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Principles Of Marketing Question Paper
Principles Of Marketing
Course:Bachelor Of Commerce
Institution: Kca University question papers
Exam Year:2009
UNIVERSITY EXAMINATIONS: 2009/2010
SECOND YEAR STAGE 2 EXAMINATION FOR THE DEGREE OF
BACHELOR OF COMMERCE
CAM 101 PRINCIPLES OF MARKETING (DAY & EVENING CLASS)
DATE: DECEMBER 2009 TIME: 2 HOURS
INSTRUCTIONS: Answer ONE and Any other TWO Questions
QUESTION ONE
Read the case below and answer the questions that follow.
FAIDA COMMERCIAL BANK LTD
Faida Commercial Bank (FCB) Ltd. was established 75 years ago, as a result of a merger between two strong banks, First Farmers Bank and The International Bank. First Farmers Bank had an extensive local retail network while the International Bank Ltd. had a worldwide network. The synergy from the merger assured Faida Commercial Bank of a big market share in both local and foreign trade. The bank’s market share grew continuously which had a positive impact on profits. More resources were spent on opening new retail outlets.
In a past board meeting, Mr. Maendeleo expressed the view that the bank should have a strategic marketing plan for sustainable business growth and expansion in the increasingly competitive environment. In response to this, Mr. Mwendapole retorted, “Why spend money on strategic plans when we are making huge profits every year? We are also able to exploit any business opportunities that arise.” There was mixed reaction from the floor about the views expressed by the two directors.
Due to its past good performance, Faida Commercial Bank Ltd. developed new products and service delivery programmes without market research as it thought it knew what was best for its customers. At one point, Faida Commercial Bank Ltd. had the State-of -the-Art information system which worked so well for so many years that the need to change or update it was felt to be unnecessary.
While Faida Commercial Bank Ltd. was engrossed with success and the feeling that it was beyond reproach, the financial industry was transforming at a fast pace. The main retail banks adopted an aggressive campaign to acquire modern information technology systems, and offer new and competitive products focused on clear market segments.
The International banks were busy attracting Faida Commercial Bank Ltd’s corporate customers in large numbers due to their service and ability to negotiate attractive terms. Faida found itself being attacked in all its core market segments, without ability to stop erosion of its market share and profitability.
The shareholders have been adversely affected by the huge losses reported by this bank in the last two years. They have not received any dividend during this period. The Chief executive, Mr. Wise Brown in the Annual General meeting was quoted saying “The mist has cleared from our eyes, I assure shareholders and all stake holders that the fortunes of Faida will change in the next one or two years through an extensive rationalization programme.”
a) Identify and explain the business orientation/ philosophy pursued by Faida Commercial.
[5 Marks]
b) Comment on Faida Commercial Bank’s brand equity. [5 Marks]
c) Describe the target marketing strategy that Faida employs. [ 2 Marks]
d) State the stage of the product life cycle Faida’s product occupies and give the relevant
marketing strategies that Faida should pursue. [ 14 Marks]
e) Highlight the Macro environmental force(s) that adversely affected Faida’s Market share.
[ 4 Marks]
QUESTION TWO
a) Marketing Research often calls for the collection of primary data. Describe three basic primary data collection methods: [6 Marks]
b) With the aid of illustrations, explain the first three levels of consumer marketing channels.
[14 Marks]
QUESTION THREE
a) Identify four marketing segmentation strategies. [4 Marks]
b) Many small and medium size enterprises use demographic variables to segment their markets.
State two reasons why demographic segmentation is very popular among marketers.
[4 Marks]
c) Explain any six commonly used demographic segmentation variables. [12 Marks]
QUESTION FOUR
a) Describe the two major components of the marketing Environment. [4 Marks]
b) Define the term ‘Marketing Intermediaries’ and highlight any four Marketing Intermediaries.
[10 Marks]
c) Outline four circumstances where the production concept is likely to favored over and above the other marketing philosophies. [6 Marks]
QUESTION FIVE
a) Define the term ‘product’ and describe the five levels of a product. [12 Marks]
b) Explain the roles played by members of the buyer decision making unit. [8 Marks]
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