NATIONAL CERTIFICATE (VOCATIONAL) MARKETING NQF LEVEL 2 SUPPLEMENTARY EXAMINATION 2010

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1 NATIONAL CERTIFICATE (VOCATIONAL) MARKETING NQF LEVEL 2 SUPPLEMENTARY EXAMINATION 2010 ( ) 15 March (X-Paper) 09:00 11:30 This question paper consists of 9 pages and 1-page answer sheet.

2 ( ) -2- NC1480(E)(M15)V TIME: 2½ HOURS MARKS: 150 INSTRUCTIONS AND INFORMATION Read ALL the questions carefully. SECTION A is COMPULSORY and must be answered by ALL the candidates. Answer any FOUR questions of the five questions in SECTION B. Number the answers according to the numbering system used in this question paper. Write neatly and legibly.

3 ( ) -3- NC1480(E)(M15)V SECTION A (COMPULSORY) Answer SECTION A on the attached ANSWER SHEET. QUESTION 1 Indicate whether the following statements are TRUE or FALSE. Choose the answer and write only 'true' or 'false' next to the question number ( ) on the attached ANSWER SHEET Marketing is a total system of business activities designed to plan, price, promote and distribute want-satisfying products, services and ideas to target markets in order to achieve organizational objectives and satisfy consumers needs. A want is a necessity which occurs when an individual feels deprived of food, clothing or shelter. Brand mark is the element of a brand that cannot be vocalized. Speciality packaging is the packaging together of related products. The last step in marketing research is to identify and define the opportunities and threats. Vodacom company is a competitor of Eskom. The marketing mix is made up of people, place, price, promotion and product. In penetration pricing products are offered at a relatively low price with the objective of attracting a large potential market. During intensive distribution the product is sold by only one distributor in a geographical marketplace. The telephone is a face-to-face method of data collection. (10 1) (10)

4 ( ) -4- NC1480(E)(M15)V QUESTION Give ONE word/term for each of the following descriptions. Write only the word/term next to the question number ( ) on the attached ANSWER SHEET. inflation; sample; publicity; specific; consumer; withdrawal; brand loyalty; primary; distribution; speciality The value to consumers of having goods or services available where it is needed is known as. During the stage of the product life cycle, sales are so low that it is no longer viable to produce and attempt to sell the product. General increase in prices which then decreases the buying power of the consumer is called. A diamond ring is an example of a product. data is the data which has not previously been collected and still needs to be obtained by original research. One characteristic of a good marketing objective is that it must be... A portion of the total population from which information is obtained, is a. refers to the non-paid for information about a company or product that appears in the news media. The concept of is when the consumers purchase the same brand every time they make a decision to purchase a product. orientation means that the organization is driven to satisfy customer needs. (10 1) (10)

5 ( ) -5- NC1480(E)(M15)V 2.2 Choose a/an item/word from COLUMN B that matches the description in COLUMN A. Write only the letter (A J) next to the question number ( ) on the attached ANSWER SHEET. COLUMN A COLUMN B Promotion mix A telephone, mail and personal visit Operational products B gold and oil Consumer behaviour Lifestyle C marketers watch people or situations and record what they see Observation D schools and hospitals Direct marketing communications E advertising, personal selling, publicity and sales promotion Government markets Ethical business practices F G cleaning materials and office supplies profits drive an organization Objective orientation H psychographic factor Production products I study of how people act when buying products J decisions and behaviour based on honest and fair standards (10 1) (10) TOTAL SECTION A: 30

6 ( ) -6- NC1480(E)(M15)V SECTION B Answer any FOUR questions from this section. QUESTION 3 Study the following scenario and answer questions based on it. You are the marketing manager for McDonalds, a fast-food restaurant. The Managing Director of the company has requested you to do marketing research as a matter of urgency after realizing a decrease in sales List the steps you would follow to do a marketing research. (5 2) What type of research do you think will be applicable in this instance? Give one reason for your answer. (2 2) State THREE controllable factors that would be important for McDonalds. (3 2) Shared values is one of the regulatory requirements to be considered before a marketing policy can be formulated. List THREE shared values you think should be included in McDonalds in order to ensure its long term success? (3 2) Is McDonalds an international market? Give a reason for your answer.(2 2) (10) (4) (6) (6) (4) [30] QUESTION 4 Study the following and answer the questions that follow: CASE STUDY: CLOVER SA CLOVER SA is the largest dairy product processing and marketing company in South Africa, and one of the top food companies in the country. It processes approximately 30% of the milk produced by South African dairy farmers, in more than 40 factories and distribution depots. The famous red Cloverleaf emblem under which certain products bearing the name are marked has now been adapted to be used as the corporate emblem, to be seen on all of the company s products, vehicles, stationery and buildings. CLOVER SA products will display the red and blue corporate emblem which guarantees superior quality, innovation and great taste. CLOVER SA trading motto best tasting dairy reflects the fact that it has the most technologically advanced, innovative and consumer orientated products in the industry. (Marketing NCV Level 2, Govender L. et. Al, 2007, p.64)

7 ( ) -7- NC1480(E)(M15)V What is the trading motto of CLOVER SA? (2 1) What is meant by saying that CLOVER SA is consumer orientated? Provide 3 different meanings. (3 2) List any FIVE functions that should be performed by the marketing department of this company. (5 2) What other products are produced by CLOVER SA except milk? (2 2) State THREE basic components of the marketing plan that are important for this organization. (3 2) Name any competitor of CLOVER SA. (2 1) (6) (10) (4) (6) [30] QUESTION Price is the amount of money a buyer will pay to the seller to obtain a product or service. It is one element of the marketing mix that is most easily changed What are the objectives of pricing? (3 2) List FOUR steps in the pricing process. (4 2) (6) (8) What do you understand by the concept market segmentation. (2 1) Mention FOUR conditions (bases) that must be applied for effective market segmentation. (4 2) Marketing is an exchange process between two people. It means that people give up something to receive something they would rather have. Briefly explain this exchange process. (2 2) Name TWO types of consumer products. (2 x 1) (8) (4) [30] QUESTION 6 Study the following and answer the questions that follow: ZOLA S STEREO SYSTEMS MARKETING PLAN Michael Robinson is the product manager of Zola s Stereo Systems. One of the product lines that is being promoted is the Titanic line. Each system consists of AM- FM tuner/amplifier, CD player, tape decks and separate speakers. Zola offers several different models that sell in the R500 to R2500 range. Zola s main goal is to increase its market share and profitability in the stereo system market. As product manager, Michael Robinson has to prepare a marketing plan to improve the Titanic line's performance. (Marketing NCV Level 2, Govender L. et.al, 2007, p.178)

8 ( ) -8- NC1480(E)(M15)V Explain what you think a marketing plan is. (2 1) List FIVE reasons for Zola s Stereo Systems having a marketing plan in what you think is their order of importance. (5 2) Briefly explain the concept product line. (2 1) Mention the product items offered by the product line Titanic in the organization. (4 1) What is the main goal of Zola s Stereo Systems? (2 1) In Zola s Stereo Systems, marketing is not an isolated functional area. For a business to prosper, marketing and other functional areas must interact smoothly. Name FIVE of them. (5 2) (10) (4) (10) [30] QUESTION What benefits will the consumer receive from using the following: e.g car transport Colgate toothpaste fashion dress Woolworths products perfume radio (5 2) (10) 7.2 For marketing to occur successfully, there are circumstances that should be satisfied. Name FOUR such circumstances. (4 x 2) (8) 7.3 Study the following examples and identify which type of marketing communication method applies in each case Together with the latest Woman s Value magazine, you receive a sample of the new Omo washing powder. On the outside of a supermarket, there is a big picture of Toyota car on the billboard. The marketing manager of Game store explains and demonstrates to the customer the product range of micro-oven they are selling. (3 2) (6)

9 ( ) -9- NC1480(E)(M15)V 7.4 For each of the following organisations describe... A B What is being marketed? Who the target market is? Eskom Protea Hotel Kaizer Chiefs Football Club (3 2) (6) [30] TOTAL SECTION B: 120 GRAND TOTAL: 150

10 ( ) -10- NC1480(E)(M15)V ANSWER SHEET EXAMINATION NUMBER: SECTION A QUESTION TRUE/FALSE (10 1) (10) QUESTION (10 1) (10) (10 1) (10) TOTAL SECTION A: 30