MKTG 201 First Semester, 2010 Feedback for Test Two.
How did I do?
On Cecil, look under Marks and Activities for the Term Test tab. There are TWO marks – the
Essay mark (out of 10) and your MQC mark (out of 40). Add these together to obtain your
total mark (out of 50).
Since the test is out of 50, simply multiple your total mark by 2 to get your percentage
mark. Refer to the grade scale below to see what grade you earned with that mark.
GRADE
A+
A
AB+
B
BC+
C
CD+
D
D-
DESCRIPTION
Outstanding
Excellent
Approaching Excellence
Very good, comfortably meeting expectations
Good, meets expectations
Good, just meets expectations but minor problems
Adequate, almost meeting expectations but minor problems
Adequate, not quite meeting expectations because of problems
Just adequate, not quite meeting expectations because of further problems
Inadequate, further problems and below expectations
Inadequate, well below expectations because of minor problems
Completely inadequate, well below expectations because of major problems
%
90-100
85-89
80-84
75-79
70-74
65-69
60-64
55-59
50-54
45-49
40-44
0-39
How did the CLASS do?
The class did well! Marks ranged from 48% to 100% (amazing!) and the average mark was
40.8% - which just makes it an A minus (which means “approaching excellence”). This is
slightly better than the B+ average the class received for Test 2. 353 students took the test.
Of these, 60% achieved a total mark in the A range, 22% achieved a total mark in the B
range, 18% achieved a total mark in the C range, and only 1 student failed. This is a
fantastic result but- the average mark for the multiple choice was 20% than the average
mark for the essays- meaning that students are still not doing well on their essays and
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should prepare well for their 100% essay-based final exam if they want to achieve similar
excellent marks.
How can I get my test script back?
You can pick up your test scripts from:
 Your tutor, at the end of your tutorial in Week 10 (May 17-21).
 Any remaining unclaimed scripts will be available for pickup in the Student
Assignment Centre, Level 0, OGGB by 11am, Friday May 21.
Please do not ask someone else to pick up your test because privacy laws do not allow us to
give your test to someone else.
What were the correct answers?
At the end of this document is an explanation of the correct answer to each multiple choice
question, and details of what were required for the essay questions. Please read this
information carefully to understand what was required.
What if I truly think there was a mistake- I either don’t agree with a MCQ answer
or I think my essay deserves a higher mark?
1. Read the explanation at the end of this document to understand my reasoning for
that MCQ or essay. For essays, please also read the “model” answers. Refer to the
text pages or lecture slides that are referenced.
2. Type out an explanation of why you think the MCQ was wrong or the essay deserves
a higher mark. Be sure to note the MCQ number e.g. Q19, or indicate which essay
(Aroha or Ben) as required. Please attach this typed page to your answer script
(IMPORTANT even for MCQ, because MCQ were randomised across versions so
Karen will need to look up YOUR Q19 to see which you are referring to).
3. Hand this in to Karen by noon on Friday May 28. (Sandy will remind you to hand
these in during her lecture on Wed, May 26, or you can give them to Karen or your
tutor personally or put it in Karen’s 4th floor mailbox by noon Friday.) Don’t forget to
type your explanation and attach your original test paper.
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Multiple Choice Answers
1.
According to the Total Product Concept, a product can be thought of as consisting of
different levels. These levels are?
1.
Core, expected, augmented, potential.
2.
Preferred, core, expected, augmented.
3.
Expected, core, auxillary, potential.
4.
Preferred, expected, core, auxillary.
5.
Core, auxillary expected, preferred.
One way of understanding the components of a product is to divide it up into its core
offering (e.g. time critical air travel), expected (e.g. flight features such as meals, seats,
entertainment), augmented (e.g. frequent flyers club, hire car deals), potential (e.g.
alternative fuel-based travel)
2.
When marketers display or graph the two-dimensional location of their brand(s) and
the competing brands (as perceived by their customers), they are creating a?
1.
Dimensional map.
2.
Positional profile.
3.
Perceptual map.
4.
Multi-gap chart.
5.
Perceived competitive display.
A perceptual map is defined as a two-dimensional means of displaying or graphing the
location of products or brands in the minds of consumers (on p.244 of your text).
3.
One research study in the 1990s found that 18% percent of the residents of
California purchased 78% of all the various lottery tickets sold. This is an example
of?
1.
Why lottery tickets are profitable.
2.
The 80/20 rule.
3.
Brand loyal consumers.
4.
The usage index per person.
5.
Why cafes should have loyalty cards.
On p.234 of your text, it says that the 80/20 rule suggests that about 80% of a firm’s sales
come from about 20% of its customers. This California lottery example was used by Karen
in lecture, to illustrate the 80/20 rule.
4.
Which of the following statements about the product life cycle is FALSE?
1.
The new product development phase of the product life cycle can involve
substantial costs for an organisation.
2.
The stage that a product is at in the product life cycle depends solely
on how long the product has been in the market.
3.
Products may be unprofitable in the introduction phase of the product life
cycle.
4.
Sales grow most quickly in the growth phase of the product life cycle.
5.
In the decline phase of the product life cycle, sales will most likely fall.
Products are not simply classified based on the number of years they have been in the
market. For example, despite being around for thousands of years, bread would not be
classed as being in the final stage of its life cycle. Rather, the stages in the product life cycle
reflect the product’s current place in the market and its sales and profitability.
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5.
When Glassons obtained data by manipulating factors under tightly controlled
conditions to test cause and effect, they were probably using ____________ to
collect data?
1.
A model.
2.
Nonprobability sampling.
3.
An experiment.
4.
A panel.
5.
A questionnaire.
An experiment is defined on p.214 of your text as a means of “obtaining data by
manipulating factors under tightly controlled conditions to test cause and effect.”
Experiments are an example of a primary data collection method that aims to examine the
causes of certain effects, so this is called causal research. In lectures, Karen explained
experiments using the example of colour influencing perceptions of taste, which was an
experiment carried out by Rick Starr, a colleague in the Marketing dept.
6.
In the new product development process, the stage at which a company turns an
idea into a prototype which can be tested mainly for design suitability is the
________________ stage?
1.
Commercialization.
2.
Idea generation.
3.
Market testing.
4.
New product strategy development.
5.
Development.
Producing a prototype signifies the new product would be in the Development stage. The
stages in the new-product process are: new-product strategy development, idea generation,
screening and evaluation, business analysis, development, market testing,
commercialization.
7.
Mary operates a nail salon that specializes in artificial nails. Her salon has two
primary market _____, women who get their nails done infrequently (i.e., once or
twice per year), and women who continuously wear fake nails?
1.
Segments.
2.
Environments.
3.
Sizes.
4.
Strategies.
5.
Positionings.
The two groups of women with different needs are different market segments. A segment is
defined as a group of consumers who have needs that are similar to others in the group
(e.g. all the members of the low usage group are similar to each other in need) but are
different to the members of other segments (in this case the continuous fake nail group).
See the definition of market segments on p.226 of your text.
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8.
A publishing company sponsors an informal one-time-only session with seven
university students who use one of their textbooks. The students meet with a
moderator who asks them to discuss their opinions about the textbook, its study
guide, and the videos. This is an example of a(n)?
1.
Research experiment.
2.
Focus group.
3.
Consumer panel.
4.
In-depth interview.
5.
Jury of executive opinion.
Focus groups are defined on p.210 as a method of collecting primary data that involves
“informal groups of 6-10 past, present or prospective customers meeting with a moderator
(a discussion leader) to discuss products, how they use them etc. In lectures, Karen
discussed focus groups and explained how they are innovatively being held in Second Life.
9.
The approaches that can be used to collect data to solve all or part of a marketing
research problem are called?
1.
Market research proposals.
2.
SWOT analyses.
3.
Methods.
4.
Marketing strategies.
5.
Marketing tactics.
This the exact definition of Methods found on p.203.
10.
Many hotels offer frequent user programs e.g. stay six nights, get the seventh free.
This is an example of segmentation by?
1.
Geographic variables.
2.
Benefits offered,
3.
Demographic variables.
4.
Psychographics.
5.
Usage rate.
This is an example of a loyalty programme. In lecture, Karen used a similar loyalty
programme, airlines offering frequent flyer points, to illustrate how companies try to
segment by usage rate, and then try to target the high user segment using a loyalty
programme.
11.
When Sony uses information found in Nielsen Reports, published by the A.C. Nielsen
Company, to plan television-advertising schedules for its products, it is relying on
__________ data?
1.
Internal proprietary.
2.
Observational.
3.
Internal secondary.
4.
External secondary.
5.
External primary.
In lectures, Karen explained how the primary data that Nielsen collects via observation
becomes secondary data for the companies that purchase them after they’ve been collected.
Since this data does not exist within Sony’s past records, this would be considered external
rather than internal secondary data.
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12.
Coca Cola used to market to all their potential customers the same way, using
similar advertisements, music and slogans in every country they operated in. This
approach to marketing is called?
1.
Target marketing.
2.
Mass-marketing.
3.
Concentrated marketing.
4.
Mass-segmentation.
5.
Multi-niche marketing.
p.227 mentions the one-size-fits-all mass markets. In the Segmentation lecture, Karen used
Coca Cola and Levi’s as examples of mass marketing in previous times.
13.
Bob decides to buy a new microwave. He would like to purchase a microwave that is
reasonably priced, is made by a brand he trusts, suits the decor of his kitchen and
has a range of cooking options. He spends a couple of hours comparing models in
three leading appliance stores within his local area before making a final choice. The
type of product Bob has purchased is called a(n)?
1.
Unsought good.
2.
Specialty item.
3.
Routine purchase.
4.
Shopping product.
5.
Impulse product.
Shopping products are irregularly purchased items that involve moderate to high
engagement with the decision-making process: consumers will often visit a number of
stores, looking at the range and comparing items based on features, quality and price.
Examples of shopping products include electrical appliances, furniture, cameras and
clothing. In this case, Bob seems to be moderately involved (he takes some short cuts in
the information search phase, and does not spend a lot of time searching for a microwave
before making a purchase). His perceived risk seems moderate (perhaps moderate to high
for performance, but not too high for social or financial risk).
14.
Which of these data collection methods would be the least likely to ask participants
to fill out questionnaires?
1.
Experiments.
2.
All of the answers are equally likely to use questionnaires.
3.
Observation.
4.
Online panels.
5.
Surveys.
Surveys are another word for questionnaires. Experiments often use questionnaires to
collect information before, during and after the experiment. Online panels (p.214) are often
asked to answer questions by filling out questionnaires. The sole exception is observation
(p.206) which watches people without asking them questions.
15.
Which of the following is NOT one of the criteria used in selecting target segments?
1.
Cost of reaching the customers in that segment.
2.
Compatibility with organisation’s objectives and resources.
3.
Similarity of customers in target segments to existing customers.
4.
Market size.
5.
Competitive position.
The five criteria used to select target segments are listed and explained on p.239 of the
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text. These were explained in lecture also. The text lists market size, cost of reaching the
segment, compatibility with organization’s objectives, and resources, and competitive
position, which are all options given for this question. It also lists “expected growth” which
is not listed as one of the options. This means that “similarity of customers in target
segments to existing customers” is not one of the criteria used in selected target markets.
16.
Items
effort
1.
2.
3.
4.
5.
that you purchase frequently, conveniently, and with a minimum of shopping
are called?
Unsought goods.
Convenience goods.
Specialty goods.
Industrial goods.
Shopping goods.
17.
The Great Beer Company has for many years been very successful with its Very
Strong Beer brand. When it launched its Not So Strong Beer, which was aimed at a
different segment of the market, this could be BEST described as?
1.
None of the answers are correct.
2.
A line extension.
3.
An expected product.
4.
Repositioning.
5.
A product modification.
Line extensions are new products that are closely related to existing products in the product
line. The development of line extensions is seen as a less risky and less expensive way to
introduce a product. Line extensions are the most common form of ‘new’ product. A line
extension product is, by definition, similar to existing products, but can focus on a different
market segment or segment needs.
18.
Which stage of the Product Life Cycle is characterised by a rapid increase in sales
and the emergence of competitors?
1.
Commercialisation stage.
2.
Growth stage.
3.
Maturity stage.
4.
Decline stage.
5.
Introduction stage.
These characteristics define the growth stage of the product life cycle. This is covered on
pp. 280-285 of the text, particularly p.282-3.
19.
Which of the following is a way to collect secondary data?
1.
Examine existing customer records.
2.
Conduct focus groups to discuss the product.
3.
Conduct observations of customers using the product.
4.
None of the answers are correct.
5.
Collect survey responses.
Focus groups, observations and surveys are all ways to collect primary data. Existing
company data such as customer records is secondary data that exists within the company
so it is internal secondary data (p.205 lists “...detailed sales breakdowns by...customers” as
an example of internal secondary data.
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20.
Positioning is..?
1.
The location a product/service can be bought from relative to competing
offers.
2.
The place an offer occupies in the buyers mind relative to competing
offers.
3.
The place on the shelf that a product occupies relative to competing offers.
4.
None of the answers are correct.
5.
The price a product/service is set at relative to competing offers.
Product positioning is defined on p.243 as “the place an offering occupies in consumers’
minds on important attributes relative to competitive products.
SECTION B: (10 Marks total)
Essay Option A:
A nonprofit organization called WASTENOT has been formed to promote recycling among
teenagers. Even though they have very limited funds, they want to find out the degree
of support they have in various parts of the New Zealand. Explain to WASTENOT why
secondary data is worth searching for. Suggest one source of secondary data that
WASTENOT may find useful.
Define secondary data- data that already exists prior to solving the problem. (Better
answers might also explain that there is internal and external secondary data)
Explain why secondary data is worth searching for (worth 2/3 of the marks)
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(i)
(ii)
-
Could list the advantages of secondary data (compared to primary data) for 2 points.
(Secondary data is cheaper; Secondary data is already available)
The lecture talked about the four uses of secondary data, and most students will
regurgitate this for 4 more points:
Secondary data might solve your problem (if you’re lucky enough)
Secondary data could increase your understanding of the problem
Secondary data can suggest how to collect primary data e.g. tell you how best to
reach teenagers when you learn that x% of teens have prepay mobile phones, you
know that reaching them by landline is not ideal.
Secondary data can allow you to assess the quality of the primary data collected e.g.
you can compare the demographics of your sample to a prior study that includes the
demographics of your population of interest to see if you have a representative
sample.
Suggest one form of secondary data
The better answers showed that they can relate their answer to the problem e.g.
they suggested Wastenot use census data to find out what regions have what
percentages of teenage residents so they can decide where to do their primary
research. Or, others suggested they could look for previous studies of recycling
among teenagers to learn more about their problem. Some poorer answers said
something that is a form of secondary data, but not particularly useful for the
example, e.g. they made a vague suggestion that collecting census data can help.
*Some Common Errors :

A minority of students merely reproduced the lecture slide on the pros and cons of
primary vs secondary data, without answering the question that was asked.

Majority of students immediately interpreted the question as asking “what the
advantages of secondary data are” and did not realize that the four possible uses of
secondary data could also be used to explain why secondary data is worth searching
for.
Essay Option B
Former All-Blacks captain Tana wants to open a fitness centre in Auckland. Define the
concept of a market segment. Identify two segmentation variables (each from a
different segmentation base) which Tana could use to segment the market for fitness
centres in Auckland. Briefly explain how Tanu could segment the market for fitness
centres using one of these
A. Define a market segment the def did not need to use exact words but must have
had those two ideas)
A group of consumers who
-
(i) have similar needs and wants; and who
(ii) respond similarly to a particular marketing action
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B. The rest of the answer was worth 2/3 of the marks and students tended to
follow one of two different (but equally acceptable) structures –
Structure 1: Students named one segmentation variable, then discussed how to use it,
then repeated this for the second variable.
Structure 2: Students discussed both segmentation variables, and then explained how
each could be used to segment the market. More creative students used both variables
together, to segment the market. For example: Tana could use a demographic variable,
GENDER to segment the market for fitness centres i.e. segment it into male and female.
Tana could also use a benefits sought variable e.g. HIGH FITNESS emphasis vs. LOW
FITNESS-SOCIAL USER emphasis.
So to get all the marks here, students had to .
Name and explain one basis of segmentation- (and repeat)
e.g. Demographic segmentation involves segmenting by population characteristics such
as age, gender, income etc.
Identify a segmentation variable within that category of variables (and repeat)
Explain how to segment using that variable. (repeat)
Finally students had to suggest target market (must be one of the possible
segments discussed earlier.) and Give one reason for the selected target market
Students choices could be anything that makes sense but to get full marks, these should
have related to actual target market chosen and the Tana/fitness example e.g. target
males who are sports fans since they are most likely to know and admire Tana
*Some common problems

A few students chose both variables from the same segmentation base e.g. age
AND gender- even though the question specifically asked for students to choose
two different variables, each from a different segmentation base.

Some students immediately jumped to the last part of the question and said Tana
should target males etc without going through the steps asked for by the question
i.e. talk about segmenting by gender/sex and then explaining that this would lead
to two segments (males and females) of which the male segment should be
targeted.

Some students defined market segmentation (the process) instead of market
segments (the result). Others provided only one instead of both aspects of the
definition of market segments.
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