MNM2602/201/2/2019

Tutorial Letter 201/2/2019

Essentials of Marketing
MNM2602

Semester 2

Department of
Marketing and Retail Management

IMPORTANT INFORMATION
Please register on myUnisa, activate your myLife e-mail addresses
and make sure that you have regular access to the myUnisa module
website, MNM2602-2019-S2.

BARCODE
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CONTENTS

Page

1  INTRODUCTION ............................................................................................................................ 3 
2  GUIDELINES FOR ANSWERING ASSIGNMENT 01 .................................................................... 4 
3  CONCLUDING REMARKS ............................................................................................................ 8 

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1 INTRODUCTION

You are now well on your way with your studies for the academic year. Compare the guidelines to
Assignment 01 given below and make sure you understand why you have answered some question
incorrectly. The lecturer for this module is Mrs Letitia Fourie. Her contact details are as follows:

Address: AJH van der Walt Building,

Office number: 5-65
Telephone: 012 429 8303
Fax: 012 429 3759
E-mail: marketing@unisa.ac.za

Please note that lecturers should only be contacted for academic enquiries, that is, enquires about the
content of the module. Letters to lecturers may NOT be enclosed with assignments.

Administrative enquiries concerning fees, receipt of assignments, examination dates etc. should be
directed to the relevant administrative departments as indicated below:

Communication with the administrative departments of the University

If you need to contact the University about matters not related to the content of this subject, please consult the
booklet my Studies @ Unisa that you received with your study material. This booklet contains information on how
to contact the University (for example, to whom you can write for different queries, important telephone and fax
numbers, addresses and details of the times certain facilities are open).

Always have your student number at hand when you contact the University.

Please note that all administrative enquiries should be directed to the following:

Student admissions and registrations Study-info@unisa.ac.za

Student assessment administration for assignments Assign@unisa.ac.za
Student assessment administration for examination Exam@unisa.ac.za
Despatch: Study material despatch@unisa.ac.za
Finance finan@unisa.ac.za
ICT (myUnisa & myLIfe MyUnisaHelp@unisa.ac.za
MyLifeHelp@unisa.ac.za

Also study Tutorial letter 301 MRMALL8/2019 for further contact information.

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2 GUIDELINES FOR ANSWERING ASSIGNMENT 01

QUESTION 1

Correct answer: Option 1

Page 5 in the prescribed book

There is always a risk that the products or services on offer by a seller may not be in demand by the
consumer. It is necessary for organisations to try to match their supply of goods and services to those
they estimate the consumers will want continuously, based on their knowledge about the consumers’
needs and wants, as identified via their research and other beliefs about consumers. This function is
known as risk taking. Option 2 is incorrect as financing is a function of funding that may occur between
channel members. Sellers such as retailers may offer credit to customers to make it possible for them to
buy their products. Option 3 is incorrect as the transport function has to do with delivering the product to
the customer in the fastest most efficient way. Option 4 is incorrect as standardising and grading refers
to measures set in place to ensure that products or services are manufactured or made in such a way as
to meet rules and standards set by governments.

QUESTION 2

Correct answer: Option 4

Page 37 in the prescribed book and page 174 – 180 in the case study book

Monopolistic competition is found when a large number of businesses are marketing the same or similar
products. Each business attempts to differentiate its product to convince consumers that its product is
the one to buy. Pulp Books can be considered to be part of monopolistic competition as there are many
online and offline competitors in this market. Option 1 is incorrect as a monopoly is when a business
offers a product that has no substitutes. Option 2 is incorrect as oligopoly exist when there are only a few
businesses offering the product and they control most of the supply. Option 3 is incorrect as perfect
competition is when there is an unlimited amount of sellers, where not one could influence the price or
supply of products.

QUESTION 3

Correct answer: Option 2

Page 88 in the prescribed book

Survey research is the gathering of primary data from respondents by mail telephone or in person. By
asking people in Gateway to fill in a questionnaire is a form of survey research. Option 1 is incorrect as
probability sampling is when each element in the population has a known chance of being included
through a strict statistical procedure. Option 3 is incorrect as predictive research is conducted to forecast
future values such as sales income, market share or retail orders. Option 4 is incorrect as simple random
sampling involves a probability sample in which each element has a known or equal chance of selection.

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QUESTION 4

Correct answer: Option 1

Page 111 – 130 in the prescribed book

Group factors that influence consumer behaviour include family, culture, social class and reference
groups. Kgomotso involving her husband in her decision is classified as a group factor as he is part of
her family. Option 2 is incorrect as this is an example of selective exposure which is an individual factor
(perception). Option 3 is incorrect as Ross having doubts about his purchase is considered to be an
example of cognitive dissonance. Option 4 is incorrect as it is an example of learning which is an
individual factor.

QUESTION 5

Correct answer: Option 3

Page 43 in the prescribed book and page 175 in the case study book

Staff is part of the micro environment and was identified as a strength for Pulp Books as they indicate
that they have expertise in the industry and their staff knows their stuff. Option 1 is incorrect as import
and courier costs were identified as threats, which is part of the macro environment. Option 2 is incorrect
as their simple and user friendly website was identified as a strength which is part of the micro
environment not the macro environment. Option 4 is incorrect as they identified opening a physical store
as an opportunity in the case study.

QUESTION 6

Correct answer: Option 3

Page 82 in the prescribed book and page 116 in the case study book

Primary data is data that is collected directly from first-hand experience. In the Metrofile case study they
collected data from 200 business executives on their own practices regarding information and records
management, confidential document destruction and recycling. The survey was a first of its kind in the
country. Option 1 is incorrect as secondary data is data that already exist and which was gathered by
someone else for another purpose. Option 2 is incorrect as there is no such thing as probability data.
Option 4 is incorrect as a survey usually collects quantitative data and not qualitative data. Qualitative
data is typical in focus groups, interviews, experimentation and observation.

QUESTION 7

Correct answer: Option 4

Page 114 – 115 in the prescribed book

Safety needs include needs for safety, health and security and can include products such as insurance,
alarm systems and investments. Refentse taking out a life insurance policy is a safety need. Option 1 is
incorrect as physiological needs are the need for food, water, sleep and sex. Option 2 is incorrect as
esteem needs include the desire for status, superiority, self-respect and prestige, all of which impel
consumers to purchase luxury products like expensive cars to reflect their success. Option 3 is incorrect
as social needs are reflected in a desire for love, friendship and group acceptance.

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QUESTION 8

Correct answer: Option 3

Page 130 in the prescribed book

Evaluation entails the appraisal of attributes and benefits of various alternatives. In this case Melanie is
evaluating three different properties in terms of lot size, rates and taxes and amenities. Option 1 is
incorrect because in the need recognition phase the consumer becomes aware of a need. Melanie is
already aware of her need for a house as she has already identified three options. Option 2 is incorrect
because in the search for information phase the consumer searches for information about the product.
Here Melanie would get the help of an estate agent or browse websites in search of houses. Option 4 is
incorrect because in the purchase decision phase the best alternative has been identified and the
consumer makes a decision. For example Melanie buys the house that she likes the most.

QUESTION 9

Correct answer: Option 2

Page 29 in the prescribed book and page 164 in the case study book

In the Potla’ethu Payroll Solutions case study the following statement: “To provide professional cost-
effective payroll solutions to clients and to respond to South African legislation by providing payroll
solutions to companies and household employers.” is their mission statement. The mission statement is
one of the elements of the micro-environment. The micro-environment consists of forces that are close to
the business that affect its ability to serve its customers namely the mission, the marketing objectives,
the resources skills and abilities and the marketing instruments. Option 1 is incorrect as there is no
middle environment in the marketing environment. Option 3 is incorrect as the market environment refers
to external variables such as customers, suppliers and competitors. Option 4 is incorrect as the macro
environment refers to external forces such as political, international, physical, technological, economic
and socio-cultural variables.

QUESTION 10

Correct answer: Option 1

Page 39 in the prescribed book

Legislation in terms of VAT changed during 2018, resulting in South African consumers now paying 15%
VAT on products is an example of the political/legal environment. Option 2 is incorrect as consumers that
are more environmentally conscious and are looking at reducing their use of plastic, is an example of the
socio-cultural environment. Option 3 is incorrect as unemployment in South Africa that is very high,
which has a direct effect on consumer expenditure and demand for products and services, is an example
of the economic environment. Option 4 is incorrect as climate change that is threatening water supply, is
an example of the physical environment.

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QUESTION 11

Correct answer: 1
Page 4 in the prescribed book

The space gap is a geological space that exists between a consumer and a manufacturer. Coca Cola is
manufactured in plants in big cities in South Africa and then distributed to thousands of stores and small
shops across South Africa. Option 2 is incorrect as the information gap relates to assure that all the
necessary information on the product is available to the consumer. Option 3 is incorrect as the
ownership gap must be bridged for the consumer to become the rightful owner of the product. Option 4 is
incorrect as the value gap is the gap that sellers and buyers must bridge to agree on an acceptable
exchange rate.

QUESTION 12

Correct answer: Option 2

Page 124 – 125 in the prescribed book and page 200 – 211 in the case study book

Lifestyle is an individual factor that will influence the purchasing of a pair of Rollasoles.

QUESTION 13

Correct answer: Option 1

Page 8 – 9 in the prescribed book and page 132 – 141 in the case study book

This is the correct answer as a marketing orientation will focus on the integration of all business activities
that will satisfy consumer demands, needs and preferences, as well as the profitability of the
organisation. This is the marketing orientation that Nikon is utilising as it is evident from the case study
that they adapt their products to help the consumer and to satisfy their changing needs. Option 2 is
incorrect, because societal marketing is the obligation of marketing organisations not to harm the social
environment and, wherever possible, to use their skills and resources to enhance the environment. In the
case study there is no mention as to individuals’ or society’s long-term interests being considered
through the service offerings being provided. Option 3 is incorrect, as a production orientation means
that the internal capability of the organisation is the main focus instead of the needs of the market.
Option 4 is incorrect, as sales orientation focuses only on sales by a company and is based on the
premise that people will buy more products and services if aggressive sales techniques are used.

QUESTION 14

Correct answer: 3
Page 80 in the prescribed book

In step 5 the method for collecting information is selected. Here it will be decided if observation,
experimentation, focus groups or surveys will be used. Option 1 is incorrect as step 1is concerned with
clearly defining the problem or opportunity. Option 2 is incorrect as step 3 deals with the research
objectives that need to be solved. Option 4 is incorrect as step 6 in the marketing research process deals
with designing the form for collecting the information like a questionnaire.

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QUESTION 15

Correct answer: 1
Page 114 – 115 in prescribed book

A physiological need as it fulfils the basic need for food, water and sleep. When an advertisement states
can’t survive without it, it demonstrates the physiological need. Option 2 is incorrect as safety needs are
those that include a need for safely, health and security. Option 3 is incorrect as social needs are needs
reflected in a desire for friendship and group acceptance. Option 4 is incorrect as esteem motives are
needs that include the desire for status, superiority, self-respect and prestige.

3 CONCLUDING REMARKS

You are once again invited to contact me if you experience any academic problems in your studies.

Kind regards,

Mrs L Fourie
Department of Marketing and Retail Management
UNISA