CONFIDENTIAL BM/OCT 2009/MKT243/260

UNIVERSITI TEKNOLOGI MARA

FINAL EXAMINATION

COURSE FUNDAMENTALS OF MARKETING

COURSE CODE MKT243/260
EXAMINATION OCTOBER 2009
TIME 3 HOURS

INSTRUCTIONS TO CANDIDATES

This question paper consists of four (4) parts PART A (20 Questions)
PART B (15 Questions)
PART C (7 Questions)
PART D (4 Questions)

Answer ALL questions from PART A and PART B. Answer five (5) questions from PART C
and two (2) questions from PART D.

i) Answer PART A in the True/False Answer Sheet

ii) Answer PART B in the Objective Answer Sheet
iii) Answer PART C and PART D in the Answer Booklet. Start each answer on a new
page.

Do not bring any material into the examination room unless permission is given by the
invigilator.

4. Please check to make sure that this examination pack consists of:

) the Question Paper

) an Answer Booklet - provided by the Faculty
) a True/False Answer Sheet - provided by the Faculty
iv) an Objective Answer Sheet - provided by the Faculty

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This examination paper consists of 8 printed pages
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PART A

1. Only a firm's salespeople need to be customer-oriented.

2. In the early 1920's, Ford promised their customers any color that they wanted as long
as it was black. Ford is an example of a sales-oriented firm.

3. The pyramid of corporate social responsibility portrays ethical performance as the

foundation for the other three responsibilities.

4. A Maslow's hierarchy of needs categorizes human needs into five levels:

physiological needs, safety needs, social needs, esteem needs, and self-
actualization.

5. Cannibalization is a situation that occurs when sales of a new product cut into sales
of a firm's existing products.

6. When Brad Pitzy picked up the candy bar, he automatically looked to see its fat
content. The information that he looked for was contained in a nutritional label.

7. Diffusion is a product perceived as new by a potential adopter.

8. One of the differences between a merchant wholesaler and an agent is that the agent
takes title to goods.

9. Levels of distribution intensity are intensive, extensive and selective.

10. Retailing can be defined as all activities directly related to the sale of goods and
services to the ultimate consumer for personal and nonbusiness use.

11. Color can be used by retailers to create a mood or focus customer attention on a
particular product.

12. One in every 400 cats suffers from diabetes. Friskies developed the first and only cat
food designed to manage the glucose levels of diabetic cats. For owners of diabetic
cats, Friskies's new cat food would have a competitive advantage.

13. Point-of-purchase promotions are seldom used as a sales promotion tool because
most purchase decisions are made before consumers enter a store.

14. The final selling duty for most successful salespeople is closing the sale.

15. Profit maximization is the most common pricing objective used by firms.

16. Escalator pricing and price shading are two examples of cost-oriented pricing tactics.

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17. Unitary elasticity is a situation in which total revenue remains the same when price
change.

18. The introductory price for the Nintendo Gamecube video game console was RM100
lower than the list price of Xbox and Playstation 2, its only two competitors. Given
this information, you can assume Nintendo used a penetration pricing policy for its
Gamecube.

19. Price fixing is an agreement between two or more firms on the price they will charge
for a product.

20. Functional discounts, non-cumulative quantity discounts, and promotional allowances

are examples of rebates given to the trade customer.

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PARTB

1. Marketers are always trying to spot in order to discover new products that
might be wanted.

A. benchmarks
B. cultural shifts
C. dissonant groups
D. opinion leaders

2. The steps of the consumer decision-making process in order are:

A. Need recognition, evaluation of alternatives, purchase, information search and

post purchase behavior
B. Need recognition, stimulus response reactions, purchase decision, post purchase
behavior
C. Information search, need positioning, evaluation of alternatives, purchase
decision, post purchase behavior
D. Need recognition, information search, evaluation of alternatives, purchase, and
post purchase behavior

3. A business is concerned with many day-to-day activities. Some of the most important are
the planning and conception of the product or service, its pricing policy, and the
distribution strategy. These activities are all a part of:

A. A control system
B. Marketing
C. Accounting
D. Production

4. Four competing philosophies strongly influence the role of marketing and marketing
activities within an organization. Which of the following is NOT a marketing management
philosophy?

A. Sales orientation
B. Societal marketing orientation
C. Marketing orientation
D. Profitability orientation

5. are strongly attached to technology, tend to be skeptical consumers, and

demand the latest fashion trends in record time.

A. Generation Xers
B. The cohort generation
C. The baby boomer generation
D. Generation Yers

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6. Elle magazine is targeted to women under 30 years of age. The magazine's

segmentation plan is based on segmentation.

A. demographic
B. life style
C. usage rate
D. psychographic

7. Labels that contain standard promotional claims like "new", "improved", and "super" are
examples of labels.

A. descriptive
B. repositioning
C. information
D. persuasive

8. products are searched for extensively, and substitutes are not acceptable.
These products may be quite expensive, and often distribution is limited.

A. Exclusive shopping
B. Specialty
C. Convenience
D. Unsought

9. When Philips developed a new extra -long halogen light bulb, the company installed 100
bulbs at no charge in the home of fifty consumers and monitored the bulb for one year.
This is a .

A. use test
B. market test
C. lab test
D. research test

10. Which of the following has been found to be an efficient substitute for traditional
methods of conducting test markets?

A. Product sampling
B. Simulated product adoption
C. Online test marketing
D. Laboratory testing

11. The retailing mix consists of all the following EXCEPT:

A. Packaging
B. Product
C. Presentation
D. Place

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12. Marketing channels perform all of the following logistical activities EXCEPT:

A. Sorting
B. Storing
C. Risk Taking
D. Grading

13. Mr. Sia has decided to sell Bali furnishings, lighting fixtures, and decorating accessories
through catalogs sent by mail to prospective customers. He will be using which of the
following retailing techniques?

A. Indirect retailing
B. Electronic retailing
C. Vending
D. Direct marketing

14. The three basic functions channel members perform are:

A. Transactional, logistical, and facilitating

B. Contacting, negotiating, and ownership
C. Promoting, distributing, and bulk-breaking
D. Assorting, accumulating, and allocating

15. In 2008, the movie company that produced Madagascar 2 used advertising, personal
selling, public relations, and sales promotion to communicate with its target audience for
the movie. The movie production company's was composed of its plan on how to
use these tools.

A. mass communication mix

B. promotional strategy
C. marketing mix
D. selling plan

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PARTC

QUESTION 1

Explain the differences between price skimming and penetration pricing.

(5 marks)

QUESTION 2

Briefly explain the differences between "pull" and "push" strategy.

(5 marks)

QUESTION 3

In an effort to better serve the customers and attract new ones, retailers are constantly
adopting new strategies. Discuss briefly two (2) recent developments in retailing.
(5 marks)

QUESTION 4

Message execution is the way an advertisement portrays its information. List five (5)
common executional styles for advertising.
(5 marks)

QUESTION 5

New product ideas can come from many sources. What are the three (3) sources of new
product ideas?
(5 marks)

QUESTION 6

Four competing philosophies strongly influence the role of marketing and marketing activities
within an organization. Describe briefly any two (2) marketing management philosophies.

(5 marks)
QUESTION 7

List and give examples of four (4) classification of consumer products.

(5 marks)

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PARTD

QUESTION 1

Using our national car manufacturer (Proton) as an example, discuss six (6) external
environment of marketing and explain how it affects a firm.

(20 marks)

QUESTION 2

Discuss and give example of any four (4) of the pricing tactics below.

i) Odd-even pricing
ii) Price bundling
iii) Bait pricing
iv) Two-part pricing
v) Single-price tactic
vi) Flexible pricing
(20 marks)
QUESTION 3

Advertising media are channels that advertisers use in mass communication. The seven (7)
major advertising media are newspapers, magazines, radio, television, outdoor media,
yellow pages and the internet. Discuss with example any four (4) of the above advertising
media.
(20 marks)

QUESTION 4

You have been given the task to design the packaging for a new Dunkin doughnut. Explain
with examples four (4) functions of your packaging must have, in order to compete
effectively in the market.
(20 marks)

END OF QUESTION PAPER

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