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Mktg 334:Marketing Communication Question Paper
Mktg 334:Marketing Communication
Course:Business Administration
Institution: Kenya Methodist University question papers
Exam Year:2013
KENYA METHODIST UNIVERSITY
END OF 3''RD ''TRIMESTER 2013 (PT) EXAMINATION
SCHOOL : BUSINESS AND ECONOMICS
DEPARTMENT : BUSINESS ADMINISTRATION
UNIT CODE : MKTG 334
UNIT TITLE : MARKETING COMMUNICATION
TIME: 2 HOURS
Instructions:
Answer three questions
Question one is compulsory
Cite relevant examples
Question One
Everyone’s familiar with the cola wars the epic bottles between Pepsi cola and Cola cola in the soft-drink market. The war has featured numerous taste tests and mostly friendly but sometime not-so friendly, television ads featuring Pepsi and coke delivery-truck drivers, each trying to outdo the other.
The major problem that Pepsi and coke face is that Cola market is mature and growing very rapidly. Thus, to generate new sales and new customers the company has to look for new fronts.
In the early 1990’s, the bottled-water market was just a drop in U.S beverage market bucket. The Evian and Perrier brands dominated the tiny niche and helped established bottled spring water’s clean, healthy image. Pepsi took an early interest in the water market. It tried several different ways to attack this market, with both spring water and sparkling water, but each failed. Then it hit on the idea of taking advantage of built-in resource – its existing bottlers.
Pepsi’s bottlers already had their own water treatment facilities to purify municipal tap water used in making soft drinks. Municipal tap water was already pure and had passed a constant monitoring and vigorous quarterly EPA prescribed tests. Still, Cola bottlers filtered it again before using it in the production process.
Pepsi decided that it would really filter the tap water. It experimental with a reverse osmosis process, pushing already – filtered tap water at high pressure through fiber-glass membrane to remove the tiniest particles. Then carbon filters remove chlorine and any other particles that might give water any taste and smell. However, all this filtering removed even good particles that killed bacteria, so Pepsi had to add ozone to the water to keep bacteria from growing. The result? Aquafina – water with no taste or odor – that Pepsi could compete with the spring waters on the market. Pepsi Aquafina would compete well on the spring waters because of its relatively inexpensive process. Their marketing strategy was targeted to "Unisex, Malustream" unlike Evian and other early entrants who targeted women and high end consumers.
In 1999 Cola-cola decided to take a plunge into the market after seeing the success of Pepsi, their researcher analyzed tap water and mineral water and concocted a new product. The formula included magnesium sulfate, potassium chloride and salt and guarded the new formula and named it Dasani for distribution into the market.
Given the competition, Pepsi and Coca cola decided to aggressively market their products. Pepsi launched a USD 14 million campaign showing how Aquafina was part of real people’s lives. Coca cola countered with a USD 20 million campaign that targeted woman and used the gag line: "Treat yourself well Everyday." To this Pepsi, responded by doubling it’s promotion budget to USD 40 million in 2002. They featured a super-star Lisa Kudrow describing how refreshing and mouth-watering Aquafina was.
Pepsi, however not satisfied introduced a new tagline in 2003. "Aquafina purity guaranteed" and in 2004 introduced another, "Drink more water." They also noted that many consumers shop based on price and therefore introduced other new products H2oh!, a lower priced bottled water. Pepsi developed a promotion mix that builds brand loyalty across several products in a market characterized by price – conscious shoppers.
Question One
What advertising objective should Pepsi set for Aquafina and what markets should Pepsi target?
(8 marks)
What message strategy and message execution recommendation would you make for Aquafina?
(10 marks)
What advertising media recommendations would you make for Aquafina, and how would you evaluate the effectiveness of media and your advertising?
(6 marks)
What sales promotion and public relations recommendation would you make for Aquafina?
(6 marks)
Question Two
Describe the steps involved in developing an effective marketing communication.
(10 marks)
Discuss the marketing communication planning process. Use relevant examples to illustrate.
(10 marks)
Question Three
Describe the function of direct marketing as a promotional tool.
(8 marks)
Explain the steps involved in sales process. Use relevant example to illustrate.
(12 marks)
Question Four
Briefly explain the meaning of cognitive dissonance and explain ways that consumer can use to reduce cognitive dissonance.
(10 marks)
Explain the reason why word of mouth is a powerful source of information.
(10 marks)
Question Five
Explain how marketing communication supports the marketing and business strategies of the organization. (20 marks)
Question Six
Social media is a communication medium that enables consumers and organization to communicate in radically different ways. Explain the role that social media is playing. (20 marks)
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