Mock Exam Examination Period Faculty of Business and Economics EXAM CODES: MKF1120 TITLE OF PAPER: Marketing - Mock Exam EXAM DURATION: 2 hours 10 mins Rules During an exam, you must not have in your possession any item/material that has not been authorised for your exam. This includes books, notes, paper, electronic device/s, mobile phone, smart watch/device, calculator, pencil case, or writing on any part of your body. Any authorised items are listed below. Items/materials on your desk, chair, in your clothing or otherwise on your person will be deemed to be in your possession. You must not retain, copy, memorise or note down any exam content for personal use or to share with any other person by any means following your exam. You must comply with any instructions given to you by an exam supervisor. As a student, and under Monash University’s Student Academic Integrity procedure, you must undertake your in-semester tasks, and end-of-semester tasks, including exams, with honesty and integrity. In exams, you must not allow anyone else to do work for you and you must not do any work for others. You must not contact, or attempt to contact, another person in an attempt to gain unfair advantage during your exam session. Assessors may take reasonable steps to check that your work displays the expected standards of academic integrity. Failure to comply with the above instructions, or attempting to cheat or cheating in an exam may constitute a breach of instructions under regulation 23 of the Monash University (Academic Board) Regulations or may constitute an act of academic misconduct under Part 7 of the Monash University (Council) Regulations. Authorised Materials OPEN BOOK YES NO CALCULATORS YES NO DICTIONARIES YES NO NOTES YES NO SPECIFICALLY PERMITTED ITEMS YES NO if yes, items permitted are: Instructions Page 1 of 12 This is the practice/mock exam for MKF1120. It is designed to demonstrate the structure of the exam, and the eExam system that is being used for your exam this semester. The questions here are just provided to give you an idea of the types of questions that you could be asked in the real exam. The actual questions you will be asked will be different to these ones. 1. This examination is worth 50% of the overall assessment in the unit. 2. This examination is marked out of 100. You are required to answer all questions. The first section consists of 20 multiple choice questions, and is worth 20 marks. The second section consists of 5 extended answer questions, and is worth 80 marks. 3. You must achieve a threshold mark of at least 40% of the available marks in this exam to be able to pass the unit. If you do not achieve this threshold mark, you will receive a fail grade (NH) and a maximum mark of 45 for the unit. Page 2 of 12 Instructions Information Instructions This is the practice/mock exam for MKF1120. It is designed to demonstrate the structure of the exam, and the eExam system that is being used for your exam this semester. The questions here are just provided to give you an idea of the types of questions that you could be asked in the real exam. The actual questions you will be asked will be different to these ones. 1. This examination is worth 50% of the overall assessment in the unit. 2. This examination is marked out of 100. You are required to answer all questions. The first section consists of 20 multiple choice questions, and is worth 20 marks. The second section consists of 5 extended answer questions, and is worth 80 marks. 3. You must achieve a threshold mark of at least 40% of the available marks in this exam to be able to pass the unit. If you do not achieve this threshold mark, you will receive a fail grade (NH) and a maximum mark of 45 for the unit. Page 3 of 12 Multiple Choice Questions Question 1 Chris is going shopping to buy a new shirt to wear to a very important job interview. Chris’s purchase decision could be described as… Select one: 1 Mark a. Public involvement b. Under involvement c. Low involvement d. High involvement Question 2 A car retailer entices customers to buy from them by offering an extended warranty on all new cars. The normal manufacturer's warranty is 3 years, but the retailer extends this at no extra cost to 5 years. This feature of the product is most likely to be part of which level of the "total product concept"? Select one: 1 Mark a. Core product b. Augmented product c. Expected product d. Potential product e. Actual product Question 3 "Although marketing research can be beneficial in a variety of situations, the decision to conduct research is not automatic" (Malhotra, 2012, p.45). Which of the following is the most compelling example of a situation where marketing research should NOT be conducted? Select one: 1 Mark a. The decision to be made is of strategic importance to the organisation. b. Management has a positive attitude toward marketing research, and respects the views of its customers. c. The cost of the research is minimal compared to the value of the additional information to be gained. d. The organisation has sufficient resources to be able to collect the information and implement the findings. e. The organisation already has sufficient data available in order to make a well-informed decision. Page 4 of 12 Question 4 Sam runs a small business, and as such doesn't have a formal process of budgeting for their advertising expenditure each year. When "times are bad", Sam often reduces advertising to save money. Which of the following budget strategies is Sam using? Select one: 1 Mark a. Percentage of sales b. What can be afforded c. Competitive parity d. Objective and task Question 5 According to Kotler, a number of conditions must be met in order for an exchange to take place. Which one of the following is NOT one of those conditions? Select one: 1 Mark a. There are at least two parties b. Each party must have a pre-existing relationship c. Each party has something that might be of value to the other party d. Each party is capable of communication and delivery e. Each party is free to accept or reject the offer of the other party Question 6 A demand curve graphically shows that... Select one: 1 Mark a. As the price of a product increases, fewer people will be prepared to purchase it b. As the price of a product increases, more people will be prepared to purchase it c. If firms can charge a higher price for a product, they will make more of it available d. If firms can charge a higher price for a product, they will make less of it available Question 7 Lee spends a lot of time going to the cinema and seeing the latest movies, and then giving advice to friends about which films they should see. Lee is known as a(n)… Select one: 1 Mark a. Laggard b. Opinion leader c. Disposer d. Internal motivator Page 5 of 12 Question 8 A want supported by buying power is best described as a: Select one: 1 Mark a. Manifestation of greed b. Need c. Desire d. Demand e. Value Question 9 Which of the following is NOT one of the findings reported by Gamble et al (2011)? Reference: Gamble, J., Gilmore, A., McCartan-Quinn, D. & Durkan, P. (2011). The Marketing concept in the 21st century: A review of how Marketing has been defined since the 1960s. The Marketing Review, 11(3), 227-248. Select one: 1 Mark a. The 1950's saw an increase in social awareness, such as green consumer movements, which was reflected in marketing approaches b. In the 1960's, marketing opportunities arose as a result of the increase in mass production and automation c. Societal definitions of marketing became prevalent in the 2000's, as businesses embraced social and ethical concerns d. The 1990's saw the spread of market globalisation and relationship marketing Question 10 A manufacturer of baked beans sells their products to end consumers through retailers, such as "IGA" Supermarkets. In this case, IGA is best described as part of which group in the microenvironment? Select one: 1 Mark a. Intermediary b. Supplier c. Competitor d. Public Page 6 of 12 Question 11 Manufacturers of prestige/luxury brands often deliberately limit the number of intermediaries handling their products in order to enhance the product image. These manufacturers are using which of the following distribution strategies? Select one: 1 Mark a. Exclusive distribution b. Intensive distribution c. Selective distribution d. Widespread distribution Question 12 Rather than attempting to satisfy all customers in a market with only one offering, a company has decided to target a number of different segments, with a unique marketing approach to each. This is an example of... Select one: 1 Mark a. Differentiated marketing b. Undifferentiated marketing c. Mass marketing d. Concentrated marketing e. Niche marketing Question 13 Which of the following is the best description of the "societal marketing concept"? Select one: 1 Mark a. The key task of the organisation is to determine the needs, wants and interests of target markets, and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer's and the society's well-being. b. The major task of the organisation is to improve the efficiency of both product and distribution, as consumers will favour products that are available and affordable. c. Consumers will favour those products that offer the most quality for the price, and therefore the organisation should devote its energy to improving product quality. d. The key task of the organisation is to make an effort to stimulate consumers' interest in the products, as otherwise the consumers will either not buy, or not buy enough of, the organisation's products. Page 7 of 12 Question 14 Which ONE of the following is NOT an example of a sociodemographic variable? Select one: 1 Mark a. Family lifecycle b. Age c. Personality characteristics d. Gender e. Occupation f. Ethnic origin or background g. Level of education h. Social class Question 15 Zara, a hugely-successful fashion brand, manufactures a large proportion of their own fabrics, and then manufactures their clothes in their own factories (rather than outsourcing to third-party factories). They then sell these clothes in their own company-owned and branded retail stores. Zara is an example of which type of marketing network? Select one: 1 Mark a. Contractual vertical marketing network b. Corporate vertical marketing network c. Administered vertical marketing network d. Horizontal marketing network Question 16 Which of the following is NOT a method of collecting primary data? Select one: 1 Mark a. Observation of consumer activities and actions b. Conducting a survey by asking consumers questions c. Searching the internet for data sources d. Mounting an experiment to assess cause and effect between two variables Page 8 of 12 Question 17 According to Evans (1988), why should a company continuously monitor its marketing environment? Select one: 1 Mark a. So that the company is able to react to changes as they occur b. So that the company is able to see where they went wrong c. So that the company can effectively plan ahead d. All of the above Question 18 There are three primary communication purposes: inform, persuade, and remind. Which of the following is most likely to be a communication strategy to remind consumers? Select one: 1 Mark a. Building brand preference b. Explaining how a product works c. Reducing buyers' fears d. Maintaining top-of-mind product awareness e. Encouraging switching to your brand f. Convincing buyers to purchase now g. Suggesting new uses for a product Question 19 For the past 20 years, Alex has always owned and driven Toyota cars. When asked why, Alex answered "I really like them because they are so reliable, so I will always choose Toyota rather than any other brand." In that statement, Alex is expressing... Select one: 1 Mark a. Brand equity b. Brand image c. Brand extension d. Brand stupidity e. Brand loyalty f. Brand metrics Page 9 of 12 Question 20 Sam purchased a very low-priced inkjet printer recently, only to find out later that the ink for the printer is very expensive, and the only replacement ink cartridges that can be used are from the same company that manufactures the printer. This is an example of which pricing strategy? Select one: 1 Mark a. By-product pricing b. Geographical pricing c. Penetration pricing d. Captive product pricing e. Psychological pricing Page 10 of 12 Extended Answer Questions Information The remaining questions in this exam relate to the following scenario. You are required to make reference to this scenario when answering questions 21-25. Scenario - Schweppes Water Enhancers Schweppes Australia is testing two new brands, Squirt and LQD+, in parallel to jump-start the ‘water enhancer’ market in Australia, following the category’s quick rise in the US Liquid water enhancers are a new proposition for the Australian market – they’re, simply, concentrated flavours that are squirted into water to make water more ‘interesting’. The category was born in 2011 when Kraft introduced MiO Liquid Water Enhancers to the US. By the end of last year, the market there had reached US$412 million, according to specialist food and beverage consultancy Zenith International. The products come in a pocket-sized format and allow consumers to customise their drinks on the go by adding flavour to water whenever they want. The trial by Schweppes Australia started last year in South Australia, offering a range of three flavours across two distinct brands. The first is a sub-brand, named ‘Squirt’, which comprises a product range under the existing Cotteeʼs brand. The second is an all-new brand named ‘LQD+’. The two new ranges are designed to appeal to distinct audiences. The playful look of Cotteeʼs Squirt builds on key assets of the rebrand Cottee’s undertook earlier this year in order to appeal to modern families. The “bold and attitudinal” brand development of LQD+ focuses on independent adult consumers, positioning the product as a lifestyle accessory. Ellie Vince, head of innovation at Schweppes Australia, tells Marketing that several key consumer trends make this the right time to launch in Australia. “For health reasons, there’s a big trend towards consuming more bottled water, but the major barrier to consuming more bottled water is that water is seen as boring and uninteresting,” Vince says. “[Also] there’s this emerging trend coming through around people wanting to have control over everything they do, from their mobile phones to customising the shoes they wear or the playlists they listen to.” Another trend playing a role here is the valuing of environmentally-friendly consumption. “For every person that reuses their bottle of water, it’s three times, so it absolutely taps into that,” Vince says. “Plus also we know it’s quite a high percentage of drinks that people drink each day is tap water.” We asked Vince the rationale between the two new brands, Cottee’s Squirt and LQD+. One reason is simply due to the pack size of the product itself. The bottles are small, so to get a substantial amount of presence and visibility on shelf, a certain breadth and variance is needed for it to be noticed. But the main reason behind launching two brands was insight around Cottee’s as a brand, says Vince: “Its main consumer base is families. We know that people try to take Cottee’s out of the home by pre-mixing up big jugs of cordial, but the format’s not really conducive to moving out and about. There’s definitely an opportunity for us to allow people to enjoy Cottee’s style of cordial out and about, so it felt like a Adapted from Roper, P. (2014). “Schweppes is testing the water enhancer category with two distinct brands.” Marketing Magazine. https://www.marketingmag.com.au/hubs‐c/schweppes‐is‐testing‐the‐water‐enhancer‐category‐with‐two‐distinct‐brands/ Page 11 of 12 natural fit to extend the Cottee’s brand into a smaller and more convenient format,” she says. “Everything about [the water enhancer category] is new, so it’s nice to keep one thing consistent – people understand the Cottee’s brand, people are familiar with it, it’s got credibility. Keeping one thing consistent is really valuable for us.” Cottee’s Squirt and LQD+ are initially being distributed in supermarkets Woolworths and Coles, and in convenience stores. Question 21 Jo is considering buying a bottle of water enhancer for the family. Describe two internal, two external, and two situational influences which may affect Jo’s purchase decision. 20 Marks Question 22 The marketing research process typically involves six steps. Describe each of these steps, explaining how Schweppes might have used these steps prior to launching their new product. 20 Marks Question 23 Using Smith and Colgate’s (2007) framework, explain and illustrate the four types of customer value relevant to LQD+ consumers. 15 Marks Question 24 Describe the various types of stakeholders in Schweppes' microenvironment. Using the case study, illustrate how each of the stakeholders in the microenvironment might affect Schweppes’ ability to serve their customers. 15 Marks Question 25 Considering ethical and legal issues in marketing, briefly describe three marketing practices that Schweppes should avoid. 10 Marks Page 12 of 12