CIM Level 4 Certificate in Professional Marketing
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1 CIM Level 4 Certificate in Professional Marketing Marketing (2100) 3 December 2014 Examination The examination comprises 50 compulsory questions Section 1 40 stand-alone multiple choice questions Section 2 2 case studies each with 5 related multiple choice questions Each question is worth 2 marks The examination will be TWO hours in duration Total marks available 100 Candidate guidance: Answer all questions Read all questions carefully before attempting them CIM Membership Number: Examination Centre Name/Number:
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3 Answer all questions. Choose one answer from the options provided. Section 1 1. Marketing can best be defined as which of the following? Designing new products and product improvements. Planning and organising promotion campaigns. Planning to ensure customer value and satisfaction. Identifying and researching competitors. 2. Which of the following is a primary role of marketing: To: be as good as the competition. create customer value. increase sales. produce more goods. 3. For a commercial organisation, a key principle of the marketing concept is that: all staff should focus on achieving customer satisfaction. every single consumer is a potential customer. contributing to overall profitability is unimportant. the majority of the marketing budget must be on advertising. 4. Which of the following comes first in the marketing planning process? Allocate and prioritise resources. Create an appropriate marketing mix. Undertake a marketing audit. Undertake monitoring and control. 5. Within a marketing plan, tactics are deployed through which of the following? Segmentation analysis. The marketing mix. The marketing objectives. The organisation s mission. Page 3 of 17
4 6. Understanding buyer behaviour helps marketers to: build and manage relationship with customers. ensure that the organisation works as a coherent unit. collect and analyse marketing information. identify general market trends and competitors. 7. Which of the following is most likely to lead to higher levels of customer satisfaction? Delivering as many products as the competition. Ensuring the products and services are always priced competitively. Investing regularly in new technology to improve production. Understanding what influences customer behaviour. 8. You have been asked by the marketing manager of the on-line travel company for which you work to explain the social factors involved in the consumer buying process for your holiday packages. Which of the following would your explanation contain? Personal values. Culture. Attitudes. Reference groups. 9. Which of the following is the first stage in the consumer buying process? Develop the specification. Evaluation of alternatives. Information search. Need recognition. 10. Which of the following is a personal factor which might influence a consumer s buying behaviour? Impact of advertising. Interest rates. Life cycle stage. Peer pressure. Page 4 of 17
5 11. Which of the following defines in precise terms the purchaser s requirements in the organisational buying process? Classification. Proposal. Schedule. Specification. 12. How might individual factors influence the organisational buying decision? Age of the business. Experience of the buyer. Industry sector. Nature of the goods. 13. Which of the following is more commonly encountered in organisational purchasing than in consumer buying? Consider alternatives. Derived demand. Making the purchase. Need to make a purchase. 14. Which of the following is true about organisational buying, compared to consumer buying? In organisational buying: budget considerations will be unimportant. specific terms and conditions of supply are not required. the decision-making unit is generally more complex. the value of the purchase is usually less. 15. An organisation s micro environment will be impacted by which of the following? Political agenda. Inflation policy. New technology. Interest groups. Page 5 of 17
6 16. An organisation s customers form part of which of its environments? Competitive. Internal. Macro. Micro. 17. Which of the following would be reviewed within an audit of an organisation s internal environment? Available resources. Key customers. Supply chain. Sustainability legislation. 18. Legislation in respect of sustainability should be considered within an assessment of which of the following? The organisation s: micro environment. macro environment. internal environment. stakeholder environment. 19. Which of the following is most useful to consider when evaluating an organisation s internal environment? Customer prospects. Opportunities and threats. Segments and targets. Strengths and weaknesses. 20. Why is it important for marketers to continually monitor the macro environment? Because: changes might require the marketing mix to be adapted. customer behaviour will influence the organisation. new competitors might have entered the market. Stakeholders needs must be properly managed. Page 6 of 17
7 21. Data which is gathered by the organisation to address a specific research objective is known as: primary research. qualitative research. quantitative research. secondary research. 22. Jack works in the telecommunications sector and is using numerical data, about past spending patterns, from a recognised trade and industry source. This data is known as: internal data. primary data. qualitative data. secondary data. 23. Which of the following is designed to gather, store, analyse and distribute information internally to marketers within an organisation? Market research information. Marketing information system. Marketing mix information. Market segmentation information. 24. Josie has been asked by her manager to design a primary research method which will enable the organisation to collect information from a large number of customers about their spending patterns. Which of the following would be most effective? Focus group. In-depth interview. Experiment. Online questionnaire. 25. The customer service and after-sales elements of a product are known as which of the following? The actual product. The augmented product. The core product. The extended product. Page 7 of 17
8 26. Which of the following is used to communicate messages to customers and the market generally? Place. Price. Product. Promotion. 27. Which of the following elements of the marketing mix, in services industries, attempts to add a degree of tangibility to the offering? People. Physical evidence. Place. Process. 28. An airline has a highly effective online booking system which has reduced queuing times for passengers by more than 50%. It has achieved this by focusing on which element of the marketing mix? Physical evidence. Prices. Process. Product. 29. Which of the following elements of the marketing mix is the most important in attempting to deal with the inseparable nature of services? People. Place. Product. Promotion. 30. A lack of co-ordination across the marketing mix elements is likely to impact the least on which of the following? The organisation s: brand. competitors. customers. positioning. Page 8 of 17
9 31. Setting different prices for different groups of customers is known as: price segmentation. price discrimination. flexible pricing. demand pricing. 32. Which of the following would be the most effective in executing the best approach to targeting? Advertising the brand on national TV. Conducting a detailed sustainability audit. Ensuring the deployment of an integrated marketing mix. Pricing products at the lowest level in the market. 33. The role of marketing communications is to ensure that: products are available. products are profitable. stakeholders are aware of the product. the product sells. 34. T-Riz is an exclusive luxury car brand of the highest quality. The unique nature of its brand will be most clearly evidenced within the markets in which it operates through which of the following? Its: marketing mix. mission statement. stakeholders. strategy. 35. When products use many distribution channels and intermediaries and are available in many different outlets. This is known as: selective distribution. exclusive distribution. intensive distribution. indirect distribution. Page 9 of 17
10 36. Billy works for a company which manufactures gas turbines used by major energy generating companies. Billy s company is most likely to operate which type of distribution channel with its clients? Producer to: business customer. agent. national retailer. distributor. 37. In services organisations which of the following elements of the marketing mix is likely to be the most effective in building and maintaining customer relationships? People. Physical evidence. Place. Product. 38. Shelters For All is a charity which supports homeless people. It has an existing database of people who have donated previously. Which of the following is likely to be the most effective way of seeking further donations? Direct marketing. Local event sponsorship. National press advertising. Public relations. 39. In highly competitive B2C markets, where consumers can switch easily and there is no differentiation between providers, a change in which element of the marketing mix will have the most immediate impact on market share? If one player in the market: embarks on a positive PR campaign. introduces a new ordering system. significantly reduces its pricing. sponsors a premier league football team. 40. You work for a chain of fitness suites operating through Europe. The factors that contribute to the physical evidence element of the extended marketing mix are: the decoration, gym equipment and membership cards. membership cards, booking system and customer charter. the staff, customer charter and membership cards. the website, membership cards and booking system. Page 10 of 17
11 Section 2 Case Study 1 Jake is the Head of Market Research at PTB Banking Group, a global financial services organisation. Jake has just read a general report about the standards of service within a range of service sector organisations. The report was produced a year ago by the central government's office for national statistics and was based on research from customers of several banks. Jake's immediate task is to commission further research to ascertain more precisely how PTB's customers feel about the service they receive and to get their opinions about potential service improvements. Jake has invited six customers to attend a discussion session next week. In addition, Jake wants to understand more clearly the changes inside and outside the organisation and the impact these are having on PTB s marketing plans. Ultimately, the objective of Jake's research is to ensure that PTB develops a more coordinated approach in delivering products and communications to customers. CS1.1 For PTB the report produced by the government department is an example of which of the following? Delphi research. Internal research. Primary research. Secondary research. CS1.2 The further research commissioned by Jake is an example of which of the following? Competitor research. Qualitative research. Quantitative research. Service research. CS1.3 The research technique used by Jake to undertake the further research is known as which of the following? Experiment. Focus group. Mystery shopping. Observation. CS1.4 Which of the following would help Jake to get a better understanding of the changes inside and outside the organisation? ACORN. Ansoff matrix. Environmental scanning. SOSTAC. Page 11 of 17
12 CS1.5 Which of the following tools will be the most influential in ensuring that Jake achieves his objective? Marketing mix. PESTEL analysis. Porter s five forces. SWOT analysis. Page 12 of 17
13 Case Study 2 Isma is a marketing manager for SnackWell, a manufacturer of cakes and biscuits, which it sells through a range of different channels, including the major high street retailers and online, via its own and third party websites. Isma has recently concluded a programme of visits to the stores which sell her products, with the objective of ensuring that she is happy with the physical evidence aspect. Her next task is to undertake a detailed review across the entire marketing mix for her products to ensure greater levels of co-ordination and compatibility. The review is important because in three months SnackWell s products will be marketed internationally for the first time. SnackWell has agreed terms with Lindo to sell its products in stores across Europe and the US. In addition, Isma has decided to conduct an audit of the key macro factors which are likely to be considerations in the new markets. CS2.1 SnackWell s decisions in respect of the major high street retailers would be made under which of the following elements of the marketing mix? People. Place. Process. Product. CS2.2 Which of following would Isma have focused on during her programme of visits to the stores? How much her products are priced at. The décor within the store. The in-store advertising. The service provided at the check-out. CS2.3 What is a likely objective of Isma s review of the marketing mix? To: ensure alignment with the desired positioning. focus on ways of increasing the price. identify potential new channel partners. manage products though the life cycle. Page 13 of 17
14 CS2.4 Which of the following is likely to be a primary consideration for Isma in the venture with Lindo? Adaptation versus standardisation. Product versus price. Quality versus value. Supply versus demand. CS2.5 Which of the following is likely to be the most useful to Isma in conducting the audit she is planning? Ansoff matrix. Boston Consulting Group matrix. PESTEL analysis. PLC analysis. END OF EXAMINATION Page 14 of 17
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