MK298 Principles of Marketing
Outline Solutions
This exam paper is worth 50% of the overall module mark.
Section A: Written Answer (60%)
Based on your group report / marketing audit, what marketing recommendations would you make
for your brand or organisation, and why?
Section B: Multi Choice (40%)
1. Which one is not part of the purchasing role?
a
gatekeeper
b
decider
c
manipulator
d
user
2. Someone who is among the very first to buy a new product is called :
a
an inventor
b
a laggard
c
an innovator
d
an early adopter
3. The increasing move towards selling direct to customers rather than through intermediaries is
known as:
a
disinformation
b
channel proliferation
c
disintermediation
d
channel convergence
4. According to Drucker, businesses only have which two central functions?
a
marketing and finance
b
marketing and human resources
c
marketing and operations management
d
marketing and innovation
5. According to Ansoff’s matrix, the strategy of selling more existing products to existing customers
is the strategy of :
a
market penetration
b
diversification
c
market development
d
differentiation
6. The way in which products are sold is known as a :
a
promotional route
b
marketing source
c
distribution channel
d
marketing channel
7. Businesses sometimes set different prices for different customers for the same product. This
pricing policy is known as:
a
loss leading
b
price discrimination
c
rip-off pricing
d
price taking
8. Full nest 1 is one of the stages of:
a
segmenting a market
b
the family lifecycle
c
behavioural segmentation
d
Maslow’s hierarchy
9. Which of these is an advantage of using market segmentation?
a
it saves the business money by avoiding the need for TV advertising
b
it allows the business to charge higher prices
c
it allows the business to target its promotional strategy more effectively
d
it lets a business invest more in its production operations
10. Which of the following is an example of an external constraint upon a businesses marketing
objectives?
a
the business does not have the cash resources to fund a major new adverting campaign
b
the exchange rate is making the organisations products too expensive in target
export markets
c
the production department cannot increase capacity to meet higher sales targets
d
the human resources department are finding it hard to recruit suitability skilled
employees
11. Taking advantage of demand by increasing the price is called:
a
fundamental pricing
b
price skimming
c
original pricing
d
movement pricing
12. The product life cycle has five stages. Which one of the following is not a term used in the
standard product life cycle?
a
Introduction
b
Decay
c
Maturity
d
Decline
13. Which of the following is not a part of the promotional mix?
a
sales promotions
b
direct marketing
c
personal selling
d
customer care
14. A place where buyers and sellers come into contact with each other is commonly known as :
a
a trading floor
b
a shop
c
the stock exchange
d
the market
15. According to Fill, the DRIP process of communications is
a
differentiate, remind, inform, persuade
b
differentiate, remind, interest, purchase
c
diversify, realign, inform, persuade
d
develop, reassure, inform, persuade
16. A business that is trying to increase its market share to become the market leader is often
referred to as a:
a
cash cow
b
me too business
c
rising star
d
challenger
17. Products can be analysed at different levels. Which of the following are the original three
levels of product as identified by Levitt in 1969 :
a
Core, tangible, augmented,
b
Core, primary, tangible
c
Primary. secondary, tangible
d
Effective, augmented, primary
18. The main purpose of marketing is thought to be which of the following?
a
Selling
b
Making people buy things
c
Anticipating and satisfying needs and wants
d
Promotion
19. A situation where only a few companies have almost total control of the market is called :
a
perfect competition
b
oligopoly
c
monopoly
d
monopolistic competition
20. The range of products sold by a business is known as the:
a
product group
b
product plan
c
brand mix
d
product mix
21. In what year did Booms and Bitner develop the extended marketing mix for services?
a
1960
b
1975
c
1981
d
1990
22. Porters 5 Forces model considers the dynamics between
a
potential entrants, suppliers, buyers, substitutes, existing competitive rivalry
b
potential entrants, wholesalers, customers, international alternatives, the company
c
market structure, suppliers, buyers, substitutes, government policy makers
d
substitutes, customers, economic factors, existing competitive rivalry, suppliers
23. The way in which firms try to create differences between their products and those of
competitors is known as:
a
product branding
b
product promotion
c
product mixing
d
product differentiation
24. When a business divides up groups of customers using terms like ‘working class’, ‘middle class’
and ‘professionals’, what kind of market segmentation are they using?
a
demographic segmentation
b
socio-economic segmentation
c
religious segmentation
d
lifestyle segmentation
25. Ending a price with 99p is an example of:
a
psychological pricing
b
demand pricing
c
customary pricing
d
value pricing
26. Which of the following methods of market research is not an example of primary research?
a
questionnaires
b
consumer panels
c
a company’s own sales statistics and records
d
test marketing
27. Which of the following are considered key benefits of digital marketing?
a
increased customer dialogue
b
personalised communications
c
development of customer communities
d
all of the above
28. Which of the following descriptions provides the best definition of the “marketing mix” ?
a
the way products are priced and packaged
b
the way a business distributes its products through retailers and wholesalers
c
the way products are arranged in a retail store to maximise sales
d
the way a business combines the main marketing elements to sell products that
meet the needs and wants of customers
29. Which of the following is not a consideration of the macro environment
a
environmental
b
competitors
c
political
d
economic
30. Which of Ansoff’s four marketing strategies represents the highest risk option for a business?
a
market development
b
market penetration
c
product development
d
diversification
31. When planning advertising formats, a common structure to follow is AIDA. What does it stand
for:
a
attention, interest, desire, action
b
awareness, interest, demand, achieve
c
attention, information, decision, action
d
appeal, interest, design, amuse
32. An organisation that believes personal selling and advertising are the best way to generate
profits is known as:
a
Product-oriented
b
Sales-oriented
c
Customer focused
d
Relationship-focused
Refer to the scenarios below to answer the following questions:
Scenario 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 co- ordinated approach in delivering products and
communications to customers.
33. For PTB the report produced by the government department is an example of which of the
following?
a
Delphi research
b
Internal research
c
Primary research
d
Secondary research
34. The further research commissioned by Jake is an example of which of the following?
a
Competitor research
b
Qualitative research
c
Quantitative research
d
Service research
35. The research technique used by Jake to undertake the further research is known as which of
the following?
a
Experiment
b
Focus group
c
Mystery shopping
d
Observation
36. Which of the following would help Jake to get a better understanding of the changes inside and
outside the organisation?
a
ACORN
b
Ansoff matrix
c
Environmental scanning
d
SOSTAC
Scenario 2
Claire is a marketing manager at ChocoLite, a manufacturer of low sugar confectionary primarily
aimed at consumers who have diabetes. The majority of customers order the products directly
from ChocoLite via their website although some items are available at selected heath food
stockists such as Holland and Barratt. Over the next six months, ChocoLite are looking to expand
their distribution channels, offering their products through a broader range of retailers and
supermarkets. In addition, they are also planning on offering their products to a new consumer
group, targeting the gym and fitness market. As part of this strategy, Claire is considering a short
term price reduction to increase new consumer trial in the products.
37. ChocoLite’s current product strategy could be considered to be which of the following:
a
focused
b
selective
c
diversified
d
broad
38. ChocoLite’s decision to distribute through a boarder range of retailers and supermarkets is an
example of which strategy?
a
disintermediation
b
desparation
c
reitermediation
d
direct distribition
39. Which of the following pricing strategies is Claire considering implementing?
a
cost plus pricing
b
penetration pricing
c
going rate pricing
d
promotional pricing
40. The move into the gym and fitness market is an example of which marketing strategy?
a
market development
b
market penetration
c
international marketing
d
diversification