SLIM

Graduate/Postgraduate Diploma in Marketing June 2011 Examination Essentials of Marketing
Date: 14th June 2011 Time: 1400 Hrs 1700 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 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 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. 4. Always start answering a question on a new page. You are reminded that answers should not be written in pencil or red pen. Pencil may be used for drawing diagrams. 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.
PART ONE Answer all questions. Mark the most suitable answer in the given space in the answer booklet.
Question 01
Question 1.1 With reference to the Evolution of the Marketing Philosophy, which of the following statements is true? a) Product Orientation came before Production Orientation, and after Sales Orientation b) Sales Orientation came after Production Orientation, but before Marketing Orientation c) Production Orientation came after product Orientation and before Sales Orientation d) Product Orientation came after Sales Orientation and before Marketing Orientation Question 1.2 The key factors of the Micro Environment are as follows: a) b) c) d) Political, Economic, Social, Technological, Ecological, Ethical and Legal Pollution, Economic, Social, Technological, Ecological, Ethical and Legal Customers, Suppliers, Intermediaries and Competition Customers, Suppliers, Intermediaries and Staff
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 how the marketer interacts with and affects the natural environment or the ecology
Question 1.4 With reference to Market Research, viewing and listening to various human activities using instruments such as cameras, eye movement recorders, scanner technology is known as: a) b) c) d) Experimentation Observational Research Survey Research Test Marketing
Question 1.5 The two important factors to consider when selecting a Target Market Segment are the following:
a) b) c) d)
Competitors Strengths, and Company Objectives and Resources Purchasing Approaches, and Personal Characteristics Segment Structural Attractiveness and Marketing Mix Strategies Attractiveness of a Market Segment and the Fit between the segment and the firms Objectives, Resources and Capabilities
Question 1.6 With reference to Target-Market Strategies, Single-Segment Strategy is that: a) One market segment (not the entire market) is served with one marketing mix b) The firm specializes in a particular product and tailors it to a different market segments c) Placing the product in the minds of the customers to gain a unique mental picture d) The firm specializes in serving a particular market segment and offers that segment an array of different products Question 1.7 Augmented Product refers to: a) b) c) d) The additional services and benefits that surround the core and formal product Goods purchased by organizations for further processing Goods that consumers do not actively seek in purchasing The physical attributes that surround the core and formal product
Question 1.8 The concept which describes how to spread the new product idea to its target users is known as: a) b) c) d) Concept of Diffusion and Adoption AIDA concept Product Life Cycle Concept None of the above
Question 1.9 The Process Element of the Extended Marketing Mix refers to: a) b) c) d) The way in which marketing activities are carried out The way recruitment and selection of employees is carried out The physical environment which surrounds the purchase The way a New product is introduced to the market
Question 1.10 Break-even Analysis refers to: a) A situation where the marketer arrives at the total cost per unit and then apply the profit margin or the mark up in arriving at the final price b) The point at which the company makes a profit or loss c) The point at which the company makes a profit d) The point at which the company neither makes a profit or loss Question 1.11 With reference to Branding Strategies, Blanket Family Branding refers to: a) b) c) d) All the products are branded under one family name Each product line has its own brand name Company names are extended with the product None of the above
Question 1.12 A marketer would carry out an Image Analysis to assess: a) The state in which the target audience is in with regard to its level of familiarity and favorability towards the product b) The state in which the competitors is in with regard to its level of familiarity and favorability towards the products c) The state in which the share holders is in with regard to its level of familiarity and favorability towards the product d) None of the above
Question 1.13 Below the line Communication is: a) Mass Media Advertising b) Advertising, Public relations, Direct Marketing and Personal Selling c) All media and promotional tools where there will not be any commission paid to the advertising agency d) Planning and implementing a promotions campaign Question 1.14 Promotional Activity Scheduling refers to: a) Short term tools/benefits used by the marketer to persuade customers to purchase products b) An action plan for the synchronizing and timing of all the promotional tool activities and strategies selected by the organization c) Long term incentives given to sales force d) Planning and implementing a promotions campaign Question 1.15 The approach where the salesman tries to understand the need of the customer by learning to listen and ask questions to identify customer needs is known as: a) b) c) d) Customer Oriented Approach Sales Oriented Approach Product Oriented Approach None of the above
Question 1.16 An ideal Pricing Strategy during the introduction stage of the Product Life Cycle for a innovative and distinctive product would be : a) b) c) d) Penetration Pricing Policy Skimming Pricing Policy Value-based Pricing Break-even Pricing
Question 1.17 The process of finding out the organizations current position is known as: a) b) c) d) Marketing Strategies Marketing Objectives Marketing Control None of the above
Question 1.18 A useful device for identifying growth opportunities is the Product/Market Expansion Grid. This grid/device was developed by: a) b) c) d) Ansoff Maslow Porter Kotler
Question 1.19 The five stages of the Marketing Planning Process are a) Where are we now? Where do we want to go? How do we go there? Which way is best? and did we get there? b) Where are we now? How do we go there? How do we ensure arrival? Did we get there? and How do we control ? c) Where are we now? Where do we want to go?, How do we control?, How do we ensure arrival? and did we get there? d) Where are we now? How do we implement and control?, How do we ensure arrival? and did we get there? Question 1.20 A plan that spells out how the detailed marketing mix strategies would be implemented is known as: a) b) c) d) Sales Plan Control Plan Action Plan Strategic Plan
(Total 30 Marks)
PART TWO Answer all questions Question 02 Market Research can be termed as the process which provides a business (or indeed any organisation which deals with the public and customers) with its basic information. This information concerns the customer and who he or she is, and what they will buy. Market Research Information is needed to make a whole variety of marketing and operational decisions. An organisation cannot be considered genuinely marketing-oriented unless it has a thorough understanding of its markets, customers, and their problems. The business graveyard is full of marketing people who didnt listen to their customers
Question 2.1 Explain what is Marketing Research and comment on its importance to an organization. (4 marks) Question 2.2 What are the advantages and disadvantages of Secondary Data and Primary Data?
(8 marks) Question 2.3 Briefly explain the key stages/steps involved in a typical Marketing Research Process. (12 marks)
Question 2.4 Comment on the relative advantages of using an internal marketing department to collect data as compared to using external agencies. (6 marks)
(Total 30 Marks)
PART THREE Answer TWO questions Question 03
(a) Describe the Macro and Micro Environmental Factors that affect the companys ability to serve its customers. (10 marks) (b) Explain the four methods or ways in which the marketing department of a company can be organised to serve its customers. (10 marks)
(Total 20 Marks) Question 04
(a) With reference to the Consumer Buying Behavior Model, explain the steps/stages a consumer may go through in buying a luxury apartment. (10 marks) (b) The Decision Making Unit (DMU) of a company is a panel of final decision makers who take the final decision on a given purchase. Identify the different roles played by each DMU member in the organisational buying behavior. (10 marks) (Total 20 Marks) Question 05 (a) Describe the key stages of The Product Life Cycle Concept and explain the different strategies that should be adopted at different stages of the PLC. (12 marks) (b) Explain the importance of packaging to marketers and to consumers. (08 marks) (Total 20 Marks) (Total 40 Marks) -END-
Graduate/Postgraduate Diploma in Marketing June 2011 Examination Understanding Consumers
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 4 Always start answering a question on a new page. You are reminded that answers should not be written in pencil or red pen. Pencil maybe used for drawing diagrams. 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.
PART ONE Answer all questions Mark the most suitable answer in the given space in the answer booklet
Question 01
1. When a shopper associates joy, fear, love, hope, sexuality, fantasy or magic with a certain purchase decision, he or she is likely to act in a: a) Economic manner b) Cognitive manner c) Emotional manner d) Compulsive manner 2. If a marketer is promoting a recent radical innovation in Sri Lanka, he or she will mostly assume that the level of consumer decision making for the product would be: a) Extensive Problem Solving (EPS) b) Limited Problem Solving (LPS) c) Routine Problem Solving (RPS) d) Selective Problem Solving (SPS) 3. When a consumer feels uncertainty or doubt about a product that he or she bought, the state of mind is referred to as: a) Negative Disconfirmation b) Positive Disconfirmation c) Post Purchase Cognitive Dissonance d) Post Purchase Evaluation 4. One of the following is not an external influence for consumer decision making process: a) Social class b) Sub culture c) Perception d) All of the above 5. When a consumer is indifferent about a brand, this is known as: a) Overlooked set of brands b) Inert set of brands c) Evoked set of brands d) None of the above
6. A consumer evaluates brand options in terms of each relevant attribute and computes a weighted or summated score for each brand. This is known as: a) Compensatory decision rule b) Non-compensatory decision rule c) Conjunctive decision rule d) Disjunctive decision rule 7. The driving force within an individual that impels them to action is known as: a) Need b) Want c) Goal d) Motivation 8. According to Abraham Maslows hierarchy of needs, social needs of a person include: a) Affection, Sex, Belongingness b) Affection, Prestige, Belongingness c) Affection, Friendship, Belongingness d) All of the above 9. The minimal difference that can be detected between two similar stimuli is known as: a) Absolute Threshold b) The Differential Threshold c) Subliminal Perception d) Supraliminal Perception 10. Evaluation of a single object or a person on a multitude of dimensions based on one or few dimensions is known as: a) Physical appearances b) Stereotypes c) Halo effect d) First impressions 11. The risk to self and others that a product may pose is known as: a) Functional Risk b) Physical Risk c) Social Risk d) Psychological Risk
12. Influences that distort an individuals perception does not include: a) Stereotypes b) Halo effect c) Jumping to conclusions d) Closure 13. A persons emotions and feelings about a particular brand is explained as: a) The cognitive component of the Tri-component attitude model b) The affective component of the Tri-component attitude model c) The conative component of the Tri-component attitude model d) All of the above 14. Negative dispositions towards a brand can be improved by; a) Balanced Theory b) Congruity Theory c) Cognitive Dissonance Theory d) All of the above 15. In Sri Lankan society, caring for elders has been a: a) Belief b) Core Value c) Custom d) Tradition 16. Interpretative consumer researchers are not interested in: a) Qualitative approach b) Depth interviews c) Experiments d) Ethnography 17. Primary Data Sources includes: a) Company annual reports b) Syndicated services c) Sales reports d) Questionnaires 18. Non-probability Sampling Techniques include: a) Simple Random Sampling b) Stratified Random Sampling c) Quota Sampling d) Cluster Sampling
19. If a researcher wants to describe the average value of the data set, the most suitable measure would be: a) Arithmetic Mean b) Mode c) Median d) Standard Deviation 20. If a researcher looks forward to predicting the behavior of a dependent variable based on a set of independent variables, a useful analytical technique would be: a) Correlation Analysis b) Simple Regression Analysis c) Scatter Graph Method d) Multiple Regression Analysis
(Total 30 Marks)
PART TWO Answer all questions Question 02 Green Labeling and Sri Lankan Consumers
Green marketing is the marketing of products that are presumed to be environmentally safe (American Marketing Association). In order to support environmental protection, manufacturers have introduced various green innovations which incorporate a broad range of changes in production processes, packaging and labeling, modifying products as well as advertising. The growing public concern for safety and protection of the environment has increased, thus the marketers confidence on consumers purchases would be influenced by environmental friendly labels. Green labeling has become an important area in the marketing literature and is a powerful marketing tool that organizations are increasingly leveraging. Green labeling information has been used to describe marketing activities that attempt to reduce the negative social and environmental impacts of business. Western research findings account for green labeling initiatives which become influential solution for consumers information processing and decision quality. Despite the fact that Western research indicates a strong impact of green labeling information on consumers positive reactions, still doubt remains with respect to how labels influence consumers purchase decisions in a developing context like Sri Lanka. Therefore, consumers knowledge and ability to understand green label information can be assumed to vary considerably in different cultural settings and there is a strong need to examine how green label information influences the consumers green purchasing intention in Sri Lanka.
2.1.
If you were to undertake a consumer research to explain empirically the above phenomenon in the Sri Lankan context, suggest a suitable title for your study. (05 marks)
2.2.
In the Sri Lankan context, identify three (03) research questions that should be addressed in your study. (05 marks)
2.3.
Develop three (03) hypotheses that would help explain your research questions. (05 marks)
2.4.
If you want to generalize your research findings in some way to the Sri Lankan context; a) Identify a suitable research approach you would deploy for the study. b) Identify a suitable sampling technique for the study. c) Identify an ideal data collection method and a tool for your research approach.
(05 marks)
2.5.
Identify two (02) data analysis techniques that you would utilize to analyze data. (05 marks)
2.6. Identify two (02) possible significant contributions of the study to Sri Lankan organizations.
(05 marks)
(Total 30 Marks)
PART THREE Answer TWO questions Question 03
a)
Select a product of your choice and identify the different types of risk perceived by a consumer in relation to the product. Explain how a marketer can help the consumer to minimize the perceived risk. (10 marks) Define the term Differential Threshold. Briefly explain how a marketer can make use of this concept in order to improve the efficiency of product and pricing policies. (10 marks) (Total 20 Marks)
b)
Question 04
a)
Distinguish between positive and negative motivation, briefly explaining how these two concepts are applicable in an advertising context. (10 marks) Briefly describe the Tri-component attitude model. Develop a single item measure for each component of the model using a product or a service of your choice. (10 marks)
(Total 20 Marks)
b)
Question 05
a)
Marketers should try to make their brands sacred in the eyes of their target consumers in a particular cultural setting. Explain this statement with local examples by highlighting the elements of culture. (10 marks) Discuss the factors that should be considered in developing a Survey Questionnaire.
(10 marks) (Total 20 Marks) (Total 40 Marks) -END-
b)
Graduate/Postgraduate Diploma in Marketing June 2011 Examination Effective Communication Skills
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 4 Always start answering a question on a new page. You are reminded that answers should not be written in pencil or red pen. Pencil may be used for drawing diagrams. 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.
Question 1 1.1 A potential hijacker is a behavior of one of the following: a) b) c) d) 1.2 The Bulldog The Hedgehog The Fox None of the above
One of the following is NOT a Communication Objective: a) b) c) d) Differentiate Enforce Inform Persuade
1.3
The target market is best described as: a) b) c) d) People who actually make the purchase decision People you reach through various media The market you can easily reach The first audience who receive the message
1.4
What are the key aspects that should be covered cover in a brief introduction? a) b) c) d) Objective of the meeting Background of topic Possible solutions and contents All of the above
1.5
One of the following is NOT a general rule when serving wine at a business forum: a) b) c) d) Red wine with red meats White wine with white meats Rose, generally as for white The fullness of the wine unmatched to the richness of the food
1.6
Ideally how should the candidate end the discussion at an interview? a) b) c) d) Staying cool Making a positive exit Saying good bye All of the above
1.7
It is very important to overcome the nervousness due to one of the following reasons: a) b) c) d) Since it is a pleasant feeling To control emotions To project positive body language All of the above
1.8
What are the tips for the writing of lively memos? a) b) c) d) Vigorous verbs Tone and writers attitude Eliminating excess words and phases All of the above
1.9
One of the following is a Do at an interview: a) b) c) d) Leaning backwards Close-lipped smile Good eye contact Keeping your chin down All kinds of human responses are not expressed in words. This refers to: a) b) c) d) Written Communication Non verbal Communication Verbal Communication Noiseless
1.10
1.11
Ideally the presenter should analyze the audience to identify: a) b) c) d) The number of people Audience attitude towards the subject Audience experience All of the above
1.12
The audience that does not have any power to stop a message is known as: a) b) c) d) Watch dog audience A Gatekeeper Secondary audience None of the above
1.13
One of the following is a good step when writing a resignation letter: a) b) c) d) Write the letter in detail Write when you are in good mood Give the reason for leaving the company in detail Criticize the management
1.14
What should a good marketer have, for him or her to be objective driven? a) b) c) d) Excellent judgment Sense of timing Capacity for intense concentration All of the above
1.15
A question seeking is a mental response rather than a vocal response is known as: a) b) c) d) Rhetorical Question Startling statement Quotation None of the above
1.16 Advice for your best friend on how he should resign from his current employment: a) It is not very easy to resign b) Should resign diplomatically c) Resignation letter should help you to maintain positive relationship with your current employer d) All of the above 1.17 What are the three simple steps that you would follow when discussing a contract, deal or any kind of business? a) b) c) d) The Start, the Reason and the Finish The Reason, the Start and the Finish The Start and the Reason only None of the above
1.18 A typical B2C supply chain is composed of: a) b) c) d) Supplier & Manufacturer Only Wholesaler & Retailer Only Buyer Only All of the above
1.19 Ideally a job offer letter should include the following: a) b) c) d) Job title or position offered Salary, benefits and perks offered Instruction to decline the job offer All of the above
1.20 Unpleasant voice quality means: a) b) c) d) Highness or lowness of the voice The quality of the tone, timbre or sound of the voice Speed at which you speak Loudness of the tone (Total 30 Marks)
PART TWO Answer all questions
Question 02
2.1 a) What would be the behavior of the Bulldog at a meeting? Briefly describe using three examples. b) List three ways in which the Chair should tackle the bulldog at a meeting. (5 marks)
2.2 Briefly describe what Personalized Marketing is with one good example. (5 marks)
2.3 Describe a sales letter and list down the key factors to be consider when writing a sales letter. (5 marks)
2.4 Why should the presenter analyze the audience? Describe providing three (03) advantages. (5 marks)
2.5 Describe Manuscript Speeches with one good example of your choice. (5 marks)
2.6 Describe what is meant by Be specific with three (03) good examples of your choice. (5 marks)
(Total 30 Marks)
PART THREE Answer TWO questions Question 03 Draw up a complete Combination (Chrono-functional, hybrid) resume covering all key areas that are discussed under Combination Resume. (Total 20 Marks) Question 04 Assume that you are currently working as Director Marketing at XYZ Company Limited, which is a leading export company in the field of industrial products. While promoting the existing product portfolio, the company decides to introduce a new product (of your choice) to the African market. As part of your marketing activity, write a business letter introducing your new product, its features and other benefits such as cost benefit to the company, how the product would improve efficiency etc. Consider key factors when writing this business letter. (Total 20 Marks) Question 05 What are the success factors employers look for when screening prospective candidates? Explain with one example each for the factors of your choice. (Total 20 Marks)
(Total 40 Marks)
-END-
Graduate/Postgraduate Diploma in Marketing June 2011 Examination Economics & Legal Concepts for Marketing
Part 1 - Economics
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 03 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 4 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 5 Illegible hand writing and language errors will be penalized.
Question 01 Question 1.1 Economics studies individuals and organizations in society engaged in the: a) production of goods and services b) distribution of goods and services c) consumption of goods and services d) all of the above Question 1.2 All societies have to face a problem of choice in the production of goods and services because: a) human wants are unlimited b) economies are underdeveloped c) resources are scarce in relation to human wants and have alternative uses d) resources are limited Question 1.3 Which of the following does not refer to macro economics? a) The study of aggregate economic activities b) The study of economic behavior of individual decision-making units such as consumers, resource owners, and business firms c) The study of the causes and policies to remedy unemployment d) The study of the causes of inflation
Question 1.4 Perfectly Elastic Demand indicates: a) a horizontal curve showing different quantities demanded at a constant price b) an upright curve showing small quantity changes 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 1.5 A point inside the Production Possibility Curve indicates: a) inefficiency b) unemployed resources c) that existing resources can produce at a higher level of output d) all of the above Question 1.6 A Demand Schedule shows the relationship between the quantity demanded of a commodity over a given period of time and: a) the price of the commodity b) the tastes of the consumers c) the income of the consumers d) the price of related commodities Question 1.7 Demand is initiated by: a) customers with the intention of maximizing profit b) suppliers with the intention of maximizing profit c) customers with the intention of maximizing utility d) suppliers with the intention of maximizing utility
Question 1.8 Excess Demand is created when: a) the price is set above the equilibrium price b) the demand is equal to supply c) the price is set below the equilibrium price d) All of the above Question 1.9 Government imposes Price Floors: a) by setting maximum prices to protect consumers b) by setting minimum prices to protect consumers c) by controlling prices to protect consumers d) by setting minimum prices to protect producers Question 1.10 The value of Inelastic Demand: a) is equal to zero b) ranges 0 1 c) is equal to 1 d) reports infinity Question 1.11 Marginal Cost is: a) the cost for producing one single unit throughout a process b) the additional cost incurred in producing an additional unit in the production process c) the costs which are not depending on the level of output d) the costs which are depending on the level of output
Question 1.12 The two key strategies to achieve a larger return on production that Adam Smith identified are: a) Profit and Sales b) Internal and Eexternal Economies of Scale c) Division of Labour and Specialization d) Capital and Labour Question 1.13 Perfect competition is characterized by: a) limited buyers and sellers b) only one producer in the market c) a few firms in the market d) a large number of buyers and sellers Question 1.14 A firm will always earn abnormal profit at an output level at when: a) marginal revenue is equal to marginal cost b) total cost is greater than total revenue c) average revenue is greater than average cost d) average variable cost is less than average revenue Question 1.15 In national income accounting, Three Sector Economy refers to: a) Firms, Households and Government b) Firms, Households and Imports c) Firms, Households and Exports d) Exports, Imports and Firms
Question 1.16 Marginal Propensity to Consume + Marginal Propensity to Save (MPC + MPS) is always: a) less than 1 b) equal to 1 c) equal to 0 d) more than 1 Question 1.17 One of the most notable examples of hyperinflation which occurred in 1923, is the inflation in: a) India b) Zimbabwe c) England d) Germany Question 1.18 Devaluation is: a) a deliberate upward adjustment to a countrys official exchange rate relative to other currencies b) a deliberate downward adjustment to a countrys official exchange rate relative to other currencies c) a deliberate adjustment to a countrys official exchange rate relative to the price levels of foreign trade d) a deliberate adjustment to a countrys official exchange rate relative to the prices of imports in international trade Question 1.19 Expansionary fiscal policy creates: a) a budget surplus due to increase in government revenue b) a budget deficit due to the increase in government expenditure c) a budget surplus due to the increase in government taxes d) a budget surplus due to the reduction in government expenditure
Question 1.20 Monetary policy is the process by which the Central Bank or monetary authority of a country controls: a) the supply of money b) the availability of money c) cost of money or rate of interest d) all of the above
(Total 30 Marks)
PART TWO Answer all questions Question 02 Question 2.1 Distinguish between Macroeconomics and Microeconomics. (05 marks) Question 2.2 Explain Income Effect and Substitution Effect to prove that the demand curve has a downward slope. (05 marks) Question 2.3 Explain the difference between Elastic and Inelastic demand with examples. (05 marks) Question 2.4 Mention five difficulties in measuring National Income. (05 marks) Question 2.5 Mention key features of Perfectly Competitive Market Structure. (05 marks) Question 2.6 Point out the Negative Impact of Inflation on individuals. (05 marks) (Total30 Marks)
PART THREE Answer TWO questions
Question 03 What do you mean by Devaluation of Currency? Explain how Devaluation corrects Balance of Payment deficits. (Total 20 marks)
Question 04 Describe different types of utilities and explain the Law of Diminishing Marginal Utility with an example. (Total 20 marks)
Question 05 What do you mean by Protectionism? Explain two (02) major types of Policies of Protectionism and point out the advantages and disadvantages of Protectionism. (Total 20 marks)
(Total of 40 Marks)
-END
Graduate/Postgraduate Diploma in Marketing June 2011 Examination Economics & Legal Concepts for Marketing
Part Two Legal

Date: 20th June 2011
Time: 1100 hrs 1200 hrs
Duration: One (01) hr
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 10 compulsory 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 03 compulsory short answer questions. Part Three includes 03 questions. Answer one 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. Always start answering a question on a new page. 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.
2 3
PART ONE Answer all questions Mark the most suitable answer in the given space in the answer book
Question 01 1) On the acceptance of an offer by an offeree: a) only the acceptor becomes bound by accepting the offer b) only the offeror becomes bound as his terms are accepted c) both the acceptor and offeror become bound by the contract d) none of above 2) A threatens to kill B if he does not agree to sell Bs car to A for only Rs. 1,000. Here Bs consent is obtained by: a) b) c) d) Undue Influence Fraud Threat None of the above
3) Which offer is valid from the following? a) a garment store made the following advertisement in the news paper Special sale for tomorrow only. Mens night suits reduced from Rs. 500 to Rs. 400 b) P says to Q I will sell you a camera. P owns three different types of cameras of various prices c) an auctioneer displays a refrigerator before a gathering in an auction shop d) A advertises in the Sunday Express news paper that he would pay Rs.10,000 to anyone who finds and returns his lost dog 4) Absolute refusal of the promisor to perform the contract prior to the due date of performance is known as: a. b. c. d. Abandonment of contract Repudiatory breach of contract Anticipatory breach of contract Frustration of contract
5) George sells a painting to Andrew saying it is an original work of the famous artist, Picasso. Both the parties were not aware of the fact that the original painting was stolen and a copy had been kept there in place of the original .The contract between George and Andrew was: a. b. c. d. void since it was based on mutual mistake void since it was based on common mistake voidable since it was based on mutual mistake voidable since it was based on common mistake
6) The Sale of Goods Ordinance of 1890 deals with: a. Movable goods only b. Immovable goods only c. Both movable and immovable goods d. All goods except money 7) Pioneer Timber Store entered into a contract with A for the sale of timber inch thick. The timber supplied varied in thickness from inch to 2/3 inch. As purpose in buying timber was to make cement barrels and timber as supplied was not fit for that purpose. A rejected the goods. Pioneer Timber Store has broken the implied condition: a. b. c. d. as to sale by description as to merchantable quality as to fitness for purpose both a and b
8) What is the non-essential element of a valid agency out of the elements stated below? a. b. c. d. Principal must have capacity to contract Agent must have capacity to contract Agent must act in representative capacity There must be expressed or implied agreement
9) A negotiable instrument payable to order can be transferred by: a. Simple delivery b. Endorsement c. Registered post d. Endorsement and delivery
10) A registered owner of an industrial design has the rights to: a. b. c. d. . (Total 40 Marks) reproduce and embody such industrial design in making a product conclude licence contracts offer for sale products embodying such industrial design all of the above
PART TWO Answer all questions Question 02 2.1. Define the contract. What are the essential elements of a contract? (10 marks) 2.2. What are the rights of the registered owner of a patent? (10 marks) 2.3. Discuss briefly the different modes in which an agency can be terminated. (10 marks)
(Total 30 Marks)
PART THREE Answer one question Question 03 a. Define a contract of sale of goods. What are the essential features of a contract of sale of goods? (15 marks) b. What are unascertained goods? When does ownership pass in a contract for the sale of such goods? (15 marks) (Total 30 Marks) Question 04 a. State different remedies available to an aggrieved party for a breach of contract. . (15 marks) b. Consideration need not be adequate but it must have some value in the eye of law. Do you agree with this statement? Give reasons.
(15 marks) (Total 30 Marks) Question 05 a. What are special characteristics of negotiable instruments? (15 marks) b. When does a person become a Holder in Due Course? (15 marks)
(Total 30 Marks) (Total 30 Marks) -END-
Graduate/Postgraduate Diploma in Marketing June 2011 Examination Brand Management

Date: 18th June 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 study. Part Two has 03 sections. Select at least one question from each section and answer 03 questions from part two.
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. 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.
PART ONE Answer all questions
Question 01: Case study DAMRO: Reach the globe with furniture Established in 1986, Damro has come a long way from its humble beginnings. Its current vision is to be among the world's largest furniture manufacturers offering a diverse range of modern and traditional furniture. It has expansion plans for over 150 Showrooms globally, while already there are over 50 showrooms in India alone. According to Damro, their basic success depends on the ability to produce high quality furniture at affordable prices with outstanding customer service. The driving force behind Damro Furniture Pvt. Ltd., Mr. Damitha Ramanayake hails from a remote part of the Western Province of Sri Lanka. He stepted into to the furniture business 30 years ago. From the beginning, he drove Damro to be different from other furniture manufacturers of Sri Lanka , making Damro an affordable but durable furniture manufacturer, rather than targeting luxury customized furniture. Damros cost driven strategy of furniture manufacturing demands for economies of scale in furniture manufacturing with simple low cost designs. Damro was capable of delivering a higher level of customer service from their state of the art outlets both locally and overseas. Damro was able to cut down its raw material and operational cost to a great extent by using locally available raw material and low priced timber and locating the mass scale factory in Nittambuwa a remote part of the Western Province of Sri Lanka. Once they expanded their outlets locally and after Damro became a household brand during the last twenty years, they began their international operations by starting an outlet and franchise operation in Chennai, India. This operation expanded so rapidly that within few years, it expanded to Karnataka, Andhra Pradesh and other southern and northern states of India. With more than 50 showrooms and more than 1000 franchises, operations have also expanded to Australia and Damro is aiming high for their future and plans to expand to the Far East as well. Product Range Damro produces both household as well as office furniture. The household furniture line comprise of real wood as well as plastic furniture ranging from plain plastic chairs to glamorous sofas , beds and dressing tables. Office furniture line has also expanded to various designs and varieties to suit both local and overseas furniture markets. Damro also made a strategic move by entering into electronic goods (white goods) manufacturing with the start of their new washing machine factory in Sri Lanka. Also very recently Damro entered into metal safe manufacturing.
Challenges The Furniture market in South Asia is enjoying growth. With the immense economic development and expansion of urban middle class in India and the sub continent demand for furniture seems to be increasing. But furniture manufacturers like Damro which basically compete on a cost driven strategy have a disadvantage when entering into the high value branded furniture market which is dominated by customized furniture manufacturers. The Damro brand is still not able to reach this upper middle class market and most of the upper middle class consider Damro as a cheaper and low quality option of furniture. This image does not sufficiently fit with the new rich and middle class demands of Asia. Also at the international level, larger furniture manufacturers like IKEA (worlds largest furniture brand) is yet to enter into many Asian markets. Once they penetrate the market it will be an immense challenge for companies like Damro who have been enjoying considerable market share due to their price leadership. I. Conduct a Brand Audit for Damro and make an audit report covering following areas: a. Brand features and benefits b. Brand personality c. Brand value and vision d. Brand positioning (20 marks)
II.
Explain how brand extension and brand stretching is using by Damro and suggest future directions for them on the same. (20 marks) (Total 40 Marks)
PART TWO Answer three (03) questions selecting at least one from each section Section A Question 02 a. In Sri Lankan Retail Marketing Own Label Branding has become increasingly popular and sometimes threatens the well established manufacturer brands. provide at least three (03) examples for own label brands in Sri Lanka and explain why they have become popular in recent years. (10 marks) b. Explain how economic recession affects the Brand Loyalty of customers. (10 marks) (Total 20 Marks) Question 03 The growth of the Services Economy in Sri Lanka made Services Branding prominent within the country. Especially Telecommunication emerged as a major industry with a multiple number of prominent and high value services brands. a. Explain how Services Brands differentiate from Product (FMCG) Branding with relevant local examples. (10 marks) b. Explain how Extended Marketing Mix is used in service branding with relevant examples. (10 marks)
(Total 20 Marks)
Section B Question 04 a. What is Brand Identity? Explain with relevant examples. (10 marks) b. Using the Component Model of Brand Identity explain how Brand Identity forms among different stakeholders. (10 marks) (Total 20 Marks) Question 05 a. List the necessary skills and traits needed by a brand manager. (5 marks) b. A Brand Manager in modern business organization has expanded their horizons in many ways. They perform multiple functions within their role. Explain what are the main functions performed by modern brand managers and how these functions are important for them to make their brand a success in the market. (15 marks) (Total 20 Marks)
Section
Question 06 a. Explain how brands are managed over their life cycle with relevant examples. (10 marks) b. Most of the successful brands of the world rejuvenate or revitalize their brands by adjusting themselves to the market changes. List the main steps of revitalizing process in branding. (10 marks) (Total 20 Marks) Question 07 a. Explain the difference between cost driven and value driven brands using relevant examples. (10 marks) b. Most of the worlds best brands sustain their competitive advantages through the generations. Explain how they sustain their competitive advantage with relevant examples. (10 marks)
(Total 20 Marks)
(Total 60 Marks)
-END-
Graduate/Postgraduate Diploma in Marketing June 2011 Examination Distribution Management

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 study. Part Two has 03 sections. Select at least one question from each section and answer 03 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. 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.
PART ONE Answer all questions Question 01: Case Study
Crunch Time to meet changing tastes Crunch is a biscuit manufacturer who lost their market share due to a crippling strike launched by its employees, three years ago. However, the biscuit manufacturer is now financially stronger with a young team of professionals, and plans to emerge as a big player in the food industry, a senior official of the company said. They have just launched a new range of products aimed at the changing food habits of younger Sri Lankan consumers. "Over the last year Crunch biscuits have worked hard on a long term plan to regain market share and regain dominance in the biscuit industry Mr. de Silva, advisor to Crunch Biscuits told a news conference Wednesday."Our long-term aim is to be a food conglomerate," he further said. The company has re-launched its Crunch Cream Cracker with a new taste and look, aimed at the youth market, whereas earlier the product targeted a more elderly population in the market, said Ravi the head of marketing. As a result the firm's market share in the cracker category had plunged to 15%. Ravi also said the new product has no preservatives, animal fat or trans fat which could cause health hazards. The 50 grams mini-cracker pack with six biscuits is sold at 50 rupees and is positioned as a snack between meals."The cream cracker is usually eaten for in-between hungers," said Ravi. Furthermore De Silva said the island's biscuit market was changing from sweet biscuits to semisweet and cracker type biscuits. Consumer lifestyles were changing with people snacking more as opposed to having main meals."As a nation we are moving to the services sector. Those who are employed in this sector find it difficult to allocate a separate time for meals during day time. They want something on the go. Cream crackers are a supplement if you miss a meal," de Silva said."The cracker segment is growing very rapidly. We want to capture that market share," he further said. Reflecting on the past, they further added that the 54-year-old firm had perhaps evolved too slowly to keep pace with changing consumer trends and had not come up with new products when required. Crunch had 42 % and the present market share is only 28 %, de Silva said. About 70 % of Crunch sales are in rural areas and the balance in urban markets. He also said the biscuit market is getting bigger as the economy grows. The current per capita consumption of biscuits in Sri Lanka is 3 - 4.5 kilos."However, as Sri Lanka develops this figure will increase to at least 10 kilos in the medium term; indicate the potential for growth in the biscuit market.
NB: Facts and names in the case are fictitious and has no relevance to anyone or any company
a) Marketing Channel Decisions are crucial for the success of any organization. Explain a Marketing Channel in your own words and state in detail the key tasks you may expect from an effective distribution channel. (10 marks) b) After the company has defined its Target Market and Desired Positioning, it should identify its Channel Alternatives. Outline and describe the three elements of Channel Alternatives and give two examples for each Channel Alternative. (10 marks) c) A producer must periodically review and modify its Channel Arrangements. Explain when and how an organization should modify its Channel Arrangements. (10 marks) d) Distribution Channels are challenged by new whole selling/retailing institutions and new channel systems. In this context explain what you understand as Vertical Marketing System. (10 marks) (Total 40 Marks)
PART TWO Answer Three (03) questions selecting at least one from each section Section A
Question 02 a) Retailing includes selling and all the activities involved in selling goods or services directly to the final customer for personal and non business use. Explain the terms Retailer or Retail Store with examples. (10 marks) b) Companies need to define their sales force objectives and strategy they expect their sales force to achieve. Explain what is known as Sales Force Objectives and Strategy with local or foreign examples. (10 marks)
(Total 20 Marks) Question 03 a) Explain in detail what you mean by Personal Selling? Why choose Personal Selling? Give advantages and disadvantages of Personal Selling. (10 marks) b) Identify and explain the steps involved in the Selling Process? (10 marks) (Total 20 Marks)
Section B Question 04 a) As the National Sales Manager you are expected to explain to the management the importance of training the sales force of your company. List the key points and arguments in support of this. (10 marks) b) Explain the meaning of sales training, its process and its areas in detail. (10 marks) (Total 20 Marks) Question 05 a) The most valuable and expensive resource in an organization is its people. However the most difficult part is the management of them. Explain in detail how you would motivate your sales persons. (10 marks) b) Removing the demotivating factors is very important before motivating the sales staff. Explain the demotivating factors commonly visible in organizations. (10 marks)
(Total 20 Marks)
Section C Question 06 a) Explain what you understand by Sales Forecasting. Why it is important for a Sales Manager to have a correct forecast done? Explain with real world examples. (10 marks) b) Sales Budgets are prepared annually by the Sales Manager of the company. Management uses budgets as an important technique in planning. Explain the two main purposes of preparing a budget. (10 marks) (Total 20 Marks)
Question 07 a) Explain what you understand by Relationship Marketing and state its important components. (10 marks)
b) It is believed managing demand means managing customers. There are two groups of customers contributing to the sales of any organization. Explain this statement. (10 marks)
(Total 20 Marks)
(Total 60 Marks)
-END-
Graduate/Postgraduate Diploma in Marketing June 2011 Examination Promotional Practice

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. 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.
Question 01: Case Study
X Deodorant Body Spray Launched into the local market in 2006, X deodorant body sprays cater exclusively for men. Priced at a premium and promising rate to give men an 'edge in the mating game' X is targeted at young urban metrosexuals. They were able to capture 25% of market share for male deodorants in Sri Lanka by 2008.
First launched in France in 1983, X is now giving men the edge in the mating game in more than 60 countries. It holds the number one position in several European and Latin American markets, plus has an increasingly powerful presence in Asia and the US, where it was launched in 2003.
The X strategy is focused on establishing the X effect through a number of unique and interactive activities. The X Raiders, a concept unique to X, is one such activity. The Raiders are the face of the brand and personify the hip and seductive image of the brand. It is such unconventional and exciting communication methods used by the brand that distinguishes X from its competitors across the world.
X is available in 5 exciting variants. The seductive fragrances and packaging has enabled the brand to established itself as the world's top male grooming brand by coming up with a constant stream of new ideas to keep men a step ahead in the 'mating game'.
Positioned more as a "Cool" fashion brand than as a Deodorant, the brand seeks to drive home this message through its award-winning ads and equally adventurous BTL activities. One such unconventional promotion was when X deodorants sent a group of models to Colombo's offices, cafes, coffee shops and nightclubs to talk to and pose for photos with males in the city. The models also handed out invitations for a sports event organized by X deodorant.
Since the brand is targeted at the youth (teens to young adults) unconventional media channels are used to grab the attention of the target market at every touch point possible.
1.1)
Identify the advertising appeal used by X and explain how they use this appeal to communicate with the target market. (5 marks) How can X use packaging as a promotional mix element? Explain how X could use any three (03) designer elements of packaging. (15 marks) Explain three (03) other sales promotions you would conduct to maintain X deodorant sprays market share. Identify and explain four (04) unconventional media channels you would use to grab the attention of the target audience. (20 marks) (Total 40 Marks)
1.2)
1.3)
PART TWO Answer three (03) questions selecting at least one from each section Section A Question 02 a) List six (06) Public Relations (PR) tools that can be used by a company. (6 marks) b) Your company has decided to use Direct Marketing to market a range of cosmetic products. Explain four (04) issues you could face and two (02) initiatives you could take to minimize these issues. (10 marks)
(Total 16 Marks) Question 03 a) List and explain three (03) types of trade promotions. (6 marks) b) Your company has decided to use Radio Advertising for an energy drink. Explain two (02) types of radio advertising that can be used and two (02) advantages of using radio advertising. (10 marks) (Total 16 Marks)
Section B Question 04 a) List five (05) functions of an Advertising Agency and five (05) components you will include in your advertising brief to the advertising agency. (10 marks) b) You are planning an Advertising Campaign for a new fruit drink your company is hoping to launch to the market. Discuss why you should outsource your advertising to an advertising agency rather than doing advertising in-house. (12 marks) (Total 22 Marks) Question 05 a) List five (05) criteria that should be considered when designing an effective packaging. (5 marks) b) List five (05) tools of Merchandising. (5 marks) c) Discuss the benefits of Merchandising to retailers and FMCG companies. (12 marks)
(Total 22 Marks)
Section C
Question 06 a) Briefly explain four types of advertising appeals that can be used to communicate the message to the target audience. Select the advertising appeal that is most suitable for advertising Life Insurance. Explain why. (10 marks) b) You are in charge of measuring the effectiveness of a recent promotional program conducted by your company. Explain why it is necessary to measure the effectiveness of promotional programs and problems and issues faced when measuring the effectiveness. (12 marks) (Total 22 Marks) Question 07 a) Identify four (04) different types of printed matter an FMCG company could use to communicate with the customers. Discuss three (03) advantages of using printed matter. (10 marks) b) Explain four (04) ethical issues raised by marketing communication and two (02) advantages of socially responsible marketing to a company. (12 marks)
(Total 22 Marks)
(Total 60 Marks)
-END-
Graduate/Postgraduate Diploma in Marketing June 2011 Examination Finance for Marketing

Question 01: Case Study Sunray is a public listed company that assembles domestic electrical goods which it then sells to both wholesale and retail customers. Sunrays management was disappointed in the companys results for the year ended 31 March 2010. In an attempt to improve performance the following measures were taken early in the year ended 31 March 2011: A national advertising campaign was undertaken. Rebates to all wholesale customers purchasing goods above set quantity levels were introduced. The assembly of certain lines ceased and was replaced by bought in completed products. This allowed Sunray to dispose of a surplus plant. Sunrays summarized financial statements for the year ended 31 March 2011 are set out below:
Sunray Ltd. Income Statement for the year ended 31 March 2011 Rs. million 4,000 (3,450) 550 (370) 180 40 (20) 200 (50) 150
Turnover (25% cash sales) Cost of sales Gross profit Operating expenses Operating profit Profit on disposal of plant Interest Profit before taxation Taxation Profit for the financial year
Sunray Ltd. Balance Sheet as at 31 March 2011 Rs. million Property Plant and equipment Rs. million 300 250 550 Current Assets Stocks Debtors 250 360 610 1,160 Capital and Reserves Equity shares of Rs.1 each Profit and loss account 100 380 480 Non Current Liabilities Loan 10% Current Liabilities Bank overdraft Trade creditors Taxation 10 430 40 480 1,160 200
Below are the ratios calculated for the year ended 31st March 2010 Return on capital employed 28.1% (ROCE) Gross profit margin 17% Net profit margin 6.30% Current ratio 1.6:1 Stock holding period 46 days Debtors collection period 45 days Dividend cover 2 times Dividend yield Equity ratio Debt ratio 18% 44.5% 55.5%
Additional information i. Sunray received Rs.120 million from the sale of a plant that had a carrying amount of Rs. 80 million at the date of its sale. ii. iii. iv. The market price of Sunrays shares throughout the year averaged Rs. 3.75 Dividends paid during the year ended 31st March 2011 amounted to Rs. 90 million. Assume there are 365 days in the year.
1.1. Calculate financial ratios for the year ended 31st March 2011 for Sunray, equivalent to those calculated for 31st Mach 2010. (15 marks) 1.2. Prepare a report by analyzing financial performance and position of the company for the year ended 31st March 2011 compared to the previous year. Further you are required to comment on the measures taken by the senior management to improve the performance of the company in the report. (15 marks) 1.3. Suppose that the management of Sunray is planning to acquire one of the largest companies in the same industry to expand their market share. You are required to explain information that may be useful to the management of Sunray when making an acquisition decision. (10 marks)
(Total 40 Marks)
PART TWO Answer Three (03) questions selecting at least one from each section Section A Question 02 a) Explain the circumstances under which material price and material usage variances are likely to arise. (05 marks) b) The following data has been extracted from the cost accounting records of the SUN Company. An input of 100 Kg of material yields a standard output of 10,000 units Standard material price - per Kg Rs. 20 Actual quantity of material issued and used for the production 10,000 Kg Actual material price per Kg Rs. 21 Actual output 900,000 units Number of employees 200 Standard wage rate per employee per day Rs. 40 Standard daily output per employee per day 100 units Total number of days worked 50 days Actual wage rate per day Rs. 45 You are required to calculate following variances: i) Material Price Variance ii) Material Usage Variance
iii) Material Cost Variance iv) Labour Rate Variance v) Labour Efficiency Variance (15 marks) (Total 20 Marks)
Question 03 a) i) The Marginal Costing technique is frequently used for short-term decision making. Justify this statement. (03 marks) ii) "Relevant Cost Analysis helps in drawing the attention of managers to those elements of cost which are relevant to the decisions." Comment. (03 marks) b) The following information relates to Delight Food Manufacturing Company. There are no opening stocks at the beginning of the year.
Selling price Units produced Units sold Variable cost: Direct material Direct labour Factory overhead Selling & administrative expenses Fixed cost: Factory overhead Selling & administrative expenses You are required to prepare Income Statements under: i. Absorption Costing and ii. Marginal Costing.
Rs. 20 per unit 30,000 20,000 Rs. 5 per unit Rs. 3 per unit Rs. 1 per unit Rs. 2 per unit Rs 120,000 Rs. 15,000
(14 marks)
(Total 20 Marks)
Section B Question 04 a) Explain the following terms: i. ii. iii. iv. Margin of Safety Break-even Point Angle of Incidence Profit Volume (P/V) Ratio (08 marks) b) A retail dealer in garments is currently selling 24,000 shirts annually. He supplies the following details for the year ended 31st December 2010. Rs. Selling price per shirt Variable cost per shirt Fixed costs: Staff salaries for the year General office costs for the year Advertising costs for the year 40 25 120,000 80,000 40,000
As the cost accountant of the company you are required to answer the following questions. Each part should be answered independently. i. Calculate the Break-even Point and Margin of Safety (in sales revenue and number of shirts sold). ii. iii. Assume that 20,000 shirts were sold in a year. Find out the net profit of the firm. If it is decided to introduce a selling commission of Rs. 3 per shirt, how many shirts would require to be sold in a year to earn a net income of Rs.15,000? iv. Assuming that for the year 2011 an additional staff salary of Rs.33,000 is anticipated, and price of a shirt is likely to be increased by 15%, what should be the Break-even Point in number of shirts and sales revenue? (12 marks) (Total 20 Marks)
Question 05 a) i) Define Flexible Budget and explain its importance as a budgeting technique. (05 marks) ii) Explain the term Budgetary Control and discuss its objectives. (03 marks)
b)
A company is drawing its production plan for the year 2012 for two of its products Rolo and Polo. Assume that there is no closing working progress at the end of any month. Its policy is to hold a closing stock of finished goods at 50% of the anticipated quantity of sales of the succeeding month. The following is the estimated cost data :
Direct material per unit Direct labour per unit Other manufacturing expenses apportionable to each type of product based on production
Rolo / Rs. 50 20
Polo / Rs. 80 30
200,000
375,000
The estimated units to be sold in the first 07 months of the year 2012 are as follows: April May June July Aug. Sept. Oct. Rolo 900 1,100 1,400 1,800 2,200 2,200 1,800 Polo 2,900 2,900 2,500 2,100 1,700 1,700 1,900 You are required to prepare a production budget for the half year ending 30th September 2012 showing monthwise number of units to be manufactured. (12 marks) (Total 20 Marks)
Section C Question 06 a) i) Time value of money is ignored by the Payback Period (PBP) and Accounting Rate of Return (ARR). Explain why this is a major deficiency in these two methods. (05 marks) ii) What is Cost of Capital (COC)? What role does it play in capital investment decisions? (05 marks)
b)
A private hospital is considering two pieces of laboratory equipment out of which the most beneficial equipment to be bought. Each equipment requires an investment of 1,500,000 rupees. The expected life of each is five years with no expected salvage value. The net cash inflows associated with the two independent equipment are as follows. Year 1 2 3 4 5 Equipment 1 750,000 300,000 600,000 300,000 150,000 Equipment 2 150,000 150,000 1,050,000 1,200,000 1,350,000
The relevant Cost of Capital is 12%. Calculate the Net Present Value (NPV) of each equipment and advise the company on which equipment they should buy. Relevant Discount Factors are given below. Year 1 2 3 4 5 DF @ 12% 0.893 0.797 0.712 0.636 0.567
(10 marks) (Total 20 Marks)
Question 07 a) The pricing problem is a complex one with numerous interacting factors and no simplistic solution. Typical factors which may need to be considered - explicitly or implicitly - in a pricing decision are numerous. Explain the factors that affect the Pricing Decision of a product. (05 marks) b) Every business needs adequate liquid resources to maintain day-to-day cash flows. The Liquidity Management includes working capital management of an organization. Discuss the importance of Liquidity Decisions in an organization. (05 marks) c) One of the important functions of the finance manager is deciding the amount of credit to be granted to the customers and collecting the accounts receivable as soon as possible without increasing the cost of debt administration. Identify the factors that should be considered when setting the Credit Policy of a business organization. (05 marks) d) Just-In-Time (JIT) is a management approach committed to continuous improvement and achieving excellence. But JIT cannot be applied by all the organizations. List the factors that should be available for the success of the JIT system. (05 marks) (Total 20 Marks) (Total 60 Marks)
-END-
Graduate/Postgraduate Diploma in Marketing June 2011 Examination Marketing Planning

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. 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.
PART ONE Answer all Questions Question 01: Case Study Shangri-La, a Hong Kong based group of hotels, is planning to open two new hotels in Sri Lanka. One of the hotels will be located in a prime location in Colombo, in front of the Galle Face Green and another hotel will be constructed in Hambantota. The hotel to be built in Colombo will open in 2014 and the one in Hambantota will open in 2013. Shangri-La owns 72 hotels all over the world with over 30,000 rooms. It has a very strong presence in the Asia Pacific region and has hotels in North America, Europe and the Middle East. Shangri-La enjoys a strong brand image and it has Asias most famous recreational clubs which includes Aberdeen Marina Club and Xili Golf and Country Club. However, in the last two years Shangri-La was affected by the slow global economic recovery, which has resulted in a lower occupancy rate. Shangri-La in recent years has increased its debt level which exceeded over 1.8 billion last year. Natural disasters such as the tsunami in Japan and recent earthquakes in the Asian region have significantly affected the tourism industry. Outbreak of diseases such as H1N1 and terrorist attacks such as the one that took place in Mumbai, India in 2008 also had a significant effect on the Asian tourism industry. Further, introduction of new taxation, inflation, labour cost increases and entry restrictions affect the tourism industry. However, the strong economic growth in Asian countries such as India and China has resulted in an increase of Asian tourists who travel to other Asian countries. The end of the long war has created a favorable environment for the tourism industry in Sri Lanka. There has been a significant increase in the arrival of tourists in 2010, which exceeded 600,000. This figure is expected to increase to 700,000 in 2011 and is expected to exceed 2.5 million by year 2016. Today, more and more people are aware of the cultures around the world, and are interested in traveling in order to get a first-hand experience. Internet and New Internet based technologies such as social media networks such as FaceBook urges and facilitates an individual's need to travel. Retired elderly individuals who have both time and wealth are traveling more than ever before creating new opportunities for Tourism industry. a) What are the strengths and weaknesses of Shangri La? (10 marks) b) Identify Threats and Opportunities for Shangri La? (10 marks) c) Identify possible Marketing Objectives and Strategy that Shangri-La can use in Sri Lanka. (6 marks) d) Conduct a Positioning Study and comment on its strategic importance to the Marketing Manager. (14 marks)
(Total 40 Marks)
PART TWO Answer three (03) questions selecting at least one from each section Section A
Question 02 a) Determining the correct Segmentation Variable is an important task in selecting the Target Market. Discuss various types of Segmentation Variables used for segmenting Consumer Market and Business Markets, using appropriate examples. (10 marks) b) After clearly identifying Target Segments, it is important to understand awareness, attitudes, trial and retrial in each of these market segments. Discuss this statement and state how this may benefit the Marketing Plan. (10 marks) (Total 20 Marks)
Question 03 a) With an appropriate product of your choice, describe the process that you would follow in preparing a Positioning Strategy for the product. (10 marks) b) After formulating the Positioning Strategy, marketers have to select a Positioning Execution for that strategy. Briefly describe any four (04) types of Execution that might be considered. (10 marks)
(Total 20 Marks)
Section B Question 04 List and describe four (04) activities involved in developing Purchase Intent and Communication Goals. (Total 20 Marks) Question 05 a) Marketing Objectives relate to either existing customers or new customers. Describe four Marketing Objectives related to each target market category (two [02] for each target market category). (10 marks) b) When creating the Marketing Objectives, marketers should review sales objectives, target markets and problems and opportunities. Discuss. (10 marks) (Total 20 Marks) Section C Question 06 Discuss the process of setting Sales Objectives using appropriate examples. (Total 20 Marks) Question 07 Describe three (03) Budgeting Methods and discuss how they can be utilized to develop and finalize a Marketing Budget. (Total 20 Marks)
(Total 60 Marks)
END
Graduate/Postgraduate Diploma in Marketing June 2011 Examination Marketing Skills

Date: 18 June 2011
th
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 03 sections. Select at least one question from each section and answer 03 questions from part two. Instructions to candidates
PART ONE Answer all questions Question 01: Case study Celebrating a successful ten-year career in the field, Mr.Senanayake has been working as a district marketing manager for Senehasa Health PLC for just over three years. As part of his duties, he supervises eleven territory sales reps across his district. He was the supervisor for thirteen reps until last week; and two were laid off by the company as part of its initiative of reducing its sales force. According to Mr.Ranasinghe, new CEO of Senehasa Health PLC, the layoffs were necessary to stay competitive. Also Mr.Senanayake knew that other factors contributed to the decision includes downturn in the economy; specific government cut backs of health care subsidy for most of Senehasas customers, and the emergence of strapping foreign competitors to the industry. Senehasa Health PLC is a rupees fifteen billion worth medical equipment manufacture. The company produces a wide range of medical supplies and devices for health care providers such as surgeons, hospitals and health maintenance organizations. Mr. Senanayake felt that the morale of his sales force was very low. The reps were unique individuals who did not seem to be interacting much with each other. They were each motivated by different goals. He never sensed any hostility among them and had been hopeful that somehow he could make them more of a team. But in his first three years on the job, he has focused primarily on learning his administrative duties. The sales executive who performed his recent evaluation told Mr. Senanayake that he needed to do a better job communicating with his salespeople especially through coaching and individual contact. Mr. Senanayeke had also been told that his units overall sales performance was not up to the expectation. Market research indicated that Senehasa PLC held eleven percent share of the market in the district. This was well below the companys current national average of twenty percent market share. What stood out more than anything else was lack of success in selling more expensive health care products by Senanayakes unit, thus the CEO was already conscious about it. To effectively sell such complex devices, team effort in selling such products is required. Hence, the company district reps must support the efforts of high grade employees in Senehasa Health PLC. Since Mr. Senanayeke knows that he is currently not in a good position in the company, he needs to improve the morale of an underachieving group of people who have a long history of not being committed to anything other than their own individual goals. Further, he has to do this in a hard-hitting business climate in which the company is laying off his sales people and commitment to the organization is clearly at an all time low among reps. Mr. Senanayeke had taken the advice of superiors and now he has planned to dedicate his time exclusively to addressing these matters. He found yesterday that, two reps, Sisira and Ranjeewa, are high performers and are experienced. They sell all Senehasa products the way that they should be sold. Samantha, Kasun, Sumith and Asela are solid performers, where they achieve above the average. Mr. Senanayeke welcomes much of what they do, but he is dissatisfied with in their sale of high rated items. These reps adore their jobs specially the autonomy. Two reps, Nirmal and Malith, are low-performers. These two reps have been with Senehasa for almost one year. They are the only two reps left that Mr. Senanayake personally hired. They are bright and
energetic, but they still lack experience. One rep Arjuna is a mediocre-performer and a radical. The reps are generally not very close to each other. Finally, the two remaining reps; Menaka and Sarah are low performers but were solid performers in years past. Since Mr. Senanayake became sales manager however, Menakes and Saraths performance has dropped. Mr. Senanayake wants to resolve the crises to protect his own job and his reps by demonstrating better contribution to achieving Senehasa Health PLCs goals.
I.
What is the main mistake committed by Mr. Senanayake in the above crisis? Discuss the consequences of the mistake. (10 marks)
What are the specific behaviors that Mr. Senanayake should exhibit towards his reps? (10 marks)
II.
III.
Do you recommend specific type/s of leadership style/s for Mr. Senanayake to resolve the above crisis? Justify your answer with a theoretical knowledge of leadership.
(10 marks)
IV.
Explain the power bases classified by French and Raven in 1960, which can be used by Mr. Senanayeke to lead his reps. Discuss what power is the most important for Mr. Senanayake to resolve the crisis.
PART TWO Answer three (03) questions selecting at least one from each section
Section A Question 02
a. Emotional Intelligence plays a vital role in any market- oriented organization. Explain Golemans Emotional Intelligence Model. (10 marks) b. Social Awareness is one of the important dimensions which is included in Golemans Emotional Intelligence Model. Discuss how Social Awareness contributes to retaining existing customers and attracting new customers. (10 marks)
(Total 20 Marks) Question 03 a. Why do you say that successful entrepreneurs are risk-takers? Justify your answer quoting a Sri Lankan entrepreneur as an example. (05 marks) b. What are the key skills of an effective entrepreneur? (05 marks)
c. Discuss ten steps of integrating entrepreneurial activities of an organization. (10 marks)
(Total 20 Marks)
Section B Question 04
a. Marketers always keep an eye on what the industry and competitors are up to by searching on competitors and seeing what is posted on their updates. Hence, marketers prefer to initiate the changes of their organizations to outshine competitors updates. Explain Mckinsey 7 S Model and discuss how a Marketer would use this model for changing organizations. (14 marks) b. Discuss the importance of the Transformational Leadership Style for an effective organizational change. (06 marks)
(Total 20 Marks) Question 05
a. The success or failure of a whole Negotiation Process depends upon the levels of preparation and planning of a negotiator. Discuss how you should prepare and plan your negotiation process. (10 marks)
b. You are the Marketing Manager of a leading machinery importing company. You are facing few problems with your main channel. Discuss what style of negotiation is more suitable to handle the above situation. Justify your answer. (10 marks)
(Total 20 Marks)
Section
Question 06
a. Explain the importance of Brainstorming as an effective problem solving method for a Marketing Manager. (08 marks) b. Assume that you are the Head of Marketing attached to a branch of a prestigious local bank. Your branch was awarded the best branch award for last five years continuously and now is making marginal profits as a result of interest rate reduction and other policy decisions made by the bank. The Corporate Head Office is insisting on improving profitability and the branch managers morale towards the bank has become very low now. He requests you to help him improve profitability at your branch. Apply the Decision Making Process to this situation and explain how you would handle this situation.
Question 07
a.
The Success of any marketer and the organization extensively depends on his ability to perform key management functions. Explain the above statement critically and justify your stance by explaining the managerial functions performed by marketers. (08 marks) Write short notes on the following: I. II. III. Democratic leader Lean organization Mind mapping
(12 marks) ( Total 20 Marks) (Total 60 Marks) -END-
b.
Graduate/Postgraduate Diploma in Marketing June 2011 Examination Marketing Management

PART ONE Answer all Questions Question 01 Case Study: Project Idea to achieve Marketing Objectives
Introduction During the last ten years, Sri Lanka has achieved a significant development in the telecommunication industry. It was revealed that 70% of the countrys population uses mobile phones. Sales growth during the last five years is estimated as 500%. Due to the increase of demand for mobile phones, the market has become very competitive. The market also proliferated with the various brands of mobile phones. However, NOKIA brand has emerged as the market leader, enjoying 38% of the total market. Major strengths of the NOKIA phones were the affordable price, quality and the facilities available. Theme of the sales promotion of NOKIA was brand loyalty which was the driving force behind the success of the company. The companys main rival was the SAMSUNG brand which enjoyed 22% of the market share. Further, the main threat for the product was imported cheap mobile phones from China. The industry noted that the company earned Rs 1.2 billion profits, during past 3 years, from importing and selling NOKIA phones. This was recognized as the highest profit margin achieved by a Sri Lankan company. However at the end of the last quarter, the company witnessed a 6% drop in the sales, compared to the previous year.
Competitors Reaction During the past few years, the investors closely monitored the profit, cost, and sales behaviour of the mobile phone industry. Due to stiff competition, attempts made by the several investors to introduce new brands failed to achieve the desired targets. However, having studied the market trends and parameters, ESOFTLOGIC Company which is one of the giants in the telecommunication industry in Sri Lanka decided to penetrate the mobile phone market in 2012. The company conducted a scientific SWOT analysis to make the final decision on this plan. On the basis of research findings, the company decided to incorporate their business activities to the Organizational Strategic Plan.
ESOFTLOGIC Strategy With the new strategic plan the Board of Directors of the company decided to invest Rs 1 .2 billion to commence product introduction to the market. The financial position of the company was strengthened by establishing the ESOFTLOGIC FINANCE Company to attract the savings of customers. After conducting several market surveys, R& D Division of the company, presented the following recommendations to the Board of Directors. 1 To formulate a project to initiate the product to the market within a12 months period 2 To introduce two quality brands to the market simultaneously 3 To adopt the price penetration policy to enter the market
Having endorsed the recommendations the company decided to introduce two popular brands to the market namely MICROMAX and ETEL. Product Introduction Effort Considering the exigent task and the massive investment for this new project, the company decided to appoint the Senior Director of Marketing, who is a Chartered Marketer with postgraduate qualifications and 30 years of experience in the field, as the Project Manager, to lead the Project Team. The Board of Directors issued the broader project guidelines on the targets, timeframes, resource availability, and cost and HR plan to the newly appointed Project Manager Mr Harsha Silva. Approach of Mr Harsha Silva The Board of Directors awarded Mr. Harsha Silva the full autonomy to operate within the policy framework set by the company management. His first task was to recruit 8 members to the Project Team. Having studied the capacities required to carry out the project, he selected senior members represent the different divisions of ESOFTLOGIC. There were people from HR, Finance, Marketing, Brand Management, IT, Technical & Project Management Divisions. Having selected the Cross Functional team, Mr. Harsha Silva convened the first meeting with the Project Team. He explained the broader guidelines issued by the Board of Directors on the Time, Cost and the Scope of the Project. Also he invited his members to present their view of the strategy and the WBS to be followed in order to achieve the ultimate objective of the project within the given time frame. At the initial meetings Mr. Harsha Silva observed divergent opinions of members on the issues pertaining to the project, since they looked at problems in different angles. Due to the leadership style and the experience, the Project Manager was able to resolve these conflicts and obtain the maximum contribution of members to achieve the objectives of the project. However, Mr. Harsha Silva always emphasized the need to have out-of-the-box thinking to address project issues. At every project meeting he promoted the characteristics of the Learning Organizational Concept to ensure project team improvements during the project period. He explained the concept and highlighted the benefits of the Learning Organization in achieving the project objectives. Within a short period of time Mr. Harsha Silva managed to change the attitudes of members and created a positive work environment within the project. After a few sessions, the Project Team produced the following project documents, in addition to the main Project Plan. 1 Scope Management Plan 2 Schedule Management Plan 3 Cost Management Plan 4 Staffing Management Plan 5 Communications Management Plan The above plans were submitted to the Board of Directors and got the approval for future proceedings. However, the Board of Directors wanted to design a system to produce periodical reports to measure the progress of the project. Mr. Harsha Silva chaired the weekly progress review meeting and closely monitored all the activities. However, all the decisions pertaining to the project issues were made upon the collective discussion of all the members of the project team.
Having studied the various techniques and their costs and benefits the project team decided to use Milestone Charts and Variance Reports to monitor and report the progress of the project on a periodical basis. Accordingly, the project team forwarded their weekly and monthly progress reports to the board. At the quarterly review, the board was satisfied with the progress made by the project team by achieving 85% of the desired target. The Board also decided to release the balance funds to come up with the final project results.
1.1
a) According to the case study, Project Manager, Mr. Thushara Silva emphasized more on developing learning organizational characteristics among his project team. Identify each characteristic which was affected by the project members. Comment on the leadership style shown by Project Manager in his project period. (15 marks) b) Even though there were conflicts between the members of the project, Mr. Harsha Silva was able to manage these conflicts effectively and get the maximum cooperation of the members. What are the reasons you can identify for conflicts emerging among the project team? (10 marks)
1.2 Mr. Harsha Silva and the Project Team prepared 05 main Subsidiary Project Management Plans. What are the main factors to be included in the Schedule Management Plan, Cost Management Plan and the Communications Management Plan? (15 marks)
(Total 40 Marks)
PART TWO Answer three (03) questions selecting at least one from each section
Section A Question 02 a) Briefly explain the four (04) management functions included in the Management Process? Discuss the reasons why managers should think through their goals and actions in advance? (10 marks) b) Utilizing a theoretical framework, discuss the different roles a manager is expected to play? What are the skills required by managers to be effective? (10 marks)
(Total 20 Marks) Question 03 a) Discuss two (02) Organizational Structures that may enhance the effectiveness of Marketing Projects?
(10 marks) b) Explain the major characteristics of Traditional Organizations? Compare the Traditional Organization with New Organizations with horizontal structures? (10 marks) (Total 20 Marks)
Section B Question 04 a) Identify the key Stakeholders of a project. Briefly explain each. (10 marks) b) By using the following details construct a Network Diagram and calculate Critical Path time duration.
Activity A B C D E F G H
Immediate Proceeding Activity ---------------A B E C ,D F ---------
Duration in Days 80 110 80 160 80 130 100 120 (10 marks) (Total 20 Marks)
Question 05 a) Motivating staff to work will depend on many factors other than good working conditions and financial emoluments. Discuss the validity of this statement, comparing it with any other motivational theory you have learnt. (10 marks) b) What steps can the management take to satisfy the Physiological, Safety & Social needs? (10 marks)
(Total 20 Marks)
Section C
Question 06
a) What is the main purpose of Training? Explain the need for training for an organization which engages in marketing activities. (10 marks) b) Elaborate the five (05) distinct phases of the Training Cycle? (10 marks) (Total 20 Marks)
Question 07
a) Define the term Discipline. Discuss its salient features and main objectives? Identify the types of Misconduct in private sector organizations. (10 marks) b) List out the types of punishments and the factors to be considered in awarding punishments to employees. (10 marks)
(Total 20 Marks)
(Total 60 Marks)
- END-
Postgraduate Diploma in Marketing June 2011 Examination

International Marketing
Date: 20th June 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 has 05 questions. Answer a total of 03 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.
PART ONE Answer all Questions Question 01: Case Study Eminent Pvt Ltd. is a 27 years old US based company and at the beginning it was simply a computer assembly and delivery company, which grew and dominated the PC industry by leveraging information, focusing on efficient delivery of innovative and costeffective solutions, empowering countries, communities, customers and people
everywhere to use technology to realize their dreams. They are on the business of helping their customers use technology to do and achieve more. They address unique need of large enterprises, public institutions like health care, education and government, SME sector and customers through their unique products. They have more than 40,000 service team members in 90 countries, and 60 technical centers, more than 7 global command centers to help customers use technology to reach their business goals. The company has made a difference to the community and planet by recycling their computer equipment and using highly renewable and compostable packaging materials. The company has committed to protecting workers from discrimination in the work place. They are in the top 10 green companies because of top purchase of green power. Their youth program has helped more than one million children to get access to education and technology skills through partnership with non-profit organizations in underserved countries. 1.1 Identify factors affecting Eminents success in International Product
Management. (10 marks) 1.2 According to your view what reasons could have made them start international operations? (10 marks) 1.3 As we are aware, global companies do review their organizational structures periodically. Identify factors that influenced Eminent Pvt Ltd. to make their decisions in this scenario. (10 marks)
1.4
The most common marketing barrier faced by high-growth oriented companies is the absence of a strong brand. Do you agree or disagree? Comment on your decision. (10 marks) (Total 40 Marks)
PART TWO Answer three (03) questions Question 02 You are a representative of an electronic company, manufacturing components for computerized equipment. You have developed a new diagnostic instrument with a strong market potential in European Union (EU). a. What are some alternative methods for supplying the EU market? (10 marks) b. What difficulties do you envisage? (10 marks) (Total 20 Marks) Question 03 Trading blocs are one of the most significant factors contributing to globalization. To what extent do you agree with this view? Specify with examples. (Total 20 Marks) Question 04 China is the worlds third largest country in area and largest in population, which makes it attractive to foreign direct investors. a. Conduct an Environmental Scanning and identify Key Macro Environment Forces favorable for investors to enter China. (10 marks) b. What are the forms of Direct Investment Entry Strategies? Elaborate each. (10 marks) (Total 20 Marks) Question 05 eBay, an online platform which permit peertopeer trading, provides an efficient market for buyers and sellers of products that do not have an efficient distribution system. By mid 2004, after 09 years of its inauguration eBay reported its 48 million active customer base. At present it has become one of the best online auctions in the world. a. Discuss the advantages and disadvantages of this web-based forum. (10 marks) b. Discuss the e-business involvement in competing beyond the borders. (10 marks)
(Total 20 Marks)
Question 06 Volkswagen Group India, the Indian subsidiary of German automobile manufacturer, entered the Indian passenger car market in 2001 by launching its car brand - Skoda. In 2007, two of its other brands Audi and Volkswagen, were also launched in India. Volkswagen Group India emphasized on all aspects of Marketing Mix including product, price, place and promotion. The company offered three brands including Audi, Skoda and Volkswagen that together comprised of 15 different models as of late 2009. Volkswagen Group India mainly catered to the luxury segment of the Indian car market. a. If you are the Marketing Manager of Volkswagen Group of India, identify suitable Marketing Communication Tools to promote the aforesaid car brands. (10 marks) b. What are the possible challenges that the company may face? (10 marks) (Total 20 Marks) (Total 60 Marks)
END-

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5. Illegible hand writing and language errors will be penalized.

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