Question

In one city, Biggies', a competing retail outlet, opens a store across the street from a Sam-Mart. A battle for business ensues. One of the tools both chains use in their fight for customers is advertising. Sam-Mart runs three different commercials that stress the point that it has very low prices. Biggies' runs three different commercials that stress the point that it has very friendly salespeople. Which one of the following practices are the two stores engaging in?
A. External positioning
B. Product polloning
C. Corporate advertising
D. Intemal positioning point

Answer 1

Answer:

A.

Explanation:

In business, the term positioning is defined as a position where items or products stand in comparison with other products and services in the market.

External positioning refers to placing the price of services and items by taking cues from other similar products and services in the marketplace.

In the given case, the two companies are engaging in external positioning. Therefore, option A is correct.