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Principle Of Marketing(Buss 218) Question Paper
Principle Of Marketing(Buss 218)
Course:Business Administration
Institution: Kenya Methodist University question papers
Exam Year:2011
TIME: 2 HOURS
Instructions: Answer Question ONE Compulsory and Any Other TWO.
CASE STUDY
Commercial Bank of Africa (CBA) 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 world wide network. The synergy from the merger assured Commercial bank of Africa of a big market share in both local and foreign trade. The banks market share grew continuously increasing the profit margin to great levels. More resources were spent on opening new retail outlets.
In a past board meeting Mr. James, marketing manager 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. Jack General Manager retorted, why spend money on strategic marketing plan when we are making huge profits every year? We are also able to exploit any business opportunities that arise without the plan". There was mixed reaction from the floor about the views expressed by the two managers. Due to its past good performance, Commercial Bank of Africa developed new product and services delivery programmes without carrying out any market research as it thought it knew what was best for its customers. At one point the bank had marketing information systems which worked so well for so well for so many years that the need to change or update it was felt to be unnecessary.
While the bank was engrossed with success and the feeling that it was beyond reproach, the financial industry was transforming at a fast pace. The main retail bank adopted an aggressive campaign to acquire modern technology system and offer new competitive products focused on clear market segments.
The International Banks were busy attracting commercial Bank of Africa corporate customers in large numbers due to their services and ability to negotiate attractive terms. Commercial Bank of Africa found itself being attacked in all core market segments without ability in stop erosion of its market share and profitability.
The share holders have been adversely affected by the huge losses reported by the bank in the last two year. They have not received any dividend during their period. The Chief Executive Mr. George Brown in the Annual General meeting was quoted saying "The mist has cleared from our eye I assure shareholders and all stakeholders that the fortunes of Commercial Bank will change in the next one or two years through an extensive rationalization programme".
From the Case Study answer the following:
Enumerate and briefly explain the various marketing philosophies or concept that were practiced by the Commercial Bank of Africa.
(4 Marks)
How would the bank have benefited had it adopted the modern concept of
marketing. (6 Marks)
Indicate at least Seven (7) benefits derived by the bank from using the
market segment strategy? (7 Marks)
To some extent, the bank ignored the
the market research and market information system while carrying out its marketing activities. How are the two elements important to an organization. (13 Marks)
Question Two
Products are living organizations, they are born Live and die." With an illustration discuss this statement.
(8 Marks)
Effective segmentation requires the marketing manager to consider. Five key requirements, briefly describe the characteristics of an effective segment.
(7 Marks)
Question Three
"The process of deciding the price for a product is a difficult task. The
management has to weigh a large number of factors with. Well articulated
example. Discuss the internal and external factors influencing pricing
decision. (10 Marks)
Highlight FIVE factors that a marketer of products should consider when
selecting a pricing method. (5 Marks)
Question Four
"Within the rapidly changing global picture, the firm must monitor certain forces. Discuss the main micro and macro environmental forces that markets need to monitor. (20 Marks)
Question Five
Define marketing
(2 Marks)
Explain the importance of marketing to the organization and the society.
(10 Marks)
The decision to purchase high valued items is a long decision process. Explain the various stages in decision making process.
(8 Marks)
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