Preliminary Certificate in Marketing - slim.lk · The three major steps in the target marketing process are as follows: a) ... Market segmentation, ... Value based Pricing Strategy

Preliminary Certificate in Marketing

26 June, 2016 – Examination

PCM II 2016 – 90th

Intake, 26th

Year

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

ID) 0 0 0 0 0

For Examiner’s use only

Examiner’s Comments

Second Examiner’s Comments

Part One 1st Marker 2nd Marker Final Marks

Question 01

Part Two

Question No.

Question 02

Question 03

Question 04

Question 05

Question 06

Question 07

Question 08

Question 09

Question 10

Question 11

Part Three

Question No.

Question 12

Question 13

Question 14

Question 15

Total

Page 2 of 21

Instructions to Candidates

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

There are three parts in this question paper. Part One

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

Part Two

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

Part Three

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

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

Other Instructions

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

Always start answering a question on a new page.

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

Answer the questions using:

Effective arrangement and presentation Clarity of expression Logical and precise arguments

a) Illegible hand writing will be penalised.

Copyright reserved ©

Page 3 of 21

PART ONE

Read the question and select the most appropriate answer

Tick your choice in the given space

Question 01

Question 1.1

The concept that believes in offering the most quality, performance or innovative features is referred to as:

a) Product Concept

b) Production Concept

c) Selling Concept

d) Societal Marketing Concept

Question 1.2

Based on the definition of marketing which of the following is not a characteristic of marketing:

a) Making products as cheaply as possible

b) Marketing focuses on the needs and wants of the customers

c) Marketing creates value to both the customer and the organisation

d) Is concerned with satisfying the needs and wants of customers by creating products

Question 1.3

Customer Value is dependent on the following:

a) Customer Value = Perceived benefits - Perceived sacrifice

b) Customer Value = Perceived sacrifice - Perceived benefits

c) Customer Value = Perceived benefits x Perceived sacrifice

d) None of the above

Page 4 of 21

Question 1.4

Fill in the blank with the appropriate word: _____________________is a process that occurs within an organisation whereby the functional process motivates, aligns, and empowers employees at all management levels to deliver a satisfying customer experience and moulding the corporate culture.

a) Customer Orientation

b) Societal Marketing

c) Internal Marketing

d) Marketing Communication

Question 1.5

Fill in the blank with the appropriate word given below:

A company’s _____________________ consists of the actors and forces outside marketing that affect the marketing management’s ability to build and maintain successful relationships with target customers.

a) Marketing Environment

b) Customer Orientation

c) Organization Structure

d) Board of Directors

Question 1.6

From the below statements:

a. Customers are a crucial part of an Organization’s micro environment

b. The Organization’s macro environment includes political environment

a) Only statement a. is correct

b) Only statement b. is correct

c) Both statements are correct

d) None of the statements are correct

Page 5 of 21

Question 1.7


_____________________ is the set of controllable, tactical marketing tools that the firm blends to

produce the response it wants in the target market.

a) Marketing

b) Macro Environment

c) Micro Environment

d) Marketing Mix

Question 1.8

With reference to the Sellers view and Buyers view in the elements of a Marketing Mix, if the

product is referred to as Customer Value, the Price should be referred to as:

a) Consideration

b) Cost

c) Convenience

d) Co-ordination

Question 1.9

From the below statements;

a. Secondary Data refers to “Off the shelf” information and collection of secondary data is often

referred as “Field Research”. b. Primary Data is data collected for the first time for specific purposes and the collection of

primary data is often referred as “Desk Research”.




d) Both statements are incorrect

Question 1.10

One of the key advantages of primary data is:

a) Relatively cheaper to gather than secondary data since it is already available

b) A marketer could collect data, which is relevant and specific to the information requirement

c) One would not require too much of an expertise in extracting primary data

d) Relatively quicker to extract

Page 6 of 21

Question 1.11

The demand for business products is ultimately derived from the demand for consumer products. This is termed as:

a) Consumer Demand

b) Latent Demand

c) Derived Demand

d) Purchasing Power

Question 1.12

From the below statements, which one is correct?

1. Consumer market means all the individuals and households who buy goods and

services for personal consumption

2. Business-to-Business Market means, individuals or groups that purchase a specific

kind of product for re-sale, use directly in producing other products or use in

general daily operations of its business.

a) Only statement 1 is correct

b) Only statement 2 is correct


d) Both statements are false

Question 1.13

The three major steps in the target marketing process are as follows:

a) Undifferentiated marketing, Concentrated marketing and Customized marketing

b) Market segmentation, Market targeting and Market positioning

c) Market segmentation, Demographic segmentation and Market positioning


Question 1.14

a. Positioning is the final stage in the overall process of target marketing b. Targeting is not something an organization does with its products; it’s what they do with the

customer’s mind





Page 7 of 21

Question 1.15

With reference to levels of a product, after sales support, customer service and free delivery are

known as:

a) Basic Product

b) Expected Product

c) Augmented Product

d) Potential Product

Question 1.16


___________________is sometimes called product assortment and it consists of all the products

or services that a company offers to its customers.

a) Product Mix

b) Marketing Mix

c) Product life Cycle

d) Tangible Product

Question 1.17

The key steps in the Brand development process are:

a) Brand recognition, Brand acceptance, Brand preference and Brand loyalty

b) Brand recognition, Brand differentiation, Brand preference and Brand loyalty

c) Brand recognition, Brand acceptance, Brand differentiation and Brand loyalty

d) Brand recognition, Brand acceptance, Brand evaluation and Brand loyalty

Question 1.18

During the introduction stage of a product life cycle, the key marketing objective of an organisation

would be:

a) To offer product extensions

b) To maintain brand loyalty

c) To create awareness

d) To defend market share

Page 8 of 21

Question 1.19

The costs which do not vary with changes in the number of units produced is known as:

a) Variable Costs

b) Production Costs

c) Fixed Costs


Question 1.20

The Price strategy set to induce customers to purchases goods based on their emotional rather than on rational reactions is known as:

a) Value based Pricing Strategy

b) Psychological Pricing Strategy

c) Cost-based Pricing Strategy

d) Promotional Pricing Strategy

Question 1.21

A pricing strategy used extensively in super markets, departmental stores by setting very low prices on certain selected essential fast moving products or brands as an attraction to draw customers into the store is known as:

a) Psychological pricing strategy

b) Market penetration pricing strategy

c) Loss Leader pricing


Question 1.22

With reference to pricing strategies, a marketing-oriented way of setting prices is known as:

a) Cost based pricing

b) Mark-up pricing

c) Competitor-based Pricing

d) Perceived value pricing

Page 9 of 21

Question 1.23

A set of activities consisting of Order processing, Materials handling, Warehousing, and Inventory management used in the movement of goods from producers to consumers is known as:

a) Physical Distribution Management

b) Channels of Distribution

c) Transactional Value


Question 1.24

Fill in the blank with the two appropriate words:

The role of this element of the marketing mix is to ensure that products and services are available

to target customers in the ________________and at the __________________.

a) Right place and Right price

b) Right place and Right time

c) Right price and Right time

d) Right price and Right discounts

Question 1.25

Fill in the blank with the appropriate word.

A ___________________ holds a contract to supply and market a product or service with the design or blueprint of the owner or originator of the product or service.

a) Franchise

b) Modern Trade

c) Broker

d) Wholesaler

Question 1.26

One of the most frequently used communication process models is known as:

a) Porter’s five forces model

b) AIDA model

c) Maslow’s model

d) Ansoff’s model

Page 10 of 21

Question 1.27

The first steps in the selling process are known as:

a) Prospecting and qualifying

b) Prospecting and follow-up

c) Qualifying and follow-up

d) Pre-approach and approach

Question 1.28

A producer who directs marketing activities primarily through personal selling and trade promotions towards channel members to induce them to carry the product and to promote it to final consumers is adopting:

a) A push strategy

b) A pull strategy

c) Public relations strategy

d) A social media strategy

Question 1.29

In selecting communication channels, the marketer has two broad choices/types of communication

channels. The two broad types of communication channels are referred to as:

a) Personal and non-personal channels

b) Personal and marketing channels

c) Marketing and non-personal channels


Question 1.30

With reference to developing an Effective Communications campaign, there are seven key stages. The first stage of this process is:

a) Designing the message

b) Determining the communications objective

c) Identifying the target audience

d) Selecting the communication channels

Page 11 of 21

Question 1.31

The latest on-the go, on demand technologies, in which consumers can download audio files or a

video file via internet to a handheld device is known as:

a) Podcasts and vending machines

b) Podcasts and Vodcasts

c) Podcasts and ITV

d) Vodcasts and You-tube

Question 1.32

A form of personal selling using the telephone is termed as:

a) Technical salesman

b) Telemarketer

c) Missionary salesman

d) Order taker

Question 1.33

Fill in the blank with the appropriate word:

The outcome of the marketing planning process is known as the ___________________, which

indicates how the organisation plans to achieve its marketing objectives.

a) Financial plan

b) Sales plan

c) Marketing plan

d) Corporate plan

Question 1.34

With reference to Ansoff’s Product-Market expansion grid, a strategy in which the organization encourages its current customers to buy more products by offering price incentives, promotional offers, gifts etc is known as:

a) Product development

b) Market penetration

c) Diversification

d) Market development

Page 12 of 21

Question 1.35


___________________ are both essential if managers are to ensure that plans are being

implemented properly and that the outcomes are those expected

a) Evaluation and Control

b) Evaluation and SWOT analysis

c) SWOT analysis and Control

d) Marketing tactics and Evaluation

Question 1.36

There are several types of control in marketing. Examining whether the organization is pursuing its best opportunities with respect to markets, products and channels is known as:

a) Strategic Control

b) Efficiency Control

c) Profitability Control

d) Annual – plan Control

Question 1.37

In the Marketing Control Process, the question “why is it happening?” refers to:

a) Goal Setting

b) Variance Analysis

c) Performance Diagnosis

d) Corrective Action

Question 1.38

An important concept based on the belief that people should be given the choice of whether to receive further marketing communications or not is known as:

a) Viral Marketing

b) M-Marketing

c) Permission Marketing

d) E-commerce

Page 13 of 21

Question 1.39

From the below statements

a. Viral marketing, or ‘e-mail a friend’, is another form of word of mouth, or “word of mouse,”

marketing. b. Digital marketing is essentially the use of traditional media to communicate and reach your

target audience.





Question 1.40


___________________ is high-volume, high-velocity and high-variety information assets that

demand cost-effective, innovative forms of information processing for enhanced insight and

decision making.

a) Cloud Computing

b) Big Data

c) Business Intelligence

d) Interactive Television Marketing

(Total 40 Marks)

Page 14 of 21

PART TWO

Answer all questions in the given space

Question 02

a) What is Marketing Concept?

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b) List two (02) benefits of implementing the marketing concept philosophy within an organisation.

I. .………………………………………………………………………………………………………………………………………..

II. ………….………………………………………………………………………………………………………………………………

c) List two (02) difficulties/barriers in implementing the marketing concept philosophy within an organisation.

I. ……………………………………………………………………………………………………………………………………….

II. ……………………………………………………………………………………………………………………………………….

(04 Marks)

Question 03

Identify and briefly explain the (03) elements of the extended Marketing Mix.

I. ………………………………………………………………………………………………………………………………………

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II. …….…………………………………………………………………………………………………………………………………

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III. ………………………………………………………………………………………………………………………………………

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(04 Marks)

Question 04

Briefly explain the following terms:

I. Depth Interviews

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II. Qualitative Research

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III. Quantitative Research

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IV. Simple Random Sample

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(04 Marks)

Question 05

Below is an illustration that explains the Consumer Buying decision process model. Fill in the boxes in the correct order and briefly explain any two (02) stages of this process.

i. ………………………………………………………………………………….

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(04 Marks)

Question 06 a) What is Market Segmentation?

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b) Briefly explain any two (02) bases of segmenting a consumer markets with relevant product examples for the two bases.

i. ………………………………………………………………………………….

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(04 Marks)

Question 07

Products bought by final consumers for personal consumption is termed as Consumer products. Marketers usually classify these products on how consumers go about buying them. Identify and briefly explain two (02) types of consumer products stating product examples.

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(04 Marks)

Page 18 of 21

Question 08

The following diagram illustrates stages of the New Product Development Process. Fill in the blanks in the correct sequence and briefly explain any two (02) stages of this process.

i. ………………………………………………………………………………….

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(04 Marks)

Question 09

Market coverage, is about reaching the end customer as cost effectively as possible while

maximizing customer satisfaction. Explain the three (03) major levels of market coverage strategies

stating relevant product examples:

i. ………………………………………………………………………………….

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ii. ………………………………………………………………………………….

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(04 Marks) Question 10

a) Identify four (04) types of media a marketer could use to communicate with its target customers:

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

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

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

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

b) Identify four (04) key characteristics of a successful salesperson.

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

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

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

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

(04 Marks)

Question 11

With reference to digital marketing, briefly explain the following terms:

I. Earned Media

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II. Owned Media

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III. Search Engine Optimization

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(04 Marks)

(10 Questions x 4 Marks) (Total of 40 Marks)

Page 21 of 21

PART THREE

Select 2 out of 4 questions and answer them in supplementary sheets. Attach your answer sheets to the question paper.

Question 12 With the aid of a diagram explain the different stages of the relationship marketing ladder of customer loyalty and list four (04) benefits of relationship marketing to an organisation.


Discuss the role and importance of pricing to a marketer and identify and explain the key factors influencing pricing decisions – (the five Cs of pricing).

(10 Marks)

Question 14

Briefly explain the key elements of the communication process model and identify the five (05) marketing communication/promotional mix elements an organisation could use to communicate with its target market.


Briefly explain the key stages of the Marketing Planning Process and identify three (03) benefits of a marketing plan to an organisation.

(10 Marks)

(10 Marks x 02 Questions)

(Total of 20 Marks)

(Total 100 Marks)

- END -

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Preliminary Certificate in Marketing - slim.lk · The three major steps in the target marketing process are as follows: a) ... Market segmentation, ... Value based Pricing Strategy