d. consumer specialty products.
e. services.


Answer: a

In marketing, family packaging means

In marketing, family packaging means


a. packaging products in a quantity suitable for use for an average-sized family.
b. putting a set of related products all in the same package.
c. making all of a company's or product line's packaging looks similar.
d. putting the same brand name on all a company's products.
e. designing and selling only products that are related.


Answer: c

All packaging must at a minimum

All packaging must at a minimum


a. protect and preserve the contents in the package.
b. clearly communicate the contents and the product's benefits.
c. be tamper-proof and safe for children.
d. comply with the FDA's packaging regulations.
e. be made out of the most cost-effective materials available.


Answer: d

When designing a package, which characteristic is least important?

When designing a package, which characteristic is least important?


a. An association with the company's brand mark
b. Cost-effectiveness
c. Environmental responsiveness
d. Safety
e. The value it has as a promotional tool


Answer: a

The most important function of packaging is

The most important function of packaging is


a. offering convenience to customers.
b. protecting the product and maintaining its functionality.
c. covering the product.
d. communicating information to the customer.
e. attracting the attention of the customer.


Answer: b

In a brand licensing arrangement, the licensee is responsible for

In a brand licensing arrangement, the licensee is responsible for


a. providing the brand name to another organization for use in promoting products.
b. collecting the royalties from sales of the licensed products.
c. half of the financial losses in the event that the licensed brand is a failure.
d. the production, but not the marketing of the licensed product.
e. the manufacturing, marketing, and financing of the licensed product.


Answer: e

A co-branded product from Ruffles potato chips and Chiquita bananas would likely fail because

A co-branded product from Ruffles potato chips and Chiquita bananas would likely fail because


a. neither of these brands is very well known to consumers.
b. their products are not complementary.
c. they are both food products.
d. this co-branding will not provide product differentiation.
e. the market segment for this product is too vast


Answer: b

Which of the following issues is least important in using co-branding effectively?

Which of the following issues is least important in using co-branding effectively?


a. The brands involved should represent a complementary fit in a customer's mind.
b. The brands that are teamed together should not lose their individual identities.
c. The brands involved should be owned by different companies.
d. Co-branding should be done in a way so that it is obvious which brand is the main brand or key brand.
e. Co-branding should take advantage of the distribution capabilities of the brands
involved.


Answer: c

A major advantage of using individual branding is that

A major advantage of using individual branding is that


a. the promotion of one of the company's brands will also promote the company's
other brands.
b. this branding policy will prevent the overextension of a brand name to products that are completely unrelated to the original.
c. a poor quality product will not contaminate all of the company's other products with negative images.
d. a specific brand name for each product will help the company grow during times of economic recession.
e. the quality of one of the company's products will help increase the perceived quality image of the company's other related products.


Answer: c

Besides generic names, what other types of names are very difficult to protect?

Besides generic names, what other types of names are very difficult to protect?


a. Names created by the company
b. Surnames and geographic names
c. Arbitrarily chosen names not related to the product
d. Arbitrarily chosen names related closely to the product
e. Names that contain shapes and colours


Answer: b

Which of the following is a primary factor specific to services in choosing a brand name?

Which of the following is a primary factor specific to services in choosing a brand name?


a. The service brand is usually the same as the company name so it must be flexible enough to fit several services.
b. The name must convey an image of great customer service because this is more important for services than for goods.
c. The name should be distinctive and set the company apart from potential competitors.
d. Shortness and conciseness are extremely important when choosing brand names for services so that they can easily be remembered.
e. Service brands are much more difficult to protect legally, so marketers must focus on creating brands with made-up words or a combination of letters and numbers.


Answer: a

The major characteristic of a private brand is that

The major characteristic of a private brand is that


a. only retailers initiate and own the brand.
b. manufacturers are not identified on the product.
c. producers become involved with the marketing mix.
d. producers price the product.
e. wholesalers encourage producers to make the product available.


Answer: b

Private distributor brands are owned by

Private distributor brands are owned by


a. manufacturers only.
b. manufacturers and retailers.
c. wholesalers only.
d. manufacturers and wholesalers.
e. wholesalers or retailers.


Answer: e

The three levels of brand loyalty from strongest to weakest are

The three levels of brand loyalty from strongest to weakest are


a. preference, insistence, recognition.
b. insistence, recognition, preference.
c. insistence, preference, recognition.
d. recognition, preference, insistence.
e. insistence, preference, indifference.


Answer: c

A trademark signifies

A trademark signifies


a. that the owner has exclusive use of a brand and others are prohibited from using it.
b. that a product was manufactured by a particular company.
c. the full and legal name of an organization.
d. the level of quality of a product based on its legally protected rights.
e. the inventive use of a brand name or brand mark to identify a company's products.


Answer: a

A distinguishing factor between a brand name and a brand mark is that a brand name

A distinguishing factor between a brand name and a brand mark is that a brand name


a. creates customer loyalty.
b. consists of words.
c. identifies only one item in the product mix.
d. is registered with the U.S. Patent and Trademark Office.
e. implies an organization's name.


Answer: b

What are the situations in which guarantees are most effective?

What are the situations in which guarantees are most effective?



Answer: Guarantees are most effective when either the company or the product is not well known, so a "money-back" guarantee, in that case, would reduce the buyer's perceived risk and provide them with confidence in purchasing the product. The second area is when the product/service is superior to the competition in quality and performance.

What is the importance of guarantees?

What is the importance of guarantees?



Answer: Guarantees reduce the buyer's perceived risk. They suggest that the service/product is of high quality and that the company and its service performance are dependable.

Sellers must label their products. Labels serve many purposes beyond just "naming" the product. List the additional services provided by a product's label.

Sellers must label their products. Labels serve many purposes beyond just "naming" the product. List the additional services provided by a product's label.



Answer: A label identifies the product; a label might also grade the product; a label might describe the product, and the label might promote the product. A label may contain the information required by law.

In discussions with the packaging design team, you note that they do not have a firm design objective for the final package. In an internal memo to your boss, outline the objectives (both company and consumer orientated) that you wish to see implemented by the design team.

In discussions with the packaging design team, you note that they do not have a firm design objective for the final package. In an internal memo to your boss, outline the objectives (both company and consumer orientated) that you wish to see implemented by the design team.



Answer: The objectives of packaging are to identify the brand; convey descriptive and persuasive information; facilitate product transportation and protection; assist at-home storage; and aid product consumption.

Your research shows that over 53% of all purchases are made on impulse. As you sit down with your packaging design team, you tell them that the package must communicate many of the sales tasks.

Your research shows that over 53% of all purchases are made on impulse. As you sit down with your packaging design team, you tell them that the package must communicate many of the sales tasks. 



Answer: List the sales tasks that packaging must now incorporate due to the increase in self-service sales.
These tasks are: attract attention, describe the product's features, create consumer confidence, and make a favourable overall impression.

As the marketing manager for your firm, you have been approached by your key component manufacturer suggesting that your two firms "ingredient brand" a new item. What are some of the requirements for succeeding in ingredient branding?

As the marketing manager for your firm, you have been approached by your key component manufacturer suggesting that your two firms "ingredient brand" a new item. What are some of the requirements for succeeding in ingredient branding?



Answer: First, the consumer must perceive that the ingredient matters to the performance and success of the product. Secondly, consumers must be convinced that not all ingredient brands are the same and that the ingredient is superior. Third, a distinctive symbol or logo must clearly signal to consumers that the host product contains the ingredient. Fourth, a coordinated "pull" and "push" program must help consumers understand the importance and advantages of the branded ingredient.

Outline three guidelines for correctly implementing a bundling strategy.

Outline three guidelines for correctly implementing a bundling strategy.



Answer: Do not promote individual products in a package as frequently and cheaply as the bundle. Second, limit promotions to a single item in the mix if you still want to promote individual products. Third, if you decide to offer large rebates on individual products, it must be the absolute exception and done with discretion. 

During a meeting, you were asked by the vice-president of marketing, to comment on the company's pricing strategy for its products. Recalling your marketing management course in college, your comments define the six situations involving product-mix pricing. List these six product-mix pricing strategies.

During a meeting, you were asked by the vice-president of marketing, to comment on the company's pricing strategy for its products. Recalling your marketing management course in college, your comments define the six situations involving product-mix pricing. List these six product-mix pricing strategies.



Answer: Product-mix pricing includes product-line pricing, optional-feature pricing, Captive-product pricing, two-part pricing, by-product pricing, and product-bundling pricing.

As the newest member of the marketing department, your immediate boss asks you to comment on the company's proposal to add two new shoes to the company's middle-of-the-road pricing and product-line strategies. The first pair will retail for $ 40.00 and has as its target market the "bargain" shopper. The second pair will retail for $ 200.00 and is targeted at the "sophisticated shopper." In relation to the product-line strategy, what is the company trying to accomplish with these two new items?

As the newest member of the marketing department, your immediate boss asks you to comment on the company's proposal to add two new shoes to the company's middle-of-the-road pricing and product-line strategies. The first pair will retail for $ 40.00 and has as its target market the "bargain" shopper. The second pair will retail for $ 200.00 and is targeted at the "sophisticated shopper." In relation to the product-line strategy, what is the company trying to accomplish with these two new items?



Answer: This is an example of the company trying a "two-way stretch"—introducing products at both ends of the consumer market simultaneously. 

Explain the concept of line stretching and the three uses for it.

Explain the concept of line stretching and the three uses for it.



Answer: Line stretching occurs when a company lengthens its product line beyond its current range. It includes down-market stretch (introduce a lower-priced line), up-market stretch (introduce an upscale line), or two-way stretch (introduce both an upscale line and a down-scale line). 

You have been asked to prepare a product-line analysis for your company's stable of products. Why is it important for product-line mangers to do a product-line analysis?

You have been asked to prepare a product-line analysis for your company's stable of products. Why is it important for product-line managers to do a product-line analysis?



Answer: Product-line managers need to know the sales and profits of each item in their line in order to determine which items to build, maintain, harvest, or divest. They also need to understand each product line's market profile. 

You have been asked to create a product system for your company's personal digital assistant. Before starting, you must define the term "product system" to the engineers to enable them to start the design and production of the aligned items. Define the concept of a "product system."

You have been asked to create a product system for your company's personal digital assistant. Before starting, you must define the term "product system" to the engineers to enable them to start the design and production of the aligned items. Define the concept of a "product system."



Answer: A product system is a group of diverse but related items that function in a compatible manner.

When a physical product cannot easily be differentiated, the key to competitive success may lie in adding valued services and improving quality. Identify the six main service differentiators.

When a physical product cannot easily be differentiated, the key to competitive success may lie in adding valued services and improving quality. Identify the six main service differentiators.



Answer: The six main service differentiators are (1) ordering ease, (2) delivery, (3) installation, (4) customer training, (5) customer consulting, and (6) maintenance and repair. 

In your position as a marketing manager for a small industrial company, you have been asked by the president to help differentiate the company's product from its competitors. In reviewing your marketing management notes, you note that the text stated that physical products could be differentiated in nine ways. These nine areas comprise the "meat" of the memo you are writing to the president of your firm. What are the nine ways that physical products can be differentiated?

In your position as a marketing manager for a small industrial company, you have been asked by the president to help differentiate the company's product from its competitors. In reviewing your marketing management notes, you note that the text stated that physical products could be differentiated in nine ways. These nine areas comprise the "meat" of the memo you are writing to the president of your firm. What are the nine ways that physical products can be differentiated?



Answer: The nine ways that physical products can be differentiated are form, features, customization, performance quality, conformance quality, durability, reliability, reparability, and style.

Industrial-goods classifications based on terms of how the products enter the production process and their relative costs include such segments as materials and parts and capital items. Window cleaning services, consumable office supplies, personal computers, desks, paint, nails, and buckets are included in the classifications of industrial goods. List the other "classifications" including subclassifications for industrial goods.

Industrial-goods classifications based on terms of how the products enter the production process and their relative costs include such segments as materials and parts and capital items. Window cleaning services, consumable office supplies, personal computers, desks, paint, nails, and buckets are included in the classifications of industrial goods. List the other "classifications" including subclassifications for industrial goods.



Answer: Industrial-goods classifications include material and parts, farm products, natural products, manufactured materials and parts, and component parts. Capital goods include installations and equipment. Supplies and business services include maintenance and repair items, operating supplies, and business advisory services.

Studying how consumers shop, how they use a particular product or service, and how they dispose of the product when consumed is important for marketers. This information forms the basis of product strategy. Define the consumption system and identify the two upcoming product strategies that are affected by this knowledge.

Studying how consumers shop, how they use a particular product or service, and how they dispose of the product when consumed is important for marketers. This information forms the basis of product strategy. Define the consumption system and identify the two upcoming product strategies that are affected by this knowledge.



Answer: This is called the user's total consumption system, defined as the way the user performs the tasks of getting and using products and related services. This is important because it will contain information useful in the product-augmentation strategy and the potential product strategy.

A manufacturer is contemplating introducing a product that is inferior to its competition in its performance, design, and functionality. However, the manufacturer believes that "good brand marketing" can overcome these shortfalls. Why is this thinking incorrect?

A manufacturer is contemplating introducing a product that is inferior to its competition in its performance, design, and functionality. However, the manufacturer believes that "good brand marketing" can overcome these shortfalls. Why is this thinking incorrect?



Answer: At the heart of a great brand is a great product, the product is a key element in the market offering. Customers will judge the product (offering) on three basic elements: product features and quality; services mix and quality, and price. Not having a competitive product cannot be overcome by marketing.

Various factors have contributed to the increased importance of packaging as a marketing tool. List and briefly describe these events.

Various factors have contributed to the increased importance of packaging as a marketing tool. List and briefly describe these events.



Answer: Self-service—an increasing number of products are being sold without any personal interaction, on a self-service basis. Consumer affluence—rising consumer affluence means consumers are willing to pay a little more for convenience, appearance, dependability, and prestige of better packages. Company and brand image—packages contribute to instant recognition of the company or brand. Innovation opportunity—innovative packaging can bring large benefits to consumers and profits to producers. 

Product-mix pricing can involve a number of pricing strategies for the brand manager. List each of these strategies and briefly define each.

Product-mix pricing can involve a number of pricing strategies for the brand manager. List each of these strategies and briefly define each.



Answer: There are six situations involving product-mix pricing: (1) product-line pricing—low-, medium-, and high-priced products within the same line, such as differently priced ties; (2) optional-feature pricing—charging for "extra" features, such as leather seats in a car; (3) Captive-product pricing—when the "user" has no choice but to use the high-priced "disposable" products that make the entire product work (for example, ink cartridges for printers); (4) two-part pricing—consisting of a fixed fee and a variable usage fee (cell phone usage); (5) by-product pricing—the price of the by-products of goods being used for other purposes (oil refining for example); and (6) product-bundling pricing—pure bundling when the firm offers its products only as a bundle, or mixed bundling when the firm offers its products as a "bundle" and/or individually.

Explain the concepts of product-mix width, length, depth, and consistency.

Explain the concepts of product-mix width, length, depth, and consistency.



Answer: The width of a product mix refers to how many different product lines the company carries. The length of a product mix refers to the total number of items in the mix. The depth of a product mix refers to how many variants are offered of each product in the line and is determined by dividing the total number of items by the number of lines. The consistency of the product mix refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way. 

What is the significance of design for a company's products and services? What are the advantages of a good design?

What is the significance of design for a company's products and services? What are the advantages of a good design?



Answer: Design offers a potent way to differentiate and position a company's products and services. Design is the totality of features that affect how a product looks, feels, and functions to a consumer. Design offers functional and aesthetic benefits and appeals to both our rational and emotional sides.
The designer must figure out how much to invest in form, feature development, performance, conformance, durability, reliability, reparability, and style. To the company, a well-designed product is easy to manufacture and distribute. To the customer, a well-designed product is pleasant to look at and easy to open, install, use, repair, and dispose of. The designer must take all these factors into account.
Design can shift consumer perceptions to make brand experiences more rewarding. Design should penetrate all aspects of the marketing program so that all design aspects work together. 

Distinguish between controllable returns and uncontrollable returns.

Distinguish between controllable returns and uncontrollable returns.



Answer:


  • Controllable returns result from problems or errors by the seller or customer and can mostly be eliminated with improved handling or storage, better packaging, and improved transportation
  • and forward logistics by the seller or its supply chain partners.
  • Uncontrollable returns result from the need for customers to actually see, try, or experience
  • products in person to determine the suitability and can't be eliminated by the company in the
  • a short run through any of these means.

Describe the six main service differentiators.

Describe the six main service differentiators.



Answer: The main service differentiators are ordering ease, delivery, installation, customer training, customer consulting, and maintenance and repair.
Ordering ease refers to how easy it is for the customer to place an order with the company.
Delivery refers to how well the product or service is brought to the customer. It includes speed, accuracy, and care throughout the process.
The installation refers to the work done to make a product operational in its planned location. Ease of installation is a true selling point for buyers of complex products like heavy equipment and for technology novices.
Customer training helps the customer's employees use the vendor's equipment properly and efficiently.
Customer consulting includes data, information systems, and advice services the seller offers to buyers.
Maintenance and repair programs help customers keep purchased products in good working order.

Industrial goods can be classified in terms of how they enter the production process and their relative costliness. Identify the three groups of industrial goods.

Industrial goods can be classified in terms of how they enter the production process and their relative costliness. Identify the three groups of industrial goods.



Answer: The three groups of industrial goods include: (1) Materials and parts are goods that enter the manufacturer's product completely. Raw materials (farm and natural products) and manufactured materials and parts (component materials and component parts) compose this group; (2) Capital items are long-lasting goods that facilitate developing or managing the finished product, such as machinery (installations and equipment); and (3) Supplies and business services are short-term goods and services that facilitate developing or managing the finished product; maintenance and repair and operating supplies are included here. Business supplies include advisory services and other "services" necessary for the ongoing operation of the business. 

You know that marketers have traditionally classified products based on characteristics of durability, tangibility, and use. You also know that each product type has an appropriate marketing-mix strategy attached. In analyzing your company's products, you decide to list each of these products and the appropriate marketing-mix strategy to understand where your products "fit." List these products and their appropriate marketing-mix strategies.

You know that marketers have traditionally classified products based on characteristics of durability, tangibility, and use. You also know that each product type has an appropriate marketing-mix strategy attached. In analyzing your company's products, you decide to list each of these products and the appropriate marketing-mix strategy to understand where your products "fit." List these products and their appropriate marketing-mix strategies.



Answer: (1) Nondurable goods—the appropriate strategy is to make them available in many locations, charge only a small markup, and advertise heavily to induce trial and build preference. (2) Durable goods—tangible goods that normally survive many uses. Durable products normally require more personal selling and service, command a higher margin, and require more seller guarantees. (3) Services—intangible, inseparable, variable, and perishable products. They require more quality control, supplier credibility, and adaptability. 

The vast array of products that consumers buy can be classified on the basis of shopping habits and are broken down into four main areas. List these four main classifications of consumer goods and explain what elements are included within.

The vast array of products that consumers buy can be classified on the basis of shopping habits and are broken down into four main areas. List these four main classifications of consumer goods and explain what elements are included within.



Answer: The four main areas are: (1) Convenience goods are bought frequently, immediately, and with a minimum of effort; (2) shopping goods are goods that the consumer characteristically compares on such bases as suitability, quality, price, and style; (3) speciality goods have unique characteristics or brand identification for which a sufficient number of buyers are willing to make a special purchasing effort; and (4) unsought goods are those goods that the consumer does not know about or does not normally think of buying. 

In planning its market offering, the marketer must address the five product levels of the customer-value hierarchy. Describe the "customer-value hierarchy" and identify the five levels of product contained within.

In planning its market offering, the marketer must address the five product levels of the customer-value hierarchy. Describe the "customer-value hierarchy" and identify the five levels of product contained within.



Answer: Each layer adds more customer value, and the five levels are: (1) the core benefit—the service or benefit the customer is really buying; (2) the basic product—the actual product that provides the core benefit; (3) expected product—a set of attributes and conditions buyers normally expect when they purchase the product; (4) the augmented product—the marketer exceeds customer expectations; and (5) the potential product—which encompasses all the possible augmentations and transformations the product or offering might undergo in the future. These five elements constitute the buyers' consumption system.

What is the criticism of the product life-cycle concept?

What is the criticism of the product life-cycle concept?



Answer: The product life-cycle theory has its share of critics, who claim life-cycle patterns are too variable in shape and duration to be generalized, and that marketers can seldom tell what stage their product is in. A product may appear mature when it has actually reached a plateau prior to another upsurge. Critics also charge that, rather than an inevitable course, the product life-cycle pattern is the self-fulfilling result of marketing strategies, and that skilful marketing can, in fact, lead to continued growth.

What are fads?

What are fads?



Answer: Fads are fashions that come quickly into public view, are adopted with great zeal, peak early, and decline very fast. Their acceptance cycle is short, and they tend to attract only a limited following who are searching for excitement or want to distinguish themselves from others. Fads fail to survive because they don't normally satisfy a strong need. The marketing winners are those who recognize fads early and leverage them into products with staying power.

What is a product-feature specialist?

What is a product-feature specialist?



Answer: As a product-feature specialist specializes in producing a certain type of product or product feature. Zipcar's car-sharing services target people who live and work in seven major U.S. cities, frequently use public transportation, but still need a car a few times a month.

The market nicher is a specialist. Characterize the end-user specialist role that can be assumed by the market nicher.

The market nicher is a specialist. Characterize the end-user specialist role that can be assumed by the market nicher.




Answer: When the firm assumes the end-user specialist role, it specializes in one type of end-use customer. For example, a value-added reseller (VAR) customizes computer hardware and software for specific customer segments and earns a price premium in the process.

Who is a market-nicher?

Who is a market-nicher?



Answer: An alternative to being a follower in a large market is to be a leader in a small market or niche. Smaller firms normally avoid competing with larger firms by targeting small markets of little or no interest to the larger firms. But even large, profitable firms may choose to use niching strategies for some of their business units or companies.

If your company, which is a market follower, was labeled as an imitator, what would its primary strategies for meeting competition be?

If your company, which is a market follower, was labelled as an imitator, what would its primary strategies for meeting competition be?



Answer: The imitator copies some things from the leader but maintains differentiation in terms of packaging, advertising, pricing, or location. The leader does not mind the imitator as long as the imitator does not attack the leader aggressively. 

Describe a counterfeiter as a market-follower.

Describe a counterfeiter as a market-follower.



Answer: A counterfeiter duplicates the leader's product and packages and sells it on the black market or through disreputable dealers. Music firms, Apple, and Rolex have been plagued by the counterfeiter problem, especially in Asia.

How can a firm choose a specific attack?

How can a firm choose a specific attack?



Answer: Any aspect of the marketing program can serve as the basis for attacks, such as lower-priced or discounted products, new or improved products and services, a wider variety of offerings, and innovative distribution strategies. A challenger's success depends on combining several, more specific, strategies to improve its position over time.

What is a guerilla attack?

What is a guerilla attack?



Answer: Guerrilla attacks consist of small, intermittent attacks, conventional and unconventional, including selective price cuts, intense promotional blitzes, and occasional legal action, to harass the opponent and eventually secure permanent footholds. A guerrilla campaign can be expensive, although less so than a frontal, encirclement, or flank attack, it typically must be backed by a stronger attack to beat the opponent.

The marketing manager of a firm that manufactures cotton cloth has chosen the bypass attack as a means of responding to an industry leader. How will the manager go about launching this type of attack?

The marketing manager of a firm that manufactures cotton cloth has chosen the bypass attack as a means of responding to an industry leader. How will the manager go about launching this type of attack?



Answer: The bypass attack is an indirect assault. The marketing manager can diversify into unrelated products like ready-made garments. The manager can also diversify into new geographical markets or adopt new technologies to manufacture its product. 

Assume that you are the marketing manager of a firm that manufactures athletic shoes. How will you launch an encirclement attack on your competitor?

Assume that you are the marketing manager of a firm that manufactures athletic shoes. How will you launch an encirclement attack on your competitor?



Answer: Encirclement attempts to capture a wide slice of territory by launching a grand offensive on several fronts. It makes sense when the challenger commands superior resources. In an attack on your archrival, you can launch your product in all the major cities of the globe together and surprise your rival.

Describe a frontal attack as a general market-challenger attack strategy.

Describe a frontal attack as a general market-challenger attack strategy.



Answer: In a pure frontal attack, the attacker matches it's opponent's product, advertising, price, and distribution. The principle of force says the side with the greater resources will win. A modified frontal attack, such as cutting price, can work if the market leader doesn't retaliate and if the competitor convinces the market its product is equal to the leaders. 

Who are the ideal opponents of a market challenger?

Who are the ideal opponents of a market challenger?



Answer: The opponents of a market challenges are: (1) the industry leader; (2) firms its own size that is not doing the job and is underfinanced; or (3) small local and regional firms.

The cost of buying a higher market share through acquisition may far exceed its revenue value. Which are the four factors a company should consider before doing so?

The cost of buying a higher market share through acquisition may far exceed its revenue value. Which are the four factors a company should consider before doing so?



Answer: The four factors to be considered before buying higher market share are the possibility of provoking antitrust action, economic cost, the danger of pursuing the wrong marketing activities, and the effect of increased market share on actual and perceived quality.

As a brand manager of a firm that manufactures denim jeans, how will you implement a preemptive defence marketing strategy to meet an anticipated competitive challenge?

As a brand manager of a firm that manufactures denim jeans, how will you implement a preemptive defence marketing strategy to meet an anticipated competitive challenge?



Answer: A preemptive defence is a more aggressive manoeuvre that has as its purpose to attack before the enemy starts its offence. You can launch a preemptive defence by waging a guerrilla action across the market and keep everyone off balance. Another way to launch a preemptive defence is by introducing a stream of new products like denim jackets and skirts in various colours. 

If you were asked to develop a mobile defence for your products that are likely to come under attack from a market challenger, what would you suggest?

If you were asked to develop a mobile defence for your products that are likely to come under attack from a market challenger, what would you suggest?



Answer: In mobile defence, the leader stretches its domain over new territories through market broadening and market diversification. Market broadening shifts the company's focus from the current product to the underlying generic need.

Assume that your firm is a market leader in manufacturing detergent. How would the firm use position defence as a defensive marketing strategy to maintain its share?

Assume that your firm is a market leader in manufacturing detergent. How would the firm use position defence as a defensive marketing strategy to maintain its share?



Answer: Position defence means occupying the most desirable market space in consumers' minds, making the brand almost impregnable. Tide, as a popular laundry detergent, has become synonymous with washing machine detergent.

Your marketing manager has asked you to develop a new customer strategy for your company.

Your marketing manager has asked you to develop a new customer strategy for your company. 


Answer: Additionally, you have been asked to develop, specifically, a market-penetration strategy to assist in gaining new customers. Describe a market-penetration strategy in this context.
The market-penetration strategy in this context would seek to get new customers from a group that might use the product but as yet do not. 

Explain how luxury brands can benefit during an economic recession from having lower-priced brands or sub-brands in their portfolio.

Explain how luxury brands can benefit during an economic recession from having lower-priced brands or sub-brands in their portfolio.



Answer: They can review product portfolios and brand architecture to confirm that brands and sub-brands are clearly differentiated, targeted, and supported based on their prospects. Luxury brands can benefit from lower-priced brands or sub-brands in their portfolios.
Because different brands or sub-brands appeal to different economic segments, those that target the lower end of the socioeconomic spectrum may be particularly important during a recession. Value-driven companies such as McDonald's, Walmart, Costco, Aldi, Dell, E*TRADE, Southwest Airlines, and IKEA are likely to benefit most. Spam, the oft-maligned gelatinous 12-ounce rectangle of spiced ham and pork, found its sales soaring during the recession. Affordably priced and requiring no refrigeration, Spam is, its maker Hormel claims, "like meat with a pause button."

Which are the three ways to change the course for a brand?

Which are the three ways to change the course for a brand?



Answer: Three ways to change the course for a brand are market, product, and marketing program modifications.
Market modification: A company might try to expand the market for its mature brand by working with the two factors that make up sales volume: Volume = number of brand users * usage rate per user. This may also be matched by competitors.
Product modification: Managers also try to stimulate sales by improving quality, features, or style. Quality improvement increases functional performance by launching a "new and improved" product. Feature improvement adds size, weight, materials, supplements, and accessories that expand the product's performance, versatility, safety, or convenience. Style improvement increases the product's esthetic appeal. Any of these can attract consumer attention.
Marketing program modification: Finally, brand managers might also try to stimulate sales by modifying nonproduct elements - price, distribution, and communications in particular. They should assess the likely success of any changes in terms of effects on new and existing customers.

What must the firm do to sustain rapid market share growth?

What must the firm do to sustain rapid market share growth?



Answer: To sustain rapid market share growth now, the firm must:
• improve product quality and add new features and improved styling.
• add new models and flanker products (of different sizes, flavours, and so forth) to protect the
main product.
• enter new market segments.
• increase its distribution coverage and enter new distribution channels.
• shift from awareness and trial communications to preference and loyalty communications.
• lower prices to attract the next layer of price-sensitive buyers.
By spending money on product improvement, promotion, and distribution, the firm can capture
a dominant position. It can trade off maximum current profit for high market share and the hope
of even greater profits in the maturity stage.

What is fashion?

What is fashion?



Answer: Fashion is one of the three special categories of product life cycles. A fashion is a currently accepted or popular style in a given field. Fashions pass through four stages: distinctiveness, emulation, mass fashion, and decline. The length of a fashion cycle is hard to predict. One view is that fashions end because they represent a purchase compromise, and consumers soon start looking for the missing attributes. Another explanation is that too many consumers adopt fashion, thus turning others away. Still, another is that the length of a particular fashion cycle depends on the extent to which the fashion meets a genuine need, is consistent with other trends in the society, satisfies societal norms and values, and keeps within technological limits as it develops.

What are end-user and vertical-level specialists?

What are end-user and vertical-level specialists?



Answer: The key idea in successful nichemanship is specialization. A firm that specializes in one type of end-use customer is an end-user specialist. For example, a value-added reseller (VAR)customizes computer hardware and software for specific customer segments and earns a price premium in the process.
A firm that specializes at some vertical level of the production-distribution value chain is a vertical-level specialist. A copper firm may concentrate on producing raw copper, copper components, or finished copper products.

Characterize the four broad strategies often employed by market followers to meet their competitors.

Characterize the four broad strategies often employed by market followers to meet their competitors.




Answer: These broad strategies include: (1) counterfeiter - the counterfeiter duplicates the leader's product and package and sells it on the black market or through disreputable dealers; (2) cloner - the cloner emulates the leader's products, name, and packaging, with slight variations; (3) imitator - the imitator copies some things from the leader but maintains differentiation in terms of packaging, advertising, pricing, or location; and (4) adapter - the adapter takes the leader's products and adapts or improves them.

What is counteroffensive defence? Explain with an example.

What is counteroffensive defence? Explain with an example.



Answer: In a counteroffensive, the market leader can meet the attacker frontally and hit its flank, or launch a pincer movement so it will have to pull back to defend itself. After FedEx watched UPS successfully invade its airborne delivery system, it invested heavily in ground delivery through a series of acquisitions to challenge UPS on its home turf.
Another common form of counteroffensive is the exercise of economic or political clout. The leader may try to crush a competitor by subsidizing lower prices for the vulnerable product with revenue from its more profitable products, or it may prematurely announce a product upgrade to prevent customers from buying the competitor's product. Or the leader may lobby legislators to take political action to inhibit the competition.

Which three groups of marketers help satisfy a customer's needs?

Which three groups of marketers help satisfy a customer's needs?



Answer: In satisfying customer needs, one can draw a distinction between responsive marketing, anticipative marketing, and creative marketing. A responsive marketer finds a stated need and fills it. An anticipative marketer looks ahead to needs customers may have in the near future. A creative marketer discovers solutions customers did not ask for but to which they enthusiastically respond. Creative marketers are proactive market-driving firms, not just market-driven ones.

Which three groups of customers can help expand a firm's market demand?

Which three groups of customers can help expand a firm's market demand?



Answer: Every product class has the potential to attract buyers who are unaware of the product or are resisting it because of the price or lack of certain features. A company can search for new users among three groups: those who might use it but do not (market-penetration strategy), those who have never used it (new-market segment strategy), or those who live elsewhere (geographical-expansion strategy).

Sally's is a boutique bakery that specializes in cupcakes. Give some methods by which Sally's can position itself without spending a lot on promotions.

Sally's is a boutique bakery that specializes in cupcakes. Give some methods by which Sally's can position itself without spending a lot on promotions.




Answer: Because small businesses often must rely on word of mouth to establish their positioning, public relations, social networking, and low-cost promotions and sponsorship can be inexpensive alternatives for Sally's. Creating a vibrant brand community among current and prospective customers can also be a cost-effective way to reinforce loyalty and help spread the word to new prospects.

Sally's is a boutique bakery that specializes in cupcakes. Give one method by which Sally's can conduct low-cost market research.

Sally's is a boutique bakery that specializes in cupcakes. Give one method by which Sally's can conduct low-cost market research.




Answer: There are a variety of low-cost marketing research methods that help small businesses connect with customers and study competitors. One way is to set up course projects at local colleges and universities to access the expertise of both students and professors.

Sally's is a boutique bakery that specializes in cupcakes. How can Sally's create channel differentiation to stand apart from its competitors?

Sally's is a boutique bakery that specializes in cupcakes. How can Sally's create channel differentiation to stand apart from its competitors?




Answer: Sally's can more effectively and efficiently design its distribution channels' coverage, expertise, and performance to make buying the product easier and more enjoyable and rewarding. It can set up an online store or undertake home deliveries.

Companies can achieve competitive advantage through the way they design their distribution channel. What three areas are considered in this design process?

Companies can achieve competitive advantage through the way they design their distribution channel. What three areas are considered in this design process?



Answer: Considerations to achieve competitive advantage in the distribution channel are in the areas of coverage, expertise, and performance. 

How does a company differentiate its market offerings using employee differentiation? Provide an example of a company using employee differentiation.

How does a company differentiate its market offerings using employee differentiation? Provide an example of a company using employee differentiation.




Answer: A company differentiating its market offerings using employee differentiation does so by having better-trained personnel who provide superior customer service. Singapore Airlines is well regarded in large part because of its flight attendants.

Define leverageable advantage with an example.

Define leverageable advantage with an example.



Answer: A leverageable advantage is one that a company can use as a springboard to new advantages, much as Microsoft has leveraged its operating system to Microsoft Office and then to networking applications. In general, a company that hopes to endure must be in the business of continuously inventing new advantages.

Provide three examples of negatively correlated attributes and benefits.

Provide three examples of negatively correlated attributes and benefits.




Answer: Some examples of negatively correlated attributes and benefits are: low price versus high quality, taste versus low calories, strong versus refined, powerful versus safe, and ubiquitous versus exclusive.

As a company seeks to establish a category membership designation, how does the company approach points-of-difference? What is done first?

As a company seeks to establish a category membership designation, how does the company approach points-of-difference? What is done first?



Answer: The typical approach to positioning is to inform consumers of a brand's membership before stating its point-of-difference. Presumably, consumers need to know what a product is and what function it serves before deciding whether it dominates the brands against which it competes.

Belling begins most advertising messages by announcing category benefits and then moving on to its specific positioning. Offer one reason why Belling may adopt this strategy.

Belling begins most advertising messages by announcing category benefits and then moving on to its specific positioning. Offer one reason why Belling may adopt this strategy.




Answer: To reassure consumers that a brand will deliver on the fundamental reason for using a category, marketers such as Belling frequently use benefits to announce category membership.

Give an example of how a brand can be affiliated with a category in which it does not hold membership.

Give an example of how a brand can be affiliated with a category in which it does not hold membership.



Answer: DiGiorno's frozen pizza has adopted a positioning strategy that identifies with a different category from its own—instead of putting it in the frozen pizza category, the marketers have positioned it in the delivered pizza category with ads that claim, "It's Not Delivery, It's DiGiorno!"

Define a brand mantra and provide an example of a brand mantra.

Define a brand mantra and provide an example of a brand mantra.




Answer: A brand mantra is an articulation of the heart and soul of the brand and is closely related to other branding concepts like "brand essence" and "core brand promise." Brand mantras are short, three- to five-word phrases that capture the irrefutable essence or spirit of the brand positioning. American Express's "World Class Service, Personal Recognition," is an example of a brand mantra.

Give an example of the use of straddle positioning.

Give an example of the use of straddle positioning.




Answer: Subway restaurants are positioned as offering healthy, good-tasting sandwiches. This positioning allows the brand to create a POP on taste and a POD on health with respect to quick-serve restaurants such as McDonald's and Burger King and, at the same time, a POP on health and a POD on taste with respect to health food restaurants and cafés.

There are three key consumer criteria that determine whether a brand association can truly function as a point-of-difference. When the Westin Stamford hotel in Singapore advertised that it was the world's tallest hotel, it attempted to create a point-of-difference (POD). Explain why the hotel may not have been successful in its attempt to create its POD.

There are three key consumer criteria that determine whether a brand association can truly function as a point-of-difference. When the Westin Stamford hotel in Singapore advertised that it was the world's tallest hotel, it attempted to create a point-of-difference (POD). Explain why the hotel may not have been successful in its attempt to create its POD.




Answer: Consumers must see the brand association as personally relevant to them. Staying in the tallest hotel might not be a necessary need for most tourists, there might be other factors that are more important. The hotel was not successful in its attempt to create its POD because of the desirability criteria associated with PODs.

Belling is a chain of coffee shops. List possible competitors first from an industry point of view and then from the market point of view.

Belling is a chain of coffee shops. List possible competitors first from an industry point of view and then from the market point of view.




Answer: From an industry point of view, Belling's competitors will be other coffee shops, coffee machines and outlets that sell coffee in addition to other foods. From a market point of view, Belling's competitors could be anything from restaurants to supermarkets selling ready-to-drink coffee.

With the help of an example, explain why a company's competition may not be from companies in the same category.

With the help of an example, explain why a company's competition may not be from companies in the same category.




Answer: Category membership includes the products or sets of products with which a brand competes and which function as close substitutes.
After having spent billions of dollars building their networks, cell phone carriers AT&T, Verizon Wireless, and Sprint face the threat of new competition emerging as a result of a number of changes in the marketplace: Skype and the growth of Wi-Fi hotspots, municipal Wi-Fi networks built by cities, and dual-mode phones that can easily switch networks.

How does a loyal brand community support the positioning and branding of a small business? Provide an example to support your explanation.

How does a loyal brand community support the positioning and branding of a small business? Provide an example to support your explanation.




Answer: Creating a vibrant brand community among current and prospective customers can be a cost-effective way to reinforce loyalty and help spread the word to new prospects. Web browser Mozilla Firefox is able to compete with Microsoft's Internet Explorer in part because of its dedicated volunteer group of 10,000 programmers who work on its open source coding. Twelve fans of the brand felt so strongly about it they used two-by-fours and rope to hollow out a 30,000-square-foot impression of the brand's logo in an oat field outside Salem, Oregon!

Randall Ringer and Michael Thibodeau see narrative branding as based on deep metaphors that connect to people's memories, associations, and stories. Briefly describe their framework for a brand story.

Randall Ringer and Michael Thibodeau see narrative branding as based on deep metaphors that connect to people's memories, associations, and stories. Briefly describe their framework for a brand story.



Answer: Based on literary convention and brand experience, Randall Ringer and Michael Thibodeau offer the following framework for a brand story:

• Setting. The time, place, and context
• Cast. The brand as a character, including its role in the life of the audience, its relationships and responsibilities, and its history or creation myth
• Narrative arc. The way the narrative logic unfolds over time, including actions, desired experiences, defining events, and the moment of epiphany
• Language. The authenticating voice, metaphors, symbols, themes, and leitmotifs

What are the five elements of narrative branding as described by Randall Ringer and Michael Thibodeau?

What are the five elements of narrative branding as described by Randall Ringer and Michael Thibodeau?



Answer: Randall Ringer and Michael Thibodeau see narrative branding as based on deep metaphors that connect to people's memories, associations, and stories. They identify five elements of narrative branding: (1) the brand story in terms of words and metaphors, (2) the consumer journey in terms of how consumers engage with the brand over time and touch points where they come into contact with it, (3) the visual language or expression for the brand, (4) the manner in which the narrative is expressed experientially in terms of how the brand engages the senses, and (5) the role/relationship the brand plays in the lives of consumers.

Name and briefly explain three less-structured alternatives to competitive brand positioning.

Name and briefly explain three less-structured alternatives to competitive brand positioning.



Answer: Three alternatives to competitive branding are as follows:



  1. Brand narratives and storytelling: Rather than outlining specific attributes or benefits, some marketing experts describe positioning a brand as telling a narrative or story.
  2. Brand journalism: Just as editors and writers for newspapers and magazines tell many facets of a story to capture the interests of diverse groups of people, marketers should communicate different messages to different market segments, as long as they at least broadly fit within the basic broad image of the brand.
  3. Cultural branding: For companies to build iconic, leadership brands, they must assemble cultural knowledge, strategize according to cultural branding principles, and hire and train cultural experts.

Explain three variables a firm should consider when analyzing potential threats posed by competitors.

Explain three variables a firm should consider when analyzing potential threats posed by competitors.



Answer: In general, the firm should monitor three variables when analyzing potential threats posed by competitors:

1. Share of the market—The competitors' share of the target market.
2. Share of mind—The percentage of customers who named the competitor in responding to the statement, "Name the first company that comes to mind in this industry."
3. Share of heart—The percentage of customers who named the competitor in responding to the statement, "Name the company from which you would prefer to buy the product."

Briefly describe four brand differentiation strategies.

Briefly describe four brand differentiation strategies.



Answer: In addition to product and service differentiation, the four differentiation strategies are:


(1) employee differentiation companies can gain a strong competitive advantage through having better-trained people;

(2) channel differentiation companies can achieve competitive advantage through the way they design their distribution channels' coverage, expertise, and performance;


(3) image differentiation companies can craft powerful, compelling images that appeal to consumers' social and psychological needs; and

(4) services differentiation service company can differentiate itself by designing a better and faster delivery system that provides more effective and efficient solutions to consumers.

Describe three methods by which a brand can communicate category membership.

Describe three methods by which a brand can communicate category membership.



Answer: There are three main ways to convey a brand's category membership:
1. Announcing category benefits. To reassure consumers that a brand will deliver on the fundamental reason for using a category, marketers frequently use benefits to announce category membership.
2. Comparing to exemplars. Well-known, noteworthy brands in a category can also help a
brand specify its category membership.
3. Relying on the product descriptor. The product descriptor that follows the brand name is often a concise means of conveying category origin.

With the help of an example, explain straddle positioning.

With the help of an example, explain straddle positioning.



Answer: Occasionally, a company will be able to straddle two frames of reference with one set of points-of-difference and points-of-parity. In these cases, the points-of-difference for one category become points-of-parity for the other and vice versa. Subway restaurants are positioned as offering healthy, good-tasting sandwiches. This positioning allows the brand to create a POP on taste and a POD on health with respect to quick-serve restaurants such as McDonald's and Burger King and, at the same time, a POP on health and a POD on taste with respect to health food restaurants and cafés. Straddle positions allow brands to expand their market coverage and potential customer base.

With respect to positioning, explain points-of-parity and points-of-difference.

With respect to positioning, explain points-of-parity and points-of-difference.



Answer: Points-of-difference (PODs) are 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. Points-of-parity (POPs), on the other hand, are associations that are not necessarily unique to the brand but may, in fact, be shared with other brands.

What are the requirements for deciding on a positioning strategy?

What are the requirements for deciding on a positioning strategy?



Answer: Positioning requires that marketers define and communicate similarities and differences between their brand and its competitors. Specifically, deciding on positioning requires: (1) determining a frame of reference by identifying the target market and relevant competition, (2) identifying the optimal points-of-parity and points-of-difference brand associations given that frame of reference, and (3) creating a brand mantra to summarize the positioning and essence of the brand.
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