Preliminary Certificate in Marketing
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1 Preliminary Certificate in Marketing April 5 th, 2015 Examination PCM I th Intake, 25 th Year Candidate s Registration Number (As per in the examination admission form / Student ID) For Examiner s use only Part One 1 st Marker 2 nd Marker Final Marks Examiner s Comments Question 01 Part Two Question No. Question 01 Question 02 Question 03 Question 04 Question 05 Question 06 Question 07 Second Examiner s Comments Question 08 Question 09 Question 10 Part Three Question No. Question 01 Question 02 Question 03 Question 04 Total
2 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 Illegible hand writing will be penalised. Page 2 of 20
3 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. suggests that organisations consider not only their customers and profits, but also the good and well-being of the society. a) Corporate social responsibility b) Product concept c) Selling concept d) Production concept Question 1.2 Identify the correct definition for the term prospect : a) Someone whom you believe may be persuaded to do business b) Someone who has done business just once with an organisation c) Someone who actively recommends you to others d) Someone who had done business on a repeat basis 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) Relationship approach b) Transaction approach c) Direct marketing d) Indirect marketing Question 1.4 An organisation s internal environment would consist of: a) Staff relationships b) Corporate culture c) Resource constraints d) All of the above Page 3 of 20
4 Question 1.5 The following is NOT a key characteristic of an effective marketing mix: a) Matches customer needs b) Creates competitor advantage c) Well blended d) Creates economies of scale Question 1.6 Process element of the extended marketing mix refers to: a) The way in which marketing activities are carried out b) The way recruitment and selection of employees is carried out c) The physical environment which surrounds the purchase d) The way a new product is introduced to the market. Question 1.7 Key elements of a marketing information system would be: a) Marketing research b) Marketing intelligence c) Internal company information d) All of the above Question 1.8 Qualitative Research is: a) Collection of data, which is difficult or impossible to quantify b) Collection of sales figures c) Newly collected data specifically for the project d) Analysing creditors balances Question 1.9 The decision making unit of a buying organisation is called its buying center. The buying center consists of: a) Users, Customers, Influencers, Buyers and Deciders b) Users, Influencers, Buyers, Deciders and Gatekeepers c) Users, Influencers, Competitors, Deciders and Gatekeepers d) Users, Influencers, Buyers, Customers and Gatekeepers Page 4 of 20
5 Question 1.10 With reference to organisational buying behaviour, the three major types of buying situations are: a) Straight rebuy, modified rebuy and new task purchase b) Straight rebuy, modified rebuy and supplier search c) Straight rebuy, supplier search and new task purchase d) None of the above Question 1.11 Gamini, who acts as an insurance agent visited ABC Ltd., with the hope of persuading few members of staff to purchase his product and was prevented by the secretary from meeting them. In the above instance the secretary acted as a: a) Gatekeeper b) Decider c) An influencer d) Buyer Question 1.12 A marketers point of view of a Market is defined as: a) Meeting the specific requirements of every single individual consumer b) Act of designing the company s offer and image in the minds of the customers c) A cluster of individuals/organisations or mixture of two, who have specific needs and have the necessary financial resources and authority to purchase a product. d) A market is a geographical location 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) Branding b) Targeting c) Positioning d) Segmentation Page 5 of 20
6 Question 1.14 The Augmented product refers to: a) The additional services and benefits that surround the core and formal product b) Goods purchased by organisations for further processing c) Goods that consumers do not actively seek in purchasing d) The physical attributes that surround the core and formal product Question 1.15 The usage of family brand name by Sony would be termed as: a) Blanket family branding b) Individual product branding c) Combination branding d) All of the above Question 1.16 Describe the term classified for consumer products that customers compare carefully on suitability, quality, price and style prior to purchase: a) Shopping products b) Specialty products c) Convenience products d) None of the above Question 1.17 Idea screening with regard to a new product development process is: a) Collection of information from stake holders to improve your business b) Picking the good ideas and dropping the poor ones c) The systematic search for new product ideas d) None of the above Question 1.18 A pricing strategy whereby a product s price is derived by adding a pre-determined percentage of the cost is known as: a) Mark-up pricing b) Cost plus pricing c) Break even pricing d) None of the above Page 6 of 20
7 Question 1.19 A product is priced at Rs. 99/-. Identify the pricing strategy being adopted? a) Psychological pricing strategy b) Market penetration pricing strategy c) Market skimming pricing strategy d) None of the above Question 1.20 Intermediary who sells to the final consumer is known as: a) Wholesalers b) Retailers c) Brokers d) None of the above Question 1.21 A group of individuals and organisations that direct the flow of products from producers to customers is termed as: a) Marketing channel b) Marketing concept c) Wholesalers d) Distributors Question 1.22 One of the major functions provided by middlemen is: a) Bulk breaking b) New product development c) Test marketing d) None of the above Question 1.23 An ideal distribution strategy for consumer products would be: a) Selective distribution b) Intensive distribution c) Exclusive distribution d) None of the above Page 7 of 20
8 Question 1.24 Fill in the blank with the appropriate word. Using a, the producer directs its marketing activities (primarily advertising and consumer promotions) toward final consumers to induce them to buy the product. a) Pull strategy b) Push strategy c) Direct Marketing d) Public Relations Question 1.25 AIDA is a frequently used communication process model. AIDA model is: a) Attention, Interest, Desire, Action b) Action, Interest, Desire, Attention c) Action, Interest, Distribution, Attention d) Attention, Interest, Distribution, Action Question 1.26 A salesman who provides mostly technical knowledge as per customer requirements is termed as: a) Technical salesman b) Telemarketer c) Missionary salesman d) Order taker Question 1.27 Fill in the blank with the appropriate word. lets viewers interact with television programming and advertising using their remote controls. a) Direct response advertising b) Telemarketing and call centres c) Interactive TC (ITV) d) Direct mail Question 1.28 Some of the distinctive features of Direct Marketing are: a) Targeting, customised, interaction, control and continuity b) Personal confrontation, cultivation and response c) High exposure, glamorous and response d) None of the above Page 8 of 20
9 Question 1.29 Sales promotion is defined as: a) Short term tools/benefits used by the marketer to persuade customers to purchase products b) Advertising, public relations, direct marketing and personal selling c) Long term incentives given to sales force d) Planning and implementing a promotions campaign Question 1.30 The three common advertising objectives are: a) Informative, Selective and Reminder advertising b) Informative, Persuasive and Reminder advertising c) Informative, Persuasive and Selective advertising d) Selective, Persuasive and Reminder advertising Question 1.31 A personally addressed written offering (letter and/or sales literature) with some form of response mechanism, sent to existing customers from an in-house data base or mailing list is known as: a) Sponsorship b) Telemarketing c) Direct Mail d) Kiosk marketing. Question 1.32 By conducting an external audit which involves analyzing the external situation facing the organisation will lead to the identification of. a) Opportunities and Threats b) Strengths and Weaknesses c) Threats and Weaknesses d) Strengths and Opportunities Question 1.33 The process of finding out the organisations current position is known as: a) Marketing strategies b) Marketing objectives c) Marketing control d) None of the above Page 9 of 20
10 Question 1.34 Identify the marketing control required to evaluate and improve the spending efficiency and impact of marketing expenditures. a) Efficiency control b) Strategic control c) Customer satisfaction d) Annual plan control Question 1.35 Expansion into new markets with existing products is termed as: a) Market development b) Market penetration c) Product development d) Diversification Question 1.36 By conducting an Internal Environment Audit, the organisation will identify the following: a) Strengths and weakness b) Opportunities and threats c) Strengths and threats d) Opportunities and weakness Question 1.37 The most accepted and most popular audit tool used by the marketing fraternity is known as: a) The SWOT analysis b) The Ansoff s matrix c) The BCG matrix d) The Delphi method Question 1.38 The written document or blueprint which indicates how the organisation plans to achieve its marketing objectives is known as: a) Marketing plan b) Marketing objectives c) Marketing strategy d) Situational analysis Page 10 of 20
11 Question 1.39 A system of electronic communication which connects members of a value/supply chain network together is known as: a) Extranet b) Intranet c) Internet d) E-commerce Question 1.40 Fill in the blank with the appropriate word: is a social networking site designed specifically for the business community a) Myspace b) Facebook c) LinkedIn d) Instagram (1 Mark x 40 Questions) (Total 40 Marks) Page 11 of 20
12 PART TWO Answer all questions in the given space Question 02 Briefly explain the following concepts: a) Production Concept b) Selling Concept (04 Marks) Question 03 Briefly explain the four methods of collecting Primary data. a).... b).... Page 12 of 20
13 c).... d).... (04 Marks) Question 04 Consumer buying decision process consists of five stages. Fill the boxes in the correct sequential order and briefly explain any two (02) stages. a. b. c. d. e a) b) (04 Marks) Page 13 of 20
14 Question 05 Identify and briefly explain the four (04) key variables or bases of segmenting a consumer market with relevant product examples. a). b). c) d) (04 Marks) Page 14 of 20
15 Question 06 a) What is Packaging? b) Identify five (05) functions of packaging: I... II. III. IV V... Question 07 (04 Marks) a) What is Price? b) In order to ensure that pricing decisions are effective and consistent with the organisation s objectives, marketers should consider the five Cs of pricing. Fill in the boxes of these five (05) elements that represent the critical factors influencing pricing decisions. PRICING DECISIONS a. b. c. d. e Page 15 of 20 (04 Marks)
16 Question 08 Choosing the right channel structure is not an easy task and there are some criteria or factors that have to be taken into consideration in selecting the appropriate channel. List and explain four (04) criteria for channel selection: a). b) c) d) (04 Marks) Page 16 of 20
17 Question 09 Briefly, explain the four (04) common methods available to a marketer in establishing the promotion budget. a). b) c) d) (04 Marks) Page 17 of 20
18 Question 10 Briefly explain the following terms: a) What is marketing planning? b) What is a Mission Statement? c) Identify four (04) benefits of a marketing plan. I... II. III. IV (04 Marks) Question 11 Briefly explain the following terms: a) What is Social Media? Page 18 of 20
19 b) What is Inbound marketing? c) Identify four (04) key advantages of using digital marketing. I.... II..... III..... IV..... (04 Marks) (4 Marks x 10 Questions) (Total of 40 Marks) Page 19 of 20
20 PART THREE Select 2 out of 4 questions and answer them in supplementary sheets. Attach your answer sheets to the question paper. Question 12 Briefly explain what is marketing orientation and identify three (03) benefits and three (03) difficulties in implementing the marketing concept/orientation to an organisation. (10 Marks) Question 13 After evaluating market segments, the organisation must decide which and how many segments it should target. Identify and briefly explain the three (03) factors to be considered when evaluating market segments and briefly explain three (03) target marketing strategies the organisation can choose. (10 Marks) Question 14 Briefly explain the key stages of the product life cycle concept and identify three (03) limitations of this concept. (10 Marks) Question 15 Identify the five (05) marketing communication/promotional mix elements and briefly explain the key elements of the communication process model. (10 Marks) (10 Marks x 2 Questions) (Total of 20 Marks) - END - (Total 100 Marks) Page 20 of 20
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