Postgraduate Diploma in Marketing

June 2013 Examination

Discovering Marketing Essentials (DME)

Date: 12th of June 2013

Time: 1400 Hrs 1700 Hrs Duration: Three (03) Hrs

Total marks for this paper is 100 marks. There are three parts in this question paper. All questions in Part One and Part Two are COMPULSORY. Part One includes 20 Compulsory multiple-choice questions. Select the most appropriate answer from the given choices and mark it in the given space in the answer book. Part Two includes 06 Compulsory short answer questions. Part Three includes 02 Essay Type Questions. Answer only 01 Question from this part. Instructions to candidates

1 State your Registration Number on the front cover of the answer book and on each and every additional paper attached to it. Your name must not appear anywhere in the answer book or answer scripts

2. Always start answering a question on a new page 3. You are reminded that answers should not be written in pencil or red pen

except in drawing diagrams 4. Answer the questions using:

Effective arrangement and presentation Clarity of expression Logical and precise arguments Clear diagrams and examples where appropriate

5. Illegible hand writing and language errors will be penalised

Page 2 of 9

PART ONE

Read the question and select the most appropriate answer out of the four given choices. Tick your choice in the given space in the answer booklet.

Question 01 Question 1.1 According to Professor Kotler, Marketing Management is defined as follows:

a. The art and science of choosing target markets and building profitable

relationships with them b. An attitude in mind where the customer is at the center of all business purposes c. Ensure product quality is maintained and improved continuously d. A social and managerial process by which individuals and groups obtain what they

need and want through creating and exchanging value with others

Question 1.2 The actors close to the company that affect its ability to serve its customers is referred to as:

a. Internal Environment b. Micro Environment c. Macro Environment d. Economic Environment

Question 1.3 According to the stages of the adoption process, consumers go through five stages in the process of adopting a new product. The five stages in the correct sequence are:

a. Awareness, Desire, Evaluation, Trial and Adoption b. Awareness, Interest, Evaluation, Trial and Adoption c. Awareness, Interest, Evaluation, Desire and Adoption d. Attention, Interest, Desire, Trial and Adoption

Question 1.4 Personal interviewing that involves inviting 6 to 10 people to gather for a few hours with a trained interviewer to talk about a product or organisation is known as:

a. In-depth Interviewing b. Focus Group Interviewing c. Observation Research d. Descriptive Research

Page 3 of 9

Question 1.5 With reference to target marketing, when evaluating different market segments a firm must look at three factors, which are:

a. Segment size and growth, segment structural attractiveness and competitors

strengths and weaknesses b. Segment size and growth, segment structural attractiveness and sales growth c. Segment size and growth, segment structural attractiveness and company

objectives and resources d. Segment size and growth, sales growth and company objectives and resources

Question 1.6 Market Positioning refers to:

a. Grouping the market into clusters of customers/consumers with similar needs and

wants b. Segmentation, Targeting and Positioning c. Placing the product in the minds of the customers to gain a unique mental picture d. Where a marketer will select one or many segments to identify, anticipate and

satisfy customer requirements

Question 1.7 Describe the term to be used for consumer products that customers compare carefully on suitability, quality, price and style:

a. Convenience Products b. Specialty Products c. Unsought Products d. Shopping Products

Question 1.8 The level of the product, which encompasses all the augmentations and transformations that the product might undergo to enhance or develop the product is known as:

a. Core Product b. Actual Product c. Potential Product d. Augmented Product

Page 4 of 9

Question 1.9 Using a successful brand name to introduce additional items in a given product category under the same brand name such as new flavours or added ingredients is referred to as:

a. Brand Extension b. Line Extension c. Co-Branding d. Brand Development

Question 1.10 With reference to New Product Development, testing a new-product concept with groups of target consumers to find out if the concepts have a strong appeal is known as:

a. Test Marketing b. Product Concept c. Concept Testing d. Idea Screening

Question 1.11 A product mix pricing in setting a price for products that must be used along with a main product such as blades for a razor and film for a camera is known as:

a. Captive-Product Pricing b. By-Product Pricing c. Optional-Product Pricing d. Product Line Pricing

Question 1.12 With reference to distribution strategies, an ideal distribution strategy for an organisations range of electrical and electronic appliances would be:

a. Selective Distribution b. Exclusive Distribution c. Intensive Distribution d. Physical Distribution

Page 5 of 9

Question 1.13 An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific period of time. The three possible advertising objectives are:

a. Informative, Creative and Reminder Advertising b. Informative, Persuasive and Creative Advertising c. Creative, Persuasive and Reminder Advertising d. Informative, Persuasive and Reminder Advertising

Question 1.14 With reference to Public Relations, building and maintaining relations with legislators and government officials to influence legislation and regulation is known as:

a. Political Relationship b. Lobbying c. Prospecting d. None of the above

Question 1.15 The step in the selling process in which the sales person identifies qualified potential customers who has the need for a given product is known as:

a. Prospecting b. Pre approach c. Approach d. Follow-up

Question 1.16 Which one of the following is not an Above-the-line communication media?

a. Radio Advertising b. Television Advertising c. Press Advertising d. Billboard Advertising

Page 6 of 9

Question 1.17 An ideal promotional objective during the introduction stage of the product life cycle would be:

a. Creating awareness among the target audience b. Promoting product quality c. Appointing more channel partners d. Establishing product values and brand recognition among the target audience

Question 1.18 The process of measuring and evaluating the results of marketing strategies and plans, which also assists to keep the plan on track, is referred to as:

a. Situational Analysis b. Selling Process c. Audit Process d. Control Process

Question 1.19 The process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives is known as:

a. Marketing Implementation b. Marketing Planning c. Strategic Planning d. Marketing Analysis

Question 1.20 Websites where members can congregate online and exchange views on issues of common interest is referred to as:

a. Web Communities b. Permission Marketing c. Corporate Website d. E-Commerce

(20 Marks)

Page 7 of 9

PART TWO

This part includes SIX compulsory short answer questions Answer all questions

Question 02 Explain briefly the following:

a. Production Concept b. Marketing Information System c. Market Positioning d. Customer Satisfaction e. Customer Lifetime Value

(10 Marks)

Question 03

a. Define Marketing Research. (02 Marks) b. Identify (02) two advantages and disadvantages of Secondary Data.

(02 Marks) c. Identify and briefly explain (04) four methods of collecting Primary Data. (06 Marks)

(10 Marks)

Question 04

a. Briefly explain what is Market Segmentation and identify the (05) five key

requirements/criteria for effective segmentation. (04 Marks)

b. Explain briefly with relevant examples the (03) three target marketing strategies an

organisation could use in order to target its customers. (06 Marks)

(10 Marks)

Question 05

a. With the aid of a diagram, describe the key stages of the product life cycle. (04 Marks)

b. Briefly, explain the different strategies that should be adopted at different stages of

the PLC. (06 Marks)

(10 Marks)

Page 8 of 9

Question 06

a. Explain the following pricing approaches and strategies:

I. Cost-Based Pricing II. Value-Based Pricing

III. Competition Based Pricing IV. Market-Skimming Pricing V. Psychological Pricing

(06 Marks)

b. Identify and explain (02) two internal and (02) two external factors affecting an

organisations pricing decisions. (04 Marks)

(10 Marks) Question 07

a. Describe the range of marketing mix elements/tools that an organisation uses in order to communicate with customers. (04 Marks)

b. Briefly explain the following promotion mix strategies:

I. Push Strategy II. Pull Strategy (03 Marks)

c. Identify and describe (02) two direct marketing tools and discuss one limitation to

the organisation of using direct marketing. (03 Marks) (10 Marks)

(Total 60 Marks)

Page 9 of 9

PART THREE

This part includes TWO Essay Type Questions

Answer only ONE question from this part

Question 08

a. With reference to a product of your choice, explain the major stages of the business buying process.

(12 Marks) b. Briefly discuss, how channel members add value by identifying (06) six important

functions performed by them in creating customer value. (08 Marks)

(Total 20 Marks)

Question 09

a. Discuss the (04) four common methods of setting the advertising budget in order to achieve its advertising objectives.

(08 Marks) b. With the aid of a diagram, explain the key stages/steps of the selling process. (12 Marks)

(Total 20 Marks)

(Total 100 Marks)

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