UTM Fakulti Pengurusan UNIVERSITI TEKNOLOGl MALAYSIA PEPERIKSAAN AKHIR SEMESTER I SESI2017/2018 (FINAL EXAMINATION SEMESTER I 2017/2018 SESSION) KOD KURSUS (COURSE CODE) SHAF 1013 / SHAC 1093 NAMA KURSUS (COURSE) PRINSIP PEMASARAN (PRINCIPLES OF MARKETING) PROGRAM (PROGRAMME) SARJANA MUDA (BACHELOR DEGREE) MASA (DURATION) 3 JAM (3 HOURS) TARIKH (DATE) JANUARI2018 (JANUARY 2018) MARKAH (MARKS) 80 (MENYUMBANG 40/50 PERATUS KEPADA MARKAH KESELURUHAN) (CONTRIBUTING TO 40/50 PERCENT OF THE OVERALL MARKS) ARAHAN KEPADA CALON: (INSTRUCTION TO CANDIDATES) Jawab SEMUA soalan. (Answer ALL questions only). KERTAS PEPERIKSAAN INI TERDIRI DA RIP AD A 15 M I K A SURAT SAHAJA (TERMASUKMUKA SURAT INI). THIS EXAMINATION PAPER CONSISTS OF 15 PAGES ONLY (INCLUDING THIS PAGE). Part A : Multiple Choice Questions 1. Marketing seeks to create and manage profitable customer relationships by delivering________ to customers. 2. A. competitive prices B. superior value C. superior service D. superior promotion You have learned at work that today’s successful companies at all levels have one thing in common: they are heavily committed to marketing and strongly 3. 4. A. obtaining the best CEOs B. increasing wealth to stockholders C. customer focused D. employee motivation - The twofold goal of marketing is to keep and grow current customers and to ________ . A. attract new customers by promising superior value B. keep and grow current customers by delivering competitive pricing C. keep and grow current customers by delivering friendly service D. keep and grow current customers by delivering vast product assortment Today, marketing must be understood in terms of not just making a sale but also A. satisfying customers’ needs B. understanding customers’ C. understanding customers’ self-images D. advertising brilliantly value 2 5. As a new assistant marketing manager trainee, you learn that wants are shaped by ________ and individual personality. A. culture B. 6. demands C. self-concepts D. desires What do companies call a set of benefits that they promise to consumers to satisfy their needs? A. Market offering B. Value proposition C. D. 7. Demand satisfaction Need proposition As they create brand experiences, smart marketers look beyond t h e ________ o f the products and services they sell. 8. A. awareness B. recognition C. preferences D. attributes When a customer is satisfied, we can safely say that is when a customer’s purchase _________his or her expectations. A. exceeds B. redefines C. falls short of D. lives up to 3 r 9. A Marketing Information System (MIS) consists of people, equipment, and procedures to ________ , sort, analyze, evaluate, and distribute information to marketing decision makers. 10. A. test B. market C. gather D. assess What are the four steps, in the correct order, to designing a customer-driven marketing strategy? 11. A. Market segmentation, differentiation, positioning, and targeting. B. Market positioning, segmentation, mass marketing, and targeting. C. Market segmentation, targeting, differentiation, and positioning. D. Market alignment, segmentation, differentiation, and positioning. Which o f the following is true with regard to products? A. The quality o f products is far more difficult to measure than services. B. Products do not include experiences, organizations, persons, places, and ideas. C. Products are not meant for sale in the market. D. Products include services, events, persons, places, organizations, ideas, or a mixture of these. Which of the following exemplifies a service? A. Candy B. Car C. Retail D. Laundry detergent 4 13. A particular firm added three new products earlier this year to increase variety for customers. Two o f the products failed to reach the minimal sales quota. Which of the following is least likely to have been the cause of their failure? 14. A. The products were priced too high. B. The products were advertised incorrectly. C. Competitors fought back harder than expected. D. Product research was too extensive. Johan fascination for his grandmother’s coconut pancake recipes inspired him to come up with a recipe for Traditional Pancake, a gourmet for the Malaysian market. Which of the following stages of the new product development process does this exemplify? A. Idea screening B. Idea generation C. Concept testing D. 15. Product development A pharmaceutical company in Dengkil recently released a new and expensive anti-ulcer drug in the market. The company justifies the high price of the drug by claiming that it is highly effective for treating all kinds o f ulcers. The company also claims that the new drug will help bring down the need for invasive surgeries, an additional benefit for patients. Which of the following pricing strategies is the pharmaceutical company most likely using in this instance? A. Target pricing B. Markup pricing C. Cost-based pricing D. Value-based pricing 5 16. In a bid to attract more customers in a market that has several competitors, SDS’s Bakery slashed the prices o f all its products by 50 percent. Managers at the firm reasoned that lower prices would draw in even more customers, making up for the reduction in price several times over. Which of the following pricing strategies are they using? 17. A. Market-skimming pricing B. Market-penetration pricing C. Captive-product pricing D. Cash discount pricing Which of the following is an example of an indirect marketing channel? A. June Bride, which sells bridal gowns via its click-to-order online catalogs B. Farmer Brown, who delivers fresh milk from his dairy to customers every morning C. Bamboo craft, which sells its picnic baskets to selected novelty stores across the country D. 18. 19. Lifebelt Insurance, which sells life insurance through its door-to-door salespeople Specialty stores carry________ w ith _____ _ _ within them. A. only convenience products; shallow assortments B. narrow product lines; deep assortments C. narrow product lines; shallow assortments D. wide product lines; shallow assortments Which of the following statements best represents a contractual association between a manufacturer, wholesaler, or service organization and independent business people who buy the right to own and operate one or more units in the contract? A. Corporate chain B. Franchise C. Voluntary chain D. Retailer cooperative 6 system represented by the 20. Which of the following promotion tools involves building up a good corporate image and handling unfavorable stories and events? 21. A. Sales promotion B. Personal selling C. Direct marketing D. Public relations Any paid form o f non-personal presentation and promotion of ideas, goods, or services by an identified sponsor is called________ . 22. A. sales promotion B. direct marketing C. advertising D. personal selling When Procter & Gamble developed the Mr. Clean Magic Eraser, the company needed to explain how the product cleans grime from walls without removing paint. What type of campaign was most likely used by Procter &Gamble for the Mr. Clean Magic Eraser? 23. A. Informative advertising B. Persuasive advertising C. Reminder advertising D. Developmental advertising A product in the maturity stage will most likely require________ advertising. A. informative B. comparative C. persuasive D. reminder 7 24. At Pfizer, a pharmaceuticals company, members of the sales force and marketing department tend to have disagreements when things go wrong with a customer. The marketers blame the salespeople for poorly executing their strategies, while the salespeople blame the marketers for being out of touch with customers. Which of the following steps should upper management at Pfizer take to help bring the sales and marketing functions closer together? 25. A. Appoint a high-level marketing executive to oversee both marketing and sales B. Establish a complex sales force structure C. Emphasize traditional methods of selling D. Adopt a sales force automation system and implement team selling Amazon.com approaches customers via websites or mobile apps. This is an example of ________ marketing. 26. 27. A. mass B. niche C. individual D. direct All of the following are benefits of online direct marketing for buyers except_________ . A. access to numerous products B. access to product reviews C. live product demonstrations D. convenience Kodak’s film business did not lose out to direct competitor, the Fujifilm. It lost out to Sony, Canon, and other digital camera makers, along with a host of digital image developers and online image sharing services. This is an example o f ________ . A. a blue ocean strategy B. competitor backlinking C. marketing myopia D. competitor myopia 8 28. Which o f the following is most likely to be the consequence of increased growth of global trade? 29. A. Home markets become richer in opportunities. B. Foreign firms expand aggressively into new international markets. C. Domestic companies increase their chances to dominate their home markets. D. Industries become safe from foreign competition. Which of the following major decisions should a company make immediately after it decides to operate internationally? 30. A. Deciding which markets to enter B. Deciding how to enter the market C. Deciding on the global marketing organization D. Deciding on the global communication program The BeautyShop, a manufacturer of skin care products, uses only plant-based materials for its cosmetic products. It supports several environmental protection programs and movements defending human rights. This accounts for the company’s efforts to build good will and corporate social responsibility. This A. direct marketing B. strategic planning C. consumerism D. sustainable marketing 9 exemplifies th e ________ concept. Part B 31. 32. : True or False Marketing is defined as producing, promoting, and selling products. A. True B. False Unlike a production orientated firm, a firm embracing a sales orientation focuses on customer wants and needs so it can develop the best product at the lowest cost that will require very little selling effort. 33. A. True B. False To be useful, marketing objectives should meet four criteria: realistic, measurable, timespecific, and based on sales. 34. A. True B. False A diversification strategy entails increasing sales by introducing new products into new markets. 35. A. True B. False Social change is perhaps the most difficult external variable for marketing managers to forecast, influence, or integrate into marketing plans. 36. A. True B. False Psychography is the study of people’s vital statistics such as their ages and locations. A. True B. False 10 37. If consumer behavior is not well understood, a marketer will not have difficulty creating an appropriate marketing mix. 38. A. True B. False There are several tools marketing managers can use to increase cognitive dissonance, which enhances consumers’ attitude toward their brand. 39. A. True B. False Selective exposure occurs when consumers change information that conflicts with their feelings or beliefs. 40. A. True B. False Maslow’s hierarchy of needs categorizes human needs into four levels: physiological needs, safety needs, social needs, and esteem needs. 41. A. True B. False As products and services are becoming more commoditized, to differentiate their offers, marketers are creating and managing customer experiences with their brands or company. 42. A. True B. False Using internal sources, the company can find new ideas through formal research and development, or it can pick the brains of employees, from executives to scientists, engineers, and manufacturing staff to salespeople. This is called exploitation concept. A. True B. False 11 43. The first idea-reducing stage is idea screening, which helps spot good ideas and drop poor ones as soon as possible. 44. A. True B. False Value-based pricing reverses the cost-based pricing. The company first assesses customer needs and value perceptions, and then sets its target price based on customer’s segment. 45. A. True B. False Producers of the main products often price them low and set high markups on the supplies. This is calls captive product pricing. 46. A. True B. False How the channel members add value is reflected in the following scenario: “The role of marketing intermediaries increases the cost of products made by producers to customers”. 47. A. True B. False The “First Moment o f Truth” is the critical three to seven seconds that a shopper considers a product on a store shelf. 48. A. True B. False Specialty stores carry wide product lines with deep assortments within those lines. A. True B. False 12 49. The new media range from specialty magazines, cable television channels, and made- for-the Web videos to Internet catalogues, e-mail, blogs, blogs, mobile phone content, and online social networks are considered as highly targeted media that reach mass customer segments. 50. A. True B. False Encoding is the process of putting thought into symbolic form and decoding is the unplanned static or distortion during the communication process that results in receivers getting a different message than the one the sender sent. A. True B. False 13 Part C : Short Answer 51.Explain why a public relations campaign can be a more cost-effective option for a company than an advertising campaign. (3 marks) 52. Explain how Coca Cola can conduct its sales promotion through samples? (3 marks) 53. Electrolux has chosen to market their vacuum cleaners through direct marketing. Identify one major advantage for Electrolux to use each of the following direct marketing techniques: (a) Telephone (1 mark) (b) Paper catalog (1 mark) (c) Direct-response television (1 mark) 54. List the three value disciplines to gain market leadership positions. (3 marks) 55. Internet marketing practices have raised a number of ethical and legal questions. Why is privacy invasion regarded as the biggest concern in online marketing? (3 marks) 56. You are introducing a new chocolate drink product into the market. List the three steps of competitor analysis that you need to conduct. (3 marks) 14 V 57. Identify the three major ways how an apparel company can manage its international marketing activities. (3 marks) 58. Briefly explain the following three product strategies that an ice-cream company can use when entering a foreign market: (a) Straight product extension (1 mark) (b) Product adaptation (1 mark) (c) Product invention (1 mark) 59. Briefly describe the following three sustainable marketing principles: (a) Consumer-oriented marketing (1 mark) (b) Innovative marketing (1 mark) (c) Sense-of-mission marketing (1 mark) 60. A lif is about to buy a watch from an online shop. Based on consumerism, list the three traditional rights that A lif has as a buyer. (3 marks) 15