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BM/APR 2008/MKT544

UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION

COURSE COURSE CODE EXAMINATION TIME

: : : :

INTERNET MARKETING MKT544 APRIL 2008 3 HOURS

INSTRUCTIONS TO CANDIDATES 1. This question paper consists of two (2) parts : PART A (3 Questions) PART B (5 Questions)

2.

Answer ALL questions from PART A and any three (3) questions from PART B in the Answer Booklet. Start each answer on a new page. Do not bring any material into the examination room unless permission is given by the invigilator. Please check to make sure that this examination pack consists of: i) ii) the Question Paper an Answer Booklet - provided by the Faculty

3.

4.

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO

This examination paper consists of 4 printed pages
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BM/APR 2008/MKT544

PART A Case Study

Procter and Gamble and Colgate-Palmolive For decades, Procter and Gamble (P&G) and Colgate-Palmolive have been competitors in the market for personal care products. Developing a major new product from concept to market launch used to take over 5 years. First, a concept test was conducted. The companies sent product photos and descriptions to potential customers, asking whether they might adopt the product. If the feedback was negative, they tried to improve the product concept and then repeated previous tasks. Once positive response was achieved, sample products were mailed out, and the customer were asked to fill out detailed questionnaires. When customers' responses met the companies' internal hurdles, the companies would start with mass TV advertising. However, thanks to the Internet, it took P&G only 3 and half years to get Whitestrips, the teeth-brightening product, onto the market and to a sales level of $200 million a year considerably quicker than other oral care products. In September 2000, P&G's threw out the old marketing test model and instead introduced Whitestrips on the Internet, offering the product for sale on Web site. The company spent several months studying who was coming to the website and buying the product and collecting responses to online questionnaires, which was much faster than the old mail-outs. The online research, which was facilitated by data mining conducted on P&G's huge historical data (stored in a data warehouse) and the new Internet data, revealed the most enthusiastic groups. These included teenage girls, brides-to-be, and young Hispanic Americans. Immediately, the company started to target these segments with appropriate advertising. The Internet created a product awareness of 35 percent, even before any shipments were made to stores. This buzz created a huge demand for the product by the time it hit the shelves. In 2006, P&G began using on-demand solutions from RightNow Technologies (rightnow.com) that execute opinion polls among selected segments of consumers who have opted into the company's market research programs. From these experiences, P&G learned important lessons about flexible and creative ways to approach product innovation and marketing. The whole process of studying the product concept, segmenting the market, and expediting product development has been revolutionized. Sources: Compiled from TMCnet (2006), Buckley (2002), and pg.com (2006).

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BM/APR 2008/MKT544

QUESTION 1

Evaluate the time period and the steps taken by Procter & Gamble and Colgate & Palmolive when launching their new products in their traditional method and discuss Procter & Gamble's new approach when launching a new product in order to reduce time-to-market. (20 marks) QUESTION 2 Explain the role of data mining in the online research. (10 marks) QUESTION 3 Describe the online system used by Procter & Gamble. (10 marks)

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BM/APR 2008/MKT544

PARTB QUESTION 1 a) Define the concept of Internet marketing. (6 marks) b) Differentiate between narrow view and broad view of Internet marketing. Justify your answer. (14 marks)

QUESTION 2 a) Explain the three (3) key components of an Internet marketing strategy. (10 marks) b) Demonstrate how Internet affects the marketing strategy. (10 marks) QUESTION 3 a) Describe what is meant by customer experience. (6 marks) b) Analyze the seven (7) key elements of customer experience, which are related to the ways customers perceive their experiences. (14 marks)

QUESTION 4 a) List all the stages in customer relationship model. (5 marks) b) Evaluate how the "2Is" of the Internet contribute to the development of buyer-seller relationships. (15 marks)

QUESTION 5 a) Define the term price discrimination in Internet marketing. (5 marks) b) Propose how a firm can implement a price discrimination strategy. (15 marks)

END OF QUESTION PAPER

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