Postgraduate Diploma in Marketing

December 2012 Examination

Discovering Marketing Essentials (DME)
Date: 13th December 2012

Time: 1400 Hrs 1700 Hrs

Duration: Three (03) Hrs

Total marks for this paper is 100 marks. There are three parts in this question paper. All
questions in Part One and Part Two are compulsory.
Part One Includes 20 Compulsory multiple choice questions. Select the most appropriate
answer from the given choices and mark it in the given space in the answer book.
Part Two Includes 06 Compulsory short answer questions.
Part Three Includes 02 Essay Type Questions. Answer only 01 Question from this part.
Instructions to candidates
1

State your Registration Number on the front cover of the answer book and on
each and every additional paper attached to it. Your name must not appear
anywhere in the answer book or answer scripts.

2.

Always start answering a question on a new page.

3.

You are reminded that answers should not be written in pencil or red pen except
in drawing diagrams.

4.

Answer the questions using:

Effective arrangement and presentation

Clarity of expression

Logical and precise arguments

Clear diagrams and examples where appropriate

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

PART ONE
Read the question and select the most appropriate answer out of the four
given choices
Tick your choice in the given space in the answer booklet

Question 01
Question 1.1
A certain management concept encapsulates the following:
- Efficiency of Production
- Efficiency of Distribution
- Economies of Scale
Identify the concept from the following.
a)
b)
c)
d)

Production Concept
Product Concept
Selling Concept
Marketing Concept

Question 1.2
Fill in the blank with the appropriate word:
According to an executive at ________our goal is to lead customers where they want to go
before they know where they want to go.
a)
b)
c)
d)

Sony
3M
Procter & Gamble
Wal-Mart

Question 1.3
Key elements of an organisations MICRO environment consists of:
a)
b)
c)
d)

Customers, Intermediaries, Suppliers, Public and Competition

PESTEEL Factors
Customers, Intermediaries, Government and Pressure Groups
Organisational Structures
Page 2 of 9

Question 1.4
The systematic collection and analysis of publicly available information about competitors
and development in the marketing environment is referred to as:
a)
b)
c)
d)

Marketing Intelligence
Descriptive Research
Exploratory Research
None of the above

Question 1.5
The Adoption Process is defined as the mental process through which an individual passes
from first learning about an innovation to final adoption.
Consumers go through five stages in the process of adopting a new product. The five stages
in the correct sequence are as follows:
a)
b)
c)
d)

Adoption, Trial, Evaluation, Interest and Awareness

Awareness, Interest, Evaluation, Trial and Adoption
Awareness, Evaluation, Trial, Interest, and Adoption
Interest, Evaluation, Awareness, Trial and Adoption

Question 1.6
A company marketing a brand of coffee has identified that coffee is most often consumed in
the mornings. However, they would like to change this and make the drink acceptable
during other time periods during the day. Which form of segmentation would they need to
work with and establish strategy reflective of their desires?
a)
b)
c)
d)

Gender Segmentation
Benefit Segmentation
Occasion Segmentation
Age and Life-Cycle Segmentation

Question 1.7
General Motors tries to produce a car for every purse, purpose, and personality and Nike
offers athletic shoes for a dozen or more different sports, from running fencing, golf and
aerobics.
This strategy is known as:
a)
b)
c)
d)

Undifferentiated Marketing
Mass Marketing
Segmented Marketing
Concentrated Marketing
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Question 1.8
A company marketing a range of FMCG products, experiences the following with regard to
one of its products:
Profits are nonexistent because of the heavy expenses of product development and
promotion. Unit costs are very high and the product is a loss maker.
Identify the correct stage of the product life cycle that can be attributed to the above said
product.
a)
b)
c)
d)

Growth Stage
Introduction Stage
Maturity stage
Decline stage

Question 1.9
In the diffusion of innovation process the second group of new product adopters,
representing 13.5% of the total market, is referred to as:
a)
b)
c)
d)

Early Majority
Innovators
Laggards
Early Adopters

Question 1.10
Using a successful brand name to launch a new or modified product in a new category is
known as:
a)
b)
c)
d)

Line Extension
Private Brand
Co-Branding
Brand Extension

Question 1.11
Marketing by a service firm to train and effectively motivate its customer-contact
employees and all the supporting service people to work as a team to provide customer
satisfaction is referred to as:
a) Interactive Marketing
b) Customised Marketing
c) Internal Marketing
d) None of the above
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Question 1.12
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 nor loss

Question 1.13
A distribution channel structure in which producers, wholesalers and retailers act as a
unified system and one channel member owns the others, has contracts with them, or has
so much power they all cooperate.
The above distribution channel structure is known as:
a)
b)
c)
d)

Vertical Marketing System

Horizontal Marketing System
Franchise Organisation
Multichannel Distribution System

Question 1.14
The first step of the objective-and-task method is:
a) assessing the communications functions
b) establishing specific marketing objectives that need to be accomplished
c) establishing specific advertising goals in terms of the levels of measurable
communication response required to achieve marketing objectives
d) determining advertising's role in the total communication mix
Question 1.15
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 synchronising and timing of all the promotional tool
activities and strategies selected by the organisation
c) Long term incentives given to sales force
d) Planning and implementing a promotion campaign

Page 5 of 9

Question 1.16
A system or selling process of identifying the people who have a need for a given product is
known as:
a)
b)
c)
d)

Prospecting
Idea Screening
Sales Presentation
Meeting Objections

Question 1.17
A systematic examination of a firms marketing environment, objectives, strategies, and
activities, with a view to identifying key strategic issues and opportunities, is called:
a)
b)
c)
d)

Marketing Audit
Control Process
SWOT Analysis
Ansoff Matrix

Question 1.18
In the Marketing Planning Process, Marketing Strategies are useful to answer the
following:
a)
b)
c)
d)

Where are we now?

Where do we want to be?
How might we get there?
Which way is best?

Question 1.19
A network of computers that connects people within a company to each other and to the
company network is known as:
a) Internet
b) Intranet
c) Extranet
d) E-marketing
Question 1.20
Websites where members can congregate online and exchange views on issues of common
interest is referred to as:
a) Web Communities
b) E-Commerce
c) Permission Marketing
d) E-business
(Total 20 Marks)
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PART TWO
This part includes SIX compulsory short answer questions
Answer all questions
Question 02
Explain briefly the following:

Competitive Advantage
Customer Satisfaction
A Product Line
Brand Positioning
Marketing Environment
(Total 10 Marks)

Question 03
Briefly explain the following terms with relevant examples:

Market Segmentation
Target Marketing
Market Positioning
Undifferentiated Marketing
Niche Marketing
(Total 10 Marks)

Question 04
a) Identify and briefly explain four reasons why an organisation should establish longterm relationships with their customers.
(6 Marks)
b) Explain with examples of your choice, two benefits that marketing can bring to
organisations and two benefits that it can bring to customers.
(4 Marks)

(Total 10 Marks)

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Question 05
a) Identify two new product pricing strategies with relevant examples, an organisation
could use when introducing new products.
(4 Marks)
b) Explain, with an example of your choice, the relationship between price and
promotion.
(2 Marks)
c) Identify four key functions or value added services performed by
intermediaries/channel members.
(4 Marks)

(Total 10 Marks)
Question 06
a) Explain why the selection of promotional tools may differ for a campaign within a
B2B (business-to-business) environment, as compared to a B2C(business-toconsumer) environment.
(6 Marks)
b) Identify and evaluate one promotional tool that can be effectively used within a B2B
context, and one promotional tool that can be effectively used within a B2C context.
(4 Marks)
(Total 10 Marks)

Question 07
a) Briefly explain why organisational objectives need to be SMART?
(6 Marks)
b) Identify three methods that organisation could use to measure the success of its
marketing activities.
(4 Marks)
(Total 10 Marks)
(Total 60 Marks)
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PART THREE
This part includes TWO essay type questions
Answer only ONE question from this part
Question 08
a) Explain what you understand by the term marketing orientation and discuss the
key steps involved in establishing a marketing orientation approach to an
organisation.
(12 Marks)

b) Discuss four anticipated benefits of implementing the marketing concept and

identify at least four problems/difficulties marketers may face in implementing this
concept.
(8 Marks)
(Total 20 Marks)
Question 09

a) Identify three reasons why it is important to introduce new products and discuss
three potential risks of introducing new products?
(06 Marks)
b) With the aid of a diagram explain the key stages of the new product development
process for a product of your choice.
(14 Marks)
(Total 20 Marks)

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