Sample exam

Practice purposes only

SCHOOL OF MARKETING Actual exam questions and topics will be different
from the questions contained in this document

EXAM COVER SHEET

NOTE: DO NOT REMOVE this exam paper from the exam venue

EXAM DETAILS
Course Code: MKTG1025
Course
Marketing Principles
Description:
Start time of Duration of 2 hours 15
Date of exam: xxx xxx
exam: exam: mins
Total number of pages (incl. this cover sheet) 5 Pages

ALLOWABLE MATERIALS AND INSTRUCTIONS TO CANDIDATES

1. Write your full name and student number on all exam materials to be
submitted.
2. Students must not write, mark in any way any exam materials, read any
other text other than the exam paper or do any calculations during
reading time.
3. All mobile phones must be switched off and placed under your desk. You
are in breach of exam conditions if it is on your person (ie. pocket).
4. This is a CLOSED BOOK Exam.
5. Calculators and Electronic Dictionaries are not allowed.
6. Students are permitted to take a hard copy bilingual dictionary into an
examination. The dictionary must not contain any notations or be
otherwise tampered with in any way. The dictionary must be presented
to the examination invigilator for inspection at the venue prior to the
examination.
7. Commence each question on a new page. Carry out the instructions on
the front cover of the exam script book and the front of this exam paper.
8. This exam paper contains 7 questions divided in Sections A & B. Refer
to instructions at the beginning of each section. Students are to complete
all questions.
9. This exam paper is worth 40 marks and comprises 40% of the total
marks allocated in this course.
10. This exam paper CANNOT be RETAINED by the student.
SECTION A

This section comprises of five short essay questions. Students must answer ALL five
questions. This section is worth a total of 25 marks.

Answer the following questions briefly and to the point. Structure your answers as
discussed in the revision tutorial and lecture.

QUESTION 1

Distinguish between the different aspects of a marketing mix.

5 marks

Potential Answer (Marketing mix – 4 Ps)

The marketing mix describes the different elements that marketers need to consider when making
marketing decisions. Many different frameworks have been used by marketing scholars ncluding
the 4 Ps, 5 Ps, and 6 Ps, but they essentially refer to the product, Price, Place and Promotion
elements of the decision.
A product is bundle of attributes that when exchanged have value for customers, clients or
society. A product can be a good, a service, an idea or even a person.
Price is the amount of money a business demands in exchange for its offerings. Pricing is a
complex marketing decision that must take account of many factors, including production,
communication and distribution costs, required profitability, partners' requirements, competitors'
prices and customers' willingness to pay. Marketers need to understand the relationship between
price and quality to understand value from a customer's point of view. Marketers need to
understand what customers would like to receive and what they are prepared to give in return.
Place or Distribution refers to the means of making the offering available to the target market at
the right time and place while managing the costs of making the products available. Many
businesses sell their products directly to the public, but distribution usually also involves partners
such as wholesalers and retailers.
Promotion describes the marketing activities that make potential customers, partners and society
aware of and attracted to the benefits of a business's products. The product might be already
established, modified, new, or information designed to persuade. Promotional activities include
advertising, direct selling, sales promotions and loyalty schemes.

QUESTION 2

Explain key aspects of product management and positioning through the product life
cycle.
5 marks
Potential answer (Positioning)
.
Marketers have to continually monitor the product through its lifecycle which includes product
modifications, line extensions and even product deletion. However, in making these decisions,
marketers have to consider what effect they will have on the positioning of the product in the
market.

MKTG1025 Sample Exam 2019 Page 2 of 8

In managing the positioning of the product in the marketplace, it may sometimes be necessary to
reposition the product during the product life cycle so as to keep a product out of the decline
phase. For some products, these approaches can move the product back in the life cycle to enjoy
a new phase of growth.
Many products eventually become obsolete and may have to be deleted as a product in decline
may be taking valuable resources away from other opportunities. Product deletion must be
managed in terms of its effect on positioning of the company’s other products and also to
minimise discontent among customers of the deleted product.

QUESTION 3

How do marketers analyse demand to inform the development of an appropriate pricing

strategy?
5 marks

Potential Answer (Pricing)

Demand is the relationship between the price of a product and the quantity of the product that
consumers are willing to buy.
Demand analysis is based on historical data, estimates of sales potential, and estimates of price-
volume relationships and price sensitivity. The data enable the marketer to construct a demand
curve.
The traditional demand curve slopes downwards, indicating that as prices rise, quantity sold
falls, and vice versa. Prestige products have a unique demand curve in which, to a threshold
point, increasing prices increase demand due to the perceived quality, prestige and exclusivity
conveyed by the product's price.
The sensitivity of consumer demand to price changes is known as the price elasticity of demand.
In instances of price elastic demand, a percentage change in price will cause a greater
percentage change in quantity demanded. In price inelastic demand, a percentage change in
price will cause a smaller percentage change in quantity demanded.

QUESTION 4

Marketers and producers have many choices when deciding on the ideal marketing
channel structure. Under what conditions is a producer most likely to use more than one
marketing channel? Give an example of a consumer product that is likely to be
distributed by each of three typical channels for consumer products.
5 marks

Potential Answer (Distribution)

A producer uses more than one marketing channel to reach diverse target markets, such as when
the same product is directed to both consumers and organisational buyers.
A producer may use more than one channel when they need to be available to many customers,
and at as many convenient locations as possible. By using more than one intermediary, the
producer benefits from a lower number of transaction than if they were to deal directly with each
customer or consumer. They are also able to increase the value to the customer by improved
accessibility to the product. Overall, using a multi-channel intermediary structure should
improve the efficiency and effectiveness of the supply chain and thereby increase value and
satisfaction for the customer.
The three typical distribution channels are:

MKTG1025 Sample Exam 2019 Page 3 of 8

1. Producer direct to the consumer or end user: this channel is the shortest channel. It is
growing in use as many producers take advantage of the improvement in technology and
choose to sell directly to consumers via the internet. An example of a consumer product that
uses this channel of distribution is Domino’s pizza, who sell directly to the consumer via their
website.
2. Producer to retailer to consumer: This method is often used by producers of shopping goods
such as clothing that requires to be fitted (such as jeans) or home appliances. Department
stores are an excellent example for this type of product.
3. Producer to wholesaler to retailer to consumer: this is a common choice for producers who
have products that are suitable for intensive distribution and would struggle to deal with all
retailers that could potentially sell their product. This method is often applied by
convenience goods producers such as a chewing gum producer.

QUESTION 5

In the digital age, information is plentiful and cheap. Explain why it is more important
than ever for managers to be judicious in the management of this information? .
(5 marks)

Potential Answer (market research and customer insights)

The glut of information available on the internet and elsewhere means that most companies,
regardless of size, have reasonable access to low cost or no cost information. Gathering
information no longer requires big budgets or special skills. Simple access to volumes of
information is no longer unique and does not confer a competitive advantage.

The process of converting information into customer insights, on the other hand, is a value
adding activity that requires real skill on the part of the researcher. Data can be interpreted in
many ways. Therefore, companies with access to similar data inputs are likely to arrive at very
different customer insights.

While ability to turn simple facts and figures into deep insights is more important in the digital
age, it remains a skill that is rare. Companies with highly developed skills in this area obtain
competitive advantage.

(5 + 5 + 5 + 5 + 5 = 25 marks)

MKTG1025 Sample Exam 2019 Page 4 of 8

SECTION B: CASE STUDY
Read the following case study and answer the two questions below the case study. This
section is worth 15 marks.

SMART FABRICS @ RMIT

Australian universities are doing better than ever on academic and employment
performance, despite their claims that they're suffering badly from cuts to teaching and
research.
The latest QS World University Rankings show 25 out of 35 Australian universities
improved their overall performance, with five in the top 50 universities in the world.
The QS rankings use comments by academics, businesses and students to produce their
results.
Melbourne University is ranked No. 15 in the world by academic reputation followed by
the University of Sydney at No.25 and the Australian National University at No.29.
There are six Australian universities in the top 50 for academic reputation, which is
measured by mentions from 98,000 professors and teachers globally. Australia with a
population of just 25 million people is clearly punching above its weight in the University
league tables.
RMIT–a former institute of technology and a relatively new University has done
exceptionally well in this regard. RMIT was ranked 21st in the world among universities
less than 50 years old by QS rankings and amongst the top 500 world Universities by
Times World University rankings. QS Rankings has given it the 5 stars overall – in
teaching, employability, research, internationalization, facilities, innovation, inclusiveness
and Art & Design.
In the recent CWTS Leiden Rankings, one of the most respected research schemas, RMIT
ranked 235th on the mean normalised citation score. These latest QS results have
reiterated RMIT’s global standing as a leading research-intensive institution, with the
University now ranked 44th in the world among very intensive research and
comprehensive universities.
RMIT also continued to excel in international appeal, with an international faculty ranking
of 39th and an international students ranking of 95th globally.
Competing with traditional sandstone Universities, it has been able to attract international
talent to produce cutting edge research. The development by its researchers of a laser
printed e-textile early this year is a case in point.
Fabrics produced in just minutes
The next generation of waterproof smart fabrics will be laser printed and made in minutes.
That’s the future imagined by the researchers behind new e-textile technology.
Researchers in Melbourne’s RMIT University, led by Indian scientist Dr. Litty Varghese
Thekkekara, have developed a cost-efficient method for that.
Researchers at RMIT have created a method that can produce a 10x10cm smart textile
patch that’s waterproof, stretchable and readily integrated with energy harvesting
technologies, in just three minutes.
The technology enables graphene supercapacitors – powerful and long-lasting energy
storage devices that are easily combined with solar or other sources of power – to be laser
printed directly onto textiles.

MKTG1025 Sample Exam 2019 Page 5 of 8

The growing smart fabrics industry has diverse applications in wearable devices for the
consumer, health care and defence sectors – from monitoring vital signs of patients, to
tracking the location and health status of soldiers in the field, and monitoring pilots or
drivers for fatigue. Md Syduzzamman et al (2015) have reviewed the various applications
of such smart fabrics.
Making the approach easier
Dr Litty Thekkakara, from RMIT’s School of Sciences, said smart textiles with built-in
sensing, wireless communication or health monitoring technology called for robust and
reliable energy solutions.
“Current approaches to smart textile energy storage, like stitching batteries into garments
or using e-fibres, can be cumbersome and heavy, and can also have capacity issues,”
Litty said.
“These electronic components can also suffer short-circuits and mechanical failure when
they come into contact with sweat or with moisture from the environment.
“Our graphene-based supercapacitor is not only fully washable; it can store the energy
needed to power an intelligent garment – and it can be made in minutes at large scale.
“By solving the energy storage-related challenges of e-textiles, we hope to power the next
generation of wearable technology and intelligent clothing.”
Renewable and in real-time
The research analysed the performance of the proof-of-concept smart textile across a
range of mechanical, temperature and washability tests and found it remained stable and
efficient.
RMIT Honorary Professor and Distinguished Professor at the University of Shanghai for
Science and Technology, Min Gu, said the technology could enable real-time storage of
renewable energies for e-textiles.
“It also opens the possibility for faster roll-to-roll fabrication, with the use of advanced laser
printing based on multifocal fabrication and machine learning techniques.”
The researchers have developed a patent for the new technology, which was supported
with funding from RMIT Seed Fund and Design Hub project grants.

References:
• https://www.rmit.edu.au/about/our-education/reputation-and-rankings/qs-world-university-rankings
• https://www.rmit.edu.au/staff/our-rmit/news/2019/aug/waterproof-etextile
• Md. Syduzzaman1*, Sarif Ullah Patwary2, Kaniz Farhana3 and Sharif Ahmed4 (2014) Smart Textiles
and Nano-Technology: A General Overview, in Journal of textile science and engineering, Vol 5 (1), p1-
7.

MKTG1025 Sample Exam 2019 Page 6 of 8

CASE STUDY QUESTIONS

Answer ALL questions in this section. This section is worth a total of 15 marks.

QUESTION 1

Marketers believe that not always will the benefits of an innovative new idea, concept or
product be initially apparent to consumers. They argue, that consumers may not know
what they want when it comes to new products because they do not understand what is
possible. The situation causes a dilemma for the marketer because if the consumer cannot
understand the benefit, they may be unable to provide input into new product
development.
Discuss and provide an example of how the marketer could overcome this dilemma in the
smart fabrics industry by incorporating consumers into the new product development
process.

Potential answer (new product development)

Marketers seek to create new products as a means of increasing the satisfaction levels of the basic
needs. For example, smart fabrics in sportswear satisfy the basic need of professional athletes to
stay cool under intense performance conditions.
Technology should always be viewed to satisfy an end, and marketers need to consider generic
needs and not be myopic by focusing on brand competition. This means that there will always be a
role for consumers in new-product development.
Companies can increase their consumer engagement in the new product development process
through market research activities such as focus group interviews, concept testing and prototype
trials and even through cocreation activities. Activities that can be increased through application
of collaboration tools such as online (social media, online communities etc), or physical to receive
contribution from the consumer. They will attempt to understand the consumer’s motivation
(financial, social, technological or psychological). The company can work with likely users in the
situation the innovation will solve or improve and have them (consumers) provide ideas and
feedback from the start to the end of the NPD process.

(7.5 marks)

Question 2:

Marketing channel management can be organised in two ways to reduce conflict.

Compare and contrast the differences between the two approaches to marketing channel
management. Make a recommendation for an athletic clothing company using Smart
Wearable Technology in their garments on the best approach to adopt for its channel
management – provide justification for your recommendation.

Potential answer (channel management)

MKTG1025 Sample Exam 2019 Page 7 of 8

Marketing channels perform best when channel members’ roles are well defined and the potential
for channel conflict is recognised and managed.
Conventional marketing channels
Historically, marketing channels have been loose collections of independent companies, each
showing little concern for overall channel performance. In conventional marketing channels, each
channel member is a separate business seeking to maximise its own profits, perhaps even at the
expense of the system as a whole. No channel member has much control over the other members,
and no formal means exist for assigning roles and resolving channel conflict.
Vertical marketing networks
In contrast to conventional marketing channels, a vertical marketing network (VMN) consists of
producers, wholesalers and retailers acting as a unified system. One channel member owns the
others, has contracts with them or wields so much power that all channel members cooperate. The
VMN can be dominated by the producer, the wholesaler or the retailer.
In the case of an athletic clothing company who constructs garments utilising smart fabrics, it
would be recommended they adopt a conventional marketing channel. This will allow for the
clothing company to achieve the highest possible distribution to reach the maximum number of
consumers. Within this method, the clothing company could manage its product line across the
various levels of the marketing channel to further reduce conflict. (Note for students: there is no
one right answer to this. We want to see your reasoning for the recommended channel)
(7.5 marks)

(7.5 + 7.5 = 15 marks)

STUDENTS CANNOT RETAIN THIS EXAMINATION PAPER.

PLACE INSIDE YOUR EXAMINATION ANSWER BOOKLET.

MKTG1025 Sample Exam 2019 Page 8 of 8