Markets often need modification to be able to grow and flourish. When AARP began to recruit members that were 50–55 years-of-age instead of pursuing their normal target market of 65+ seniors, it was using a market modification strategy called ________. a. converting nonusers b. entering new market segments c. winning competitors’ customers d. value vision e. age discounting Answer: b Page: 327 Level of difficulty: Medium 336
Chapter 1: Marketing: Managing Profitable Customer Relationships 130. As an entrepreneur you have decided to launch two products simultaneously to capture two different parts of the market. Which of the following would be the best descriptive title for the strategy you are employing? a. Single-niche strategy b. Multiple-niche strategy c. Standardization strategy d. Mass-market strategy e. Adaptive strategy Answer: b Page: 333 Level of difficulty: Easy Short Answer 131.According to advertising executives Jack Trout and Al Ries, positioning is notwhat you do to a product. What is the proper perspective according to Troutand Ries? 132.A starting point in defining a competitive frame of reference for a brandpositioning is to determine category membership. How would you define categorymembership? 133. With respect to points-of-parity, explain why a product does not have to be equal to a competitive product to be compared to that product. Suggested Answer: To achieve a point-of-parity on a particular attribute or benefit, a sufficient number of consumers must believe that the brand is “good enough” on that dimension. There is a “zone” or “range of tolerance or acceptance” with points-of-parity. The brand does not have to be seen as equal to competitors, but consumers must feel that the brand does well enough on that particular attribute or benefit. Page: 313 Level of difficulty: Medium 134. As a company seeks to establish a category membership designation, howdoes the company approach points-of-difference? What is done first?
135. There are three main ways to convey a brand’s category membership. Assume you were an automobile designer for Ford and wished to position a new “sports wagon.” Which of the three ways to convey the brand’s category membership would be most appropriate for your task?
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