PRINCIPLES OF MARKETING (M1) MARKETING 1 (MAR101) CHAPTERS COVERED : CHAPTERS 1-6. DUE DATE : 3:00 p.m. 15 MARCH 2011

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1 Page 1 of 7 ASSIGNMENT 1 ST SEMESTER : PRINCIPLES OF MARKETING (M1) MARKETING 1 (MAR101) CHAPTERS COVERED : CHAPTERS 1-6 DUE DATE : 3:00 p.m. 15 MARCH 2011 TOTAL MARKS : 100 INSTRUCTIONS TO CANDIDATES FOR COMPLETING AND SUBMITTING ASSIGNMENTS The complete Instructions to Students for Completing and Submitting Assignments must be collected from any IMM GSM office, the relevant Student Support Centre or can be downloaded from the IMM GSM website. It is essential that the complete instructions be studied prior to commencing your assignment. The following points highlight only a few important notes. 1. You are required to submit ONE assignment per subject. 2. The assignment will contribute 20% towards the final examination mark, and the other 80% will be made up from the examination, however, the examination papers will count out of 100%. 3. Although your assignment will contribute towards your final examination mark, you do not have to earn credits for admission to the examinations; you are automatically accepted on registering for the exam. 4. Number all the pages of your assignment (e.g. page 1 of 4) and write your name and surname, student number and subject at the top of each page. 5. The IMM GSM requires assignments to be presented in a typed format, on plain A4 paper. Unless otherwise specified, this assignment must be completed within a limit of 1500 words, bibliography excluded. 6. A separate assignment cover, which is provided by the IMM GSM, must be attached to the front of each assignment. 7. Retain a copy of each assignment before submitting, in case the original does not reach the IMM GSM. 8. The assignment due date refers to the day up to which assignments will be accepted for marking purposes. The deadline is 3:00 p.m. on 15 March Late assignments will be accepted, but 25 marks will be deducted from the maximum mark, if received after 3:00 p.m. on 15 March 2011 and up to 5:00 p.m. the following day, after which no assignments will be accepted. 9. If you fail to follow these instructions carefully, the IMM Graduate School of Marketing cannot accept responsibility for the return of the assignment. It may even result in your assignment not being marked. Results will be available on the IMM GSM website, on Friday, 6 May 2011.

2 Page 2 of 7 SPECIFIC INSTRUCTIONS: This is an open-book assignment and is set to test your understanding of the concepts and principles involved. You will be penalised for copying the work of fellow learners, or simply copying passages from the textbook, study notes or other texts. Be aware that doing this is plagiarism! It is only when you use your own words that the markers are able to establish whether you have understood the concepts outlined in the study notes. The markers are then in a better position to offer you constructive feedback. Students are reminded that this is an individual effort and group submissions will be penalised. Answer ALL questions. Presentation marks are not awarded. Examiner s Advisory Note: This first year subject forms the very foundation for your future studies in a course with the specific outcome of preparing you to become a successful marketing practitioner. As you have probably discovered by now, marketing is the blending of the scientific disciplines with the artistic field of creativity. With this in mind, this assignment is based on your textbook theory, but is extended to incorporate marketing in the world we live in by asking you to refer your knowledge to marketing activities which are encountered in our everyday lives. This is so that you start, at this early stage, to find practical uses for the theory you are learning, so please give this aspect of the question paper the attention it deserves. Please note, also, that answers which are simply extracts from the textbook are NOT ACCEPTABLE as this does not contribute to YOUR understanding of the topics. Apart from the essay-type questions, the paper includes short-answer questions. These are especially selected to broaden the spectrum of topics examined. As the multiple choice questions WILL be included in your final exam, you are advised to pay serious attention to them. Furthermore, it is in your own interest to work through these questions without any outside assistance if you are to gain the optimum benefit. (In past assignments, some students have collaborated to gain maximum marks in these areas, only to be very disappointed when similar marks are not obtained in the critical final exam.) As a final tip, please remember that the multiple choice questions call for the MOST correct alternative. This is not necessarily the first possibly correct solution, so give each alternative careful consideration before making your decision.

3 Page 3 of 7 QUESTION 1 Multiple choice [20] Indicate your answers to each of the following questions on the answer sheet provided. Each answer is worth two (2) marks. For each section below select the MOST APPROPRIATE answer from the choices given. Mark your answers with an X in the correct block on the ANSWER SHEET on page The main difference between a marketing strategy and a marketing plan is that A. time-related details are included in a marketing plan. B. a marketing plan includes several marketing strategies. C. a marketing strategy includes more detail. D. a marketing strategy omits pricing plans. E. a marketing plan does not include a target market. 1.2 Which of the following statements about market-oriented strategy planning is TRUE? A. Segmenters aim at more heterogeneous markets than combiners. B. Both segmenters and combiners can be target marketers. C. All segmenters follow the single target market approach. D. Combiners follow a mass marketing strategy. E. All of the above are true. 1.3 Consumerism is a social movement seeking to increase the rights and powers of A. consumer activists. B. government planners. C. consumers. D. public interest groups. E. none of the above. 1.4 Which of the following possible segmenting dimensions is a demographic dimension? A. Benefits sought B. Social class C. Purchase frequency D. Brand familiarity E. Rate of use 1.5 MICRO-marketing A. applies to both profit and non-profit organisations. B. says that marketing should take over all accounting, production, and financial activities. C. should begin as soon as goods are produced. D. does away with the need for advertising. E. All of the above are true.

4 Page 4 of A market is a market with broadly similar needs and sellers offering various, and often diverse, ways of satisfying those needs. A. planned B. target C. central D. generic E. relevant 1.7 Which of the following statements best describes the modern view of marketing? A. Marketing is only necessary for profit-oriented firms. B. Marketing consists mainly of advertising and personal selling. C. Marketing anticipates customer needs. D. Marketing begins as soon as products are produced. E. Firms that don t rely on e-commerce should put more emphasis on marketing. 1.8 Economies of scale means that A. the largest producers are always the most efficient. B. the cost of a product goes down as a company produces larger numbers of it. C. the more one produces, the greater the profit. D. it is more efficient for an economy to have a large number of transactions. E. None of the above. 1.9 Regarding the competitive environment, a marketing manager usually can A. choose strategies to avoid head-on competition. B. control it with the help of the legal environment. C. control it in the short run. D. control it with the help of the political environment. E. control it in the long run A producer of home burglar alarm devices decides to start manufacturing portable video cameras for use in industrial security situations. This is an example of: A. market development. B. diversification. C. product development. D. market penetration. E. None of the above.

5 Page 5 of 7 QUESTION 2 [20] a) In YOUR OWN WORDS, and not exceeding EIGHT lines, give your explanation of the marketing concept. (5) b) What benefits can a firm gain by segmenting its market? (9) c) Explain briefly, what you understand by the term customer value. (6) QUESTION 3 [20] In not more than six lines each, explain IN YOUR OWN WORDS, your understanding of the following terms: a) Extensive problem solving (5) b) Breakthrough opportunity (5) c) Generic markets (5) d) e-commerce (5) QUESTION 4 [20] There are various psychological as well as social influencers which influence and affect consumer behaviour. Identify and explain your understanding of three (3) psychological influencers and three (3) social influencers A maximum of 15 marks will be awarded for the content of the above. The balance of 5 marks will be awarded for your effort/ability to produce a balanced and integrated answer, with appropriate introduction (identifying clearly the central theme/focus of your answer), coverage of each of the sets of influencers, and a good summary and conclusion. QUESTION 5 True or False [20] Consider each of the following 10 statements and indicate whether it is TRUE or FALSE. 5.1 Finding competitive advantages is important because they are needed for survival in increasingly competitive markets. 5.2 Differentiation means that the marketing mix is distinct from and better than what is available from a competitor. 5.3 The main difference between a product-market and a generic-market is whether customer needs are similar or different.

6 Page 6 of If a product-market is homogeneous within, it is called a substantial target market. 5.5 Technology is the application of science to convert an economy s resources to output. 5.6 Areas with small populations may still be attractive target markets for some firms because there may be less competition. 5.7 Attitudes are very good predictors of intention to buy. 5.8 An opinion leader is usually wealthier and better educated than the people he or she influences. 5.9 A manager shouldn t be criticised for making an unethical marketing decision unless the breach was intentional Setting a low price for a firm s offering is a sure way of creating high consumer value. Set your answer out as follows; and indicate TRUE or FALSE Answer Answer ASSIGNMENT TOTAL: 100

7 Page 7 of 7 ANSWER SHEET (DETACH THE ANSWER SHEET AND INCLUDE IT WITH YOUR ASSIGNMENT) ASSIGNMENT: MARKETING 1/PRINCIPLES OF MARKETING DATE: 15 MARCH 2011 QUESTION: ONE (1) STUDENT NUMBER: S QUESTION NO. SELECTED ANSWER 1.1 A B C D E 1.2 A B C D E 1.3 A B C D E 1.4 A B C D E 1.5 A B C D E 1.6 A B C D E 1.7 A B C D E 1.8 A B C D E 1.9 A B C D E 1.10 A B C D E

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