SLIM Sri Lanka

8/13/2019 SLIM Sri Lanka

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Graduate/Postgraduate Diploma in MarketingDecember 2011 Examination

Essentials of Marketing

Date: 14th December 2011

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 Compulsorymultiple 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 Compulsoryshort answer questions.

Part Three includes 03 Questions. Answer only 02 Questionsfrom 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. I lle ible hand writin and lan ua e errors will be enalized.


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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

An organisation with a ______ orientation assumes that customers will resist purchasing products notdeemed essential. The job of marketers is to overcome this resistance through personal selling andadvertising.

a) Production

b) Marketingc) Relationshipd) Sales

Question 1.2

Moral philosophies/principles that define right or wrong behaviour in marketing is known as:

a) Corporate Social Responsibilityb) Marketing Myopiac) Marketing ethicsd) None of the above

Question 1.3

Ethical environment refers to:

a) The rules of conduct and moral principles governing the behaviour ofmarketing activities.

b) Bargaining power of suppliers, bargaining power of share holders

threats of new substitutes, bargaining power of public and bargainingpower of buyers.

c) The rules of conduct and moral principles governing the behaviour ofcompetitor activities.

d) Issues related to the marketer interacts with and affects the naturalenvironment or the ecology.


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Question 1.8

In the diffusion of innovation process the second group of new product adopters, representing13.5% of the total market, is called:

a) Early Majority

b) Innovators

c) Laggards

d) Early Adopters

Question 1.9

ECB Ltd experiences the following with regard to one of its products:

Sales begin to decline as the market becomes saturated, and the product becomes obsolete.Unit costs may increase and the product is a loss maker.

Identify the correct stage of the product life cycle that can be attributed to the above mentionedproduct.

a) Growth Stageb) Introduction Stagec) Maturity Staged) Decline Stage

Question 1.10

At which stage of the new product development process will the organisation assess the TargetMarket and all aspects of the marketing mix to be implemented:

a) Idea Generation

b) Idea Screening

c) Marketing Strategy Development

d) Test Marketing


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Question 1.11

he key requirement of extending the traditional 4 P marketing mix to 7 P extended

marketing mix is:

a) The advent of e-commerce into the marketing equation creating issuesfor marketers to manage its marketing activities with the existingmarketing mix

b) The intensity of competitionc) The advent of service into the marketing equation creating issues for

marketers to mange service situations with the existing marketing mix.d) The environmental changes created issues for marketers to manage its

marketing activities with the existing marketing mix

Question 1.12

Breakeven point is calculated as:

a) Total Fixed cost/Contribution per unitb) Total Fixed cost/Variable cost per unitc) Variable cost per unit/Contribution per unitd) Profit/Contribution per unit

Question 1.13

When a truly innovative product is introduced to the market which does not have any substitutesand which carries less price elasticity of demand, what will be the best pricing strategy aMarketer could use?

a) Psychological Pricing Strategyb) Market Penetration Pricing Strategyc) Value based Pricing Strategyd) Market Skimming Pricing Strategy


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Question 1.14

he key aspects of Physical Distribution Management are:

a) Order Processing, Warehousing, Inventory Management, andTransportation

b) Order Processing, Quality Control, and Transportationc) Inventory Management, Quality Control, Order Taking, and

Transportationd) Manufacturing, Quality Control, Warehousing, and Transportation

Question 1.15

he starting point for developing an advertising campaign is:

a) Identifying the target marketb) Defining advertising objectivesc) Understanding the firm's marketing strategyd) Setting the advertising budget

Question 1.16

The Public Relations department of XYZ group of companies communicate with a range ofPublics. Which of the following would not be included in their publics:

a) The mediab) Customers, suppliers, distributorsc) The company employeesd) All of the above would be included


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Question 1.17

There are many methods available for a marketer to decide on its communication budget. The

method, where the organisation sets its budget on what it wants to accomplish withcommunications is known as:

a) Affordable Method

b) Objective and Task Method

c) Competitive Parity Method

d) Percentage of Sales Method

Question 1.18

he SWOT analysis allows the marketer to gain a competitive advantage over the

competitors by the Matching Principle. The Matching Principle is about:

a) Converting weakness to threats and converting strengths into opportunities

b) Converting weakness to strengths and converting threats into opportunities

c) Converting weakness to strengths and converting opportunities into threats

d) None of the above

Question 1.19

Ansoffs matrix is a strategic marketing tool used to plan for:

a) New Product Developmentb) Product Life-cycle Changesc) Business Growthd) Product Positioning

Question 1.20

systematic examination of a firms marketing g environment, objectives, strategies, and

activities, with a view to identifying key strategic issues and opportunities, is called:

a) Marketing Auditb) Control Processc) SWOT Analysisd) None of the above

(1.5 Marks 20 = 30 Marks)


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PART TWO

Answer all questions

Question 2

Question 2.1

Describe the range of marketing mix elements that you could use in order to communicate withyour customers

(05 marks)

Question 2.2

In identifying the target audience for marketing communications, an image analysis plays a vitalrole. Explain briefly the importance of carrying out an image analysis for this purpose.

(05 marks)

Question 2.3

Briefly explain the key stages involved in planning and developing an effective communicationcampaign for your organisation.(15 marks)

Question 2.4

One of the most frequently used communication process model is the AIDA model. Brieflyexplain how marketers use this model effectively in taking the consumer through an effectivecommunication process in order to achieve its communication objectives.

(05 marks)

(Total 30 marks)


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PART THREE

Answer a total of 2 questions from this part

Question 3

Organisations which follow the marketing concept are said to be marketing-oriented. Marketingorientation means being driven by customer needs. The philosophical idea underlining all

marketing thought is that corporate success comes from satisfying customer needs.

a) Explain what you understand by the term marketing orientation in the context of theabove statement and discuss the steps involved in establishing a marketing orientationapproach to an organisation.

(10 marks)

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

some of the problems/difficulties marketers may face in implementing this concept.

(10 marks)

Question 4

a) Explain the target marketing process and state why marketers tend to choose the targetmarketing process as against mass marketing and mass customization.

(08 marks)

b) Identify and briefly explain a suitable set of segmentation variables/bases for segmenting

the education market in Sri Lanka and identify two potential segments that you would like to

recommend to the government to encourage private sector participation.

(12 marks)


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Question 5

a) Identify and explain briefly the 3 broad types of new product categories and list three

reasons for introducing new products.

(08 marks)

b) Explain the key stages of the New Product Development (NPD) process with relevantexamples and identify four reasons why NPD fails.

(12 marks)

-END-


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Understanding Consumers

Date: 19thDecember 2011


Total marks for this paper is 100. There are three parts in this question paper. All questionsin Part One and Part Two are compulsory.

Part One includes 20 multiple choice questions. Select the best answer from the givenchoices and mark it in the given space in the answer booklet.

Part Two includes six compulsoryshort answer questions.

Part Three includes 3 questions. Answer two questionsfrom this part.


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 inthe 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:





5 Illegible hand writing and language errors will be penalized.


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PART ONE

Answer all questions.

Mark the most suitable answer in the given space in the answer booklet.

Question 01

1. Under the cognitive view of decision making consumers are assumed to be:

a) Perfect rational decision makers

b) Information processors

c) Irrational purchasers

d) Impulsive buyers

2. Products under high involvement purchase situations can have the characteristics of:

a) Being very expensive but having a low perceived risk

b) Having serious personal consequences and reflecting on the consumers social image

c) Having very few important attributes but a high perceived risk

d) All of the above

3. External influences of consumer decision making process include:

a) Rituals

b) Customs

c) Core values

d) All of the above

4. Stages of consumer decision making process logically consists of the following:

a) Trial>>>purchase>>>post-purchase evaluation

b) External influences>>>consumer decision making>>>post-decision behaviour

c) Need recognition>>>pre-purchase searching>>>evaluation of alternatives

d) Input>>>process>>>output

5. When a consumer feels a brand is inferior and neglects it in a purchase situation, the brand

belongs to:

a) Evoked set of brands

b) Inert set of brands

c) Indifferent set of brands

d) Inept set of brands


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6. Groups in which a person does not hold membership; does not have face-to-face contact with

whose values, attitudes & behaviour he or she disapproves of are called:

a) Contractual groups

b) Aspirational groups

c) Disclaimant groups

d) Avoidance groups

7. When an individual perceives a stimulus that is below his or her level of conscious awareness,

this process is referred to as:

a) Sensation

b) Supraliminal perception

c) Subliminal perception

d) Just-Noticeable-Difference (JND)

8. Predispositions that make an individuals perception different from those of others do not consist

of:

a) Expectations

b) Motives

c) Learning

d) Marketing mix elements

9. Principles of perceptual organization do not include:

a) Figure and groundb) Grouping

c) Physical appearance

d) Closure

10. When an FMCG company introduces a new hand-wash product using its presently successful

toilet soap brand name, this situation best describes the concept of:

a) Physical appearance

b) Stereo-type

c) Irrelevant cues

d) Halo effect

11. A research technique that a marketer can use to identify the present positioning of his or her

brand in comparison to its competitors is:

a) Attitude surveys

b) Perceptual mapping

c) Dept interviews

d) Focus group interviews


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12. If you are looking for an HP lap-top computer to purchase, it is:

a) A generic goal

b) A product-specific goal

c) A drive

d) An object

13. A persons inability to attain a goal can result in:

a) Negative motivationb) Tension

c) Frustration

d) Disconfirmation

14. According to Herzbergs two-factor theory of motivation job security and paid insurance are:

a) Motivational factors

b) Hygiene factors

c) Satisfiers


15. The assumption that consumers always go for new products that are associated with a favourably

viewed brand name is a major idea of:

a) Learning theories

b) Classical conditioning theory

c) Instrumental conditioning theory

d) Cognitive learning theory

16. Elements of culture include:

a) Customs

b) Language and symbolsc) Rituals

d) All of the above

17. How a unique consumption phenomenon happens in a particular cultural setting can be best

understood through:

a) Semiotics

b) Ethnography

c) Surveys

d) Experiments


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18. In comparison to primary data, limitations of secondary data does not include:

a) Less relevance

b) Less accuracy

c) Insufficient

d) Less expensive

19. Qualitative research studies rely heavily on:

a) Random sampling techniques

b) Non-random sampling techniques

c) Stratified sampling technique

d) Cluster sampling technique

20. The arithmetic Mean of the following data set- 6, 3, 6, 8, 7, 2, 3, 4, 6 is:

a) 6

b) 8

c) 5.5

d) 5

(Total 30 Marks)


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PART TWO

Answer all questions.

Question 02

Adoption of Internet Banking by Sri Lankan Customers

With the recent advances, consumers have increasing access to innovative financial servicessuch as automated teller machines (ATMs), smart cards and computer banking. Using theseinnovative features, consumers can conduct fast and conventional financial transactions andobtain account information without visiting banks.

However, a vast majority of products and services, which were launched in previous years, hasfailed at a considerable cost to those involved. In Sri Lanka also, the adoption rate of internetbanking is not adequate according to bank sources. Hence, banks need to enhance the

understanding of why some people adopt an innovation while others do not and the factors thatmay influence the adoption decision which is of considerable practical value to executives of theSri Lankan banking sector.

2.1. If you were to carry out a study on the empirical issue above, identify two (2) possible

objectives of the study.

(05 marks)

2.2. Identify two (2) possible psychological factors that might influence the Sri Lankan consumers

decision to adopt internet banking services.

(05 marks)

2.3. Based on the above identified factors, develop two (02) hypotheses in relation to the objectives of

the study.

(05 marks)

2.4. Identify two (2) possible data sources you might use for the study with justification.

(05 marks)

2.5. Suggest your research approach to conduct the study with justification.

(05 marks)

2.6. Suggest four (4) statistical measures you would employ to analyse survey data so as to accomplish

the research objectives you set above with justifications.

(05 marks)

(Total 30 Marks)


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PART THREE

Answer a total of 2 questions from this part

Question 03

a) Explain with examples how marketers can use three (3) perceptual distortion mechanisms in

promoting their brands.

(10 marks)

b) Describe Maslows theory of hierarchy of needs.

Briefly explain two (2) strategic marketing applications of the theory.

(10 marks)

(Total 20 Marks)

Question 04

a) Marketers can change present attitudes of consumers using several approaches. One of

these approaches is changing the basic motivational function of consumers.

Explain with examples how marketers can change the basic motivational function of

consumers.

(10 marks)

b) Describe the term core values with examples.

Should marketers change core values held by their target buyers? Justify your answer.

(10 marks)

(Total 20 Marks)


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Question 05

Suppose that you are the idea manager of a large multinational operating in Sri Lanka. Thecompany intends to introduce a new body-wash to the local market and wants to explore

potential avenues for developing an effective appeal for its advertising campaign. For thispurpose you are required to arrange a brain-storming session in the form of a focus groupdiscussion.

a) Explain how you would plan this group discussion effectively.

(10 marks)

b) If you were the moderator of the above group discussion, explain your role in improving the

effectiveness of the group discussion.

(10 marks)

(Total 20 Marks)

-END-


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Effective Communication Skills



Total marks for the paper is 100. There arethree parts in this question paper. All questionsin Part One and Part Two are compulsory.

Part One includes 20 multiple choice compulsoryquestions. Select the best answer fromthe given choices and mark it in the given space in the answer booklet.

Part Two includes 6 compulsoryshort answer questions.

Part Three includes 3 questions. Answer two questions from this part.



and every additional paper attached to it. Your name must not appear anywhere in

the answer book or answer scripts.



drawing diagrams.





Clear diagrams and examples where appropriate5 Illegible hand writing and language errors will be penalized.


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PART ONE


Mark the most suitable answer in the given space in the answer booklet

Question 1

1. 1 The list of illustration should contain the following;

a) Figureb) Table numberc) Titles & page numbersd) All of the above

1.2 The book of Hidden Dimensions is written by;

a) Thomas Edison

b) Gary Barnett

c) Edward Hall

d) Thomas Edison and Edward Hall both

1.3 Attitude could be built using .. technique.

a) Fourb) Fivec) Sixd) Seven

1.4 One of the following is NOT a problem of the speaker, when the presentation is notgoing as planned;

a) Attendance of expected people

b) Visual equipment failures

c) Visual aid problemd) Unexpected Interruption

1.5 Chronological Resume means;

a) Listing all experience from least to most

b) Listing all experience in skills cluster

c) Listing all experience from most to least

d) None of the following


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1.6 One of the following is behaviour of the Hippo;

a) Aggressive and inflexibleb) Liable to run awayc) Intelligent but could not plod on for ever

d) Half a sleep most of the time

1.7 One of the following is NOT a Reduce Resistance;

a) Trial offerb) Free samplesc) Money back guaranteed) Save money

1.8 There are two major goals in business presentation;

a) To inform or to persuade

b) To convince or to create need

c) To inform and present


1.9 In a sentence a noun or a pronoun is known as;

a) Pronounb) Preposition

c) Correlative Connectiond) All of the abovee)

1.10 Pitch Variation means;

a) The speed at which you speak at a presentation

b) Gradually decreasing your voice

c) Highness or lowness of the voice

d) Maintaining different tones

1.11 When preparing a report it is important that you should define unfamiliar words andwords with specific meaning. This is known as;

a) Definition of Key Terms

b) Literature Review

c) Sources and Methods

d) All of the above


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1.12 One of the following is NOT a classification of nonverbal communication;

a) Gestures and Postureb) Appearancec) Attendance

d) All of the above

1.13 Horseshoe seating arrangement style means;

a) According to the hall

b) Square arrangement

c) U-shape arrangement

d) Round setup

1.14 What are the common types of visual aids that are used?

a) Charts & Graphsb) Photographsc) Drawings & Mapsd) All of the above

1.15 One of the following audited documents which are issued annually by all public listedcompanies to their shareholders in accordance with SEC regulations is known as;

a) Justification Report

b) Feasibility Reportc) Informative Reports

d) Annual Report

1.16 One of the following is the best definition of Tone in communication;

a) When someone speaks loud

b) An impression that you create when communicating

c) An impression you create in your listener

d) An impression that you create in your reader

1.17 Pronouns are;

a) This, that & theseb) Who & whomc) He, she & itd) All of the above


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1.18 One of the following is a key heading which is listed first in a combination resume;

a) Education & Qualificationb) Names & Addressc) Skills & Experience

d) Experience & Referees

1.19 Distortion occurs due to one of the following;

a) If your voice is raised

b) If the tone is high

c) If Jargon is used

d) a and b are correct

e)

1.20 Who gives more priority to the quality than to the colour when choosing a product?

a) Colour Backwardb) Colour Loyalc) Colour Prudentd) Colour Forward

(Total 30 Marks)


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PART TWO


Question 2

2.1 Briefly explain what is meant by Paralanguage.(05 marks)

2.2 Describe how Word Processing works and list its basic functionalities.

(05 marks)

2.3 Illustrate the use of Memos with a few examples.

(05 marks)

2.4 List the types of selection of participants for a meeting.

(05 marks)

2.5 Briefly explain the Resume and three types of Job Hunters in point form.

(05 marks)

2.6 Write down the six key points when writing the Executive Summary.

(05 marks)

(Total 30 Marks)


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PART THREE

Answer TWO questions from this part

Question 3

a) Briefly explain the word Acronym with a few examples and explain its disadvantages.

(Total 20 Marks)

Question 4

a) What are the key pieces of information included in a good agenda.

b) Draw up a agenda using the above key criteria.

(Total 20 Marks)

Question 5

a) Write a professional Cover Letter taking into consideration all key factors of a Cover

Letter Format of your choice.

(Total 20 Marks)

(Total 40 Marks)

-END-


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Economics and Legal Concepts for Marketing

Part One Economics

Date: 21stDecember 2011

PART ONETime: 0900 Hrs 1100 Hrs Duration: Two (02) 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 Compulsory multiple choice questions. Select the most

appropriate answer from the given choices and mark it in the given space in theanswer book.


Part Three includes 03 Questions. Answer only 02 Questionfrom this part.


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.


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








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Answer all questions and mark the most suitable answer in the given spacein the answer booklet.

Question 1

Question 1.1

Scarcity exists in every society because there are:

a) limited wants and abundant resources.

b) limited resources and unlimited production capabilities.

c) limited resources and unlimited wants.

d) limited production capabilities and an unlimited quantity of economic resources.

Question 1.2

The Production Possibility Frontier depicts:

a) the maximum amount of alternative combinations of two goods that an economy can produce at a

point in time.

b) the limited amount of resources that an economy has at a point in time.

c) the alternative combination of capital and labour inputs used in producing goods and services

over time.

d) the economys employment level at a point in time.

Question 1.3The intersection of a market demand curve and a market supply curve for a commodity

determines:

a) the equilibrium price for the commodity.

b) the equilibrium quantity for the commodity.

c) the point of neither surplus nor shortage for the commodity.

d) all of the above.

Question 1.4Which of the following statements is not true when price is above the equilibrium price?

a) There is a shortage of the commodity.

b) The quantity supplied exceeds the quantity demanded of the commodity.

c) The pressure on the commodity price is downward.

d) There is a surplus of the commodity.


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Question 1.5

Supply is initiated by:

a) customers with the intention of maximising profit.

b) suppliers with the intention of maximising profit.

c) customers with the intention of maximising utility.

d) suppliers with the intention of maximising utility.

Question 1.6

The demand curve is downward sloping due to:

a) income effect.

b) income and substitution effect.

c) substitution effect.

d) consumption effect.

Question 1.7

Perfect inelastic demand indicates:

a) a horizontal curve showing different quantities demanded at a constant price.

b) an upright curve showing quantity changes little 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 1.8

The value of perfectly inelastic supply:

a) is equal to zero.

b) ranges between 0 1.

c) reports infinity.

d) is equal to 1.

Question 1.9

Average revenue is equal to:

a) unit selling price multiplied by total output sold.

b) total output sold divided by total revenue.

c) total revenue divided by unit selling price.

d) total revenue divided by total output sold in units.


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Question 1.10

Monopoly is a market stricture in which:

a) there are many buyers and sellers.

b) there is only one producer/seller for a product.c) there are only few firms that make up an industry.

d) there are no entry barriers to the market.

Question 1.11

All of the following are characteristics of the Oligopoly Market, except:

a) interdependency.

b) no entry barriers.

c) collective pricing decisions.d) fewer number of large scale firms.

Question 1.12

Total utility is:

a) the amount of satisfaction that a consumer derives by consuming a commodity.

b) the utility gained through the change in the form of the commodity.

c) the aggregate sum of satisfaction that an individual gains by consuming a given amount of goods

and services.

d) the utility gained through the product consumed at the right time.

Question 1.13

Output method of National Income calculates:

a) the gross domestic expenditure based on major expenses.

b) the gross domestic income based on national income figures.

c) the money value of all final goods and services produced in an economy.

d) the cost of all final goods and services produced in an economy


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Question 1.14

In the Two Sector Economy of national income, accounting leakages happen through:

a) taxes.

b) imports.c) taxes and imports.

d) savings.

Question 1.15

The degree to which the quantity supplied changes according to a change in any

determinant of supply is identified as:

a) elasticity of demand.

b) elasticity of supply.

c) price elasticity of supply.

d) elasticity of income.

Question 1.16

Deflation can be identified when:

a) the general level of prices is increasing.

b) the inflation of a country exceeds 10%.

c) the general level of prices is falling.

d) there is a rapid devaluation of currency.

Question 1.17

Cost-push inflation exists when:

a) consumers use their market power to push up prices.

b) resource owners use their market power to push up prices.

c) potential output is growing faster than real GDP.

d) real GDP is increasing faster than potential GDP.

Question 1.18

The Concept of Comparative Advantage was initially introduced by:

a) Adam Smith.

b) David Ricardo.

c) Alfred Marshall

d) John Maynard Keynes.


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Question 1.19

Floating exchange rate is set by:

a) the government by tying official exchange rate to another countrys currency.

b) the central bank according to supply and demand of a particular currency.c) the monetary authority of a particular government.

d) the foreign exchange market through supply and demand of a particular currency relative to other

currencies.

Question 1.20

With each additional increase in consumption of a good, marginal utility usually

a) remains constant.

b) decreases.

c) increases.

d) exceeds total utility.

(Total 30 Marks)


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PART TWO


Question 2

Question 2.1

Explain the importance of understanding the Determinants of Demand in marketing

decision-making.

(5 Marks)

Question 2.2

What are the three methods of calculating the national income of a country?

(5 Marks)Question 2.3

Briefly explain the concepts of Inflation, Deflation and Hyperinflation.

(5 Marks)

Question 2.4

What do you mean by Income Elasticity of Demand? Distinguish between normalgoods and inferior goods.

(5 Marks)

Question 2.5Define Monopolistic Competitive Market Structure and list its three characteristics.

(5 Marks)

Question 2.6

Explain Average Propensity to Consume (APC) and Marginal Propensity to Consume

(MPC).

(5 Marks)

(Total 30 Marks)


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PART THREE

Answer only TWO (02) questions from this part

Question 3

Define International Trade. Discuss the importance of engaging in International Trade

for firms.

(20 Marks)

Question 4

Define Economies and Diseconomies of Scale. Discuss main types of Economies ofScale referring to internal and external economies of scale.

(20 Marks)

Question 5

Define Fiscal Policy. Explain Expansionary and Contractionary Fiscal Policies and their

effect on the government budget.

(20 Marks)

(Total of 40 Marks)

- END -


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Economics and Legal Concepts for Marketing

Part Two - Legal

Date: 21stDecember 2011

Time: 1100 Hrs 1200 Hrs Duration: One (01) 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 10 Compulsory multiple choice questions. Select the most

appropriate answer from the given choices and mark it in the given space in theanswer book.


Part Three includes 03 Questions. Answer only 01 Questionfrom this part.







drawing diagrams.








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PART ONEAnswer all questions.

Mark the most suitable answer in the given space in the answer booklet.

1. Which of the following is not the legal requirement of a valid acceptance?a. It must be communicated.

b. It must be absolute and unconditional.

c. It must be presumed from silence if not communicated within the specified time.

d. It must be accepted by a person who has the authority to accept.

2. Amal lost his dog. He sent his servant to search for the dog. When Amal did nothear about the lost dog, he advertised a reward of Rs. 10,000 to any person whofound the lost dog and returned it to Amal. The servant found the lost dog andreturned the lost dog to Amal. When the servant came to know about the

reward of Rs 10,000 he claimed the reward from Amal. Can he claim the reward.a. He cannot claim the reward since the offer was not communicated to him.

b. He can claim the reward since there is a valid contract between Amal and the servant.

c. He cannot claim the reward because he is the servant of Amal

e. He can claim the reward since he found the lost dog.

3. Peter leads Deepal erroneously to believe that 100 tons of indigo are madeannually at Peters factory. Deepal examines the accounts of the factory and finds thatonly 50 tons of indigo have been made. Afterwards, Deepal buys the factory. Deepalnow wants to avoid the contract.

a. Deepal can avoid the contract because it is based on misrepresentation.

b. Deepal can avoid the contract because it is based on fraud.

c. Deepal cannot avoid the contract because he had duly affirmed the contract even

after knowledge of misrepresentation.

d. Deepal can avoid the contract because it is a void contract.

4. Of the following which is the incorrect statement?a. Ordinary damages are recoverable.

b. Special damages are recoverable only if the parties knew about them.

c. Remote damages are not recoverable.

d. None of these statements is correct.


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5. Samantha fraudulently represented to Star Jewelers Shop that she was the wifeof the famous politician John and thus obtained a valuable gold necklace worth Rs.

100,000 on credit. But she did not pay money. She subsequently sold the necklace toShane, another jeweler for Rs. 75,000.a. The contract between Samantha and Star Jewelers was a voidable contract.

b. The contract between Samantha and Star Jewelers was based on a unilateral

mistake.

c. Star jewelers cannot get the necklace from Shane.

d. All the above answers are correct.

6. Legally, a contract of sale includes:a. Sale

b. Agreement to sellc. Barter

d. Both a and b

7. B selects certain furniture in a shop. The price is settled. He arranges to takedelivery of the furniture the next day through his driver and agrees to pay for thefurniture on the first of the next month. The furniture was destroyed by fire on thesame evening. Is B liable to pay the price?

a B is not liable to pay the price because at the time of fire it was at the furnitureshop.

b. B is not liable to pay the price because he has not paid money for the furniture.

c. B is liable to pay the price because ownership of furniture has passed to him.d. None of these

8. Which of the following statement is not true?a. An agent should conduct business according to his principals instructions.

b. An agent is liable to account for any secret profit made by him.

c. An agent is not liable for many misinformation given to the principal.

d. An agent should not deal on his own account.

e.

9. An endorsement made by an endorser by signing his name and also by writingthe name of the endorsee is known as:

a. General endorsement

b. Special endorsement

c. Restrictive endorsement

d. None of these.


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10. Which statement is incorrect regarding inventions?

a. An invention is an idea of an inventor which permits in practice the solution to a specificproblem.

b. An invention is related to a product or process.

c. Inventions such as discoveries, scientific theories and mathematical methods shall be

patentable.

d. Inventions such as schemes, methods of doing business shall not be patentable.

(4 marks x 10)

Total of 40 marks.


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PART TWOAnswer all questions.

Question 02

a. What are the various methods of termination of an offer?

(10 marks)

b. To get registration of a trade mark what type of information need to be provided to the Director

General?

(10 marks)

c. State briefly the duties and of an agent.

(10 marks)

(30 Marks)


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PART THREEAnswer one question from this part.

Question 03a. Define goods and explain how goods are classified.(15 marks)

b. Explain briefly the implied conditions in a sale of goods contract.

(15 marks)

(30 Marks)

Question 04

a. What do you understand by the doctrine of frustration of contracts?

(15 marks)

b. Define the term capacity to contract. State the law relating to the competence of the

parties, giving suitable examples.

(15 marks)

(30 Marks)

Question 05

a. What are the main differences between bill of exchange and cheque?

(15 marks)

b. Explain clearly the term Negotiation. What are the different modes of negotiation?

(15 marks)

(30 Marks)

-END-


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Brand Management



There are two partsin this question paper.

All questions in Part One are compulsory. It includes a mini case.

Part Two includes 6 questions divided into three sections. Select one question at least from

each section and answer 3 questionsfrom Part Two.





2 Always start answering a question on a new page


drawing diagrams.






5 Illegible hand writing and language errors will be penalized


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PART ONE


Question 1

Case study

Air Lanka to SriLankan: Just a rebrand or beginning of new era

30 years ago Air Ceylon a state owned civil aviation entity converted into a dynamic new

venture with better international presence and new partnerships. The countrys commercial

aviation industry began a new era with this venture. Having tied up with Singapore airlines, one

of the worlds best airlines for technical and management partnership, with the dawn of the open

economy, tourism boom and new globalised conditions, the Air Lanka brand grew from its

regional presence to a global presence. Air Lanka was able to build it brand within the aviation

industry as one of the friendliest in the world. Their success was a hallmark of the familiar

hospitality and friendliness of Sri Lankans.

However, by the beginning of the 90s the airline faced major financial losses due to the

problems in the global aviation industry. Also certain management mishaps and difficulties faced

by the bureaucratic structure they had maintained due to government ownership may have also

contributed to this. Air Lanka brand faced major criticism for frequent delays of their flights.

Operational difficulties and aging fleet situations within this time period also tarnished the brand

name to a great extent. This resulted in the dramatic decision of privatising the national airline in

1994.

After privatisation, the Dubai based aviation giant Emirates airlines became the management

partner of the airline. They were involved in a rapid revamping process of infrastructure

development and procurement of new aircraft. The most prominent change they made was

rebranding Air Lanka as SriLankan. Along with the name change, logos, colours and all other

branding aspects were changed. The Global presence of the airline was reinstated with new

destinations and dynamic features comparable with other international giants.

The airline won many accolades and recognition internationally. Within the 12 years of

partnership with Emirates, SriLankan was able to achieve a level of infrastructure development

despite the terrorist attacks and other challenges it faced. Yet the airline was not able to make

major profits within this period due to global and local socioeconomic and political scenarios.

Also major criticism was aimed at Emirates about restricting Sri Lankan to its regional base and

keeping it as a feeder for Dubai.

In 2010 SriLankan airlines management was again taken over by the government of Sri Lanka

by buying back the shares from Emirates. This became a new era again for the airline. There

was some speculation that SriLankan may change its name to AirLanka, but the government

decided to keep the name.


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I. Consider yourself as the newly appointed brand manager of Sri Lankan Airlines. Analyse

the brand position for SriLankan airlines covering the following areas:

a. Brand features and benefitsb. Brand personality

c. Brand value and vision

(20 marks)

II. The name SriLankan is better than the name Air Lanka for a commercial airline

brand. Critically evaluate this statement using your knowledge of brand management.

(20 marks)

(Total 40 marks)


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PART TWO

Answer three questions selecting at least one from each section

Section A

Question 2

I. Consumers perceived risk can be reduced by brands. with your knowledge of

branding, explain how a brand will reduce the main risks of the consumers

(10 marks)

II. Using an appropriate example explain the concept of brand positioning and how a

particular brand is positioned among customers.

(10 marks)

(Total 20 marks)

Question 3

I. Naming is a prerequisite in the process of converting a commodity into a brand. But

naming itself needs to fulfill certain basic criteria to make the brand name prominent

and sustainable in the future. Identify at least three (03) main criteria that need to be

considered when naming a brand with relevant examples for the effective use of

each criteria.

(10 marks)

II. The symbolic meaning of brand is important to gain a competitive advantage

Describe this statement with your brand management knowledge.

(10 marks)

(Total 20 marks)


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Section B

Question 4

I. Using an appropriate example, explain how brand personality is important in building

a brand relationship.

(10 marks)

II. Some companies build brands while others buy them. What are the main

considerations of the decision to building or buying brands?

(10 marks)

(Total 20 marks)

Question 5

I. Explain the difference between brand extension and brand stretching with relevant

examples.

(10 marks)

II. Value added brand is used by organisations to gain a competitive advantage.Explain value added brands and how they give a competitive advantage with

relevant examples

(10 marks)

(Total 20 marks)


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Section C

Question 6

I. Write short notes on following

a. Brand vision

b. Brand identity prism of Kapferers

(10 marks)

II. Customers purchase a brand to solve their problems (physical as well as socio

and psychological) Explain this statement using your knowledge of consumer

buying process and branding.

(10 marks)

(Total 20 marks)

Question 7

I. Explain different phases of brand life cycle and strategies to manage brands in each

phase.

(10 marks)

II. What is Brand Audit? Explain.

(10 marks)

(Total 20 marks)


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Graduate/Postgraduate Diploma in Marketing

December 2011 Examination

Distribution Management


Total marks for this paper is 100. There are two parts in this question paper


Part Two includes 6 questions divided into three sections. Select one question at least fromeach section and answer 3 questionsfrom Part Two.





7 Always start answering a question on a new page


drawing diagrams.






10 Illegible hand writing and language errors will be penalized



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Part one


Question 01International Education

The demand for international education and qualifications continue to grow in Sri Lanka. An

increasing number of UK institutions see Sri Lanka as a significant market, as they seek to

diversify. They are also establishing more courses jointly run with Sri Lankan institutions in-

country, and / or promoting distance or open learning methods. Increasing numbers of students

and professionals take examinations which give them international recognition.

An increase in demand for International School Leaving Qualifications has also occurred,

despite high fees. Although the majority of families do not have the resources to fund an

international education, there is a growing disillusion with the options the state offers. Hence

those with funds are looking for alternatives. Of even more significance, a growing number of

Sinhala (the mother tongue of the majority of people of Sri Lanka) medium private schools are

now offering British A-levels as an option, and the uptake is high. (Note: to be admitted to

universities in Sri Lanka, students must sit for the Sri Lankan A-Levels. International schools do

not offer their students the option of taking Sri Lankan A-levels.) In 2009, Sri Lankan private

schools (national and international) were producing around 2,500 candidates with good British

A-levels results. Some of these students have the desire and the financial resources to pursue

higher education at a degree or diploma level.

There is also demand for postgraduate studies in research fields. Graduate output from Sri

Lankan universities for the year 2008 was 11,941 (first degree) and 2,708 (postgraduate). Out of

these, there has been a considerable increase in the percentage of graduates with a preference

for research programmes in the fields of Bio-Technology, Pharmacology and Molecular Biology.

In addition, the University of Colombo has introduced new undergraduate courses in

Pharmacology and Bio-chemistry. However, there are no postgraduate courses in these fields,

and as a result there is further demand for research programmes abroad. MBAs have become

very popular with professionals, but they generally opt for distance learning / affiliated courses,

due to the time factor.


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Our Infrastructure and Strategic Education Priorities:

Sri Lanka is not an Education UK Partnership country. We have to generate funds to deliver

our events according to the expected standards. We encourage UK based institutions to build

more links with local colleges and provide affiliated courses in Sri Lanka.

1.1) You have been appointed as the head of recruitment of prospective students by this

newly established educational institute. You are to brief the management about the

concept of recruitment as a marketing function. Your answer should discuss the

personal selling function based on the marketing mix. Use diagrams to explain your

answer.

(20 Marks)

1.2) Write a report to the management explaining What is personal selling?. Your report

should explain why personal selling should be done, the type of personal selling required

and the qualities of a good salesperson.

(20 Marks)

(Total 40 Marks)


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PART TWO

Answer a total of 3 questions selecting at least one from each section

Section A

Question 2

a) You have recruited a few sales people. You have to submit a proposal for their training

to the management. You need to explain to the management the following:

Why it is necessary to train salesmen; how the sales training process is planned; and the

obstacles you face in doing this.

(10 Marks)

b) Explain how your sales training program would be designed. Explain the contents of a

sales training programme.

(10 Marks)

(Total 20 Marks)

Question 3

a) It is said good territory management will help an organisation to gain many benefits.

Explain at least four benefits good territory alignment management could bring to an

organisation.

(10 Marks)

b) Explain what you understand by the seven step procedure of redistricting territorymanagement.

(10 Marks)

(Total 20 Marks)


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Section B

Question 4

a) Transportation has a very significant effect on the overall organisations cost. Explain the

available transportation methods to a firm.

(10 Marks)

b) Explain how a firm could select the best transport method that suits its distribution.

(10 Marks)

(Total 20 Marks)

Question 5

a) Repeated research has indicated the longer the customers remain with a firm the

greater the profits. Explain the four factors that is said to be generating incremental

profits over a period of time.

(10 Marks)

b) Explain the three parts of the application architecture of CRM.

(10 Marks)

(Total 20 Marks)


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Section C

Question 06

a) The world has seen an accelerated trend in the growth of services. How would you

understand the term customer service excellence? Explain it through your experiences.

(10 marks)

b) Explain these two terms understanding the customer and helping the customer

(10 marks)

(Total 20 Marks)

Question 07

a) Explain the six customer focus skills which are effective for better and more effective

customer focused selling.

(10 Marks)

b) Explain what you understand by customer focus prospecting

(10 Marks)

(Total 20 Marks)

-END-


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Graduate/Postgraduate Diploma in Marketing


Promotional Practice



Total marks for this paper is 100. There are two parts in this question paper.


Part Two includes 6 questions. Select at least one question from each section and answer3 questionsfrom this part.







drawing diagrams.








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PART ONE


Question 01: Case Study

Sri Lankan candy maker comes back into business

In November, 2008Sri Lankan chocolate maker Dana says it will resume production and start

an aggressive marketing campaign to clear their name after winning a court battle over a

melamine contamination scare.

On November 21, Colombo High Court gave the firm the go ahead after using fresh samples

taken by the government analyst. Dana says the company will start its distribution activities as

soon as possible.

"Since we have the whole melamine matter behind us now, well be aggressively starting our

campaign in December," says the head of marketing at Dana Chocolates.

The issue started with reports from China of infant formula contaminated with melamine. Due to

a milk powder shortage experienced in the country, Dana says it decided to import 51 metric

tonnes of milk powder from China in August which was investigated by the Health Ministry in

late September for melamine contamination.

The first cases of melamine were detected in mainland China in infant milk formula in mid-July

2008 after four infants had died of kidney damage. It was estimated that around 50,000 more

people were sick after consuming Chines milk.

The company says it lost 250 million rupees of sales a month during a court order which

suspended their activities. The chocolate manufacturer with a 56 year history claims it had a 41

percent market share before the melamine scare hit.

There was also a malicious e-mail campaign against Dana Chocolates by an unknown

competitor. "One of our competitors used their sales representatives to distribute the emails to

retail shops," says the head of marketing.


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Despite the Health Ministry's clearance, the CAA had sought a court order on October 13, to

completely stop the manufacturing and distribution of Dana chocolates.

However, one of the samples submitted by the CAA on October 21 to research lab ALS

Singapore, had indicated Dana chocolates contained 1.5 parts per million (ppm) levels of

melamine which is well below the World Health Organization and Food and Drug Administration

established tolerance limits of 2.5 parts per million for melamine.

Dana had sent samples from the same batch of milk powder to ALS Labs and HAS Labs

Singapore to double check, which cleared the products.

1.1) Dana will use PR to minimise the negative effects of the situation. Explain if Dana should

use a PR consultancy firm or do PR in-house.

(5 marks)

1.2) Explain how 3 PR tools can be used by Dana to eliminate the bad image created and

recapture the market share.

(15 marks)

1.3) Dana will have to communicate with different stakeholders in order to minimise the

effects of negative publicity and re-build trust. Identify 5 stakeholders Dana will have to

tackle and how each stakeholder group can be tackled through PR activities.

(20 marks)

(Total 40 Marks)


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PART TWO

Answer one question from each section

Section A

Question 02

a) Briefly explain two main advantages of using Television for advertising.

(6 marks)

a) Explain the 4 types of message strategies, Cognitive, Affective, Conative and Brand withthe help of local and international examples.

(10 marks)

(Total 16 Marks)

Question 03

a) Explain what is meant by merchandising and identify some popular merchandising tools.

(6 marks)

b) Your company has decided to conduct sales promotions for your companys brand of

shampoo, in order to defend market share. Explain with examples, 3 consumer

promotions and 3 trade promotions your company should conduct.

(10 marks)

(Total 16 Marks)


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Section B

Question 04

a) List 5 objectives of direct marketing.

(5 marks)

b) List 5 types of online advertising and promotions.

(5 marks)

c) Your company has decided to use catalogues to promote a range of cosmetics. Explainhow you will handle the creative process, prepress stage and post printing activities

when printing the catalogues.

(12 marks)

(Total 22 Marks)

Question 05

a) You are responsible for designing an appropriate packaging for a childrens flavoured

liquid milk your company is launching. Explain any three elements of packaging and how

you will design each element for this product.

(10 marks)

b) Whats meant by green packaging? Explain 3 ways a company can engage in green

packaging, with examples.

(12 marks)

(Total 22 Marks)


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Section C

Question 06

a) Differentiate between Advertising and PR with examples.

(10 marks)

b) You are planning a promotional event for your company. Explain the 5 stages of the

event management process.(12 marks)

(Total 22 Marks)

Question 07

a) List the 5 stages of the Innovation Adoption Model.

(5 marks)

b) List 5 types of outdoor advertising and 5 reasons why outdoor advertising is becoming

popular.

(5 marks)

c) Your company is planning an advertising campaign for a washing powder brand. Explain

2 elements you will consider when deciding on your promotional budget and 3 methods

you could use to set your promotional budget.(12 marks)

(Total 22 Marks)

-END-


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Finance for Marketing



Total marks for this paper is 100 marks. There are two parts in this question paper.

All questions in part one are compulsory. It includes a mini case.

Part two has 3 sections. Each section has 2 questions. Select at least one question from

each section and answer 3 questionsfrom part two.



and every additional paper attached to it. Your name must not appear anywhere inthe answer book or answer scripts.



drawing diagrams.






5 Illegible hand writing and language errors will bepenalized.


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Part One

Answer all the questions

Question 01

SS Packaging is a company engaged in the production of packing materials and they sell their

products mainly to corporate customers. The managing director (the owner) of this company

was recently appointed as chairman of two leading institutes. Since he has more

responsibilities, re appointed a CEO for this company to manage the entire operations of the

company. The CEO needs to evaluate the performance of the company to take remedial

measures.

SS Packaging Ltd

Balance sheet as at 31stMarch 2011

2011 2010Rs Rs

Fixed assets 5,164,000 4,979,000

Current assets

Stocks 341,926 352,250

Debtors 320,313 342,109Cash at Bank 13,719 16,907Total current assets 675,958 711,266Creditors falling due within one yearCreditors 45,230 40,494Taxation 27,185 23,875TR loans 600,000 500,000Dividend payable 13,983 8,284Total Current liabilities 686,398 572,653

Net current assets 5,153,560 5,117,613Creditors falling due after more than one year10% Debenture 2,000,000 2,000,000

3,153,560 3,117,613

Capital & reservesCapital 10/-each 3,000,000 3,000,000Accumulated profit 153,560 117,613

3,153,560 3,117,613


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SS Packaging Ltd

Profit & loss for the year ended 31st March 2011

2011 2010Rs Rs

Net sales 6,339,000 4,252,000

Cost of sale 4,012,382 2,626,400Gross profit 2,326,618 1,625,600Other operatingexpenses

1,938,156 1,253,220

Operating profit 388,462 372,380

Interest 260,000 250,000

Profit after interest 128,462 122,380

Tax on profit 65,815 53,057Profit before dividend 62,647 69,323Dividend 26,700 17,250

Profit for the year 35,947 52,073

Profit b/f 117,613 65,540

Profit c/f 153,560 117,613


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Additional information

Industry averages

Gross profit 38%

Net Profit 3%

Earnings per share Rs.0.25 per share

Current ratio 2:1

Acid test ratio 1.1:1

Return on capital employed 8%

Dividend cover 5 times

Stock turnover 12 times

Debtors collection period 30 days

Gearing ratio 30%

i. Credit sales are 90% of the total sales. The debtors and stocks for the year 2009 are

Rs.352, 842 and Rs.341, 820 respectively.

ii. Assume that there are 365 days in the year.

Further, it was decided by the CEO to start a project for launching a product

investing Rs.4 million. There are 3 projects called Pra, Qua, Rai proposed by one of

the senior managers. Cost of capital of the company is 15%. There is no scrap value

at the end of each project.

Project Pra (Rs.000) Qua (Rs.000) Rai (Rs.000)

Investment - Year 0 -4000 -4000 -4000

Net cash flow

Year 1 1400 900 1200

Year 2 1300 1000 1300

Year 3 1100 1100 1200

Year 4 1300 1000 1200

Year 5 1300 1200 1300

Year 6 0 1200 0


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DCF at 15% is as follows:

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

0.87 0.76 0.66 0.57 0.5 0.43

1.1. Conduct a ratio analysis for the company.

(Marks 15)

1.2 The CEO was requested to explain the performance of the company categorising them into;

Liquidity (current ratio, acid test)

Profitability (gross profit ratio, net profit ratio, earning per share)

Shareholder interest (Earnings per share, Return on capital employed, and Dividend

cover) Ratios relevant to internal management (stock turnover, debtors collection,

gearing ratio)

(Marks 8)

1.3. The liquidity of a company is the inter relationship between current assets and current

liabilities. Explain as to why it is important to have a good working capital management.

(Marks 3)

1.4. Based on the above information, calculate the following for each project;

1.4.1. Payback Period

1.4.2 .Accounting Rate of Return

1.4.3. Net Present Value

1.4.4. The project that is more feasible

(Marks14)


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Part Two

Answer three questions selecting at least one from each section

Section A

Question 02

Havana, a Bicycle manufacturer, produces bicycles for children. You, as an Accountant

(Marketing), are provided with the following details for the year ended 31stMarch 2011 to write a

report to the DirectorMarketing, giving independent answers to the following questions.

(Rs)

Selling price per item 1,300

No of units sold 11,000

Variable cost of production

per unit

1,000

Fixed cost for the year

Factory overhead 900,000Administration 1,100,000

Selling distribution overhead 1,000,000

i. Calculate the breakeven point and margin of safety in units and in value. Fixed cost

is fixed for 12,000 units.

ii. What is the C/S ratio of the company?

iii. The company wishes to achieve a profit of Rs.3, 000,000 how many units should be

sold for the year?

iv. If the price of a bicycle is reduced to Rs.1200 what is the breakeven point?

v. Why is the margin of safety important to a company?

(Marks 20)


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Question 03

P& K Ltd produces bags for packing food grade items. The management accountant was askedto prepare a statement of profit for this business under marginal and absorption methods. Fixed

Admin & Selling Production Overhead is based on 40,000 bags. There are no opening

balances. As a management accountant, you are required to submit profit statements based on

the following information.

Production capacity 55,000 bags

Sales 50,000 bagsSelling price Rs.20

Direct material Rs.6

Direct labour Rs.3

Variable overhead Rs.2

Variable admin & selling OH Rs.175,000

Fixed production OH Rs.100,000

Prepare Profit statements using;

1. Absorption Costing Method

2. Marginal Costing Method

3. Calculate the under/over absorption

4. Give reasons for under or over absorption that arises under the Absorption Costing

Method.

(Marks 20)


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Section B

Question 04

Somaratne Company has two production departments called Product A and Product B and

three service departments namely Quality, Maintenance and Stores. The following estimate of

overheads for the year 2011 has been given to the cost executive.

a. Prepare an overhead analysis sheet showing allocation, apportionment and re-apportionment

and also calculate overhead absorption rate for Product A and Product B for the year.

Estimated cost: Rs.Electricity 511,000

Lighting & heating 105,000

Depreciation 200,000

Other OH expenses 150,000

Rent & rates 75,000

Dormitory expenses 102,000

Details of the departments are as follows;

A B Quality Maintenance Stores

No of employees 30 40 3 8 4

Floor area -Sq M 3000 3600 100 100 200

Cost of machinery 500,000 700,000 100,000 300,000 200,000

Machine hours 4,000 5,000


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Further details provided are as follows;


Indirect material 300,000 350,000 100,000 150,000 100,000

Indirect labour 30,000 40,000 20,000 22,000 18,000

Maintenance & repairs 25,000 40,000 0 10,000 20,000

Apportionment is as follows;


Quality control 30 40 0 10 20

Maintenance 50 40 0 0 10

Stores 40 60 0 0 0

b. What is Controllable Cost and Uncontrollable Cost?

c. What is Conversion Cost and Notional Cost.

(Marks 20)


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Question 05

Soma Perera & Co. manufactures polythene bags for a wider market through good dealer

network. You were asked by the Director of the company to prepare budgeted cash flow for thethree months Jan March 2012. The following budgeted formation was provided for.

Sales Purchase Wages Overhead Total

Nov 2011 20,000 12,000 4,000 1,600 17,600

Dec 201122,000

13,200 4,400 2000 19,600

Jan 201218,000

10,800 3,200 2200 16,200

Feb 201221,000

12,600 4,200 1800 18,600

Mar 201223,000

13,800 4,600 2500 20,900

Total 104,000 62,400 20,400 10,100 92,900

Additional information;

a. 80% of the sales is on credit basis. 60% of the credit sales are collected in the next

month and 40% is in the current month.

b. Purchases and overhead payments are allowed one month credit.

c. Cash and bank balance as at 1stJanuary 2012 is Rs.25, 000.

d. Sales promotion expenses amounting to Rs.6000 is to be paid in February 2012.

e. Self assessment income tax amounting to Rs.2,000 is expected to be paid in March

2012.

f. Petty cash float is expected to increase by Rs.5, 000 in January 2012.

1. Prepare a cash flow for 3 months ended 31stMarch 2012.

2. Explain the usefulness of the flexible budget to management.

(Marks 20)


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Section C

Question 06

Bee Ltd. introduced a standard costing system to their company to control costs effectively. The

company provided the following data related to actual and standard performance for the last

month.

Standards data

Standard price per Kg Rs.13Standard production units 1,500

Standard material for production units Kgs. 15,000

Actual data

Actual units produced 1,550

Actual quantity used/produced 17,050

Actual cost of material purchased 204,600

Calculate the following variances.a. Material cost variance

b. Material price variance

c. Material usage variance

Explain the reasons for direct material price variance and material usage variance.

What is standard cost and standard costing? Explain basic standards and attainable

standards.

(Marks 20)


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Question 07

Price is one of the four elements of the marketing mix. Therefore, pricing plays a vital role in the

marketing aspect of the organisation. It helps bring expected profit for an organisation and alsocustomer satisfaction.

a. Explain the following pricing decisions;

i. Market based pricing decisions

ii. Competitor based pricing decisions

iii. Pricing based on life cycle of a product

b. Explain the importance of management accounting as a tool of management

decision making.

c. What is meant by the term flexible budget?

d. Explain the requirements for successful budgeting.

e. BCG matrix classifies products of an organisation in relation to cash generation

and cash usage. Explain BCG matrix.

(Marks 20)

End


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Marketing Planning



There are two parts in this question paper.

All questions in Part A are compulsory. It includes a mini case.

Part B includes 6 questions. Select at least one question from each section and

answer 3 questions from this part.


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.


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

diagrams.








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Part A

Answer all Questions

Question 01

The Lexmark is a leading printing and imaging solution provider. Lexmark sells its products to

customers in over 150 countries around the world. Lexmark caters to both business and

consumer segments through products which are specially designed for both home and office.

Lexmark sells dot matrix, Inkjet and Laser printers and other related printer supplies such as ink

cartridges and toners. Lexmark is the third largest manufacturer of inkjet printers and fifth

largest manufacturer of laser printers in the world. In the recent years, there has been a

significant growth in the laser printer market. Lexmark has comparatively low presence in the

Laser printing market.

Lexmark's product portfolio consists of single function printers, photo printers and all-in-one

printers. Though Lexmark's portfolio is not as comprehensive as HP, its printers have attractivefeatures and are priced lower than that of the competitors.

Through research and development (R&D), Lexmark continuously develops new printer

technologies and improves existing technologies. R&D focuses on continuously increasing

product performance, ease of use and at the same time lowering the production cost. Lexmark

has seven R&D centres around the world and holds over 4000 patents in countries all over the

world. Lexmark's R&D efforts are aimed at developing Laser printer technologies, wireless

printers and multifunction printers.

In the recent years, the revenue and the operating income of Lexmark has significantly

decreased whereas that of the competitors such as HP and Canon has increased. The printer

market is very competitive. Lexmark competes with large competitors such as HP, Canon and

Epson who together with Lexmark caters to 80% of the global printer market. Further,

convergence in copier and printer technologies has brought in a number of new players into the

printer market. This includes companies such as Xerox and Ricoh who were previously copier

companies. Around 80% of Lexmark's revenue is from mature markets such as US and EMEA.

Although Lexmark has presence in the fast growing markets, it has comparatively a very low

market share of these markets.

Growth in re-manufacturers of after-market supplies which includes ink cartridges and toners

has created more competition. These manufacturers purchase empty cartridges and toners from

the users and, refill and sell them for a lower price than that of the original cartridge

manufactures. This has reduced the sales of Lexmarks cartridges and toners.

Today, due to the increased use of mobile products such as laptops and other handheld

computing devices, there is a growing demand for wireless networks and related peripherals

including wireless printers. A wireless network enables wireless access to Internet, printing

devices and provides connectivity for other wireless devices. Wireless networks are gradually

becoming more popular in home and offices. Further, web printing is another important feature

which is becoming popular in printers. Printing websites is not an easy task because printing a

web page normally prints unnecessary and lengthy advertisements in the webpage. This has

created requirements for facilities that can print only texts on the web page.


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a) Conduct a SWOT analysis for use in the marketing planning process.

(20 Marks)

b) What marketing objectives should be set by Lexmark and what strategies should it use to achievethem?

(20 Marks)

(Total 40 Marks)


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Part B

Answer a total of three questions with at least one from each section

Section A

Question 02

a) Describe briefly eight marketing mix tools included in the tactical planning process.

(10 Marks)

b) List and briefly describe the 10 steps involved in creating a marketing plan.

(10 Marks)

(Total 20 Marks)

Question 03

a) The scope section is a critical first step in establishing a focus for your business review Discuss

this statement.

(10 Marks)

b) An important step in developing a business review is conducting Product and Market Review.

What is the purpose of conducting a Product and Market Review?

(10 Marks)

(Total 20 Marks)

Question 04

a) What criteria should be fulfilled before you finalise a primary target market choice?

(10 Marks)

b) Why are secondary target markets important? What type of target markets are

considered to be a secondary target market?

(10 Marks)

(Total 20 Marks)


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Question 05

a) Describe briefly key steps that need to be carried out in order to execute the marketing plan

successfully.

(20 Marks)

(Total 20 Marks)

Question 06

a) Briefly outline how the product life cycle (Introduction, growth and maturity) stages of a product

affect target market, competition, pricing, distribution and advertising.

(20 Marks)

(Total 20 Marks)

Question 07

a) Briefly describe the key steps involved in creating an advertising message for your company.

(12 Marks)

b) Discuss the four characteristics of an ideal message strategy. Provide examples.

(8 Marks)

(Total 20 Marks)


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Graduate/Postgraduate in Marketing


Marketing Skills



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 includes 6 questions divided into three sections. Select one question at least 1from each section and answer3 questionsfrom Part Two.







drawing diagrams.





Clear diagrams and examples where appropriate5 Illegible hand writing and language errors will be penalized.


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PART ONE


Question 01: Case study

Completing a successful six-year career in the field, Mr. Sugith Rathnayake has been workingas the regional marketing director for Asian Cosmetics PLC for just over six months. As part ofhis duties, he supervises forty territory sales reps across his region. He was the supervisor forforty five reps until last week and five experienced reps resigned three months after he resumedhis job at Asian Cosmetics PLC. Since those resignations were a major concern, the board ofdirectors has advised Mr. Rathnayake the importance of retaining experienced sales reps in thecompany. The CEO further influenced him on retaining capable sales force and warned himabout preventing reps from joining competitors. Mr. Rathnayake also knew other factors whichhad contributed to those resignations were unsatisfactory compensation packages, grave

targets and cut back of increments. Due to those resignations, the company recruited anotherfifteen sales reps. As a result of staff increase and as business boomed, Mr. Rathnayake foundhimself running a very large section.

Asian Cosmetics PLC is a rupees eight billion worth cosmetic manufacturer and it produces awide range of cosmetics for both men and women. At the beginning Mr. Rathnayake managedhis large sales force, but as time went by he showed increasing signs of strain. Once he hadbeen punctual and now he sometimes arrived late. He often stayed late in the evening andcontinued his office work at home. He worried his boss for decisions on matters referred to himby his staff. As a result, work piled up and affected his overall performance.

Mr. Rathnayake sensed that most of his sales staff was unhappy with him. However, his

assistant regional marketing manager still had the hope that he could make the staff happy. Mr.Rathnayake felt that the morale of his sales force was very low. But in his last six months onthe job, he focused primarily on achieving sales targets through his sales staff. Hence, hethought that he was dedicated to his company and did much work on his own. Some of his salesreps laughed at him saying that he was trying to play a one man show. The senior salesexecutive addressed his concern at his recent evaluation. His concern was to communicatebetter with his sales people. Hence, Mr. Rathnayake had also been told that his overall salesperformance was not up to the expectation. According to the market research, Asian CosmeticsPLC holds twenty percent of the market share in the region. This is well below the companyscurrent national average of forty percent. What stood out more than anything else was the lackof success in selling more expensive newly introduced cosmetics products by the unit, thus theCEO was already conscious about it. To effectively sell such new products, team effort is

required. Hence, the company reps must work with commitment and create a very friendlyworking environment.

Since Mr. Rathnayake knows that he is currently not in

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