Unit Code No(s) (Course Code) Unit Description name(s) (Course Description) Date of Examination (Month) Year of Study Programme Code ‘Megree Code) Faculty/ies presenting candidates Internal Examiners(s)and telephone extension number(s) External Examiner(s) Special materials required (graph/ music/ drawing paper, saps, diagrams, tables, ‘computer cards ete.) Time allowance Instructions to candidates (Examiners may wish to use this space to indicate, inter alia, the contribution made by this. examination or test towards the year mark, if appropriate) Session Venue, [cease cr” ‘BUSE 2025/ 2029 PRINCIPLES OF MARKETING Yer BCom, BA ‘Commerce, Law & Management Science RUKUDZ0 PAMACHECHE - x7S021 ‘THUBELIHLE NDLELA ~ X78021 ‘TINASHE CHUCHU- +7802 NORMAN CHILIVA — x78063, DRD.K. MADUKU Course | BUSE2025 | His ‘Nos. “Answer Section A on the MCQ cards provided. Answer Sections B and C in the booklet provided. Begin each question on a new page. Total marks: 100 marks CRAMER Cae, BLOCKHE w Ort Ming, ion = ony %, RS Wa nnsse™ ‘SCHOOL OF ECONOMIC AND BUSINESS SCIENCES JUNE EXAMINATION - 2017 BUSE2025/BUSE2029 PRINCIPLES OF MARKETING INTERNAL EXAMINERS ‘MS RUKUDZO PAMACHECHE (MS THUBELIHLE NDLELA MR TINASHE CHUCHU DR NORMAN CHILIVA EXTERNAL EXAMINER DRD.K. MADUKU DURATION: 2:00hrs TOTAL MARKS: 100 MARKS Ss SECTION A: MULTIPLE-CHOICE QUESTIONS ‘40 MARKS SECTION B: ‘STRUCTURED QUESTIONS 30 MARKS SECTION C: CASE STUDY 30 MARKS INSTRUCTIONS TO CANDIDATES 1. Answer Section A on the multiple-choice answer sheet provided to you. 2. Section B: Answer ALL questions in the answer booklet provided to you. 3. Section C: Answer ALL questions in the answer booklet provided to you. 4. Begin each question on a SEPARATE page. 5. Indicate each question at the TOP of the page. NB: This examination question paper consists of 11 pages including this page.SE MULTIPLE-CHOICE QUES’ (40 MARKS) This section contains 20 multiple-choice questions. Answer ALL the questions on the multiple- choice answer sheet provided to you. Each question carries two (2) marks. 1. Marketing starts with stating a long-term vision of what the firm is or is striving to become. This statement is known as a(n)__. marketing mix balance sheet mission statement target market strategy . environmental scan audit. aos 2. One problem with the approach to marketing Is its failure to consider whether what the firm manufactures most efficiently also meets the needs of the marketplace. customer orientation societal orientation discount orientation marketing orientation production orientation, paege 3. James Mason, the manager of Soft ‘n Lite toilet paper manufacturers states, ‘People buy whatever toilet paper Is the cheapest, so | spend my time trying to find ways to cut price’. Soft ‘n Lite adheres to the Philosophy of marketing. a. discount orientation 'b. sales orientation ¢. production orientation d, marketing orientation e, customer orientation. Page 2 of 114, Which of the following statements about customer satisfaction are true? |. The Disconfirmation Paradigm shows that meeting or exceeding customer expectations leads to dissatisfaction. Il. The views of lost customers and potential customers should be included in customer satisfaction measurement surveys. lil. Customer satisfaction guarantees customer loyalty. iv. Customer satisfaction is a necessary but not sufficient condition for successful ‘marketing in the long term. Choose from the following combinations, a. ii iii, b. ii, til, iv cc. ii ili, d. ii,iv e. |i iii, iv 5. The following statements apply to the relationship marketing orientation, EXCEPT for a. First National Bank offers 10 eBucks for every Rand spent using an FNB credit, debit or cheque account and consumers can spend rewards on a variety of products or services, b. Jane bought a policy only because the salesperson wouldn’t take “no” for an answer, ¢. Sally Jones has been going to Dr Smith for the past 15 years. d. Johnny earned enough frequent flyer miles to fly to Cape Town for free to visit his family over the holidays. When David Green enters the bank, he is greeted by name. Page 3 of 116. ra Geoffrey's Calligraphy Firm markets handmade note cards for special occasions and makes lots of money. The firm conducts little marketing research, relies on the creative personnel staff to develop new products, and high inward focus for successful door-to-door selling. The firmhas a____ orientation. a. personnel b. production ©. societal d. sales e. satisfaction Which ONE of the following statements applies to the nature of a target market? a. A target market remains stable over time, consisting of the same group of consumers b. A target market changes over time ~ consumers will drop in or out of the market and tastes will change €. A target market's needs are not strongly affected by changes external to the product, itself, such as environmental factors d. Atarget market changes only because of the changing nature of product offerings e. A target market cannot be defined specifically according to age, income or location because these factors are continually changing How would you describe marketing’s influence in the marketing environment? i. No direct control, but limited influence in parts of the internal environment Ii, Neither influence nor control in the external environment iil, No control and no influence in parts of the internal environment lv. No control, but limited influence in parts of the external environment v. Direct control in the responsibility in parts of the internal environment Choose one of the following combinations: a. ili,iv b. c iy d. iiv e ivv Page 4 of 119, Which of the following issues should firms consider when investigating potential opportunities? i. Can the firm establish a sustainable competitive advantage? ii, Does the opportunity fit in with the goals and objectives of the firm? Does the firm have the strengths required to utilise the opportunity? iv, Is the opportunity part of the business of the firm? v. Does the firm have the required financial resources to seize the opportunity? Choose one of the following combinations: a iii,i 10. The right to redress means that a consumer has the right to__ 2 variety of products and services at competitive prices 2 physical environment that will enhance the quality of life c. be given the facts needed to make an informed decision 4.2 fair settlement of just claims due to misrepresentation fe. acquire the knowledge and skills to be an informed consumer se 11. Which ONE of the following statements is true about the external environment? ‘a. The competitive environment encompasses the number of competitors a firm must face, their relative size and the degree of independence within the industry. b. A country’s legal system does not influence how business and marketing are conducted. ¢. A recession is a period of economic activity when income, production, and employment tend to fall -all of which reduce demand for goods and services. d. All natural resources found around the world are infinite. @. It is not necessary for large business firms to analyse the technological environment. Page 5 of 1212. What is the purpose of market segmentation? a. To divide the market into equal size and profit regions for sales territories b. To reduce the market down to a specific size that the firm can handle ¢. To group a large number of markets together, enabling a company to serve them simultaneously d. To enable the marketer to tailor marketing mixes to meet the needs of one or more specific groups €. To develop a generalised definition of the market as awhole 13. Glamour Toothpaste targets individuals who buy and use lots of toothpaste. Some of these individuals are interested in having white teeth, while others are more concerned with fresh breath. Glamour doesn’t approach these two groups differently, but addresses both groups as heavy consumers. This is an example of __ segmentation. benefit segmentation usage rate segmentation domestic segmentation demographic segmentation geographic segmentation peers Which one of the following is NOT a criterion for successful segmentation? a. identifiability and measurability b. Responsiveness ©. Accessibility d. Accuracy e. Substantiality Page 6 of 115. Johnson & Johnson introduced a new product when it targeted its baby shampoo as a product for everyone’s hair, including children and adults. Johnson & Johnson repositioned the shampoo by a. promoting more frequent use of the product b. adding a new ingredient ¢._ identifying new uses for the product identifying new target markets e re-branding 16. When South African banks initially targeted segments with electronic banking services, only one per cent of all banking transactions were conducted online, making this segment risky in terms of. accessibility identifiability substantiality responsiveness pees 17. 1n which ONE of the following situations would one NOT use repositioning? a. If competitors positioned products nearby and market share Is consequently divided among too many products b. If research and technology produce new breakthroughs with profit potential that can be exploited for changes to products Ifcustomer tastes and preferences shifted and left the firm’s brand with inadequate demand d, When introducing a new product onto the market . Ifa product was originally not positioned correctly 18. Which of the following is NOT an advantage of single-variable segmentation, as ‘compared to multiple-variable segmentation? a. Itis simpler to use b, Itis amore precise description of the segment ¢._Itislikely that secondary data will be available d. The size of the segments is larger . It is easier to perform the segmentation Page 7 of 1119. Mary Jones, the new owner of a dressmaking and retail shop, wants to segment and choose a market to serve in her small community. Marketing research suggests considerable demand in the community for customised dresses. Mary has few resources to conduct intensive consumer research to locate a precisely identified segment, Which ONE of the following strategies would you suggest she employ? a. Develop an undifferentiated strategy, because itis not a large community and she could create a single marketing mix that would serve the entire commu b. Employ a macro-segmentation strategy because the data needed for such a strategy 1s both easy to acquire and fits her needs exactly c. Use a single-variable strategy because it offers an inexpensive alternative that would not require much experience to employ |. Use a multiple-variable segmentation strategy because it is clearly more pré single-variable segmentation @. Conduct a psychographic investigation of her buying market than 20. Diamonds sold in jewellery stores were perceived to be a rather generic product ~ one brand of diamond was much like another. Then De Beers began an advertising campaign to tell consumers that a De Beers diamond, and particularly the millennium brand, was a better choice. De Beers brought to the marketing of diamonds. ‘a. perceptual mapping b. product differentiation ¢. psychographic targeting d. concentrated or niche target strategy e. cannibalisation Page 8 of 11SECTION B: STRUCTURED QUESTIONS (30 MARKS) This section has three questions. Answer any two of the questions. Each question carries worth 15 marks. Question 21 a. Draw a diagram to illustrate the four possible stages in the product life cycle from entry into the market. [3 marks] b, Discuss four characteristics of products in each stage of the product life cycle, [12 marks] Question 22 Consumer products are classified according to how much effort consumers use to shop for them. There are four categories of consumer products. Identify and describe three (3). Give ‘one (1) example for each category. [15 marks] Page 9 of 12SECTION C: CASE STUDY Questions in this section are based the case study “Nike ~ more than just an image” below. Read the case study and answer questions 23 25. This section carries 30 marks, Nike - More than just an image Employees at Nike™ suggest that there is no finishing line at the multi-billion Rand company that shaped the market of streetwear and sportswear. The brand, is anchored by it's unique “JUST DO IT.®” statement and benefits promotionally through impressive associations with successful athletes. However, the focus has not been limited to sportswear, but a wide assortment of high quality apparel that appeal to a wide demographic framework. Apart from sport-specific apparel used by athletes, Nike's expansive assortment of items such as jumpsuits for toddlers, men’s and women's running shoes, fashionable branded sneakers, T-shirts, sweatshirts and sweatpants, among others, have eamed Nike a large share of this market. Nike Ar Force 1, Nike Air Jordan, Nike Roshe Two and Nike Flex, among others. Having entered almost all major sectors for athletic and casual wear, Nike's next task is to streamline its distribution and network of providers to make their brand more accessible to potential end-consumers. For instance, the process of getting a pair of shoes to the market where customers can access them "...has to come together at the same time, and every step of the way has to add value’, states John Isbell, director of U.S. customer service and distribution for Nike. “It has to be fully integrated to get the right product to the right customer at the right time in the right way.” In order to get products to consumers, Nike uses air freight transport goods to regional distribution centres to replenish retailer stores and ocean freight to ship new products quarterly. The brand believes in consumers’ accessibility of its assortment of products. In particular, Nike considers it important to maximise coverage of ranges of sporty and fashionable shoes through its presence in numerous retail outlets where consumers might want to buy them. This goal goes beyond consumers associating the well-recognised ee ® swoosh on branded products with quality and high performance and more towards gaining a holistic view of what is happening in the marketing environment. To achieve other goals, Nike collects information about the marketplace through its well coordinated, massive distribution system. Nike works with networks of independent component suppliers and regional distribution centres; hence it is able to source information and research ‘on new technologies and manufacturing techniques that would enhance Nike products. Furthermore, the networks allow the brand to acquire a complex knowledge base useful for continually maintaining a wide range of products that meet the demands of end consumers. “Our system works from the time the order is received. We monitor forecasting, production and product movement to transportation”, says Isbell Page 10 of 11Nike's proprietary computer system also keeps production and distribution orchestrated to achieve efficiency. ‘Source: Adapted from Lamb, C. W., Hair, JF, McDaniel, C., Boshoff, C, Terblanche, N., Roger, E. and Klopper, H. B,, 2015. Marketing. 4th ed. Cape Town: Oxford University Press Southern Africa Question 23 a. Define the term “brand”. [1 mark] b. Describe four (4) characteristics of the Nike brand that make it unique in the case study. [4 marks] ‘Question 24 Identify from the case study the kind of distribution intensity that Nike uses. Provide a ‘motivation for your answer, [4 marks} esti Identify and describe two (2) sub-systems of physical distribution that Nike uses in the case study. [6 marks] Question 25 2. Nike promotes several products under the same brand name. Identify and describe this branding approach from the case study. [3 marks} b. Suggest three (3) advantages and three (3) disadvantages of using the branding approach described in Question 25a above. [12 marks] Page 11 of 11.