HIGHER EDUCATION PROGRAMMES
Academic Year 2024:
July-December
Formative Assessment 1 (FA1):
Marketing Management 1
(HMKT130-1)
NQF Level, Credits:
5, 16
Weighting:
20%
Assessment Type:
Assignment
Educator:
D. Adams
Examiner:
D. Adams
Due Date:
13 September 2024
Total:
100 Marks
Instructions:
• This paper consists of five (5) questions, made up of essay questions.
• It is based on Units 1-5 (Chapters 1, 2, 3, 4 & 6) of your prescribed
courseware.
• All questions are compulsory.
• Your assessment must be typed using the following:
o Font: Arial
o Font size: 12
o Line spacing: 1.5
•
A Copyleaks Report will be issued via ColCampus once the assignment is
submitted. Please ensure that you follow the correct steps when uploading
your assignment, to ensure that the Copyleaks Report is correctly issued. You
should be working towards a similarity/plagiarism score of 30% or less.
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Currently, for this assessment (FA1), no marks will be deducted for a
similarity/plagiarism score that exceeds 30%.
Learning Outcomes assessed:
•
Explain the concept of exchange in marketing terms.
•
Describe the importance of a competitive advantage in marketing and how
this advantage can be established and maintained.
•
Use the five competitive forces to analyse the competitive structure of an
industry.
•
Discuss the criteria for successful market segmentation.
•
Describe bases commonly used to segment consumer markets.
•
Expand the significance of reference groups in understanding consumer
behaviour.
2
•
Discuss the nature of market opportunities and threats.
•
Identify the steps in the adoption process.
HMKT130-1-Jul-Dec2024-FA1-DA-V2-22052024
Question 1
[17 Marks]
Read the fictitious scenario below and answer questions 1.1 and 1.2 that
follow.
Sarah, the founder of an eco-friendly skincare brand, and John, a local organic
grocery store manager, cross paths at a sustainability conference. Both are
passionate about ethical business practices and initiate a conversation. Sarah
shares her desire to expand her brand's presence in retail, while John expresses
interest in stocking locally made, sustainable products in his store.
As they converse, Sarah proposes a partnership: she offers to resale her ecofriendly skincare products to John's store. In exchange, John agrees to purchase
Sarah's products at wholesale prices and actively promote her brand within the
store and online. Excited about the potential collaboration, they exchanged contact
information.
In the following weeks, Sarah and John work closely to finalise the details of their
collaboration. Sarah ensures her products meet John's store requirements while
John prepares promotional materials to highlight the arrival of Sarah's skincare line.
*Fictitious scenario
1.1. Explain the five (5) conditions necessary for any exchange to occur and whether
each condition is met in the fictitious scenario. Additionally, clarify whether an
exchange occurred and comprehensively substantiate your reasoning.
([5x2]+3) = 13 marks
1.2. There are many ways that firms can differentiate themselves to establish a
competitive advantage (Lamb et al., 2019).
Considering this, explain how a collaboration between Sarah's eco-friendly
skincare brand and John's organic grocery store can enhance service quality
and customer value, ultimately strengthening their competitive advantage.
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Provide specific examples for each aspect.
(2x2 =4 marks)
Question 2
[25 Marks]
Note to student: To answer the question, you need to do further research into
Rain’s telecommunications company.
Read the extract below and answer the requirements that follow:
Rain entered the South African telecoms sector based on a view that the mobile
broadband industry is undersupplied. The company’s primary objectives were to
establish a cutting-edge LTE-A fixed and mobile network designed to meet growing
consumer demand, provide simple and transparent data access, and work towards
open internet access at affordable rates and best quality. This is important and
different in that data does not ‘expire’ (which is now enforced across operators
through recent regulatory changes that came into effect in 2019). Users can track
and manage usage and cost over time. Rain bypassed some of the major entry
barriers in two main ways: 1) leveraging existing spectrum assets and 2) entering
into a facility-sharing agreement with an established incumbent.
Rain was established following the rebranding of an existing wireless telecoms
company – Wireless Business Solutions (WBS) – in 2017. WBS was a holding
company of iBurst and Broadlink, players in the wireless segment of the
telecommunications industry. The company was acquired by Multisource in 2015, a
company backed by both Paul Harris and Michael Jordaan. Subsequently, a decision
was taken to rebrand WBS into Rain, largely because iBurst technologies had
become obsolete, and the “Wireless Business Solutions” name was too long.
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The rebranding process included iBurst’s adoption of a new super-fast Long Term
Evolution-Advanced (LTE-A) technology in 2017. LTE technology is primarily used
for data communications and is typically implemented over higher radio frequency
spectrums. Before the acquisition by Multisource and later rebranding into Rain,
WBS/iBurst already had access to spectrum in the 1800Ghz and 2600Ghz
frequencies. Thus, Rain had access to spectrum and valuable spectrum compatible
with the latest technologies, such as the LTE. None of the other mobile operators,
except Telkom, have access to higher frequency spectrum. This gives Rain a
competitive advantage in the LTE data market.
Sources:
o Bell, B. & Bosiu T. 2019. Rain Brings Hope In the Mobile Telecoms Sector.
University of Johannesburg, 11 March. Retrieved
from: https://www.competition.org.za/ccred-blog-competitionreview/2019/3/11/rain-brings-hope-in-the-mobile-telecoms-sector [Accessed 6
May 2024]
o Rain. (n.d.). [Image] Retrieved from: https://images.squarespacecdn.com/content/v1/52246331e4b0a46e5f1b8ce5/15523052261511EUUU6NSMZHPFH5V4CLB/Rain-logo.jpg?format=1000w [Accessed 6 May
2024]
Required:
As a marketing analyst at a consulting firm, your task is to assess Rain's competitive
position within the South African telecommunications industry for a client considering
entry into the market.
Apply Michael Porter's Five Forces framework to analyse Rain's competitive position
within the South African telecommunications industry.
The following points are to be assessed:
•
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The threat of entry from new competitors.
HMKT130-1-Jul-Dec2024-FA1-DA-V2-22052024
•
Threat of substitute products.
•
The bargaining power of buyers.
•
The bargaining power of suppliers.
•
The rivalry between the existing direct competitors.
Hint to Student:
•
Each force is to be analysed in relation to Rain's competitive position within
the South African telecommunications industry.
•
This question is application-based in relation to Rain. Defining each source is
insufficient; you need to relate each source to Rain.
•
Use the rubric provided to assess and articulate specific components and
expectations for this question.
Grading Rubric:
Criteria
0-9
As a marketing
analyst at a consulting
firm, your task is to
assess Rain's
competitive position
within the South
African
telecommunications
industry for a client
considering entry into
the market.
•
Apply Michael Porter's
Five Forces
framework to analyse
Rain's competitive
position within the
South African
telecommunications
industry.
The following points
are to be assessed:
6
10-18
Fair attempt by the
student; however,
knowledge of the theory
was poorly
demonstrated.
•
Inappropriate integration
of the application.
•
Poor layout of a logical
and justified answer.
•
Originality is lacking in
the answer.
•
•
An appropriate
application integration
reflects a fair to good
integration.
•
Fair to good layout of a
logical and justified
answer.
•
There is a fair sense of
originality present in the
answer.
Lack of depth regarding the
following points assessed:
•
•
•
•
•
The threat of entry
Threat of substitutes
Power of buyers
Power of suppliers
Competitive rivalry
Fair to good knowledge
of theory is
demonstrated.
The following points were
assessed but lacked
originality:
•
•
The threat of entry
Threat of substitutes
19-25
•
Excellent knowledge of
theory is demonstrated.
•
Extremely appropriate
integration of application
reflects well-thought-out
integration.
•
Excellent layout of a
logical and justified
answer.
•
There is a good sense of
originality present in the
answer.
In-depth assessment of the
following points:
•
•
•
•
The threat of entry
Threat of substitutes
Power of buyers
Power of suppliers
HMKT130-1-Jul-Dec2024-FA1-DA-V2-22052024
•The threat of entry
from new competitors.
•Threat of substitute
products.
Lack of application
incorporated into the
answer presented.
•The bargaining power
of buyers.
•The bargaining power
of suppliers.
•
•
•
•
Power of buyers
Power of suppliers
Competitive rivalry
There is some
incorporation of Rain into
the analysis, but it has
limited depth in Porter's five
forces model.
Competitive rivalry
Incorporates Rain effectively
into the analysis, providing
thorough insights into Rain's
competitive position within
the South African
telecommunications
industry.
•The rivalry between
the existing direct
competitors.
Question 3
[20 Marks]
Read the fictitious scenario below to answer question 3.1.
You are attending a marketing workshop focused on segmentation strategies, where
the case study of a newly launched South African online grocery delivery service,
"FreshCart," is being examined. Despite offering a wide range of products and
convenient delivery options, FreshCart struggles to attract and retain customers
beyond its initial target market segment.
Fictitious scenario
3.1 After reading the fictitious scenario and as a participant in the workshop, discuss
why FreshCart needs to reconsider its segmentation strategy by referring to the
criteria for successful segmentation.
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(4x3 = 12 marks)
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Refer to the image below and answer question 3.2, which follows.
Source: Green Healthy Cooking. (2019). How to meal prep 2.0. [online] Available at:
https://greenhealthycooking.com/wp-content/uploads/2017/09/Lundberg-Rice-MealPrep-Image.jpg [Accessed 15 May 2024].
3.2. FreshCart is considering adding 'healthy meal prep kits' to their product line.
These kits include pre-portioned ingredients and recipes for easy, healthy
cooking at home, designed to save time and promote a balanced diet from
Monday to Thursday.
With this in mind, describe the two generational segments that would be the
primary clients for 'healthy meal prep kits'. Provide reasoning for why you
selected those two generations for the chosen product.
Question 4
(2+[3+3] = 8 marks)
[16 Marks]
Read the fictitious scenario below and answer questions 4.1 and 4.2 that
follow.
You are leading a marketing campaign for a new energy drink targeted at college
students. You have identified a group of influential individuals within the college
community to increase brand visibility and appeal. Among them are a popular social
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media influencer known for health and wellness content, a renowned nutritionist
specialising in sports science, a star athlete from the college track team, and the
president of a prominent fraternity known for their strong sense of community.
*fictitious scenario
4.1. Based on the scenario provided, classify each influential individual according to
the four (4) bases of power. You are also required to provide a brief explanation
for each classification, detailing why you believe they fit into each category
based on their expertise or role within the college community.
(4x2 = 8 marks)
4.2. Explain how the identified base of power for each influential individual in
question 4.1 could influence their promotion of your energy drink among college
students. Provide relevant practical examples to illustrate their impact.
(4x2 = 8 marks)
Question 5
[22 Marks]
Read the extract below and answer questions 5.1 and 5.2 that follow.
MultiChoice Enriching Lives
We entertain, inform, and empower African communities that inspire and build us in return.
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MultiChoice is Africa's leading entertainment platform, with a mission to enrich lives.
We offer various products and services, including DStv, GOtv, Showmax, M-Net,
SuperSport, Irdeto, and KingMakers. Over 23.5 million households use our products
and services in 50 markets across sub-Saharan Africa.
We aim to create a world of more for Africa by leveraging our unique platform, scale,
and distribution to build a broader ecosystem of consumer services underpinned by
scalable technology. We focus on offering value to our customers and creating value
for our shareholders by expanding in areas where we have the right to play and the
ability to make an impact. As the continent's most loved storyteller, we are
committed to supporting the development of the African creative industry, and we are
proud to be a major employer in Africa. We are excited about the future of
MultiChoice and believe we can continue to grow our business and positively impact
the lives of millions across Africa.
Source: MultiChoice. (n.d.). Multichoice Enriching Lives. About. Who are we – the
multichoice group? Retrieved from: https://www.multichoice.com/about-us/who-weare#:~:text=We%20offer%20a%20wide%20range,markets%20across%20sub%2DS
aharan%20Africa.[Accessed 15 May 2024]
5.1. Based on the provided extract from MultiChoice, identify and explain two (2)
potential opportunities and two (2)
potential threats within MultiChoice's
marketing environment. Use specific examples or insights from the extract to
support your analysis.
(2x2= 4 marks)
5.2. Explain the six (6) basic steps in the adoption process consumers go through
when purchasing a 'new-to-the-world' product, such as a new DStv package at
MultiChoice. Use examples specific to the DStv package to illustrate each step.
(6x3 = 18 marks)
[TOTAL = 100 MARKS]
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