Postgraduate Diploma in Marketing

June 2013 Examination

Discovering Marketing Essentials (DME)
Date: 12th of June 2013
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 02 Essay Type Questions. Answer only 01 Question from this part.
Instructions to candidates
1

2.
3.
4.

5.

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
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
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 penalised

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
According to Professor Kotler, Marketing Management is defined as follows:
a. The art and science of choosing target markets and building profitable
relationships with them
b. An attitude in mind where the customer is at the center of all business purposes
c. Ensure product quality is maintained and improved continuously
d. A social and managerial process by which individuals and groups obtain what they
need and want through creating and exchanging value with others
Question 1.2
The actors close to the company that affect its ability to serve its customers is referred to as:
a.
b.
c.
d.

Internal Environment
Micro Environment
Macro Environment
Economic Environment

Question 1.3
According to the stages of the adoption process, consumers go through five stages in the
process of adopting a new product. The five stages in the correct sequence are:
a.
b.
c.
d.

Awareness, Desire, Evaluation, Trial and Adoption

Awareness, Interest, Evaluation, Trial and Adoption
Awareness, Interest, Evaluation, Desire and Adoption
Attention, Interest, Desire, Trial and Adoption

Question 1.4
Personal interviewing that involves inviting 6 to 10 people to gather for a few hours with a
trained interviewer to talk about a product or organisation is known as:
a.
b.
c.
d.

In-depth Interviewing
Focus Group Interviewing
Observation Research
Descriptive Research

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Question 1.5
With reference to target marketing, when evaluating different market segments a firm must
look at three factors, which are:
a. Segment size and growth, segment structural attractiveness and competitors
strengths and weaknesses
b. Segment size and growth, segment structural attractiveness and sales growth
c. Segment size and growth, segment structural attractiveness and company
objectives and resources
d. Segment size and growth, sales growth and company objectives and resources
Question 1.6
Market Positioning refers to:
a. Grouping the market into clusters of customers/consumers with similar needs and
wants
b. Segmentation, Targeting and Positioning
c. Placing the product in the minds of the customers to gain a unique mental picture
d. Where a marketer will select one or many segments to identify, anticipate and
satisfy customer requirements
Question 1.7
Describe the term to be used for consumer products that customers compare carefully on
suitability, quality, price and style:
a.
b.
c.
d.

Convenience Products
Specialty Products
Unsought Products
Shopping Products

Question 1.8
The level of the product, which encompasses all the augmentations and transformations
that the product might undergo to enhance or develop the product is known as:
a.
b.
c.
d.

Core Product
Actual Product
Potential Product
Augmented Product

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Question 1.9
Using a successful brand name to introduce additional items in a given product category
under the same brand name such as new flavours or added ingredients is referred to as:
a.
b.
c.
d.

Brand Extension
Line Extension
Co-Branding
Brand Development

Question 1.10
With reference to New Product Development, testing a new-product concept with groups of
target consumers to find out if the concepts have a strong appeal is known as:
a.
b.
c.
d.

Test Marketing
Product Concept
Concept Testing
Idea Screening

Question 1.11
A product mix pricing in setting a price for products that must be used along with a main
product such as blades for a razor and film for a camera is known as:
a.
b.
c.
d.

Captive-Product Pricing
By-Product Pricing
Optional-Product Pricing
Product Line Pricing

Question 1.12
With reference to distribution strategies, an ideal distribution strategy for an organisations
range of electrical and electronic appliances would be:
a.
b.
c.
d.

Selective Distribution
Exclusive Distribution
Intensive Distribution
Physical Distribution

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Question 1.13
An advertising objective is a specific communication task to be accomplished with a specific
target audience during a specific period of time. The three possible advertising objectives
are:
a.
b.
c.
d.

Informative, Creative and Reminder Advertising

Informative, Persuasive and Creative Advertising
Creative, Persuasive and Reminder Advertising
Informative, Persuasive and Reminder Advertising

Question 1.14
With reference to Public Relations, building and maintaining relations with legislators and
government officials to influence legislation and regulation is known as:
a.
b.
c.
d.

Political Relationship
Lobbying
Prospecting
None of the above

Question 1.15
The step in the selling process in which the sales person identifies qualified potential
customers who has the need for a given product is known as:
a.
b.
c.
d.

Prospecting
Pre approach
Approach
Follow-up

Question 1.16
Which one of the following is not an Above-the-line communication media?
a.
b.
c.
d.

Radio Advertising
Television Advertising
Press Advertising
Billboard Advertising

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Question 1.17
An ideal promotional objective during the introduction stage of the product life cycle would
be:
a.
b.
c.
d.

Creating awareness among the target audience

Promoting product quality
Appointing more channel partners
Establishing product values and brand recognition among the target audience

Question 1.18
The process of measuring and evaluating the results of marketing strategies and plans,
which also assists to keep the plan on track, is referred to as:
a.
b.
c.
d.

Situational Analysis
Selling Process
Audit Process
Control Process

Question 1.19
The process that turns marketing strategies and plans into marketing actions in order to
accomplish strategic marketing objectives is known as:
a.
b.
c.
d.

Marketing Implementation
Marketing Planning
Strategic Planning
Marketing Analysis

Question 1.20
Websites where members can congregate online and exchange views on issues of common
interest is referred to as:
a.
b.
c.
d.

Web Communities
Permission Marketing
Corporate Website
E-Commerce

(20 Marks)

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PART TWO
This part includes SIX compulsory short answer questions
Answer all questions
Question 02
Explain briefly the following:
a.
b.
c.
d.
e.

Production Concept
Marketing Information System
Market Positioning
Customer Satisfaction
Customer Lifetime Value
(10 Marks)

Question 03
a. Define Marketing Research.

(02 Marks)

b. Identify (02) two advantages and disadvantages of Secondary Data.

(02 Marks)
c. Identify and briefly explain (04) four methods of collecting Primary Data.
(06 Marks)
(10 Marks)
Question 04
a. Briefly explain what is Market Segmentation and identify the (05) five key
requirements/criteria for effective segmentation.
(04 Marks)
b. Explain briefly with relevant examples the (03) three target marketing strategies an
organisation could use in order to target its customers.
(06 Marks)
(10 Marks)
Question 05
a. With the aid of a diagram, describe the key stages of the product life cycle.
(04 Marks)
b. Briefly, explain the different strategies that should be adopted at different stages of
the PLC.
(06 Marks)
(10 Marks)

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Question 06
a. Explain the following pricing approaches and strategies:
I.
II.
III.
IV.
V.

Cost-Based Pricing
Value-Based Pricing
Competition Based Pricing
Market-Skimming Pricing
Psychological Pricing
(06 Marks)

b. Identify and explain (02) two internal and (02) two external factors affecting an
organisations pricing decisions.
(04 Marks)
(10 Marks)
Question 07
a. Describe the range of marketing mix elements/tools that an organisation uses in
order to communicate with customers.
(04 Marks)
b. Briefly explain the following promotion mix strategies:
I. Push Strategy
II.
Pull Strategy

(03 Marks)

c. Identify and describe (02) two direct marketing tools and discuss one limitation to
the organisation of using direct marketing.
(03 Marks)
(10 Marks)

(Total 60 Marks)

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PART THREE
This part includes TWO Essay Type Questions
Answer only ONE question from this part
Question 08
a. With reference to a product of your choice, explain the major stages of the business
buying process.
(12 Marks)
b. Briefly discuss, how channel members add value by identifying (06) six important
functions performed by them in creating customer value.
(08 Marks)
(Total 20 Marks)
Question 09
a. Discuss the (04) four common methods of setting the advertising budget in order to
achieve its advertising objectives.
(08 Marks)
b. With the aid of a diagram, explain the key stages/steps of the selling process.
(12 Marks)
(Total 20 Marks)

(Total 100 Marks)

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