Preliminary Certificate in Marketing · Preliminary Certificate in Marketing ... Market research b) ... Segment size and growth, company attractiveness and the company objectives

Preliminary Certificate in Marketing

July 19, 2015 – Examination

PCM II 2015 – 86th

Intake, 25th

Year

Candidate’s Registration Number (As per in the examination admission form / Student

ID) 0 0 0 0 0

For Examiner’s use only

Examiner’s Comments

Second Examiner’s Comments

Part One 1st

Marker 2nd

Marker Final Marks

Question 01

Part Two

Question No.

Question 02

Question 03

Question 04

Question 05

Question 06

Question 07

Question 08

Question 09

Question 10

Question 11

Part Three

Question No.

Question 12

Question 13

Question 14

Question 15

Total

Page 2 of 19

Instructions to Candidates

Time: 0930 hrs – 1230 hrs Duration: Three (03) hours

There are three parts in this question paper. Part One

This part has 40 multiple choice questions. It is a compulsory section. Candidates are expected to select the most suitable answer and tick the selected answer in the given box in the question paper itself.

Part Two

Candidates are expected to answer the questions in the space provided in the question paper. All answers are compulsory.

Part Three

Candidates are expected to answer only two questions out of four.

Answers should be written in the additional supplementary answer sheets provided and they should be attached to the question paper itself.

Other Instructions

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

Always start answering a question on a new page.

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

Answer the questions using:

Effective arrangement and presentation Clarity of expression Logical and precise arguments

a) Illegible hand writing will be penalised.

Copyright reserved ©

Page 3 of 19

PART ONE

Read the question and select the most appropriate answer

Tick your choice in the given space

Question 01

Question 1.1

Fill in the blank with the appropriate word: _________ is when the task of the organisation to determine the needs, wants and interests of target markets and to deliver the desired satisfaction more effectively and efficiently than competitors in a way that preserves or enhances the consumers and society’s well-being.

a) Societal marketing concept

b) Marketing ethics

c) Internal marketing

d) Marketing communication

Question 1.2

An advantage gained over competitors by offering a superior performance through differentiation to provide superior customer value, or by managing to achieve lowest delivered cost is known as:

a) Marketing myopia

b) Competitive advantage

c) Marketing intelligence

d) Customer satisfaction

Question 1.3

A sale is not the end of a process but the start of an organisation’s relationship with a customer. Such an approach is termed as:

a) Production approach

b) Transaction approach

c) Direct marketing

d) None of the above

Question 1.4

Fill in the blank with the appropriate word:

__________ is a process that occurs within an organisation whereby the functional process motivates, aligns, and empowers employees at all management levels to deliver a satisfying customer experience and moulding the corporate culture.

a) Customer orientation

b) Societal marketing

c) Internal marketing

d) Marketing communication

Page 4 of 19

Question 1.5

Fill in the blank with the appropriate word: A company’s __________ consists of the actors and forces outside marketing that affect its marketing management’s ability to build and maintain successful relationships with target customers.

a) Corporate culture

b) PESTEEL factors

c) Marketing environment


Question 1.6

The organisation structure has a very important bearing on the way it would carry out its operations. Fill in the blank with the appropriate word: In a __________, the horizontal divisions are diminished or in some cases removed completely to allow integration between functions

a) Functional structure

b) Horizontal structure

c) Matrix structure

d) Vertical structure

Question 1.7

Fill in the blank with the appropriate word: __________ represent a systematic attempt to supply continuous, useful, updated stream of information to decision makers for decision making.

a) Market research

b) Marketing intelligence

c) Marketing information systems

d) Qualitative research

Question 1.8

Fill in the blank with the appropriate word: The collection of secondary data is often referred to as __________.

a) Field research

b) Marketing intelligence

c) Primary data

d) Desk research

Page 5 of 19

Question 1.9

A method of data collection which involves either a face to face respondent or a group of

5-20 respondents is known as:

a) Survey research

b) Observational research

c) Experimentation


Question 1.10

One of the key advantages of secondary data is:

a) Relevant to the information requirement

b) Sufficient amount of information could be collected

c) Specific and very focused

d) Relatively quicker to extract

Question 1.11

Cognitive dissonance occurs due to:

a) The chosen alternative has some drawbacks and the rejected alternatives have some positive characteristics

b) The chosen alternative has some positive characteristics and the rejected alternatives have some negative drawbacks

c) When the consumer seeks for information to solve a given problem


Question 1.12

With reference to organisational buying behaviour, there are three major types of buying situations. These three types are:

a) Straight re-buy, modified re-buy and new task purchase

b) Problem recognition, modified re-buy and new task purchase

c) Straight re-buy, modified re-buy and post purchase evaluation

d) Straight re-buy, evaluation of alternatives and new task purchase

Question 1.13

Fill in the blank with the appropriate word: __________ is arranging for a market offering to occupy a clear, distinctive and desirable place relative to competing products in the minds of the target consumers.

a) Targeting

b) Geographical Segmentation

c) Positioning

d) Segmentation

Page 6 of 19

Question 1.14 Fill in the blank with the three appropriate words: A market means an aggregate of people, who as individuals or organisations have a need for a certain product and the __________, __________ and __________ to purchase such products for consumption.

a) Ability, purchasing power, authority

b) Desire, willingness, authority

c) Ability, willingness, desire

d) Ability, willingness, authority

Question 1.15 When evaluating market segments, the organisation should examine the following three factors:

a) Segment size and growth, segment structural attractiveness and the company objectives and resources

b) Segment size and growth, company attractiveness and the company objectives and resources

c) Company attractiveness, segment structural attractiveness and the company objectives and resources

d) Competition, segment structural attractiveness and the company objectives and resources

Question 1.16 Organisations use wide range of positioning tools or variables to gain a slot in the customer’s mind. Signal Toothpaste is a well-known brand in Sri Lanka and its positioning tool used is: “Signal - Strong teeth and prevention of decay”. The positioning variable/tool used by Signal is known as:

a) Product category leader

b) Benefit positioning

c) Unique selling proposition


Question 1.17 The Five levels of a Product are:

a) Core product, actual product, basic product, augmented product and potential product

b) Core product, actual product, new product, augmented product and potential product

c) Core product, actual product, basic product, new product and potential product

d) Core product, actual product, expected product, augmented product and potential product

Page 7 of 19

Question 1.18

The four (04) key steps in building a brand in the brand development process are:

a) Brand recognition, brand acceptance, brand awareness and brand loyalty

b) Brand recognition, brand acceptance, brand preference and brand awareness

c) Brand recognition, brand acceptance, brand preference and brand loyalty

d) Brand recognition, brand awareness, brand preference and brand loyalty

Question 1.19

The Product Life Cycle stage in which the sales rise rapidly and the product starts making profits is known as:

a) Growth

b) Decline

c) Maturity

d) Introduction

Question 1.20

Fill in the blank with the appropriate word in reference to Services Marketing: __________ means that services cannot be seen, tasted, felt, heard, or smelled before they are bought.

a) Perishability

b) Variability

c) Inseparability

d) Intangibility

Question 1.21

A pricing strategy, whereby a monetary amount or percentage is added to the cost of the product is referred to as:

a) Cost based pricing

b) Internal oriented pricing

c) Psychological pricing

d) Breakeven analysis

Question 1.22

With reference to pricing strategies, perhaps one of the most marketing-oriented manner of pricing is:

a) Mark-up pricing

b) Competitor-based pricing

c) Cost-plus pricing

d) Value based pricing

Page 8 of 19

Question 1.23

1. Price is the only element of the Marketing Mix which generates revenue 2. Price should not be set in isolation; it should be well blended with other Marketing Mix

variables

From the above statements, which one is correct?

a) Only statement 1 is correct

b) Both statements are correct

c) Only statement 2 is correct

d) Both statements are false

Question 1.24 Fill in the blank with the appropriate word: __________ is a set of activities - consisting of order processing, materials handling, warehousing, inventory management and transportation - used in the movement of products from producers to consumers or end users.

a) Exclusive distribution

b) Physical distribution management

c) Channel management

d) Process management

Question 1.25


__________ are intermediaries such as supermarkets stocking a wide variety of goods for households such as groceries, food items, personal care products, confectionary, consumer durables etc.

a) Brokers

b) Agent

c) Franchisees

d) Modern Trade

Question 1.26


__________ is an approach to achieve the objectives of a marketing campaign, through the well-coordinated use of different promotional tools that are well blended together as a unified force, rather than permitting each to work in isolation, in order to deliver a clear, consistent and compelling message about the organisation and its products.

a) Direct response advertising

b) Public relations

c) Integrated marketing communications

d) Advertising

Page 9 of 19

Question 1.27

The first three steps/stages in the selling process in correct sequence are:

a) Prospecting and qualifying, handling objections, approach

b) Prospecting and qualifying, pre-approach, handling objections

c) Prospecting and qualifying, pre-approach, approach

d) Awareness, pre-approach, approach

Question 1.28


__________ becomes more important as competition increases. Here, the company's objective is to build selective demand.

a) Persuasive advertising

b) Reminder advertising

c) Informative advertising

d) Mass advertising

Question 1.29

With reference to the communication process model, Encoding:

a) Relates to the interpretation of the message by the receiver

b) Relates to the interpretation of the message by the sender

c) Relates to putting the message in a form accessible to the receiver

d) Relates to putting the message in a form accessible to the sender

Question 1.30

You are devising the promotion mix for a business-to-business product targeted at business organisations. Which of the following elements of the promotion mix would be appropriate:

a) TV advertising, sales promotion and trade fairs

b) Personal selling, trade fairs and trade magazine advertising

c) Trade fairs, social media and TV advertising

d) Public relations, direct marketing and radio advertising

Question 1.31


__________ consists of short-term incentives to encourage the purchase or sales of a prod-uct or service. a) Advertising b) Sales promotion c) Public relations d) Personal selling

Page 10 of 19

Question 1.32

There are seven stages in developing an effective communications campaign. The first two steps/stages of this process in correct sequence are:

a) Identifying the target audience and determining the communication objective

b) Identifying the target audience and establishing the budget

c) Prospecting and determining the communication objective

d) Identifying the target audience and Prospecting

Question 1.33

Company A, undertakes the following with regard to its performance for the year.

- Market share analysis - Sales to expense ratio - Sales analysis - Financial analysis

Identify the type of marketing control being adopted by company A.

a) Annual-plan control

b) Profitability control

c) Efficiency control

d) Strategic control

Question 1.34

Fill in the blank with the appropriate word: __________ represents the broad, long term tasks that the organisation wants to accomplish through the conduct of its business and provides the organisation a clear purpose and direction, keeping on track and preventing it from drifting.

a) Corporate objectives

b) Marketing objectives

c) A mission statement


Question 1.35

One useful device for identifying growth opportunities is the product/market expansion grid developed by Ansoff and gives the marketer four strategic options to achieve sales growth. The four strategic options are:

a) Market penetration, market extension, market development and diversification

b) Market penetration, market development, product development and diversification

c) Market penetration, market development, product development and market extension

d) Market extension, market development, product development and diversification

Page 11 of 19

Question 1.36

Good marketing objectives should conform to the following criteria:

a) Specific, measurable, aspirational, relevant and timeframe

b) Strategy, controllable, aspirational, and timeframe

c) Specific, monitor, aspirational, reduce and timeframe

d) Strategy, measurable, actionable, relevant and timeframe

Question 1.37 Fill in the blank with the appropriate word: Plans are nothing or useless unless they generate into action. __________ is the step and activities that are required to bring plans to life.

a) Marketing control

b) Sales forecasting

c) Contingency planning

d) Implementation

Question 1.38 Fill in the blank with the appropriate word: __________ is a marketing technique for making a web page appear more frequently above others in a list of results from a search engine.

a) Social media

b) Digital marketing

c) Search engine optimization

d) Permission marketing

Question 1.39 Fill in the blank with the appropriate word: __________ is high-volume, high-velocity and high-variety information assets that demand cost-effective, innovative forms of information processing for enhanced insight and decision making.

a) Big data

b) Cloud computing

c) Business Intelligence

d) Instagram

Page 12 of 19

Question 1.40

Fill in the blank with the appropriate word: A __________ is sometimes referred to as an online personal journal. It is a site designated for an individual to write about from his/her daily experiences to illicit thoughts, often allowing readers to offer their comments.

a) Blog

b) Extranet

c) Instagram

d) E-commerce

(Total 40 Marks)

Page 13 of 19

PART TWO

Answer all questions in the given space

Question 02 a) Identify four (04) key functions/activities of Marketing:

i. ..................................................................................................................................

ii. ..................................................................................................................................

iii. ..................................................................................................................................

iv. ..................................................................................................................................

b) The Evolution of Marketing Concepts followed four main Orientations. Fill the blanks

with emphasis to each relevant Orientation.

Concept / Orientation Emphasis/Aims

Production Orientation Profitability through …………………………………………

Selling Orientation Profitability through …………………………………………

(04 Marks) Question 03

a) What is Relationship Marketing?

…………………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………………

…………..................................................................................................................................

b) Fill in the blanks, with reference to the relationship marketing ladder of loyalty

A: …………………………………………………. B: …………………………………………………. C: …………………………………………………. D: …………………………………………………. E: …………………………………………………. F: ………………………………………………….

(04 Marks)

Page 14 of 19

Question 04 From the Buyer’s viewpoint, age of customer relationships, the seven P’s might be better described as the seven C’s. Identify the relevant C’s.

Seller’s View (7P’s)

Buyer’s View (7C’s)

Product

Price

Place

Promotion

People

Process

Physical Evidence

(04 Marks)

Question 05

a) What is Market Segmentation?

…………………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………………

…………..................................................................................................................................

b) Identify the five (05) key requirements for effective segmentation.

i. …………………………………..…………………………………………………………………………………………

ii. …………………………………..…………………………………………………………………………………………

iii. …………………………………..…………………………………………………………………………………………

iv. …………………………………..…………………………………………………………………………………………

v. …………………………………..…………………………………………………………………………………………

(04 Marks)

Page 15 of 19

Question 06

Products bought by final consumers for personal consumption is termed as Consumer products. Marketers usually classify these products on how consumers go about buying them. Identify the four (04) types of consumer products and briefly explain them with relevant product examples: a) …………………………………………………

…………………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………………

…………..................................................................................................................................

b) ………………………………………………….

…………………………………………………………………………………………………………………………………………

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…………………………………………………………………………………………………………………………………………

…………..................................................................................................................................

c) ………………………………………………………

…………………………………………………………………………………………………………………………………………

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…………..................................................................................................................................

d) ………………………………………………………...

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…………………………………………………………………………………………………………………………………………

…………..................................................................................................................................

(04 Marks)

Page 16 of 19

Question 07

a) To ensure that pricing decisions are effective and consistent with the organisation’s

objectives, marketers should consider the five factors (5 C’s of Pricing). Fill the boxes with the five factors:

b) Briefly explain the following pricing strategies:

Market Penetration Pricing Strategy

…………………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………………

…………..................................................................................................................................

Market Skimming Pricing Strategy …………………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………………

…………..................................................................................................................................


Briefly explain the following with relevant product examples: a) Intensive Distribution

………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………………………………......

...................................................................................................................................................

PRICING DECISIONS

i.

………………….

v.

………………….

ii.

………………….

iii.

………………… .

iv.

………………….

Page 17 of 19

b) Selective Distribution

………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………

c) Exclusive Distribution

………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………


a) Identify four (04) tools or forms of Direct Marketing.

i. …………………………………..…………………………………………………………………………………………

ii. …………………………………..…………………………………………………………………………………………

iii. …………………………………..…………………………………………………………………………………………

iv. …………………………………..…………………………………………………………………………………………

b) Identify four (04) public relation tools or techniques used in order to build a good corporate image for the organisation.

i. …………………………………..…………………………………………………………………………………………

ii. …………………………………..…………………………………………………………………………………………

iii. …………………………………..…………………………………………………………………………………………

iv. …………………………………..…………………………………………………………………………………………

(04 Marks)

Question 10

a) What is Marketing Objectives?

………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………

Page 18 of 19

b) Identify four (04) functions that objectives serve in an organisation:

i. …………………………………..…………………………………………………………………………………………

ii. …………………………………..…………………………………………………………………………………………

iii. …………………………………..…………………………………………………………………………………………

iv. …………………………………..…………………………………………………………………………………………

(04 Marks)

Question 11

Briefly explain the following terms with reference to Digital Marketing: a) Inbound Marketing

………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………

b) What is Social Media?

………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………

c) What is Permission Marketing?

………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………

d) What is LinkedIn?

………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………

(04 Marks) (04 Marks x 10 Questions)

(Total of 40 Marks)

Page 19 of 19

PART THREE

Select 2 out of 4 questions and answer them in supplementary

sheets.

Attach your answer sheets to the question paper.

Question 12 Explain briefly the three (03) key components of the marketing concept and list four (04)

difficulties/barriers of implementing the marketing concept to an organisation.

(10 Marks) Question 13 With the aid of a diagram briefly explain the key stages of the Marketing Research Process.

(10 Marks) Question 14 Briefly explain the key stages of the New Product Development Process and identify three (03) reasons for introducing new products.

(10 Marks) Question 15 With reference to Marketing planning, an organisation has to conduct two types of audits in order to identify its current situation. Explain the two (02) types of audits the organisation has to conduct, indicating its purpose and the key areas to be considered and list four (04) benefits of marketing planning to an organisation. (10 Marks)

(10 Marks x 02 Questions)

(Total of 20 Marks)

(Total 100 Marks)

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Preliminary Certificate in Marketing · Preliminary Certificate in Marketing ... Market research b) ... Segment size and growth, company attractiveness and the company objectives