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.

Answer: Two key elements of product position are: (1) the way customers view the product and (2) the product’s standing relative to competitors.

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.

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.

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.

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.

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

• Home country – The influence of a consumer’s home country on his/her beliefs.
• Origin country – The country which the consumer generally associates with a certain product.
• Made-in country – The country listed on the “made in” label of the product.
• Designed-in country – The country in which the product was designed.

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.

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.

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.

Answer: 

a. Product of

b. Made in

c. Designed in

d. Packaged in

e. Assembled in

f. Certified made in

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.

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.

Answer: A product line consists of similar products within a particular category.

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.

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.

Answer: Price is often used to represent price/quality inferences. The higher the price, the higher assumed quality the product is.

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.

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.

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.

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

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.

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.

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.

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.

Answer: 

• United States – Southwest Airlines and Sevens Jeans
  
  • Southwest Airlines is positioned as the low cost air carrier in the US. A new strategy could be based upon competitors.
  • Seven Jeans are positioned using the product user. They could position them against their competitors, why they are better.
• Mexico – Corona Beer and Patron Tequila
  
  • Corona is positioned using use or application – it’s positioned the relaxation or vacation beer. They could try to position based upon the product user.
  • Patron Tequila is a premium tequila positioned using the product user. They could try to position it based upon the price-quality relationship.
• United Kingdom – Burberry and H&M clothing store
  
  • Burberry is positioned to be high quality, luxury brand that is also positioned by product user. They could try to position it as a cultural symbol.
  • H&M is a clothing retailer positioned based on affordable prices. Prices even appear in their commercials. They could position based on product user – make it more fashionable.
• Japan – Toyota and Lexus
  
  • Toyota is positions as an affordable quality option (price-quality relationship). They could position based on attributes.
  • Lexus is positions as top quality, luxury option (price-quality relationship). They could also position based on attributes.
• Holland – Grolsh beer and Senseo coffee machine
  
  • Grolsh is positioned based upon a unique attribute – it has a unique swing-top they could try to position based upon competitors.
  • Senseo is positioned using price-quality relationships – it makes a very high quality cup of coffee. They could position themselves upon attributes as it also makes café au lait.

Answer: 

• Automobiles. Audi A8, Ford Escape, Dodge Durango, Mini Cooper, Honda Accord.

Answer: 

• Product versus product
  • Soy sauce. Here products have tried to position based upon different attributes such as low sodium varieties.
  • Automobiles. Car makers often try to position based on price quality relationships.
• Product line versus product line
  • Sodas. Soda makers hope that if you like one of their sodas you will try more – they position based on attributes – brand equity.
  • Potato chips – same as sodas.
• Brand versus brand
  • Luxury watches. They position based on quality.
  • Designer purses. They position based on product users and quality.
• Company versus company
  • Financial services companies. Position based on competitors.
  • Banks. Position based on competitors.
• Industry versus industry
  • Beverages. Position on attributes.
  • Transportation. Position on price-quality.

Answer: 

• Royal Dutch Shell – the oil and gas company. Dutch and registered in the UK.
  
  • France and Thailand– ethnocentrism shouldn’t be a problem, oil and gas companies often create animosity so they should try to position themselves as a responsible gas company.
  • Saudi Arabia – Shell should be most concerned with ethnocentrism, nationality and animosity because they are an outside gas company – they should not position themselves against their competitors.

• Starbucks
  
  • Could face ethnocentrism, animosity and nationalism in all three countries. They should position themselves based on attributes.
• Haier
  
  • France – Chinese company could face ethnocentrism. They should position themselves based upon their successful attributes of making compact appliances.
  • Thailand – they tried to enter the market, but lost to local competitors – this was probably due to nationalism, ethnocentrism and animosity towards the outside Asian company.
  • Saudi Arabia – they have created plants in the middle east – this can help with positioning. Chinese company could face ethnocentrism. They should position themselves based upon their successful attributes of making compact appliances.
• Carrefour
  
  • France – Is a French company – they will benefit from nationalism and should position themselves using this advantage.
  • Thailand and Saudi Arabia – may face ethnocentrism, animosity and nationalism. They should carry local products in these markets. Position themselves based on price-quality.

Answer: 

• I went to a local store.
• I found a toy labeled Made in China – this makes me think the toy is cheap and not very sophisticated. This toy was positioned more on price than quality.
• I found lettuce that said grown in Mexico. This label made me think to be careful to wash the lettuce carefully, but did not relate to product attributes or sophistication. This was the only type of lettuce available, so it didn’t influence the position for the product.
• I found a package of lamb that said Product of New Zealand. This makes me think that the lamb is of high quality – New Zealand markets and positions its lamb as a superior, high quality, product. Also, this product is positioned against its competitors because they believe their meat is better than local producers.
• I found a watch that said made in Taiwan. This makes me think the watch is not as sophisticated as one made in Switzerland. This product didn’t seem to be well positioned, just positioned as a low price watch option.

• I found a bottle of wine that said made France. This makes me think the wine is very sophisticated and is a high quality, high priced wine. This wine is positioned to be the best, a high-quality wine.