Download Final Examination: Trimester 2, 2016

College of Business, Hospitality and Tourism Studies
Department of Management, IR and OHS
MKT501- INTRODUCTION TO MARKETING
Final Examination: Trimester 2, 2016
QUESTION PAPER
___________________________________________________________________________
This examination constitutes 50% of total assessment of this unit and students must score 40/100
in this examination in order to pass this unit.
INSTRUCTIONS
1. Time Allowed: 3 HOURS with additional 10 MINUTES reading time.
2. All answers are to be written in the Answer Booklet provided.
3. Write your ID Number on ALL pages of your Answer Booklet and any extra sheets that
you use.
4. This is a closed book examination. You are not permitted to access any books, notes or
other forms of written or electronic materials.
5. Attach the extra sheets securely at appropriate place before handing-in the Answer
Booklet to the supervisor.
SECTIONS
QUESTIONS
MARKS
Section A: Multiple Choice
20 Questions. Attempt All
20
Section B: Short Answers
10 Questions. Attempt All
50
Section C: Case Study
All Compulsory.
15
Section D: Essays
2 Questions. Attempt only One (1)
15
Total
MKT501:Introduction to Marketing
100/40%
T2 2016
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SECTION A
MULTIPLE CHOICE QUESTION
[20 MARKS]
All questions are compulsory. Write the correct answer in the answer booklet provided. Each
question is worth 1mark.
1. The ________ is specifically focused on the future welfare of consumers only.
A. strategic planning concept
B. sustainable marketing concept
C. societal marketing concept
D. consumer business concept
2. McDonald's "Plan to Win" strategy has added healthy food options to its menu, phased out
traditional artery-clogging trans fats, launched a major multifaceted education campaign, and
addressed environmental issues. "Plan to Win" best exemplifies which concept?
A. sustainable marketing concept
B. marketing concept
C. societal marketing concept
D. strategic planning concept
3. Many critics charge that the American marketing system causes ________ to be higher
than they would be under more "sensible" systems.
A. imports
B. exports
C. prices
D. product safety measures
4. A long-standing charge against intermediaries is that they mark up prices beyond the
________.
A. value of their services
B. delivery charges
C. going market price
D. promotion cost
5. Hart's Department Store was accused of deceptive promotion. Which of the following best
explains what might have happened?
A. Hart's refused to advertise sale prices in the local paper.
MKT501:Introduction to Marketing
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B. Hart's lured customers to the store for a bargain that is out of stock.
C. Hart's advertised a large price reduction from a phony high retail list price.
D. Hart's used misleading labeling.
6. Deceptive practices fall into three groups: deceptive ________, deceptive ________, and
deceptive ________.
A. product; pricing; promotion
B. pricing; promotion; placement
C. pricing; promotion; packaging
D. packaging; product; promotion
7. When critics claim that insurance, real estate, and used cars are sold, not bought, they
are making accusations of the use of ________.
A. deceptive promotions
B. excessive markups
C. high-pressure selling
D. shoddy products
8. A company that produces and heavily markets cigarettes, with many promotions aimed
at young (although legal age) nonsmokers, most likely follows which of the following as
a guiding principle.
A. the philosophy that companies should have a social conscience
B. the philosophy that companies can do in good conscience whatever the market and legal
systems allow
C. the philosophy of environmentalism
D. the philosophy of consumer-oriented marketing
9. Which of the following is the best example of a desirable product.
A. healthy and delicious breakfast food
B. cigarettes
C. effective but bad-tasting medicine
D. junk food
10. Which of the following examples best describes “pleasing products”
A. cigarettes and junk food
B. dental services and medications
MKT501:Introduction to Marketing
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C. seat belts and air bags
D. fruits and vegetables
11. Dales Drugstore sells cough medicine that is sour and ineffective. This is an example of
a ________ product.
A. societal
B. pleasing
C. salutary
D. deficient
12. What are deficient products?
A. products that have neither immediate appeal nor long-run benefits
B. products that give high immediate satisfaction but only hurt consumers in the long run
C. products that have low appeal but may benefit consumers in the long run
D. products that are either unsafe or inferior
13. Dove wanted to do more than just sell its beauty care products. The company was on a quest
to discover "real beauty" and help women be happy just the way they are. As a result, the
Dove Campaign for Real Beauty was successfully launched in 2004. Dove was practicing
which type of marketing.
A. sense-of-mission
B. consumer-oriented
C. customer-value
D. innovative
14. All of the following are components of "green marketing" EXCEPT ________.
A. making safer products
B. cradle-to-cradle practices
C. recycling
D. biodegradability
15. Nike produces PVC-free shoes, recycles old sneakers, and educates young people about
conservation, reuse, and recycling. Nike is using the most basic level of environmental
sustainability known as ________.
A. pollution prevention
B. product stewardship
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C. new clean technology
D. "beyond greening"
16. ________ is an organized movement of concerned citizens and government agencies to
protect and improve people's living environment.
A. Consumerism
B. Environmentalism
C. Social responsibility
D. Enlightened marketing
17. The two major movements to keep business in line are environmentalism and ________.
A. consumerism
B. protectionism
C. antimonopoly legislation
D. regulating interstate commerce
18. All of the following would be considered hazards in tested products EXCEPT ________.
A. electrical dangers in appliances
B. injury risks from lawn mowers
C. faulty automobile design
D. sour-tasting medicine
19. To restore the balance between private and public goods, producers could be required
to bear the full ________ costs of their operations.
A. promotional
B. social
C. cultural
D. environmental
20. For cars, "social costs" include all of the following EXCEPT ________.
A. traffic congestion
B. air pollution
C. gasoline shortages
D. congestion tolls
MKT501:Introduction to Marketing
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SECTION B
SHORT ANSWER QUESTION
[50 MARKS]
There are ten (10) questions in this section worth 5marks each. All is compulsory.
1. Explain the differences between value-based pricing and cost-based pricing. Under
what conditions might a company favor one approach over the others?
2. Your major competitor has just cut its prices by 20 percent on all products. How should you
react? What information do you need before you consider a response?
3. Psychological pricing is a pricing-adjustment strategy often used by retailers. Explain this
pricing strategy. How do reference prices affect psychological pricing decisions?
4. What difficulties might an international company encounter by setting uniform
worldwide prices for a commodity product?
5. How do price decisions affect the other three P’s?
6. Why do so many new products fail? What lessons can marketing managers learn from
this to apply to the new product-development process?
7. Describe the major internal and external sources of new-product ideas and identify the
source which provides the best ideas.
8. Briefly describe the five stages of the product life cycle.
9. List and summarize the characteristics of the four types of consumer products. Provide
an example of each.
10. How are the services offered by a dry cleaning company different from those offered by
a restaurant in terms of intangibility, inseparability, variability, and perishability?
MKT501:Introduction to Marketing
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SECTION C
CASE STUDY
[15 MARKS]
Read the following two scenarios and then answer the questions that follow.
Buyer behavior in Action
Scenario 1
XYZ Limited is a small business established over 20 years ago and involved in the manufacture
and retail of double-glazing units. The turnover of the company is $3.5 million per annum. The
company is owned and managed by the Turner family. It was founded by George Turner and his
brother Jack, 20 years ago, and has grown from a small partnership employing four people to a
successful company with over 100 employees. George is the chief executive and Jack is the
marketing director responsible for all sales and marketing. Also on the board of directors are a
Finance director, Production manager and Human Resources manager. The company has small
departments of approximately five people in each of marketing and sales, production and Human
Resources (including payroll). In addition there is an executive department, incorporating
George Turner’s personal assistant, who manages the company when he is out of the office, and
generally controls the flow of information in the organization. There are three retail outlets, all
under the control of Jack Turner.
Jack Turner has recently identified problems with the existing computer system, and has
established a need to update the system as a matter of urgency. It is proposed that the new system
will hold all company records and will include a database facility to assist in the marketing of
new products to existing customers. The total cost is expected to be in the region of $200,000.
Scenario 2
Mr. & Mrs. Jones have decided they need a new family car to accommodate their family. They
have two children aged 7 years old and 16 years old. Mr. Jones wants a vehicle that is relatively
stylish and fast, but that meets the practical needs of the family. Mrs. Jones main concern is
safety. It is intended the car will be used primarily by Mrs. Jones as Mr. Jones uses public
transport to travel to and from work. The children have different opinions, with the younger child
wanting in-car entertainment, and the oldest child suggesting a brand name that will impress his
peer group. Mrs. Jones will collect information on suitable vehicles and arrange any test drives
as appropriate.
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T2 2016
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Required:
1. Identify the similarities and differences in the buying behavior, in these two scenarios.
[4marks]
2. Using scenario 2, discuss the influences a car manufacturer could use to persuade the
Jones family to choose their vehicle in preference to a competitor’s.
[3marks]
3. Identify and discuss the buyer decision process with the help of an example. [4marks]
4. Name and briefly describe two [2] types of Buying decision behavior.
[4marks]
SECTION D
ESSAY
[15 MARKS]
There are two (2) questions in this section and you are required to answer any ONE.
Question 1
Market segmentation is defined as dividing a market into smaller segments with distinct needs,
characteristics, or behavior that might require separate marketing strategies or mixes. Imagine
that you are presenting a workshop on the Requirements for Effective Segmentation.
(i) Explain any two (2) major bases for segmenting the consumer market with examples.
[5marks]
(ii) Briefly describe the five traits of market segments that will help your audience
understand your topic
[10marks]
OR
Question 2
Product differentiation helps in product positioning. Kotler defines differentiation as the process
of adding meaningful and valued differences to distinguish the company’s offering from the
competitors. Identify and explain the five product differentiation dimensions and how it
creates competitive advantage?
[15marks]
THE END
MKT501:Introduction to Marketing
T2 2016
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