UNIVERSITY OF BOLTON BUSINESS, ACCOUNTANCY & LAW BUSINESS MANAGEMENT SEMESTER 2 EXAMINATION 2014/2015 UNDERSTANDING MARKETING PRINCIPLES

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1 BBS019 UNIVERSITY OF BOLTON BUSINESS, ACCOUNTANCY & LAW BUSINESS MANAGEMENT SEMESTER 2 EXAMINATION 2014/2015 UNDERSTANDING MARKETING PRINCIPLES MODULE NO: BAM4104 Date: Tuesday 26 th May 2015 Time: 2:00pm to 4:00pm INSTRUCTIONS TO CANDIDATES: Answer ALL 30 MULTIPLE-CHOICE Questions MULTIPLE CHOICE Questions Attempt ALL THIRTY questions, selecting ONE answer for each. Answer all questions in the answer book provided noting the question number followed by the letter of the answer you have selected. Each correct answer receives 3.33 marks. questions receive zero marks. Incorrect answers and unanswered

2 Page 2 of Each organisation is part of a network of other organisations such as suppliers, retailers, wholesalers, value added resellers, distributors, and other retailers, who join together, often freely, to make the product or service available to end users. This is referred to as: a. Channel members b. Customers c. Stakeholders d. Community e. Partners 2. In an attempt to augment products, which of the following gives added value and associations that are recognised by and are meaningful to customers: a. Promotion b. Brand c. Product d. Price e. Marketing Mix

3 Page 3 of The selling concept holds that. a. consumers will favour products that are available and highly affordable b. consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort c. achieving organisational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do d. consumers will favour products that offer the most in quality, performance, and innovative features e. a company's marketing decisions should consider consumers' wants, the company's requirements, consumers' long-run interests, and society's longrun interests 4. Which of the following is an example of consumer-generated marketing? a. Toyota's page on Facebook which provides information about its upcoming cars to its customers b. Nike's Nike Plus Web site which helps its customers to customise their shoes c. Neiman Marcus's InCircle Rewards program for its best customers d. The Lexus Covenant aimed at creating customer delight e. BMW's use of brand-related videos posted on video-sharing Web sites by its customers

4 Page 4 of At Ken's designer shop, the policy statement posted in the reception states that "Without our customers, we don't exist." Ken and his staff aim to delight each customer and they are quick to offer discounts or extra services whenever a customer is anything less than satisfied. Instead of focusing on each individual transaction, Ken and his staff are putting a priority on. a. capturing customer lifetime value b. managing partner relationships c. maintaining customer-perceived value d. understanding the marketplace e. supply chain management 6. Which of the following needs in Maslow's hierarchy of needs is generally satisfied the last? a. Physiological needs b. Esteem needs c. Self-actualization needs d. Safety needs e. Social needs 7. Which of the following is a psychographic characteristic of a consumer? a. Lifestyle b. Age c. Occupation d. Educational qualification e. Income

5 Page 5 of Becky wants to buy a new coat. She asked her friends to recommend a shop and/or a style of coat. She searched the newspaper for coat sales, and she visited nearby shops to see what is available in her price range. Becky is most likely to be in the stage of the buying process. a. product evaluation b. need recognition c. information search d. alternative evaluation e. purchase decision 9. Bill thought he had received the best deal on his new car. Shortly after the purchase, Bill started to notice certain disadvantages of his new car as he learned more about other cars available. Bill is experiencing. a. selective perception b. post-purchase culture c. information evaluation d. cognitive dissonance e. purchase decision 10. In a routine re-buy (or straight re-buy) business buying situation, a. the buyer is considering a product or service for the first time b. the buyer chooses to buy all necessary products from a single supplier instead of multiple suppliers c. the buyer wants to obtain the same product from a lower-priced supplier d. the buyer's needs have changed and he needs a product modified to suit the new need e. the buyer reorders something without any modifications

6 Page 6 of Pet4You Pet Supplies divides the pet market according to the owners' race, occupation, income, and family life cycle. What type of segmentation is Pet4You using? a. Psychographic b. Lifestyle c. Demographic d. Behavioural e. Geographic 12. The division of buyers into groups based on their knowledge, attitudes, uses, or responses to a product is called segmentation. a. Psychographic b. age and life-cycle c. geographic d. behavioural e. user status 13. Markets can be segmented into groups of nonusers, ex-users, potential users, first-time users, and regular users of a product. This method of segmentation is called. a. usage rate segmentation b. user status segmentation c. benefit segmentation d. loyalty status segmentation e. demographic segmentation

7 Page 7 of MTV targets the world's teenagers, who have similar needs and buying behaviours even though they are located in different countries. This is called segmentation. a. Individual b. Cultural c. political and legal d. cross-cultural e. Intermarket 15. When Samsung Electronics uses segmented marketing, it targets multiple segments and designs separate offers for each segment. This approach is called marketing. a. Individual b. Differentiated c. Mass d. Undifferentiated e. Niche 16. Silkskin Cosmetics is advertising its newest line of eye makeup. Made from allnatural ingredients, the products are hypoallergenic. Silkskin is selling the products in specially designed tubes that make it easier to apply to the skin. Which of the following would be considered the augmented product for Silkskin's line of eye makeup? a. The hypoallergenic properties of the products b. The products revolutionary packaging c. The natural ingredients d. The Silkskin brand e. After-sales beauty advice offered by Silkskin

8 Page 8 of Which of the following statements is most likely to be true regarding a shopping product? a. Toothpaste is an example of a shopping product. b. Consumers buy shopping products with minimal comparison and buying effort. c. It tends to have a lower price than a convenience product. d. A life insurance policy is an example of a shopping product. e. As compared to convenience products, shopping products are purchased less frequently. 18. Which of the following is an example of an unsought product? a. Refrigerator b. Furniture c. Funeral services d. Toothpaste e. Laundry detergent 19. The use of commercial marketing concepts and tools in programs designed to influence individuals' behaviour to improve their well-being and that of their community is called marketing. a. Social b. Organizational c. Advocacy d. Associative e. Integrative

9 Page 9 of Service intangibility means that. a. services cannot be seen, tasted, felt, heard, or smelled before they are bought b. services cannot be separated from their providers, whether the providers are people or machines c. evaluation of services is subjective and it changes from customer to customer d. the quality of services depends on who provides them as well as when, where, and how they are provided e. services cannot be stored for later sale or use 21. Which pricing strategy uses buyer s perception of what a product is worth, not the seller s cost, as a key to pricing? a. Cost-based pricing b. Customer value-based pricing c. Competition-based pricing d. Equity-based pricing e. Target return pricing 22. Companies facing the challenge of setting prices for the first time can choose between two broad strategies:. a. market-penetration pricing and market-skimming pricing b. target cost pricing and market-skimming pricing c. value-added pricing and market-level pricing d. target cost pricing and competitive pricing e. market-penetration pricing and value-added pricing

10 Page 10 of Which of the following is an example of a marketing intermediary? a. Consumer b. Retailer c. Supplier d. business customer e. producer 24. FineMart, a leading retail chain store, has decided to open an eatery inside its huge stores. MeatMe, a popular burger joint, has decided to partner with FineMart in this endeavour. MeatMe plans to open an express version of MeatMe eatery inside FineMart. The MeatMe chain of restaurants also has a deal with the Westmen Cola Company to serve only Westmen soft drinks at their outlets. This arrangement would mutually help all three companies. What kind of marketing system is being followed in this arrangement? a. corporate vertical marketing system b. contractual vertical marketing system c. administered vertical marketing system d. horizontal marketing system e. direct marketing system

11 Page 11 of CVR Electronics is a leading brand in kitchen appliances. Recently, the company released a new line of blenders called Amalgee. But the sales of Amalgee did not meet the expected figures. To boost sales, CVR Electronics decided to give scratch-and-win coupons to all buyers, with a chance to win a three-day trip to the Carribean for the lucky buyer. Which of the following elements of the promotion mix did CVR Electronics utilize to boost Amalgee's sales? a. Advertising b. Sales promotion c. Direct marketing d. Personal selling e. Public relations 26. In the promotion mix, which of the following performs the functions of building a good rapport with entities outside the company, building up a good corporate image, and handling or heading off unfavourable rumours, stories, and events? a. Advertising b. Sales promotion c. Direct marketing d. Personal selling e. Public relations 27. Which of the following issues faced by a company can be solved by an integrated marketing communications system? a. Delayed delivery of materials by suppliers b. Miscommunications between shareholders c. Blurred brand perceptions of consumers d. Errors by engineers in the production chain e. Mismanagement in inventory stocking by vendors

12 Page 12 of Which of the following promotion mix approaches involves the producer promoting the product to different channel members who in turn promote the product to customers? a. Publish-subscribe method b. Direct marketing c. Push strategy d. Pull strategy e. Vertical integration 29. How is spending on advertising calculated in the affordable method of setting an advertising budget? a. Based on matching a competitor s advertising outlays b. Based on a certain percentage of current or forecasted sales c. Based on an amount remaining after operating expenses and capital outlays are deducted from total revenues d. Based on the company's objectives set for accomplishment e. Based on a percentage of the unit sales price

13 Page 13 of The Ellington Car Company is planning a release of new line of hybrid electric vehicles called the Electron. The car promises superior mileage and speed, while not harming the environment. If Ellington decides to use advertising as the promotional tool during the car's launch, which of the following would constitute an advertisement for the Electron? a. A buyers-only lottery where an Electron buyer has a chance of winning a second Electron on a selected date b. A press conference to discuss the various safety issues, actual mileage, and environmental features of the Electron c. Having the Electron released only to select places and businesses that are concerned with environmental-friendly causes d. A front-page notice of the release of the Electron in all leading newspapers with a caption - "Green Speed" e. Dedicated sales personnel at dealer showrooms explaining the qualities of the Electron to potential customers END OF QUESTIONS

FEEDBACK TUTORIAL LETTER ASSIGNMENT 1 SECOND SEMESTER 2018 MARKETING PRINCIPLES MPS512S

FEEDBACK TUTORIAL LETTER ASSIGNMENT 1 SECOND SEMESTER 2018 MARKETING PRINCIPLES MPS512S 1 1 ASSIGNMENT ONE QUESTION 1 (15 Marks) Discuss 4 segmentation strategies that Thomas shop can use to establish