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BM/APR 2006/MKT243/260

UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION

COURSE COURSE CODE EXAMINATION TIME

FUNDAMENTALS OF MARKETING MKT243/260 APRIL 2006 3 HOURS

INSTRUCTIONS TO CANDIDATES 1. This question paper consists of four (4) parts: Part A (20 Questions) Part B (15 Questions) Part C (7 Questions) Part D (4 Questions)

2.

Answer ALL questions from PART A and PART B. Answer only five (5) questions from PART C and only two (2) questions from PART D. i) ii) iii) Answer PART A in the True/False Answer Sheet, Answer PART B in the Objective Sheet. Answer PART C and PART D in the Answer Booklet. Start each answer on a new page.

3.

Do not bring any material into the examination room unless permission is given by the invigilator. Please check to make sure that this examination pack consists of: i) ii) iii) iv) the Question Paper an Answer Booklet - provided by the Faculty a True/False Answer Sheet - provided by the Faculty an Objective Answer Sheet - provided by the Faculty

4.

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This examination paper consists of 8 printed pages
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PART A Mark T (True) or False (F) for the following statements in the answer sheet.

1. 2.

For exchange to take place, something of value must be given and received. The most important factor in product failure is a poor match between product characteristics and customer desires. A price reduction offered in return for prompt payment of bill is called cash discount. The societal marketing concept involves considering society's long-term best interest along with the satisfaction of customer needs and wants. If consumer behavior is not well understood, a marketer will have difficulty creating an appropriate marketing mix because of the associated uncertainty. A stimulus is a unit input from either external or internal source that can affect sight, smell, taste, touch, or hearing. In high involvement buying situations, consumers learn in an almost random fashion, by buying product first and then evaluating them. Damia produces children clothing, targeting first -time mothers in the baby boomer generation. Damia uses demographic segmentation variables. The six P's of the retailing mix are product, place, price, promotion, personnel and planning. To a marketer, the definition of a product includes services as well as physical, tangible goods. The product is the starting point in creating a marketing mix. Full satisfaction guaranteed is an example of an express warranty. Camelia's new coat contains a label that reads "Professional dry clean only". This is persuasive labeling. HSL supermarket chain sells a brand of cookies and pasta under the name "HSL select". This is an example of family branding. Shawn William considers buying his shoes to be very important. He spends considerable time comparing the prices and styling options at local shoe stores. For Shawn, shoes are convenience products.

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16.

The product life cycle is so named because it is similar to the premise underlying the concept of any life. The unit is born; it grows for sometime, it reaches maturity and stability before dying. Intensive distributions often associated with exclusive territories. The discrepancy between the amount of product produced and the amount the end user wants to buy is discrepancy of quantity. A marketing channel is a business structure independent organization that assists the transfer/moving of goods from manufacturer to the final consumption destinations. One threatening trend to retailers is the emergence of category killers and retailing via Internet.

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PARTB Choose the most appropriate answer and mark in the Objective Answer Sheet.

1.

Which tool of the promotion mix is designed to build good "corporate image"? A. B. C. D. Personal selling Sales promotion Advertising Public relations

2.

The process of evaluating each segment's attractiveness and selecting one or more of those segments is called market: A. B. C. D. segmentation positioning targeting selection

3.

When a firm charges a low price for a product as a way to reach mass market, it is practicing a policy. A. B. C. D. price skimming status quo price fixing penetration pricing

4.

The primary objective is to influence behaviour and the goal is to motivate consumers to purchase immediately. Which type of promotional mix best describes this? A. B. C. D. Advertising Personal selling Sales promotion Publicity

5.

An external information search is especially important when: A. B. C. D. There is a great deal of past experience There is a risk of making an incorrect decision Buying frequently purchased, low cost item There is little risk in making incorrect mistake

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6.

Reference group would be the weakest influence for determining which brand of a person buys. A. B. C. D. car clothing frozen peas cigarettes

A retail store can be classified A. B. C. D. 8. location management style price decor and atmosphere

Andy saw an advertisement of a new and improved cold medicine. He went to the store that day and bought that remedy. The process that creates changes in Andy's behaviour, immediate or expected, through experience and practice is called: A. B. C. D. consumer decision making perception learning attitudes

9.

The Mondo Store has decided to display products on its own local television channel and encourage shoppers to call a toll-free number to purchase the merchandise with a credit card. This form of retailing is called a(n): A. B. C. D. catalog viewing in-store electronic shopping electronic point of sale shop-at-home network

10.

A (n) entails selecting one segment of a market, and focuses on understanding the needs, motives, and satisfactions of the members of that segment, as well as developing a highly specialized marketing mix. A. B. C. D. universal product strategy undifferentiated targeting strategy concentrated targeting strategy product differentiation strategy

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11.

Aleng tends to buy the same brand of toothpaste, soap, and tissues product as his , which is often the strongest source of group influence upon individual for many product purchases. A. B. C. D. psychographic group social class family subculture

12.

The Overland Stage Curtain Company improved its stage curtain fabric by adding a new fire retardant chemical. The company has not changed its prices. This is a(n) modifications. A. B. C. D. style functional quality quantity

13.

The following are factors that directly influence consumer level of purchase involvement process EXCEPT: A. B. C. D. consumer level of education price interest social visibility

14.

are retailers that compete on the basis of low prices, high turnover, and high volume. A. B. C. D. Convenience outlets Discount stores Franchises Specialty stores

15.

Tools for the public relations manager include all of the following EXCEPT: A. B. C. D. press relation product publicity lobbying advertising

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PARTC

QUESTION 1 List five (5) conditions that must exist for exchange to take place. (5 marks) QUESTION 2 Explain any two (2) criteria for successful segmentation. (5 marks) QUESTION 3 Briefly describe four (4) common segmentation bases used by marketers to segment consumer market. (5 marks) QUESTION 4 Briefly describe any four (4) benefits organization will derive from organizing related product items to product lines. (5 marks) QUESTION 5 Explain briefly the classification of consumer products. Give examples. (5 marks) QUESTION 6 Explain why marketing managers should understand consumer behaviour. (5 marks) QUESTION 7 What is the difference between competitive and comparative advertising? (5 marks)

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PARTD

QUESTION 1 a) Briefly explain any two (2) objectives of promotion. (4 marks) b) Consumer sales promotion seeks to reach new users, keep current users, and entice users to stock up. It can also be used to reinforce advertising for the product or service. Describe four (4) popular sales promotional tools used by marketers to induce consumers to purchase a firm's products or services. Illustrate with examples. (16 marks) QUESTION 2 Assume that your portable radio is just not capable of transmitting full range of tones produced by your favourite singer. Therefore, you have decided to work part-time to save money to purchase the latest stereo system. Trace the steps of your buying decision process for purchasing the stereo system. (20 marks)

QUESTION 3 a) What is product line pricing? (5 marks) b) What are the three (3) relationships among product lines must managers be aware of before setting prices? For each relationship, give an example of a product that fits the situation. (15 marks)

QUESTION 4 One function of the channel members is to overcome discrepancies. Name and briefly describe with examples four (4) discrepancies that channel members have to overcome. (20 marks)

END OF QUESTION PAPER

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