When buyers have too narrow an image of brand, is known as

When buyers have too narrow an image of brand, is known as Correct Answer over positioning error.

Positioning Strategy:

  • All marketing strategy is built on STP: Segmentation, Targeting, and Positioning.
  • A company discovers different needs and groups in the marketplace, targets those needs and groups that it can satisfy in a superior way, and then positions its offering so that the target market recognizes the company's distinctive offering and image.

Positioning is the act of designing the company's offering and image to occupy a distinctive place in the mind of the target market. As companies increase the number of claimed benefits for their brand, they risk disbelief and a loss of clear positioning. In general, a company must avoid four major errors:

  1. Under positioning: Some companies discover that buyers have only a vague idea of the brand. The brand is seen as just another entry in a crowded marketplace.
  2. Over positioning: Buyers may have too narrow an image of the brand. Thus a consumer might think that diamond rings at Tiffany start at $5,000 when in fact Tiffany now offers affordable diamond rings starting at $1,000.
  3. Confused positioning: Buyers might have a confused image of the brand resulting from the company's making too many claims or changing the brand's positioning too frequently. 
  4. Doubtful positioning: Buyers may find it hard to believe the brand claims in view of the product's features, price, or manufacturer.

Therefore, when buyers have too narrow an image of a brand, is known as over positioning error.

Related Questions

In the question below, a statement is given, followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the suggested course of action logically follow (s) for pursuing. Statement: Led by a strong response to its first super sports utility vehicle Urus, Italian sports car maker Lamborghini is likely to more than double its volumes in India by the end of 2019, a year ahead of its plan, and cross the milestone of 50-60 vehicles per annum. The company, which began deliveries for Urus in India in September, said the vehicle is already booked for the coming six-nine months in India much like the global markets, and it will help Lamborghini get new. customers into its fold. Courses of action: I. The company is planning not to increase the price of its vehicle despite significant rupee depreciation and wants to protect the attractive price of Urus for prospective buyers.  II. The super sports utility vehicle will drive volumes, super sports cars such as Huracan and Aventador will grow by 8-10%. The company feels an 8-10% growth in the segment is a realistic expectation in spite of the challenges.  III. More than 68% of Urus buyers are first-time Lamborghini buyers and makers are sure that this will have a positive rub-off effect on the super sports car segment too.
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