Graduate/Postgraduate Diploma in Marketing
December 2011 Examination
Essentials of Marketing
Date: 14th December 2011
Time: 1400 Hrs – 1700 Hrs
Duration: Three (03) Hrs
Total marks for this paper is 100 marks. There are three parts in this question paper. All
questions in Part One and Part Two are compulsory.
Part One includes 20 Compulsory multiple choice questions. Select the most appropriate
answer from the given choices and mark it in the given space in the answer book.
Part Two includes 06 Compulsory short answer questions.
Part Three includes 03 Questions. Answer only 02 Questions from this part.
Instructions to candidates
1
State your Registration Number on the front cover of the answer book and on each and
every additional paper attached to it. Your name must not appear anywhere in the answer
book or answer scripts.
2.
3.
Always start answering a question on a new page.
You are reminded that answers should not be written in pencil or red pen except in drawing
diagrams.
4.
Answer the questions using:
Effective arrangement and presentation
Clarity of expression
Logical and precise arguments
Clear diagrams and examples where appropriate
5. I llegible hand writing and language errors will be penalized.
Page 1 of 93
PART ONE
Read the question and select the most appropriate answer out of the four given choices.
Tick your choice in the given space in the answer booklet.
Question 01
Question 1.1
An organisation with a ______ orientation assumes that customers will resist purchasing products not
deemed essential. The job of marketers is to overcome this resistance through personal selling and
advertising.
a) Production
b) Marketing
c) Relationship
d) Sales
Question 1.2
Moral philosophies/principles that define right or wrong behaviour in marketing is known as:
a)
b)
c)
d)
Corporate Social Responsibility
Marketing Myopia
Marketing ethics
None of the above
Question 1.3
Ethical environment refers to:
a) The rules of conduct and moral principles governing the behaviour of
marketing activities.
b) Bargaining power of suppliers, bargaining power of share holders’
threats of new substitutes, bargaining power of public and bargaining
power of buyers.
c) The rules of conduct and moral principles governing the behaviour of
competitor activities.
d) Issues related to the marketer interacts with and affects the natural
environment or the ecology.
Page 2 of 93
Question 1.4
Mr. Fernando who acts as an insurance agent visited ABC Ltd., with the hope of persuading a
few members of the staff to purchase his product and was prevented by the secretary from
meeting them. In the above instance the secretary acted as:
a)
b)
c)
d)
a Buyer
a Decider
an Influencer
a Gatekeeper
Question 1.5
A student carries out a research which includes a detailed study of Consumer Trends, Lifestyles
and Purchase Habits. How would you term this type of a research?
a)
b)
c)
d)
Product Research
Market Research
Price Research
Consumer Research
Question 1.6
Target Marketing begins with a three-stage process;The first stage begins with:
a)
b)
c)
d)
Choosing which segments to target
Identifying possible positioning concepts
Identifying segmentation variables and developing profiles of those segments
Evaluating the attractiveness of each segment
Question 1.7
A company marketing coffee has identified that coffee is most often consumed in the mornings.
However, they would like to change this and make the drink acceptable during other time
periods during the day. Which form of segmentation would they need to work with and establish
a strategy reflective of their desires?
a)
b)
c)
d)
Gender Segmentation
Benefit Segmentation
Occasion Segmentation
Age and Life-cycle Segmentation
Page 3 of 93
Question 1.8
In the diffusion of innovation process the second group of new product adopters, representing
13.5% of the total market, is called:
a) Early Majority
b) Innovators
c) Laggards
d) Early Adopters
Question 1.9
ECB Ltd experiences the following with regard to one of its products:
Sales begin to decline as the market becomes saturated, and the product becomes obsolete.
Unit costs may increase and the product is a loss maker.
Identify the correct stage of the product life cycle that can be attributed to the above mentioned
product.
a)
b)
c)
d)
Growth Stage
Introduction Stage
Maturity Stage
Decline Stage
Question 1.10
At which stage of the new product development process will the organisation assess the Target
Market and all aspects of the marketing mix to be implemented:
a) Idea Generation
b) Idea Screening
c) Marketing Strategy Development
d) Test Marketing
Page 4 of 93
Question 1.11
The key requirement of extending the traditional 4 P marketing mix to 7 P extended
marketing mix is:
a) The advent of e-commerce into the marketing equation creating issues
for marketers to manage its marketing activities with the existing
marketing mix
b) The intensity of competition
c) The advent of service into the marketing equation creating issues for
marketers to mange service situations with the existing marketing mix.
d) The environmental changes created issues for marketers to manage its
marketing activities with the existing marketing mix
Question 1.12
Breakeven point is calculated as:
a)
b)
c)
d)
Total Fixed cost/Contribution per unit
Total Fixed cost/Variable cost per unit
Variable cost per unit/Contribution per unit
Profit/Contribution per unit
Question 1.13
When a truly innovative product is introduced to the market which does not have any substitutes
and which carries less price elasticity of demand, what will be the best pricing strategy a
Marketer could use?
a)
b)
c)
d)
Psychological Pricing Strategy
Market Penetration Pricing Strategy
Value based Pricing Strategy
Market Skimming Pricing Strategy
Page 5 of 93
Question 1.14
The key aspects of Physical Distribution Management are:
a) Order Processing, Warehousing, Inventory Management, and
Transportation
b) Order Processing, Quality Control, and Transportation
c) Inventory Management, Quality Control, Order Taking, and
Transportation
d) Manufacturing, Quality Control, Warehousing, and Transportation
Question 1.15
The starting point for developing an advertising campaign is:
a)
b)
c)
d)
Identifying the target market
Defining advertising objectives
Understanding the firm's marketing strategy
Setting the advertising budget
Question 1.16
The Public Relations department of XYZ group of companies communicate with a range of
‘Publics’. Which of the following would not be included in their publics:
a)
b)
c)
d)
The media
Customers, suppliers, distributors
The company employees
All of the above would be included
Page 6 of 93
Question 1.17
There are many methods available for a marketer to decide on its communication budget. The
method, where the organisation sets its budget on what it wants to accomplish with
communications is known as:
a) Affordable Method
b) Objective and Task Method
c) Competitive Parity Method
d) Percentage of Sales Method
Question 1.18
The SWOT analysis allows the marketer to gain a competitive advantage over the
competitors by the “Matching Principle”. The Matching Principle is about:
a)
b)
c)
d)
Converting weakness to threats and converting strengths into opportunities
Converting weakness to strengths and converting threats into opportunities
Converting weakness to strengths and converting opportunities into threats
None of the above
Question 1.19
Ansoff’s matrix is a strategic marketing tool used to plan for:
a)
b)
c)
d)
New Product Development
Product Life-cycle Changes
Business Growth
Product Positioning
Question 1.20
A systematic examination of a firm’s marketing g environment, objectives, strategies, and
activities, with a view to identifying key strategic issues and opportunities, is called:
a)
b)
c)
d)
Marketing Audit
Control Process
SWOT Analysis
None of the above
(1.5 Marks 20 = 30 Marks)
Page 7 of 93
PART TWO
Answer all questions
Question 2
Question 2.1
Describe the range of marketing mix elements that you could use in order to communicate with
your customers
(05 marks)
Question 2.2
In identifying the target audience for marketing communications, an image analysis plays a vital
role. Explain briefly the importance of carrying out an image analysis for this purpose.
(05 marks)
Question 2.3
Briefly explain the key stages involved in planning and developing an effective communication
campaign for your organisation.
(15 marks)
Question 2.4
One of the most frequently used communication process model is the AIDA model. Briefly
explain how marketers use this model effectively in taking the consumer through an effective
communication process in order to achieve its communication objectives.
(05 marks)
(Total 30 marks)
Page 8 of 93
PART THREE
Answer a total of 2 questions from this part
Question 3
Organisations which follow the marketing concept are said to be marketing-oriented. Marketing
orientation means being driven by customer needs. The philosophical idea underlining all
marketing thought is that corporate success comes from satisfying customer needs.
a) Explain what you understand by the term “marketing orientation” in the context of the
above statement and discuss the steps involved in establishing a marketing orientation
approach to an organisation.
(10 marks)
b) Discuss the anticipated benefits of implementing the marketing concept and identify
some of the problems/difficulties marketers may face in implementing this concept.
(10 marks)
Question 4
a) Explain the target marketing process and state why marketers tend to choose the target
marketing process as against mass marketing and mass customization.
(08 marks)
b) Identify and briefly explain a suitable set of segmentation variables/bases for segmenting
the education market in Sri Lanka and identify two potential segments that you would like to
recommend to the government to encourage private sector participation.
(12 marks)
Page 9 of 93
Question 5
a) Identify and explain briefly the 3 broad types of new product categories and list three
reasons for introducing new products.
(08 marks)
b) Explain the key stages of the New Product Development (NPD) process with relevant
examples and identify four reasons why NPD fails.
(12 marks)
-END-
Page 10 of 93
Graduate/Postgraduate Diploma in Marketing
December 2011 Examination
Understanding Consumers
Date: 19th December 2011
Time: 0900 Hrs – 1200 Hrs
Duration: Three (03) Hrs
Total marks for this paper is 100. There are three parts in this question paper. All questions
in Part One and Part Two are compulsory.
Part One includes 20 multiple choice questions. Select the best answer from the given
choices and mark it in the given space in the answer booklet.
Part Two includes six compulsory short answer questions.
Part Three includes 3 questions. Answer two questions from this part.
Instructions to candidates
1
State your Registration Number on the front cover of the answer book and on each
and every additional paper attached to it. Your name must not appear anywhere in
the answer book or answer scripts.
2
3
Always start answering a question on a new page.
You are reminded that answers should not be written in pencil or red pen except in
drawing diagrams.
4
5
Answer the questions using:
Effective arrangement and presentation
Clarity of expression
Logical and precise arguments
Clear diagrams and examples
where
appropriate
Page
11 of
93
Illegible hand writing and language errors will be penalized.
PART ONE
Answer all questions.
Mark the most suitable answer in the given space in the answer booklet.
Question 01
1. Under the cognitive view of decision making consumers are assumed to be:
a)
b)
c)
d)
Perfect rational decision makers
Information processors
Irrational purchasers
Impulsive buyers
2. Products under high involvement purchase situations can have the characteristics of:
a)
b)
c)
d)
Being very expensive but having a low perceived risk
Having serious personal consequences and reflecting on the consumer’s social image
Having very few important attributes but a high perceived risk
All of the above
3. External influences of consumer decision making process include:
a)
b)
c)
d)
Rituals
Customs
Core values
All of the above
4. Stages of consumer decision making process logically consists of the following:
a)
b)
c)
d)
Trial>>>purchase>>>post-purchase evaluation
External influences>>>consumer decision making>>>post-decision behaviour
Need recognition>>>pre-purchase searching>>>evaluation of alternatives
Input>>>process>>>output
5. When a consumer feels a brand is inferior and neglects it in a purchase situation, the brand
belongs to:
a)
b)
c)
d)
Evoked set of brands
Inert set of brands
Indifferent set of brands
Inept set of brands
Page 12 of 93
6. Groups in which a person does not hold membership; does not have face-to-face contact with
whose values, attitudes & behaviour he or she disapproves of are called:
a)
b)
c)
d)
Contractual groups
Aspirational groups
Disclaimant groups
Avoidance groups
7. When an individual perceives a stimulus that is below his or her level of conscious awareness,
this process is referred to as:
a)
b)
c)
d)
Sensation
Supraliminal perception
Subliminal perception
Just-Noticeable-Difference (JND)
8. Predispositions that make an individual’s perception different from those of others do not consist
of:
a)
b)
c)
d)
Expectations
Motives
Learning
Marketing mix elements
9. Principles of perceptual organization do not include:
a)
b)
c)
d)
Figure and ground
Grouping
Physical appearance
Closure
10. When an FMCG company introduces a new hand-wash product using its presently successful
toilet soap brand name, this situation best describes the concept of:
a)
b)
c)
d)
Physical appearance
Stereo-type
Irrelevant cues
Halo effect
11. A research technique that a marketer can use to identify the present positioning of his or her
brand in comparison to its competitors is:
a)
b)
c)
d)
Attitude surveys
Perceptual mapping
Dept interviews
Focus group interviews
Page 13 of 93
12. If you are looking for an HP lap-top computer to purchase, it is:
a)
b)
c)
d)
A generic goal
A product-specific goal
A drive
An object
13. A person’s inability to attain a goal can result in:
a)
b)
c)
d)
Negative motivation
Tension
Frustration
Disconfirmation
14. According to Herzberg’s two-factor theory of motivation job security and paid insurance are:
a)
b)
c)
d)
Motivational factors
Hygiene factors
Satisfiers
None of the above
15. The assumption that consumers always go for new products that are associated with a favourably
viewed brand name is a major idea of:
a)
b)
c)
d)
Learning theories
Classical conditioning theory
Instrumental conditioning theory
Cognitive learning theory
16. Elements of culture include:
a)
b)
c)
d)
Customs
Language and symbols
Rituals
All of the above
17. How a unique consumption phenomenon happens in a particular cultural setting can be best
understood through:
a)
b)
c)
d)
Semiotics
Ethnography
Surveys
Experiments
Page 14 of 93
18. In comparison to primary data, limitations of secondary data does not include:
a)
b)
c)
d)
Less relevance
Less accuracy
Insufficient
Less expensive
19. Qualitative research studies rely heavily on:
a)
b)
c)
d)
Random sampling techniques
Non-random sampling techniques
Stratified sampling technique
Cluster sampling technique
20. The arithmetic Mean of the following data set- 6, 3, 6, 8, 7, 2, 3, 4, 6 is:
a)
b)
c)
d)
6
8
5.5
5
(Total 30 Marks)
Page 15 of 93
PART TWO
Answer all questions.
Question 02
Adoption of Internet Banking by Sri Lankan Customers
With the recent advances, consumers have increasing access to innovative financial services
such as automated teller machines (ATMs), smart cards and computer banking. Using these
innovative features, consumers can conduct fast and conventional financial transactions and
obtain account information without visiting banks.
However, a vast majority of products and services, which were launched in previous years, has
failed at a considerable cost to those involved. In Sri Lanka also, the adoption rate of internet
banking is not adequate according to bank sources. Hence, banks need to enhance the
understanding of why some people adopt an innovation while others do not and the factors that
may influence the adoption decision which is of considerable practical value to executives of the
Sri Lankan banking sector.
2.1. If you were to carry out a study on the empirical issue above, identify two (2) possible
objectives of the study.
(05 marks)
2.2. Identify two (2) possible psychological factors that might influence the Sri Lankan
decision to adopt internet banking services.
consumer’s
(05 marks)
2.3. Based on the above identified factors, develop two (02) hypotheses in relation to the objectives
the study.
(05 marks)
of
2.4. Identify two (2) possible data sources you might use for the study with justification.
(05 marks)
2.5. Suggest your research approach to conduct the study with justification.
(05 marks)
2.6. Suggest four (4) statistical measures you would employ to analyse survey data so as to accomplish
the research objectives you set above with justifications.
(05 marks)
(Total 30 Marks)
Page 16 of 93
PART THREE
Answer a total of 2 questions from this part
Question 03
a) Explain with examples how marketers can use three (3) perceptual distortion mechanisms in
promoting their brands.
(10 marks)
b) Describe Maslow’s theory of hierarchy of needs.
Briefly explain two (2) strategic marketing applications of the theory.
(10 marks)
(Total 20 Marks)
Question 04
a) Marketers can change present attitudes of consumers using several approaches. One of
these approaches is changing the basic motivational function of consumers.
Explain with examples how marketers can change the basic motivational function of
consumers.
(10 marks)
b) Describe the term “core values” with examples.
Should marketers change core values held by their target buyers? Justify your answer.
(10 marks)
(Total 20 Marks)
Page 17 of 93
Question 05
Suppose that you are the idea manager of a large multinational operating in Sri Lanka. The
company intends to introduce a new body-wash to the local market and wants to explore
potential avenues for developing an effective appeal for its advertising campaign. For this
purpose you are required to arrange a brain-storming session in the form of a focus group
discussion.
a) Explain how you would plan this group discussion effectively.
(10 marks)
b) If you were the moderator of the above group discussion, explain your role in improving the
effectiveness of the group discussion.
(10 marks)
(Total 20 Marks)
-END-
Page 18 of 93
Graduate/Postgraduate Diploma in Marketing
December 2011 Examination
Effective Communication Skills
Date: 13th December 2011
Time: 1400 Hrs – 1700 Hrs
Duration: Three (03) Hrs
Total marks for the paper is 100. There are three parts in this question paper. All questions
in Part One and Part Two are compulsory.
Part One includes 20 multiple choice compulsory questions. Select the best answer from
the given choices and mark it in the given space in the answer booklet.
Part Two includes 6 compulsory short answer questions.
Part Three includes 3 questions. Answer two questions from this part.
Instructions to candidates
1
State your Registration Number on the front cover of the answer book and on each
and every additional paper attached to it. Your name must not appear anywhere in
the answer book or answer scripts.
2
Always start answering a question on a new page.
3
You are reminded that answers should not be written in pencil or red pen except in
drawing diagrams.
4
5
Answer the questions using:
Effective arrangement and presentation
Clarity of expression
Logical and precise arguments
Clear diagrams and examples where appropriate
Page
19will
of 93
Illegible hand writing and language
errors
be penalized.
PART ONE
Answer all questions
Mark the most suitable answer in the given space in the answer booklet
Question 1
1. 1
The list of illustration should contain the following;
a)
b)
c)
d)
1.2
The book of “Hidden Dimensions” is written by;
a)
b)
c)
d)
1.3
Four
Five
Six
Seven
One of the following is NOT a problem of the speaker, when the presentation is not
going as planned;
a)
b)
c)
d)
1.5
Thomas Edison
Gary Barnett
Edward Hall
Thomas Edison and Edward Hall both
Attitude could be built using ………….. technique.
a)
b)
c)
d)
1.4
Figure
Table number
Titles & page numbers
All of the above
Attendance of expected people
Visual equipment failures
Visual aid problem
Unexpected Interruption
Chronological Resume means;
a)
b)
c)
d)
Listing all experience from least to most
Listing all experience in skills cluster
Listing all experience from most to least
None of the following
Page 20 of 93
1.6
One of the following is behaviour of the Hippo;
a)
b)
c)
d)
1.7
One of the following is NOT a Reduce Resistance;
a)
b)
c)
d)
1.8
Pronoun
Preposition
Correlative Connection
All of the above
“Pitch Variation” means;
a)
b)
c)
d)
1.11
To inform or to persuade
To convince or to create need
To inform and present
None of the above
In a sentence a noun or a pronoun is known as;
a)
b)
c)
d)
e)
1.10
Trial offer
Free samples
Money back guarantee
Save money
There are two major goals in business presentation;
a)
b)
c)
d)
1.9
Aggressive and inflexible
Liable to run away
Intelligent but could not plod on for ever
Half a sleep most of the time
The speed at which you speak at a presentation
Gradually decreasing your voice
Highness or lowness of the voice
Maintaining different tones
When preparing a report it is important that you should define unfamiliar words and
words with specific meaning. This is known as;
a)
b)
c)
d)
Definition of Key Terms
Literature Review
Sources and Methods
All of the above
Page 21 of 93
1.12
One of the following is NOT a classification of nonverbal communication;
a)
b)
c)
d)
1.13
Horseshoe seating arrangement style means;
a)
b)
c)
d)
1.14
Justification Report
Feasibility Report
Informative Reports
Annual Report
One of the following is the best definition of “Tone” in communication;
a)
b)
c)
d)
1.17
Charts & Graphs
Photographs
Drawings & Maps
All of the above
One of the following audited documents which are issued annually by all public listed
companies to their shareholders in accordance with SEC regulations is known as;
a)
b)
c)
d)
1.16
According to the hall
Square arrangement
U-shape arrangement
Round setup
What are the common types of visual aids that are used?
a)
b)
c)
d)
1.15
Gestures and Posture
Appearance
Attendance
All of the above
When someone speaks loud
An impression that you create when communicating
An impression you create in your listener
An impression that you create in your reader
Pronouns are;
a)
b)
c)
d)
This, that & these
Who & whom
He, she & it
All of the above
Page 22 of 93
1.18
One of the following is a key heading which is listed first in a combination resume;
a)
b)
c)
d)
1.19
Education & Qualification
Names & Address
Skills & Experience
Experience & Referees
Distortion occurs due to one of the following;
a)
b)
c)
d)
e)
If your voice is raised
If the tone is high
If Jargon is used
a and b are correct
1.20 Who gives more priority to the quality than to the colour when choosing a product?
a)
b)
c)
d)
Colour Backward
Colour Loyal
Colour Prudent
Colour Forward
(Total 30 Marks)
Page 23 of 93
PART TWO
Answer all questions
Question 2
2.1
Briefly explain what is meant by “Paralanguage”.
(05 marks)
2.2
Describe how “Word Processing” works and list its basic functionalities.
(05 marks)
2.3
Illustrate the use of “Memos” with a few examples.
(05 marks)
2.4
List the types of selection of participants for a meeting.
(05 marks)
2.5
Briefly explain the Resume and three types of Job Hunters in point form.
(05 marks)
2.6
Write down the six key points when writing the Executive Summary.
(05 marks)
(Total 30 Marks)
Page 24 of 93
PART THREE
Answer TWO questions from this part
Question 3
a) Briefly explain the word “Acronym” with a few examples and explain its disadvantages.
(Total 20 Marks)
Question 4
a) What are the key pieces of information included in a good agenda.
b) Draw up a agenda using the above key criteria.
(Total 20 Marks)
Question 5
a)
Write a professional Cover Letter taking into consideration all key factors of a Cover
Letter Format of your choice.
(Total 20 Marks)
(Total 40 Marks)
-END-
Page 25 of 93
Graduate/Postgraduate Diploma in Marketing
December 2011 Examination
Economics and Legal Concepts for Marketing
Part One – Economics
Date: 21st December 2011
Time: 0900 Hrs – 1100 Hrs
PART ONE
Duration: Two (02) Hrs
Total marks for this paper is 100 marks. There are three parts in this question
paper. All questions in Part One and Part Two are compulsory.
Part One includes
Compulsory multiple choice questions. Select the most
appropriate answer from the given choices and mark it in the given space in the
answer book.
Part Two includes 06 Compulsory short answer questions.
Part Three includes 03 Questions. Answer only 02 Question from this part.
Instructions to candidates
1
State your Registration Number on the front cover of the answer book and on each and
every additional paper attached to it. Your name must not appear anywhere in the
answer book or answer scripts.
2
3
Always start answering a question on a new page.
You are reminded that answers should not be written in pencil or red pen except in
drawing diagrams.
4
5
Answer the questions using:
Effective arrangement and presentation
Clarity of expression
Logical and precise arguments
Clear diagrams and examples where appropriate
Illegible hand writing and language errors will be penalized.
Page 26 of 93
Answer all questions and mark the most suitable answer in the given space
in the answer booklet.
Question 1
Question 1.1
Scarcity exists in every society because there are:
a) limited wants and abundant resources.
b) limited resources and unlimited production capabilities.
c) limited resources and unlimited wants.
d) limited production capabilities and an unlimited quantity of economic resources.
Question 1.2
The Production Possibility Frontier depicts:
a) the maximum amount of alternative combinations of two goods that an economy can produce at a
point in time.
b) the limited amount of resources that an economy has at a point in time.
c) the alternative combination of capital and labour inputs used in producing goods and services
over time.
d) the economy’s employment level at a point in time.
Question 1.3
The intersection of a market demand curve and a market supply curve for a commodity
determines:
a) the equilibrium price for the commodity.
b) the equilibrium quantity for the commodity.
c) the point of neither surplus nor shortage for the commodity.
d) all of the above.
Question 1.4
Which of the following statements is not true when price is above the equilibrium price?
a) There is a shortage of the commodity.
b) The quantity supplied exceeds the quantity demanded of the commodity.
c) The pressure on the commodity price is downward.
d) There is a surplus of the commodity.
Page 27 of 93
Question 1.5
Supply is initiated by:
a) customers with the intention of maximising profit.
b) suppliers with the intention of maximising profit.
c) customers with the intention of maximising utility.
d) suppliers with the intention of maximising utility.
Question 1.6
The demand curve is downward sloping due to:
a) income effect.
b) income and substitution effect.
c) substitution effect.
d) consumption effect.
Question 1.7
Perfect inelastic demand indicates:
a) a horizontal curve showing different quantities demanded at a constant price.
b) an upright curve showing quantity changes little with a large movement in price.
c) a vertical curve showing a constant quantity demanded at different prices.
d) a flatter curve showing a large decrease in quantity demanded with a small increase in price.
Question 1.8
The value of perfectly inelastic supply:
a) is equal to zero.
b) ranges between 0 – 1.
c) reports infinity.
d) is equal to 1.
Question 1.9
Average revenue is equal to:
a) unit selling price multiplied by total output sold.
b) total output sold divided by total revenue.
c) total revenue divided by unit selling price.
d) total revenue divided by total output sold in units.
Page 28 of 93
Question 1.10
Monopoly is a market stricture in which:
a) there are many buyers and sellers.
b) there is only one producer/seller for a product.
c) there are only few firms that make up an industry.
d) there are no entry barriers to the market.
Question 1.11
All of the following are characteristics of the Oligopoly Market, except:
a) interdependency.
b) no entry barriers.
c) collective pricing decisions.
d) fewer number of large scale firms.
Question 1.12
Total utility is:
a) the amount of satisfaction that a consumer derives by consuming a commodity.
b) the utility gained through the change in the form of the commodity.
c) the aggregate sum of satisfaction that an individual gains by consuming a given amount of goods
and services.
d) the utility gained through the product consumed at the right time.
Question 1.13
Output method of National Income calculates:
a) the gross domestic expenditure based on major expenses.
b) the gross domestic income based on national income figures.
c) the money value of all final goods and services produced in an economy.
d) the cost of all final goods and services produced in an economy
Page 29 of 93
Question 1.14
In the Two Sector Economy of national income, accounting leakages happen through:
a) taxes.
b) imports.
c) taxes and imports.
d) savings.
Question 1.15
The degree to which the quantity supplied changes according to a change in any
determinant of supply is identified as:
a) elasticity of demand.
b) elasticity of supply.
c) price elasticity of supply.
d) elasticity of income.
Question 1.16
Deflation can be identified when:
a) the general level of prices is increasing.
b) the inflation of a country exceeds 10%.
c) the general level of prices is falling.
d) there is a rapid devaluation of currency.
Question 1.17
Cost-push inflation exists when:
a) consumers use their market power to push up prices.
b) resource owners use their market power to push up prices.
c) potential output is growing faster than real GDP.
d) real GDP is increasing faster than potential GDP.
Question 1.18
The Concept of Comparative Advantage was initially introduced by:
a) Adam Smith.
b) David Ricardo.
c) Alfred Marshall
d) John Maynard Keynes.
Page 30 of 93
Question 1.19
Floating exchange rate is set by:
a) the government by tying official exchange rate to another country’s currency.
b) the central bank according to supply and demand of a particular currency.
c) the monetary authority of a particular government.
d) the foreign exchange market through supply and demand of a particular currency relative to other
currencies.
Question 1.20
With each additional increase in consumption of a good, marginal utility usually
a) remains constant.
b) decreases.
c) increases.
d) exceeds total utility.
(Total 30 Marks)
Page 31 of 93
PART TWO
Answer all questions
Question 2
Question 2.1
Explain the importance of understanding the Determinants of Demand in marketing
decision-making.
(5 Marks)
Question 2.2
What are the three methods of calculating the national income of a country?
(5 Marks)
Question 2.3
Briefly explain the concepts of Inflation, Deflation and Hyperinflation.
(5 Marks)
Question 2.4
What do you mean by Income Elasticity of Demand?
goods and inferior goods.
Distinguish between normal
(5 Marks)
Question 2.5
Define Monopolistic Competitive Market Structure and list its three characteristics.
(5 Marks)
Question 2.6
Explain Average Propensity to Consume (APC) and Marginal Propensity to Consume
(MPC).
(5 Marks)
(Total 30 Marks)
Page 32 of 93
PART THREE
Answer only TWO (02) questions from this part
Question 3
Define International Trade. Discuss the importance of engaging in International Trade
for firms.
(20 Marks)
Question 4
Define Economies and Diseconomies of Scale. Discuss main types of Economies of
Scale referring to internal and external economies of scale.
(20 Marks)
Question 5
Define Fiscal Policy. Explain Expansionary and Contractionary Fiscal Policies and their
effect on the government budget.
(20 Marks)
(Total of 40 Marks)
-
END -
Page 33 of 93
Graduate/Postgraduate Diploma in Marketing
December 2011 Examination
Economics and Legal Concepts for Marketing
Part Two - Legal
Date: 21st December 2011
Time: 1100 Hrs – 1200 Hrs
Duration: One (01) Hrs
Total marks for this paper is 100 marks. There are three parts in this question
paper. All questions in Part One and Part Two are compulsory.
Part One includes 10 Compulsory multiple choice questions. Select the most
appropriate answer from the given choices and mark it in the given space in the
answer book.
Part Two includes 06 Compulsory short answer questions.
Part Three includes 03 Questions. Answer only 01 Question from this part.
Instructions to candidates
1
State your Registration Number on the front cover of the answer book and on each
and every additional paper attached to it. Your name must not appear anywhere in
the answer book or answer scripts.
2
3
Always start answering a question on a new page.
You are reminded that answers should not be written in pencil or red pen except in
drawing diagrams.
4
5
Answer the questions using:
Effective arrangement and presentation
Clarity of expression
Logical and precise arguments
Clear diagrams and examples where appropriate
Illegible hand writing and language errors will be penalized.
Page 34 of 93
PART ONE
Answer all questions.
Mark the most suitable answer in the given space in the answer booklet.
1.
Which of the following is not the legal requirement of a valid acceptance?
a.
b.
c.
d.
It must be communicated.
It must be absolute and unconditional.
It must be presumed from silence if not communicated within the specified time.
It must be accepted by a person who has the authority to accept.
2.
Amal lost his dog. He sent his servant to search for the dog. When Amal did not
hear about the lost dog, he advertised a reward of Rs. 10,000 to any person who
found the
lost dog and returned it to Amal. The servant found the lost dog and
returned the lost
dog to
Amal. When the servant came to know about the
reward of Rs 10,000 he claimed the reward from Amal. Can he claim the reward.
a.
b.
c.
e.
He cannot claim the reward since the offer was not communicated to him.
He can claim the reward since there is a valid contract between Amal and the
He cannot claim the reward because he is the servant of Amal
He can claim the reward since he found the lost dog.
servant.
3.
Peter leads Deepal erroneously to believe that 100 tons of indigo are made
annually at Peter’s factory. Deepal examines the accounts of the factory and finds that
only 50 tons of indigo have been made. Afterwards, Deepal buys the factory. Deepal
now wants to
avoid the contract.
a. Deepal can avoid the contract because it is based on misrepresentation.
b. Deepal can avoid the contract because it is based on fraud.
c. Deepal cannot avoid the contract because he had duly affirmed the contract even
after knowledge of misrepresentation.
d. Deepal can avoid the contract because it is a void contract.
4.
Of the following which is the incorrect statement?
a.
b.
c.
d.
Ordinary damages are recoverable.
Special damages are recoverable only if the parties knew about them.
Remote damages are not recoverable.
None of these statements is correct.
Page 35 of 93
5.
Samantha fraudulently represented to Star Jewelers Shop that she was the wife
of the famous politician John and thus obtained a valuable gold necklace worth Rs.
100,000 on credit. But she did not pay money. She subsequently sold the necklace to
Shane,
another jeweler for Rs. 75,000.
a.
b.
c.
d.
6.
The contract between Samantha and Star Jewelers was a voidable contract.
The contract between Samantha and Star Jewelers was based on a unilateral
mistake.
Star jewelers cannot get the necklace from Shane.
All the above answers are correct.
Legally, a contract of sale includes:
a.
b.
c.
d.
Sale
Agreement to sell
Barter
Both a and b
7.
B selects certain furniture in a shop. The price is settled. He arranges to take
delivery of the furniture the next day through his driver and agrees to pay for the
furniture on the
first of the next month. The furniture was destroyed by fire on the
same evening. Is B liable to pay the price?
a.
b.
c.
d.
8.
Which of the following statement is not true?
a.
b.
c.
d.
e.
9.
B is not liable to pay the price because at the time of fire it was at the furniture
shop.
B is not liable to pay the price because he has not paid money for the furniture.
B is liable to pay the price because ownership of furniture has passed to him.
None of these.
An agent
An agent
An agent
An agent
should conduct business according to his principal’s instructions.
is liable to account for any secret profit made by him.
is not liable for many misinformation given to the principal.
should not deal on his own account.
An endorsement made by an endorser by signing his name and also by writing
the name of the endorsee is known as:
a.
b.
c.
d.
General endorsement
Special endorsement
Restrictive endorsement
None of these.
Page 36 of 93
10.
Which statement is incorrect regarding inventions?
a.
An invention is an idea of an inventor which permits in practice the solution to a specific
problem.
b.
An invention is related to a product or process.
c.
Inventions such as discoveries, scientific theories and mathematical methods
shall be
patentable.
d.
Inventions such as schemes, methods of doing business shall not be patentable.
(4 marks x 10)
Total of 40 marks.
Page 37 of 93
PART TWO
Answer all questions.
Question 02
a. What are the various methods of termination of an offer?
(10 marks)
b. To get registration of a trade mark what type of information need to be provided to the Director
General?
(10 marks)
c.
State briefly the duties and of an agent.
(10 marks)
(30 Marks)
Page 38 of 93
PART THREE
Answer one question from this part.
Question 03
a.
Define goods and explain how goods are classified.
(15 marks)
b.
Explain briefly the implied conditions in a sale of goods contract.
(15 marks)
(30 Marks)
Question 04
a.
What do you understand by the doctrine of frustration of contracts?
(15 marks)
b.
Define the term “capacity to contract”. State the law relating to the competence of the
parties, giving suitable examples.
(15 marks)
(30 Marks)
Question 05
a.
What are the main differences between bill of exchange and cheque?
(15 marks)
b.
Explain clearly the term “Negotiation.” What are the different modes of
negotiation?
(15 marks)
(30 Marks)
-END-
Page 39 of 93
Graduate/Postgraduate Diploma in Marketing
December 2011 Examination
Brand Management
th
Date: 20 December 2011
Time: 0900 Hrs – 1200 Hrs
Duration: Three (03) Hrs
There are two parts in this question paper.
All questions in Part One are compulsory. It includes a mini case.
Part Two includes 6 questions divided into three sections. Select one question at least from
each section and answer 3 questions from Part Two.
Instructions to candidates
1
State your Registration Number on the front cover of the answer book and on each
and every additional paper attached to it. Your name must not appear anywhere in
the answer book or answer scripts.
2
Always start answering a question on a new page
3
You are reminded that answers should not be written in pencil or red pen except in
drawing diagrams.
4
Answer the questions using:
Effective arrangement and presentation
Clarity of expression
Logical and precise arguments
Clear diagrams and examples where appropriate
5
Illegible hand writing and language errors will be penalized
Page 40 of 93
PART ONE
Answer all questions
Question 1
Case study
Air Lanka to SriLankan: Just a rebrand or beginning of new era
30 years ago Air Ceylon a state owned civil aviation entity converted into a dynamic new
venture with better international presence and new partnerships. The country’s commercial
aviation industry began a new era with this venture. Having tied up with Singapore airlines, one
of the world’s best airlines for technical and management partnership, with the dawn of the open
economy, tourism boom and new globalised conditions, the Air Lanka brand grew from its
regional presence to a global presence. Air Lanka was able to build it brand within the aviation
industry as one of the friendliest in the world. Their success was a hallmark of the familiar
hospitality and friendliness of Sri Lankans.
However, by the beginning of the 90’s the airline faced major financial losses due to the
problems in the global aviation industry. Also certain management mishaps and difficulties faced
by the bureaucratic structure they had maintained due to government ownership may have also
contributed to this. Air Lanka brand faced major criticism for frequent delays of their flights.
Operational difficulties and aging fleet situations within this time period also tarnished the brand
name to a great extent. This resulted in the dramatic decision of privatising the national airline in
1994.
After privatisation, the Dubai based aviation giant Emirates airlines became the management
partner of the airline. They were involved in a rapid revamping process of infrastructure
development and procurement of new aircraft. The most prominent change they made was
rebranding Air Lanka as SriLankan. Along with the name change, logos, colours and all other
branding aspects were changed. The Global presence of the airline was reinstated with new
destinations and dynamic features comparable with other international giants.
The airline won many accolades and recognition internationally. Within the 12 years of
partnership with Emirates, SriLankan was able to achieve a level of infrastructure development
despite the terrorist attacks and other challenges it faced. Yet the airline was not able to make
major profits within this period due to global and local socioeconomic and political scenarios.
Also major criticism was aimed at Emirates about restricting Sri Lankan to its regional base and
keeping it as a feeder for Dubai.
In 2010 SriLankan airline’s management was again taken over by the government of Sri Lanka
by buying back the shares from Emirates. This became a new era again for the airline. There
was some speculation that SriLankan may change its name to AirLanka, but the government
decided to keep the name.
Page 41 of 93
I.
Consider yourself as the newly appointed brand manager of Sri Lankan Airlines. Analyse
the brand position for SriLankan airlines covering the following areas:
a. Brand features and benefits
b. Brand personality
c. Brand value and vision
(20 marks)
II.
“The name ‘SriLankan’ is better than the name ‘Air Lanka’ for a commercial airline
brand”. Critically evaluate this statement using your knowledge of brand management.
(20 marks)
(Total 40 marks)
Page 42 of 93
PART TWO
Answer three questions selecting at least one from each section
Section A
Question 2
I.
“Consumers’ perceived risk can be reduced by brands.” with your knowledge of
branding, explain how a brand will reduce the main risks of the consumers
(10 marks)
II.
Using an appropriate example explain the concept of brand positioning and how a
particular brand is positioned among customers.
(10 marks)
(Total 20 marks)
Question 3
I.
Naming is a prerequisite in the process of converting a commodity into a brand. But
naming itself needs to fulfill certain basic criteria to make the brand name prominent
and sustainable in the future. Identify at least three (03) main criteria that need to be
considered when naming a brand with relevant examples for the effective use of
each criteria.
(10 marks)
II.
“The symbolic meaning of brand is important to gain a competitive advantage”
Describe this statement with your brand management knowledge.
(10 marks)
(Total 20 marks)
Page 43 of 93
Section B
Question 4
I.
Using an appropriate example, explain how brand personality is important in building
a brand relationship.
(10 marks)
II.
Some companies build brands while others buy them. What are the main
considerations of the decision to building or buying brands?
(10 marks)
(Total 20 marks)
Question 5
I.
Explain the difference between brand extension and brand stretching with relevant
examples.
(10 marks)
II.
Value added brand is used by organisations to gain a competitive advantage.
Explain value added brands and how they give a competitive advantage with
relevant examples
(10 marks)
(Total 20 marks)
Page 44 of 93
Section
C
Question 6
I.
Write short notes on following
a. Brand vision
b. Brand identity prism of Kapferers
(10 marks)
II.
“Customers purchase a brand to solve their problems (physical as well as
and psychological)” Explain this statement using your knowledge of
socio
consumer
buying process and branding.
(10 marks)
(Total 20 marks)
Question 7
I.
Explain different phases of brand life cycle and strategies to manage brands in each
phase.
(10 marks)
II.
What is “Brand Audit”? Explain.
(10 marks)
(Total 20 marks)
Page 45 of 93
Graduate/Postgraduate Diploma in Marketing
December 2011 Examination
Distribution Management
Date: 15th December 2011
Time: 0900 Hrs – 1200 Hrs
Duration: Three (03) Hrs
Total marks for this paper is 100. There are two parts in this question paper
All questions in Part One are compulsory. It includes a mini case.
Part Two includes 6 questions divided into three sections. Select one question at least from
each section and answer 3 questions from Part Two.
Instructions to candidates
6
State your Registration Number on the front cover of the answer book and on each
and every additional paper attached to it. Your name must not appear anywhere in
the answer book or answer scripts.
7
Always start answering a question on a new page
8
You are reminded that answers should not be written in pencil or red pen except in
drawing diagrams.
9
Answer the questions using:
Effective arrangement and presentation
Clarity of expression
Logical and precise arguments
Clear diagrams and examples where appropriate
10
Illegible hand writing and language errors will be penalized
Page 46 of 93
Part one
Answer all questions
Question 01
International Education
The demand for international education and qualifications continue to grow in Sri Lanka. An
increasing number of UK institutions see Sri Lanka as a significant market, as they seek to
diversify. They are also establishing more courses jointly run with Sri Lankan institutions incountry, and / or promoting distance or open learning methods. Increasing numbers of students
and professionals take examinations which give them international recognition.
An increase in demand for International School Leaving Qualifications has also occurred,
despite high fees. Although the majority of families do not have the resources to fund an
international education, there is a growing disillusion with the options the state offers. Hence
those with funds are looking for alternatives. Of even more significance, a growing number of
Sinhala (the mother tongue of the majority of people of Sri Lanka) medium private schools are
now offering British A-levels as an option, and the uptake is high. (Note: to be admitted to
universities in Sri Lanka, students must sit for the Sri Lankan A-Levels. International schools do
not offer their students the option of taking Sri Lankan A-levels.) In 2009, Sri Lankan private
schools (national and international) were producing around 2,500 candidates with good British
A-levels results. Some of these students have the desire and the financial resources to pursue
higher education at a degree or diploma level.
There is also demand for postgraduate studies in research fields. Graduate output from Sri
Lankan universities for the year 2008 was 11,941 (first degree) and 2,708 (postgraduate). Out of
these, there has been a considerable increase in the percentage of graduates with a preference
for research programmes in the fields of Bio-Technology, Pharmacology and Molecular Biology.
In addition, the University of Colombo has introduced new undergraduate courses in
Pharmacology and Bio-chemistry. However, there are no postgraduate courses in these fields,
and as a result there is further demand for research programmes abroad. MBAs have become
very popular with professionals, but they generally opt for distance learning / affiliated courses,
due to the time factor.
Page 47 of 93
Our Infrastructure and Strategic Education Priorities:
Sri Lanka is not an “Education UK Partnership” country. We have to generate funds to deliver
our events according to the expected standards. We encourage UK based institutions to build
more links with local colleges and provide affiliated courses in Sri Lanka.
1.1)
You have been appointed as the head of recruitment of prospective students by this
newly established educational institute. You are to brief the management about ‘the
concept of recruitment as a marketing function’. Your answer should discuss the
personal selling function based on the marketing mix. Use diagrams to explain your
answer.
(20 Marks)
1.2)
Write a report to the management explaining “What is personal selling?.” Your report
should explain why personal selling should be done, the type of personal selling required
and the qualities of a good salesperson.
(20 Marks)
(Total 40 Marks)
Page 48 of 93
PART TWO
Answer a total of 3 questions selecting at least one from each section
Section A
Question 2
a) You have recruited a few sales people. You have to submit a proposal for their training
to the management. You need to explain to the management the following:
Why it is necessary to train salesmen; how the sales training process is planned; and the
obstacles you face in doing this.
(10 Marks)
b) Explain how your sales training program would be designed. Explain the contents of a
sales training programme.
(10 Marks)
(Total 20 Marks)
Question 3
a) It is said good territory management will help an organisation to gain many benefits.
Explain at least four benefits good territory alignment management could bring to an
organisation.
(10 Marks)
b) Explain what you understand by the ‘seven step procedure’ of redistricting territory
management.
(10 Marks)
(Total 20 Marks)
Page 49 of 93
Section B
Question 4
a) Transportation has a very significant effect on the overall organisation’s cost. Explain the
available transportation methods to a firm.
(10 Marks)
b) Explain how a firm could select the best transport method that suits its distribution.
(10 Marks)
(Total 20 Marks)
Question 5
a) Repeated research has indicated the ‘longer the customers remain with a firm the
greater the profits’. Explain the four factors that is said to be generating incremental
profits over a period of time.
(10 Marks)
b) Explain the three parts of the application architecture of CRM.
(10 Marks)
(Total 20 Marks)
Page 50 of 93
Section C
Question 06
a) The world has seen an accelerated trend in the growth of services. How would you
understand the term customer service excellence? Explain it through your experiences.
(10 marks)
b) Explain these two terms ‘understanding the customer’ and ‘ helping the customer’
(10 marks)
(Total 20 Marks)
Question 07
a) Explain the six customer focus skills which are effective for better and more effective
customer focused selling.
(10 Marks)
b) Explain what you understand by customer focus prospecting
(10 Marks)
(Total 20 Marks)
-END-
Page 51 of 93
Graduate/Postgraduate Diploma in Marketing
December 2011 Examination
Promotional Practice
Date: 13th December 2011
Time: 0900 Hrs – 1200 Hrs
Duration: Three (03) Hrs
Total marks for this paper is 100. There are two parts in this question paper.
All questions in Part One are compulsory. It includes a mini case.
Part Two includes 6 questions. Select at least one question from each section and answer
3 questions from this part.
Instructions to candidates
1
State your Registration Number on the front cover of the answer book and on each
and every additional paper attached to it. Your name must not appear anywhere in
the answer book or answer scripts.
2
Always start answering a question on a new page.
3
You are reminded that answers should not be written in pencil or red pen except in
drawing diagrams.
4
5
Answer the questions using:
Effective arrangement and presentation
Clarity of expression
Logical and precise arguments
Clear diagrams and examples where appropriate
Illegible hand writing and language errors will be penalized.
Page 52 of 93
PART ONE
Answer all questions
Question 01: Case Study
Sri Lankan candy maker comes back into business
In November, 2008 Sri Lankan chocolate maker Dana says it will resume production and start
an aggressive marketing campaign to clear their name after winning a court battle over a
melamine contamination scare.
On November 21, Colombo High Court gave the firm the go ahead after using fresh samples
taken by the government analyst. Dana says the company will start its distribution activities as
soon as possible.
"Since we have the whole melamine matter behind us now, we’ll be aggressively starting our
campaign in December," says the head of marketing at Dana Chocolates.
The issue started with reports from China of infant formula contaminated with melamine. Due to
a milk powder shortage experienced in the country, Dana says it decided to import 51 metric
tonnes of milk powder from China in August which was investigated by the Health Ministry in
late September for melamine contamination.
The first cases of melamine were detected in mainland China in infant milk formula in mid-July
2008 after four infants had died of kidney damage. It was estimated that around 50,000 more
people were sick after consuming Chines milk.
The company says it lost 250 million rupees of sales a month during a court order which
suspended their activities. The chocolate manufacturer with a 56 year history claims it had a 41
percent market share before the melamine scare hit.
There was also a malicious e-mail campaign against Dana Chocolates by an unknown
competitor. "One of our competitors used their sales representatives to distribute the emails to
retail shops," says the head of marketing.
Page 53 of 93
Despite the Health Ministry's clearance, the CAA had sought a court order on October 13, to
completely stop the manufacturing and distribution of Dana chocolates.
However, one of the samples submitted by the CAA on October 21 to research lab ALS
Singapore, had indicated Dana chocolates contained 1.5 parts per million (ppm) levels of
melamine which is well below the World Health Organization and Food and Drug Administration
established tolerance limits of 2.5 parts per million for melamine.
Dana had sent samples from the same batch of milk powder to ALS Labs and HAS Labs
Singapore to double check, which cleared the products.
1.1)
Dana will use PR to minimise the negative effects of the situation. Explain if Dana should
use a PR consultancy firm or do PR in-house.
(5 marks)
1.2)
Explain how 3 PR tools can be used by Dana to eliminate the bad image created and
recapture the market share.
(15 marks)
1.3)
Dana will have to communicate with different stakeholders in order to minimise the
effects of negative publicity and re-build trust. Identify 5 stakeholders Dana will have to
tackle and how each stakeholder group can be tackled through PR activities.
(20 marks)
(Total 40 Marks)
Page 54 of 93
PART TWO
Answer one question from each section
Section A
Question 02
a) Briefly explain two main advantages of using Television for advertising.
(6 marks)
a) Explain the 4 types of message strategies, Cognitive, Affective, Conative and Brand with
the help of local and international examples.
(10 marks)
(Total 16 Marks)
Question 03
a) Explain what is meant by merchandising and identify some popular merchandising tools.
(6 marks)
b) Your company has decided to conduct sales promotions for your company’s brand of
shampoo, in order to defend market share. Explain with examples, 3 consumer
promotions and 3 trade promotions your company should conduct.
(10 marks)
(Total 16 Marks)
Page 55 of 93
Section B
Question 04
a) List 5 objectives of direct marketing.
(5 marks)
b) List 5 types of online advertising and promotions.
(5 marks)
c) Your company has decided to use catalogues to promote a range of cosmetics. Explain
how you will handle the creative process, prepress stage and post printing activities
when printing the catalogues.
(12 marks)
(Total 22 Marks)
Question 05
a) You are responsible for designing an appropriate packaging for a children’s flavoured
liquid milk your company is launching. Explain any three elements of packaging and how
you will design each element for this product.
(10 marks)
b) What’s meant by green packaging? Explain 3 ways a company can engage in green
packaging, with examples.
(12 marks)
(Total 22 Marks)
Page 56 of 93
Section C
Question 06
a) Differentiate between Advertising and PR with examples.
(10 marks)
b) You are planning a promotional event for your company. Explain the 5 stages of the
event management process.
(12 marks)
(Total 22 Marks)
Question 07
a) List the 5 stages of the Innovation Adoption Model.
(5 marks)
b) List 5 types of outdoor advertising and 5 reasons why outdoor advertising is becoming
popular.
(5 marks)
c) Your company is planning an advertising campaign for a washing powder brand. Explain
2 elements you will consider when deciding on your promotional budget and 3 methods
you could use to set your promotional budget.
(12 marks)
(Total 22 Marks)
-ENDPage 57 of 93
Graduate/Postgraduate Diploma in Marketing
December 2011 Examination
Finance for Marketing
Date: 14th December 2011
Time: 0900 Hrs – 1200 Hrs
Duration: Three (03) Hrs
Total marks for this paper is 100 marks. There are two parts in this question paper.
All questions in part one are compulsory. It includes a mini case.
Part two has 3 sections. Each section has 2 questions. Select at least one question from
each section and answer 3 questions from part two.
Instructions to candidates
1
State your Registration Number on the front cover of the answer book and on each
and every additional paper attached to it. Your name must not appear anywhere in
the answer book or answer scripts.
2
Always start answering a question on a new page.
3
You are reminded that answers should not be written in pencil or red pen except in
drawing diagrams.
4
5
Answer the questions using:
Effective arrangement and presentation
Clarity of expression
Logical and precise arguments
Clear diagrams and examples where appropriate
Page 58 of 93
Illegible hand writing and language errors will be penalized.
Part One
Answer all the questions
Question 01
SS Packaging is a company engaged in the production of packing materials and they sell their
products mainly to corporate customers. The managing director (the owner) of this company
was recently appointed as chairman of two leading institutes. Since he has more
responsibilities, re appointed a CEO for this company to manage the entire operations of the
company. The CEO needs to evaluate the performance of the company to take remedial
measures.
SS Packaging Ltd
Balance sheet as at 31st March 2011
Fixed assets
2011
Rs
5,164,000
Current assets
Stocks
Debtors
Cash at Bank
Total current assets
Creditors falling due within one year
Creditors
Taxation
TR loans
Dividend payable
Total Current liabilities
2010
Rs
4,979,000
341,926
320,313
13,719
675,958
352,250
342,109
16,907
711,266
45,230
27,185
600,000
13,983
686,398
40,494
23,875
500,000
8,284
572,653
Net current assets
5,153,560
Creditors falling due after more than one year
10% Debenture
2,000,000
5,117,613
3,153,560
3,117,613
3,000,000
153,560
3,153,560
3,000,000
117,613
3,117,613
Capital & reserves
Capital 10/-each
Accumulated profit
Page 59 of 93
2,000,000
SS Packaging Ltd
Profit & loss for the year ended 31st March 2011
2011
Rs
6,339,000
2010
Rs
4,252,000
Cost of sale
Gross profit
Other operating
expenses
4,012,382
2,326,618
1,938,156
2,626,400
1,625,600
1,253,220
Operating profit
388,462
372,380
Interest
260,000
250,000
Profit after interest
Tax on profit
Profit before dividend
Dividend
128,462
65,815
62,647
26,700
122,380
53,057
69,323
17,250
Profit for the year
Profit b/f
35,947
117,613
52,073
65,540
Profit c/f
153,560
117,613
Net sales
Page 60 of 93
Additional information
Industry averages
i.
Gross profit
38%
Net Profit
3%
Earnings per share
Rs.0.25 per share
Current ratio
2:1
Acid test ratio
1.1:1
Return on capital employed
8%
Dividend cover
5 times
Stock turnover
12 times
Debtor’s collection period
30 days
Gearing ratio
30%
Credit sales are 90% of the total sales. The debtors and stocks for the year 2009 are
Rs.352, 842 and Rs.341, 820 respectively.
ii.
Assume that there are 365 days in the year.
Further, it was decided by the CEO to start a project for launching a product
investing Rs.4 million. There are 3 projects called Pra, Qua, Rai proposed by one of
the senior managers. Cost of capital of the company is 15%. There is no scrap value
at the end of each project.
Project
Pra (Rs.000)
Qua (Rs.000)
Rai (Rs.000)
Investment - Year 0
-4000
-4000
-4000
Year 1
1400
900
1200
Year 2
1300
1000
1300
Year 3
1100
1100
1200
Year 4
1300
1000
1200
Year 5
1300
1200
1300
Year 6
0
1200
0
Net cash flow
Page 61 of 93
DCF at 15% is as follows:
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
0.87
0.76
0.66
0.57
0.5
0.43
1.1. Conduct a ratio analysis for the company.
(Marks 15)
1.2 The CEO was requested to explain the performance of the company categorising them into;
•
Liquidity (current ratio, acid test)
•
Profitability (gross profit ratio, net profit ratio, earning per share)
•
Shareholder interest (Earnings per share, Return on capital employed, and Dividend
cover) Ratios relevant to internal management (stock turnover, debtor’s collection,
gearing ratio)
(Marks 8)
1.3. The liquidity of a company is the inter relationship between current assets and current
liabilities. Explain as to why it is important to have a good working capital management.
(Marks 3)
1.4. Based on the above information, calculate the following for each project;
1.4.1. Payback Period
1.4.2 .Accounting Rate of Return
1.4.3. Net Present Value
1.4.4. The project that is more feasible
(Marks14)
Page 62 of 93
Part Two
Answer three questions selecting at least one from each section
Section A
Question 02
Havana, a Bicycle manufacturer, produces bicycles for children. You, as an Accountant
(Marketing), are provided with the following details for the year ended 31st March 2011 to write a
report to the Director–Marketing, giving independent answers to the following questions.
(Rs)
Selling price per item
1,300
No of units sold
11,000
Variable cost of production
1,000
per unit
Fixed cost for the year
Factory overhead
i.
900,000
Administration
1,100,000
Selling distribution overhead
1,000,000
Calculate the breakeven point and margin of safety in units and in value. Fixed cost
is fixed for 12,000 units.
ii.
What is the C/S ratio of the company?
iii.
The company wishes to achieve a profit of Rs.3, 000,000 how many units should be
sold for the year?
iv.
If the price of a bicycle is reduced to Rs.1200 what is the breakeven point?
v.
Why is the margin of safety important to a company?
(Marks 20)
Page 63 of 93
Question 03
P& K Ltd produces bags for packing food grade items. The management accountant was asked
to prepare a statement of profit for this business under marginal and absorption methods. Fixed
Admin & Selling Production Overhead is based on 40,000 bags. There are no opening
balances. As a management accountant, you are required to submit profit statements based on
the following information.
Production capacity
55,000 bags
Sales
50,000 bags
Selling price
Rs.20
Direct material
Rs.6
Direct labour
Rs.3
Variable overhead
Rs.2
Variable admin & selling OH
Rs.175,000
Fixed production OH
Rs.100,000
Prepare Profit statements using;
1. Absorption Costing Method
2. Marginal Costing Method
3. Calculate the under/over absorption
4. Give reasons for under or over absorption that arises under the Absorption Costing
Method.
(Marks 20)
Page 64 of 93
Section B
Question 04
Somaratne Company has two production departments called “Product A” and “Product B” and
three service departments namely Quality, Maintenance and Stores. The following estimate of
overheads for the year 2011 has been given to the cost executive.
a. Prepare an overhead analysis sheet showing allocation, apportionment and re-apportionment
and also calculate overhead absorption rate for “Product A” and “Product B” for the year.
Estimated cost:
Rs.
Electricity
511,000
Lighting & heating
105,000
Depreciation
200,000
Other OH expenses
150,000
Rent & rates
75,000
Dormitory expenses
102,000
Details of the departments are as follows;
A
B
Quality
Maintenance
Stores
No of employees
30
40
3
8
4
Floor area -Sq M
3000
3600
100
100
200
500,000
700,000
100,000
300,000
200,000
4,000
5,000
Cost of machinery
Machine hours
Page 65 of 93
Further details provided are as follows;
A
B
Quality
300,000
350,000
100,000
150,000
100,000
Indirect labour
30,000
40,000
20,000
22,000
18,000
Maintenance & repairs
25,000
40,000
0
10,000
20,000
Indirect material
Maintenance
Stores
Apportionment is as follows;
A
B
Quality
Maintenance
Stores
Quality control
30
40
0
10
20
Maintenance
50
40
0
0
10
Stores
40
60
0
0
0
b. What is Controllable Cost and Uncontrollable Cost?
c. What is Conversion Cost and Notional Cost.
(Marks 20)
Page 66 of 93
Question 05
Soma Perera & Co. manufactures polythene bags for a wider market through good dealer
network. You were asked by the Director of the company to prepare budgeted cash flow for the
three months Jan March 2012. The following budgeted formation was provided for.
Sales
Nov 2011
20,000
Dec 2011
22,000
Jan 2012
18,000
Feb 2012
21,000
Mar 2012
Total
23,000
104,000
Purchase
Wages
Overhead
Total
12,000
4,000
1,600
17,600
13,200
4,400
2000
19,600
10,800
3,200
2200
16,200
12,600
4,200
1800
18,600
13,800
4,600
2500
20,900
62,400
20,400
10,100
92,900
Additional information;
a. 80% of the sales is on credit basis. 60% of the credit sales are collected in the next
month and 40% is in the current month.
b. Purchases and overhead payments are allowed one month credit.
c. Cash and bank balance as at 1st January 2012 is Rs.25, 000.
d. Sales promotion expenses amounting to Rs.6000 is to be paid in February 2012.
e. Self assessment income tax amounting to Rs.2,000 is expected to be paid in March
2012.
f.
Petty cash float is expected to increase by Rs.5, 000 in January 2012.
1. Prepare a cash flow for 3 months ended 31st March 2012.
2. Explain the usefulness of the flexible budget to management.
(Marks 20)
Page 67 of 93
Section C
Question 06
Bee Ltd. introduced a standard costing system to their company to control costs effectively. The
company provided the following data related to actual and standard performance for the last
month.
Standards data
Standard price per Kg
Rs.13
Standard production units
1,500
Standard material for production units
Kgs. 15,000
Actual data
Actual units produced
1,550
Actual quantity used/produced
17,050
Actual cost of material purchased
204,600
•
Calculate the following variances.
a. Material cost variance
b. Material price variance
c. Material usage variance
•
Explain the reasons for direct material price variance and material usage variance.
•
What is standard cost and standard costing? Explain basic standards and attainable
standards.
(Marks 20)
Page 68 of 93
Question 07
Price is one of the four elements of the marketing mix. Therefore, pricing plays a vital role in the
marketing aspect of the organisation. It helps bring expected profit for an organisation and also
customer satisfaction.
a. Explain the following pricing decisions;
i.
Market based pricing decisions
ii.
Competitor based pricing decisions
iii.
Pricing based on life cycle of a product
b. Explain the importance of management accounting as a tool of management
decision making.
c. What is meant by the term flexible budget?
d. Explain the requirements for successful budgeting.
e. BCG matrix classifies products of an organisation in relation to cash generation
and cash usage. Explain BCG matrix.
(Marks 20)
End
Page 69 of 93
Graduate/Postgraduate Diploma in Marketing
December 2011 Examination
Marketing Planning
Date: 19th December 2011
Time: 1400 Hrs – 17 Hrs
Duration: Three (03) Hrs
There are two parts in this question paper.
All questions in Part “A” are compulsory. It includes a mini case.
Part “B” includes 6 questions. Select at least one question from each section and
answer 3 questions from this part.
Instructions to candidates
1
State your Registration Number on the front cover of the answer book and on each and every
additional paper attached to it. Your name must not appear anywhere in the answer book or
answer scripts.
2 Always start answering a question on a new page.
3
You are reminded that answers should not be written in pencil or red pen except in drawing
diagrams.
4
Answer the questions using:
Effective arrangement and presentation
Clarity of expression
Logical and precise arguments
Clear diagrams and examples where appropriate
5 Illegible hand writing and language errors will be penalized.
Page 70 of 93
Part A
Answer all Questions
Question 01
The Lexmark is a leading printing and imaging solution provider. Lexmark sells its products to
customers in over 150 countries around the world. Lexmark caters to both business and
consumer segments through products which are specially designed for both home and office.
Lexmark sells dot matrix, Inkjet and Laser printers and other related printer supplies such as ink
cartridges and toners. Lexmark is the third largest manufacturer of inkjet printers and fifth
largest manufacturer of laser printers in the world. In the recent years, there has been a
significant growth in the laser printer market. Lexmark has comparatively low presence in the
Laser printing market.
Lexmark's product portfolio consists of single function printers, photo printers and all-in-one
printers. Though Lexmark's portfolio is not as comprehensive as HP, its printers have attractive
features and are priced lower than that of the competitors.
Through research and development (R&D), Lexmark continuously develops new printer
technologies and improves existing technologies. R&D focuses on continuously increasing
product performance, ease of use and at the same time lowering the production cost. Lexmark
has seven R&D centres around the world and holds over 4000 patents in countries all over the
world. Lexmark's R&D efforts are aimed at developing Laser printer technologies, wireless
printers and multifunction printers.
In the recent years, the revenue and the operating income of Lexmark has significantly
decreased whereas that of the competitors such as HP and Canon has increased. The printer
market is very competitive. Lexmark competes with large competitors such as HP, Canon and
Epson who together with Lexmark caters to 80% of the global printer market. Further,
convergence in copier and printer technologies has brought in a number of new players into the
printer market. This includes companies such as Xerox and Ricoh who were previously copier
companies. Around 80% of Lexmark's revenue is from mature markets such as US and EMEA.
Although Lexmark has presence in the fast growing markets, it has comparatively a very low
market share of these markets.
Growth in re-manufacturers of after-market supplies which includes ink cartridges and toners
has created more competition. These manufacturers purchase empty cartridges and toners from
the users and, refill and sell them for a lower price than that of the original cartridge
manufactures. This has reduced the sales of Lexmark’s cartridges and toners.
Today, due to the increased use of mobile products such as laptops and other handheld
computing devices, there is a growing demand for wireless networks and related peripherals
including wireless printers. A wireless network enables wireless access to Internet, printing
devices and provides connectivity for other wireless devices. Wireless networks are gradually
becoming more popular in home and offices. Further, web printing is another important feature
which is becoming popular in printers. Printing websites is not an easy task because printing a
web page normally prints unnecessary and lengthy advertisements in the webpage. This has
created requirements for facilities that can print only texts on the web page.
Page 71 of 93
a) Conduct a SWOT analysis for use in the marketing planning process.
(20 Marks)
b) What marketing objectives should be set by Lexmark and what strategies should it use to achieve
them?
(20 Marks)
(Total 40 Marks)
Page 72 of 93
Part B
Answer a total of three questions with at least one from each section
Section A
Question 02
a) Describe briefly eight marketing mix tools included in the tactical planning process.
(10 Marks)
b) List and briefly describe the 10 steps involved in creating a marketing plan.
(10 Marks)
(Total 20 Marks)
Question 03
a) “The scope section is a critical first step in establishing a focus for your business review” Discuss
this statement.
(10 Marks)
b) An important step in developing a business review is conducting Product and Market Review.
What is the purpose of conducting a Product and Market Review?
(10 Marks)
(Total 20 Marks)
Question 04
a) What criteria should be fulfilled before you finalise a primary target market choice?
(10 Marks)
b) Why are secondary target markets important? What type of target markets are
considered to be a secondary target market?
(10 Marks)
(Total 20 Marks)
Page 73 of 93
Question 05
a) Describe briefly key steps that need to be carried out in order to execute the marketing plan
successfully.
(20 Marks)
(Total 20 Marks)
Question 06
a) Briefly outline how the product life cycle (Introduction, growth and maturity) stages of a product
affect target market, competition, pricing, distribution and advertising.
(20 Marks)
(Total 20 Marks)
Question 07
a) Briefly describe the key steps involved in creating an advertising message for your company.
(12 Marks)
b) Discuss the four characteristics of an ideal message strategy. Provide examples.
(8 Marks)
(Total 20 Marks)
Page 74 of 93
Graduate/Postgraduate in Marketing
December 2011 Examination
Marketing Skills
Date: 20th December 2011
Time: 1400 Hrs –1700 Hrs
Duration: Three (03) Hrs
Total marks for this paper is 100. There are two parts in this question paper.
All questions in Part One are compulsory. It includes a mini case study.
Part Two includes 6 questions divided into three sections. Select one question at least 1
from each section and answer 3 questions from Part Two.
Instructions to candidates
1
State your Registration Number on the front cover of the answer book and on each
and every additional paper attached to it. Your name must not appear anywhere in
the answer book or answer scripts.
2
Always start answering a question on a new page.
3
You are reminded that answers should not be written in pencil or red pen except in
drawing diagrams.
4
5
Answer the questions using:
Effective arrangement and presentation
Clarity of expression
Logical and precise arguments
Clear diagrams and examples where appropriate
Page
75will
of 93
Illegible hand writing and language
errors
be penalized.
PART ONE
Answer all questions
Question 01: Case study
Completing a successful six-year career in the field, Mr. Sugith Rathnayake has been working
as the regional marketing director for Asian Cosmetics PLC for just over six months. As part of
his duties, he supervises forty territory sales reps across his region. He was the supervisor for
forty five reps until last week and five experienced reps resigned three months after he resumed
his job at Asian Cosmetics PLC. Since those resignations were a major concern, the board of
directors has advised Mr. Rathnayake the importance of retaining experienced sales reps in the
company. The CEO further influenced him on retaining capable sales force and warned him
about preventing reps from joining competitors. Mr. Rathnayake also knew other factors which
had contributed to those resignations were unsatisfactory compensation packages, grave
targets and cut back of increments. Due to those resignations, the company recruited another
fifteen sales reps. As a result of staff increase and as business boomed, Mr. Rathnayake found
himself running a very large section.
Asian Cosmetics PLC is a rupees eight billion worth cosmetic manufacturer and it produces a
wide range of cosmetics for both men and women. At the beginning Mr. Rathnayake managed
his large sales force, but as time went by he showed increasing signs of strain. Once he had
been punctual and now he sometimes arrived late. He often stayed late in the evening and
continued his office work at home. He worried his boss for decisions on matters referred to him
by his staff. As a result, work piled up and affected his overall performance.
Mr. Rathnayake sensed that most of his sales staff was unhappy with him. However, his
assistant regional marketing manager still had the hope that he could make the staff happy. Mr.
Rathnayake felt that the morale of his sales force was very low. But in his last six months on
the job, he focused primarily on achieving sales targets through his sales staff. Hence, he
thought that he was dedicated to his company and did much work on his own. Some of his sales
reps laughed at him saying that he was trying to play a “one man show”. The senior sales
executive addressed his concern at his recent evaluation. His concern was to communicate
better with his sales people. Hence, Mr. Rathnayake had also been told that his overall sales
performance was not up to the expectation. According to the market research, Asian Cosmetics
PLC holds twenty percent of the market share in the region. This is well below the company’s
current national average of forty percent. What stood out more than anything else was the lack
of success in selling more expensive newly introduced cosmetics products by the unit, thus the
CEO was already conscious about it. To effectively sell such new products, team effort is
required. Hence, the company reps must work with commitment and create a very friendly
working environment.
Since Mr. Rathnayake knows that he is currently not in a good position in the company, he
needs to improve the morale of an under achieving group of people who had a long history of
not being committed to achieve company goals. Further, he has to do this in a hard-hitting
business climate where his experienced salespeople had left, at the same time the main
competitor was hunting his reps with better compensation packages. He believes that he is
committed to the organization and tried to do much work by himself. Mr. Rathnayake had taken
the advice of his superiors and now he has planned to dedicate his time exclusively to address
the above matters.
Page 76 of 93
He got to know recently that five of his reps named Sisira, Nuwan, Sena, Saman and Sunil who
were high performers and experienced sales staff were trying to reach his boss directly to
address their concerns. They sell all Asian cosmetics products the way that the company
targets were set, but they had been badly affected due to certain decisions of Mr. Rathnayake.
Many of the other reps are solid performers, but they were committed to sell existing products
and not new cosmetics products. Hence, these reps believed that their sales commissions were
reduced due to Mr. Rathnayake. Prior to Mr. Rathnayake’s appointment, the reps were very
close to each other and now there had been some distractions among them. However, many
reps still did not completely reject their boss, but expected to correct him.
Mihin and Sarath who are well experienced and capable key reps have analysed their boss Mr.
Rathnayake’s behaviour. Hence, they accept that Mr. Rathnayake is a hard worker and over
committed to his job. Further they have discovered that Mr Rathnayake is experiencing some
family problems due to his commitment to his job. Already five key reps have left the company
and others hate Mr. Rathnayake’s overall work and delayed decisions, Mr. Rathnayake is now
in a difficult situation, and really need to resolve the crisis to protect his own dignity. He needs to
gain value for his own commitments and respect as a good boss in front of his subordinates.
a. What is the main mistake committed by Mr. Rathnayake in the above crisis? Discuss the
consequences of this mistake.
(10 Marks)
b. What are the specific behaviours that Mr. Rathnayake should exhibit toward his reps?
(10 Marks)
c. Do you recommend specific type/s of leadership style/s for Mr. Rathnayake to resolve the
above crisis? Justify your answer with your theoretical knowledge of leadership.
(10 Marks)
d. Explain the four types of situational leadership styles classified by Hersey and Blanchard which
can be used by Mr. Rathnayake for leading his reps. Discuss what style is most important for Mr.
Rathnayake to resolve the crisis?
(10 Marks)
(Total 40 Marks)
Page 77 of 93
PART TWO
Answer three questions selecting at least one from each section
Section A
Question 02
a. ‘’Emotional Intelligence is the ability to understand and manage moods and emotions in yourself and
others which contributes to effective leadership in organisations’’.
Explain the six competencies of Relationship Management which was discussed in
Goleman’s Emotional Intelligence Model in 2002.
(10 Marks)
b. Assume that you have been appointed as a retail marketing manager of a well established bank.
Explain the importance of emotional intelligence for you to improve retail customer services.
(10 Marks)
(Total 20 Marks)
Question 03
a. Need for intraprunership could be best described through Michal Porter’s five forces Model.
Explain Porter’s five forces model and discuss how these five forces affects for your
organisation.
(10 Marks)
b. The success of any corporate marketer significantly depends on his intraprenurial
capabilities. List key intraprenurial characteristics and explain how it supports marketers to
achieve their corporate goals.
(10 Marks)
(Total 20 Marks)
Page 78 of 93
Section B
Question 04
a. The regional marketing manager was amazed at hostility provoked by introduction of a new
production system at the organisation. As far as he was concerned, the workers should make the
job more interesting and take the drudgery out of their work load. He has arranged training to take
place and he knew that labour turnover would take care of any excess staff. He could see only
advantages and yet there had been traffic fuss and the workers had resigned to move to other
organisations. What are the possible reasons for the hostility which the regional manager faced?
(10 Marks)
b. What he should have done to introduce the change more smoothly?
(10 Marks)
(Total 20 Marks)
Question 05
a. ‘’Mediation uses a trained, impartial third party to help reach consensus on substantive issues in
disagreements among conflicting parties in public involvement’’. Discuss the characteristics of non
binding medication in negotiations.
(10 Marks)
b. You are the marketing manager of a leading FMCG company and are facing a few problems
with one of your suppliers who are supplying a very small amount of total raw material
supply. There are many suppliers already who had given their consent to supply of raw
materials. Do you recommend an integrative bargaining style of negotiation to handle the
above situation? Justify your answer.
(10 Marks)
(Total 20 Marks)
Page 79 of 93
Section
C
Question 06
a. Explain the classical model of decision making. Discuss your answer by highlighting
situation where you have used the above model in your job as a marketer.
(12 Marks)
b. Should the marketing manger make a decision on every problem he faces? Justify and explain
your answer.
(08 Marks)
(Total 20 Marks)
Question 07
a. Explain three styles of management identified by Kurt Lewin in 1939. Discuss the
importance of these styles for a marketer.
.
(08 Marks)
b. Write short notes on the following:
i.
Transformational Leadership
ii.
Barriers to Intrapreureship
iii.
Group Brainstorming
(03x04 marks = 12marks)
(Total 20 Marks)
(Total 60 Marks)
-END-
Page 80 of 93
Graduate/Postgraduate in Marketing
December 2011 Examination
Marketing Management
Date: 15th December 2011
Time: 1400Hrs – 1700 Hrs
Duration: Three (03) Hrs
Total marks for this paper is 100. There are two parts in this question paper.
All questions in Part One are compulsory. It includes a mini case study.
Part Two includes 6 questions. Select one question at least from each section and
answer a total of 3 questions from this part.
Instructions to candidates
1. State your Registration Number on the front cover of the answer book and on each and every
additional paper attached to it. Your name must not appear anywhere in the answer book or
answer scripts.
2. Always start answering a question on a new page.
3. You are reminded that answers should not be written in pencil or red pen. A pencil may be
used for drawing diagrams.
4. Answer the questions using:
Effective arrangement and presentation
Clarity of expression
Logical and precise arguments
Clear diagrams and examples where appropriate
5. Illegible hand writing and language errors will be penalized.
Page 81 of 93
PART – ONE
Answer all questions.
Question 01: Case Study – Challenging task of Managing Projects
Introduction
SING (MEGA) was established as a subsidiary company of SING SRI LANKA LTD on
the year 2000. The main purpose of establishing the company was to focus on the sale
of household appliances in the Sri Lankan market. The main strategy of the company is
to introduce new innovative products to the Sri Lankan customers at an affordable price.
Therefore, SING (MEGA) products have become very popular among upper middleclass customers in the urban areas of Sri Lanka. Interest-free instalment plans
introduced by the company attracted customers to purchase the SING (MEGA)
products. The basket of goods of the company consisted of Refrigerators, TVs,
Washing machines, other household electrical equipment and modern furniture. During
the last five years, SING (MEGA) has doubled their sales income through the islandwide sales and distribution network. The Sales figures during the last five years are
given in the Table 1.
Table 1: Last five year sales of SING (MEGA)
Year
Total Sales (Rs.)
2006
100 Mn.
2007
120 Mn.
2008
180 Mn.
2009
190 Mn.
2010
210 Mn.
During the period, market share of the company has increased by 24% and 20% in the
TV and Refrigerator markets respectively. But the company has not performed well in
the other products in comparison with the forecasted sales. The Board of Directors of
the company, in 2010 decided to critically evaluate the past performance and operations
of the company and formulate a new Strategic Plan for a period from 2011 to 2015 (5year period), revising the present mission statement of the company.
Strategic Plan
For this purpose, the company has hired a professional management consultancy firm
and assigned the task of formulating the Strategic Plan. The consultancy firm conducted
a SWOT Analysis of the company and identified the brand loyalty, financial strength,
improved customer service and the distribution network as the main strengths of the
company and highlighted the poor sales promotion strategy as the main weakness.
Analysing the threats and opportunities the consultancy firm formulated the new
strategic plan with a revised Mission Statement for the company.
According to new Strategic Plan approved by the Board of Directors, the forecasted
sales target at the end of the five year period is estimated as Rs. 450 Mn. in 2014.
Page 82 of 93
Strategies
In order to achieve the set challenging sales target set, the consultancy firm
recommended multiple strategies pertaining to the each product of the company. As per
the sales forecast of the new strategic plan, SING (MEGA) is required to increase the
sales of televisions by 200% in 2014. Main strategy, recommended to achieve the
above target is to introduce LED televisions to the Sri Lankan Market. It was also
observed that the cost of LED televisions was 20% higher than the presently available
LCD televisions. But the improved quality of pictures and the saving on the electricity
consumption were the main factors to be highlighted in the proposed sales promotion
campaign.
As requested by the company, the consultancy firm prepared a project proposal to
popularise the LED TVs in the brands of SING, Toshiba and Sanyo in the Sri Lankan
Market. According to the project proposal, the life time of the project was 24 months and
the investment was estimated as Rs. 60 Mn. during the two year period of the project.
Project – Introduction of LED TVs
The first step of the implementation of the project was to appoint a Project Manager and
a team for the following:
A. Initiation of the project
B. Planning of the sub-activities according to the project proposal
C. Executing and controlling
Project Implementation
Considering the task to be completed and the limited time frame available, the Board of
Directors decided to appoint Mr.Tharaka Silva, Deputy Marketing Manager of the
company as the Project Manager to lead the project. The main reason for selecting Mr.
Tharaka Silva as the Project Manager was his knowledge and experience in Marketing
as a Chartered Marketer. The Board of Directors has delegated the authority to the
Project Manager to recruit eight internal members from the other divisions of the
company, namely Finance, HRM, IT, Media and Technical. He selected 8 senior
managers representing various divisions, according to his choice to serve in the project.
Further, Mr.Tharaka Silva preferred the cross-functional team structure in executing the
project.
After appointment of the project team, Mr.Tharaka Silva convened the kickoff meeting of
the project. At the kickoff meeting, Mr.Tharaka Silva distributed the copies of the project
proposal prepared by the consultants and requested the team members to prepare
individual plans in their fields to achieve the set objectives of the project. At the meeting,
the individual team members raised various quarries regarding the objectives of the
project and procedure to be followed in preparing individual plans. But the Project
Manager failed to provide satisfactory answers to these quarries. The Project Manager
advised team members to carefully read and understand the project proposal prepared
by the consultants.
At the second meeting of the project, serious disagreements surfaced between two
team members who represent Finance and HRM functions, on the priorities of the
individual plans. However, the Project Manager has failed to resolve the conflict
between these two members and the second meeting of the project ended without
reaching any consensus.
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In the meantime, the Board of Directors granted permission to the Project Manager to
recruit five new Sales Promotion Officers to promote the project. The Project Manager
decided to recruit five Sales Promotion Officers on the referrals given by the internal
managers of the company. Accordingly, the Project Manager interviewed eight
candidates recommended by internal managers and recruited 5 Sales Promotion
Officers. Further, he assigned these 5 officers to the marketing division to be given one
week orientation before commencing the promotional campaign of LED TVs in the Sri
Lankan market.
Project Crisis
At the third meeting of the project team, the team members of the project heavily
criticised the method adopted by the Project Manager in recruiting five Sales Promotion
Officers without consulting the project team. Due to the disagreement between the
Project Manager and the project team, even two months after the kickoff meeting, the
Project Manager has failed to finalise the initial documentation and plans to initiate the
project.
The Board of Directors observed that there is a delay in initiating the sales promotion
project. However, the Project Manager realised that he is not getting the required
cooperation from the team members to initiate the project, even after two months of his
appointment as the Project Manager.
1.1
The Board of Directors decided to select Mr.Tharaka Silva to the post of Project
Manager, having considered his knowledge and experience in Marketing. In
addition
to the above job factors, what are the managerial and other skills to be
considered in
selecting an effective Project Manager?
(12 Marks)
b. Why did the kickoff meeting convened by the Project Manager fail? If you were the
Project
Manager what items/topics would you include in the agenda of the project
kickoff meeting? Give
examples.
(08 Marks)
1.2
Conflicts between project members emerged in the initial stage of the sales
promotion project. However, the Project Manager has failed to resolve these
conflicts. Explain five possible reasons for emerging conflicts between the
members
of the Project Team. Identify two possible approaches to conflict resolution
in
projects.
(10 Marks)
1.3
The Project Manager assigned five sales Promotion Officers to the marketing
division
for induction training. Explain the critical factors to be included in a
scientific induction programme.
(10
(Total 40 Marks)
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Marks)
PART – TWO
Section – A
Question – 02
a) “The way an organisation is structured is one of the most important management decision making
spheres”. Criticise this statement.
(10 Marks)
b) Recommend two types of appropriate organisational structures that will facilitate the achievement
of objectives of the sales promotion campaign. Discuss the advantages and disadvantages of
each organisational structure.
(10 Marks)
(Total 20 Marks)
Question – 03
a) “The Project Manager is the authority of the project.” Explain the five types of leadership powers,
the Project Manager yields in leading the project team.
(10 Marks)
b) “Throughout the project, the Project Manager will have to develop the project team to achieve
project targets.” What is the basic information required by the Project Manager to plan the team
development activities of the project team?
(10 Marks)
(Total 20 Marks)
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Section – B
Question – 04
a) What do you mean by “Qualitative Risk Analysis”? Identify the main objectives of carrying out a
Quantitative Risk Analysis for a project.
(10 Marks)
b) SING (MEGA) is planning to implement the sales promotion campaign. The following are the
major tasks identified.
Activity
A
B
C
D
E
F
G
H
I
Preceded Activity
A
A
A
D
B
C, F
G
E, H
Duration (Months)
2
5
2
4
2
1
6
2
1
Draw the Network Diagram to establish the duration of the project and the Critical Path.
(10 Marks)
(Total 20 Marks)
Question – 05
a) Define “Job Analysis”. What type of information do you require to analyse the job of a Sales
Assistant?
(10 Marks)
b) Briefly explain the methods of collecting information for a Job Analysis. Give examples.
(10 Marks)
(Total 20 Marks)
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Question – 06
a) Compare and contrast between Maslow’s Hierarchy of the Needs Theory and Herzberg’s two
Factor Theory of Motivation.
(10 Marks)
b) Explain the “Goal Setting Theory” applicable to motivation. Discuss the practical value of the
theory in motivating the Sales Staff. Give Examples.
(10 Marks)
(Total 20 Marks)
Question – 07
a) What is Misconduct? Explain five types of Misconduct observed in work places.
(10 Marks)
b) Describe the purpose of conducting a Preliminary Investigation before the Domestic or Formal
Disciplinary Inquiry.
(10 Marks)
(Total 20 Marks)
(Total 60 Marks)
-END-
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Graduate/Postgraduate in Marketing
December 2011 Examination
International Marketing
Date: 21st December 2011
Time: 1400Hrs – 1700Hrs
Duration: Three (03) Hrs
Total marks for this paper is 100. There are two parts in this question paper.
All questions in Part One are compulsory. It includes a mini case study.
Part Two has 05 questions. Answer a total of 3 questions from this part.
Instructions to candidates
1. State your Registration Number on the front cover of the answer book and on each and every
additional paper attached to it. Your name must not appear anywhere in the answer book or
answer scripts.
2. Always start answering a question on a new page.
3. You are reminded that answers should not be written in pencil or red pen. A pencil may be
used for drawing diagrams.
4. Answer the questions using:
Effective arrangement and presentation
Clarity of expression
Logical and precise arguments
Clear diagrams and examples where appropriate
5. Illegible hand writing and language errors will be penalised.
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PART ONE
Answer all Questions
Question 01
Renold Petson UK based car manufacture, combines three important elements: power,
beauty and soul and they are truly special. They produce some of the world’s most
prestigious sports cars, based on traditional values of craftsmanship, attention to detail
and exclusivity. All of their sports cars continue to be hand-built and bespoke but using
high technology processes in a very modern environment. Over the past nine decades,
Renold Petson has witnessed many changes. In a long and distinguished history,
Renold Petson has seen some good times and some not so good times. The fact that
Renold Petson has survived is a testament to the strength and resolve of everyone who
has ever been involved with the company - customers and employees alike. Their
originators held that a sports car should have a distinctive and exclusive character.
They felt it should be built to the highest standards and be exhilarating to drive and own
– many things have changed over the ensuing ninety plus years, but those goals are
still very relevant to them today.
At present over 70 per cent of its sales are generated by exports and it naturally seeks
markets in which a reasonably-sized segment exists capable of spending up to £
100,000 for a car. It is perhaps not surprising that the USA, Canada, Germany, Japan,
Italy and Switzerland have been selected as prime markets in which a dealer and
service support infrastructure should be established. In April 2011 they opened the
doors to their first dealership in India.
Changes are planned, however, with production expected to treble over the next five
years. The introduction of a new entry-level car priced at just £ 65,000 and the dealer
network doubled to create a presence in 35 countries, are all designed to improve the
international market position.
Page 89 of 93
1.1
What are the factors associated with the selection of an appropriate market in a
particular country for the automobile industry?
(08 Marks)
1.2
According to Michel Porter, the most important factor for competitive advantage
is
the ability of companies to have constant innovation. Explain this statement with
regards to the relevant model you have learned.
(12 Marks)
1.3
You are working as marketing and media advisor to Renold Petson. What are
your suggestions for the changes happening in the customer tastes, life styles,
and
for the economic fluctuations in the international automobile market?
(10 Marks)
b.
When running international businesses, distributional channels play a significant
role.
When selecting appropriate channel intermediary, there is a model suggested
by
beyond
Czinkota and Ronkanien (2001), which help the product or service to go
the
international borders. Explain this model.
(10 Marks)
(Total 40 Marks)
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PART TWO
Answer a total of three (03) questions
Question 02
People all over the world have diverse needs. Companies like Gillette, Coca-Cola, BIC,
and Cadbury Schweppes have brands that are recognised across the globe. Many of
the products that these businesses sell are targeted at a global audience using a
reliable and steady marketing mix.
a. What are the main marketing mix components that need to be considered when
inflowing to the overseas markets?
(10 Marks)
b. How does “Standardization” and “Adaptation” apply to global customer need?
(10 Marks)
(Total 20 Marks)
Question 03
Governments create the rules and frameworks in which businesses are able to compete
against each other. From time to time the government will change these rules and
frameworks forcing businesses to change the way they operate.
a. How are international businesses affected by government policies?
(10 Marks)
b. Do you think the government of each country should limits international business
to
protect their national culture?
(10 Marks)
(Total 20 Marks)
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Question 04
Today most organisations are using CRM widely to manage the company’s interaction
with customers in a more efficient and profitable manner.
a. What does CRM stand for?
(08 Marks)
b. How does CRM relate to International marketing and business?
(Use examples to detail the answer)
(12 Marks)
(Total 20 Marks)
Question 05
a. “Franchising is one of the best options to expand business operations
internationally.” Critically analyse this statement.
(10 Marks)
b. What are the primary differences between licensing and franchising?
(10 Marks)
(Total 20 Marks)
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Question 06
Find out an international consumer product manufacturer that produces a variety of
products serving different price segments in the consumer market. How does the
particular manufacturer justify the different prices? Elaborate with examples.
(Total 20 Marks)
(Total 60 Marks)
-END-
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