CONFIDENTIAL / SULIT

Template (B) Rev. 1: March 2008

UNIVERSITI
Tun Abdul Razak

FINAL EXAMINATION
MAY 2009

MATRIC NUMBER
SECTION
COURSE TITLE PRINCIPLES OF MARKETING
COURSE CODE HMD 2103
DATE/DAY 16 JULY 2009! WEDNESDAY
TIME/DURATION 2.30 - 5.30 PM /3 HOURS

INSTRUCTIONS TO CANDIDATES:
1. This Question Booklet consists of THREE (3) Sections, Section A, B and C.
2. Write all information required on this cover page in the space provided as well as
attendance slip.
3. Answer Section A and B in OMR form and Section C in the question paper itself
and submit this question paper.
4. Candidates are not allowed to bring into the examination hall/room any form of written
materials or electronic gadget except for stationery that is permitted by the Invigilator.
5. Students who are caught breaching the Examination Rules and Regulation will be
charged with an academic dishonesty, and if found guilty of the offence, the maximum
penalty is expulsion from the University.

(This Question Paper consists of 13 Printed Pages including the front page)

.............................................................. K ............................................................
ATTENDANCE SLIP
DATE
NO ...........................................SECTION
AMME
ECODE/TITLE: .....................................................................................................................
URE

*** DO NOT OPEN THE QUESTION UNTIL YOU ARE TOLD TO DO SO

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Principles of Marketing (HMD 2103) CONFIDENTIAL
May 2009 Final Examination

SECTION A: MULTIPLE CHOICE QUESTIONS (15 MARKS)

There are THIRTY (30) questions. Answer ALL questions. Fill in your answers in the OMR form.
Each question carries 1/2 marks.

A consists is one that, by operating in more than one country, contains marketing,
production, research and development, and financial advantages that are not available to purely
domestic competitors.
A. global firm
B.global industry
C.whole-channel view
D.direct investment

2. occurs when a company enters a foreign market by joining with a foreign company to
produce or market products or services.
A. Exporting
B.Joint venturing
C.Direct Investment
D.Globalisation

3. The simplest way to enter a foreign market is through:

A.joint venturing.
B.direct investment.
C.exporting.
D.joint ownership.

4. Many critics have charged that the current marketing system leads people to be:
A. materialistic.
B.choosy.
C.selective.
D.participative.

5. Two major grassroots movements that have arisen to keep business in line include:
A. consumerism; ethnocentrism.
B.consumerism; environmentalism.
C.industrialization; environmentalism.
D.perennialism; favoritism.

6. When most people think of marketing, they think first of the common form of paid, nonpersonal,
presentation or promotion of ideas, goods, or services by an identified sponsor that is called:
A.sales promotion.
B.advertising.
C.direct marketing.
D.personal selling.

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Principles of Marketing (HMD 2103) CONFIDENTIAL
May 2009 Final Examination

7. The promotion mix is an integral part of a company's marketing mix that includes all of the
following EXCEPT:
A. product.
B.competitor.
C.price.
D.place.

8. More companies are adopting the concept of . This carefully integrates and coordinates
its many communication channels to deliver a clear, consistent, and compelling message about
the organization and its products.
A. integrated marketing communications
B.integrated personal selling
C.integrated competitive method
D.integrated personal selling

9. Each of the following is one of the four major communication functions EXCEPT:
A.agent.
B.encoding.
C.feedback.
D.response.

10. In a communication process, the receiver assigns meaning to the symbols encoded by advertiser
in its advertisements through a process known as:
A.encoding.
B.decoding.
C.feedback.
D.acknowledgement.

11. A consumer is reading a magazine with a DIGI advertisement, but is distracted from reading the
advertisement or its key points. This unplanned static or distortion during the communication
process is called a:
A. response.
B.feedback.
C. noise.
D.message.

12. Distribution channel decisions often involve - with other firms.

A.short-term commitments
B.major problems
C.long-term commitments
D.financial losses

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Principles of Marketing (HMD 2103) CONFIDENTIAL
May 2009 Final Examination

13. Intermediaries play an important role in matching:

A. dealer with customer.

B. dealer with producer.
C. supply and demand.
D. product to geographic area.

14. All of the following are key functions that intermediaries play in completing transactions EXCEPT:

A. pricing.
B. promotion.
C. information.
D. negotiation.

15. In marketing terms, we say that the number of intermediary levels indicates the of a
channel.

A. depth
B. width
C. length
D. complexity

16. By definition, a conventional distribution channel consists of one or more independent producers,
wholesalers, and:

A. products.
B. retailers.
C. contracts.
D. merchants.

17. Which of the following are reasons why companies are placing a a greater emphasis on logistics?

A. to give customers better service or prices

B. tremendous cost savings to the company and its customers
C. a need for improved logistics management
D. all of the above

18. includes all the activities involved in selling products or services directly to final
consumers for their personal, nonbusiness use.

A. Franchising
B. Retailing
C. Brokering
D. Wholesaling

19. Unlike the other 3Ps, price produces:

A. revenue.
B. variable costs.
C. expenses.
D. fixed costs.

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Principles of Marketing (HMD 2103) CONFIDENTIAL
May 2009 Final Examination

20. All of the following are forms of prices EXCEPT:

A. fees.
B. lists.
C. rents.
D. fines.

21. Unlike variable costs, fixed costs as the number of units produced increases.

A. decrease
B. increase
C. divides in half
D. remain the same

22. Which of the following is an external factor that affects pricing decisions?

A. salaries of production manager

B. competition
C. salaries of finance manager
D. funds expensed to clean production equipment

23. is the act of designing the company's offering and image to occupy a distinctive place
in the mind of the target market.

A. Positioning
B. Product conceptualization
C. Promotion presentation
D. Performance imaging

24. If a market is segmented according to light, medium, and heavy product users, the marketer
segmenting this market is using the _________ as the means to segment.

A. user status
B. usage rate
C. buyer-readiness stage
D. occasion

25. Dividing consumers into those who earns RM 0— RM 1,000; RMI,001 - RM 4,000; RM4,001 and
above of monthly income is an example of segmentation based on:

A. geographic.
B. demographic.
C. psychographic.
D. behavior.

26. Products such as insurance and cemetery plots are examples of that are products that
the consumer does not know about or does not normally think of buying.

A. specialty goods
B. unsought goods
C. shopping goods
D. convenience goods

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Principles of Marketing (HMD 2103) CONFIDENTIAL
May 2009 Final Examination

27. are industrial goods that enter the manufacturer's product completely.
A. Materials and parts
B. Equipment
C.Maintenance service
D.Operating supplies

28. A is the set of all products and items a particular seller offers for sale.
A. product line
B.product mix
C.family of products
D.product system

29. In the new product development process, the first step is:
A.commercialization.
B.market testing.
C.generating ideas.
D.developing product concept.

30. Unlike physical goods, services are produced and simultaneously.

A. launched
B.consumed
C.created
D.maximized

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Principles of Marketing (HMD 2103) CONFIDENTIAL
May 2009 Final Examination

SECTION B: TRUE AND FALSE QUESTIONS (10 MARKS)

There are TWENTY (20) questions. Answer ALL questions. Fill in your answers in the OMR
form. In the OMR form, shade T for True and F for False. Each question carries 1/2 marks.

31. Deceptive packaging includes exaggerating package contents through unusual design.

32. The simplest way to enter a foreign market is with direct investment.

33. Joint venturing is when two or more Malaysian companies jointly invest in distributing products to
a foreign country.

34. A company's total marketing communications mix is also called its marketing mix.

35. If the pull strategy is effective, consumers will then demand the product from channel members,
who will in turn demand it from producers.

36. Decoding is the process of putting thought into symbolic form.

37.The affordable method sets promotion budgets to match competitor's budget.

38. Producing a product or service and making it available to buyers requires building relationships
not just with customers, but also with key suppliers and resellers in the company's supply chain.

39. Intensive distribution seeks many outlets in a market, selective distribution seeks several outlets,
and exclusive distribution seeks only a limited number of outlet in a given market area.

40. Retailers are firms and individuals that provide the resources needed by the company to produce
its goods and services.

41. Specialty stores carry narrow product lines with deep assortments within those lines.

42. Value-based pricing uses the company's perception of value.

43. The simplest pricing method is cost-plus pricing where you add a standard markup to the cost of
the product.

44. Shopping products are less frequently purchased consumer products and services that customers
compare carefully on suitability, quality, price, and style.

45. Nestle produces a variety of beverages. This variety is called its product line.

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Principles of Marketing (HMD 2103) CONFIDENTIAL
May 2009 Final Examination

46. To test the product concept of a new idea, a firm will develop a prototype that will satisfy and
excite consumers and be produced quickly at budgeted costs.

47. The greatest profits earned by a consumer product most often occur during the introduction stage
of its Product Life Cycle.

48. Sales for products in the decline stage of the PLC drop for many reasons, including technological
advances and shifts in consumer tastes.

49. Bombay Gifts divides its markets into units of nations, regions, and cities. Bombay uses
international segmentation.

50. Niche marketing offers smaller companies an opportunity to compete by focusing their limited
resources on serving niches that may be unimportant to or overlooked by larger companies.

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Principles of Marketing (HMD 2103) CONFIDENTIAL
May 2009 Final Examination

SECTION C: SHORT ANSWER QUESTIONS (25 MARKS)
There are THREE (3) questions in this section. Answer ALL questions from this section. Write
your answers in the space provided below each question.

Question I

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Figure 1: Spritzer Mineral Water

Source: www.ecomaxmc.com , downloaded June 11, 2009.

Based on Figure 1 above, answer the following questions:

a) Describe the FIVE (5) stages of the buying decision process using the above product.
(5 marks)

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Principles of Marketing (HMD 2103) CONFIDENTIAL
May 2009 Final Examination

b) Why are the mineral water bottled in various sizes? (2 marks)

c) Discuss any TWO (2) functions of packaging for the product. (4 marks)

(Total 11 marks)

Question 2
Describe the following marketing concepts/terms using examples:

a) Marketing intermediaries (2 marks)

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Principles of Marketing (HMD 2103) CONFIDENTIAL
May 2009 Final Examination

b) Consumer market (2 marks)

c) Service (2 marks)

d) Market segmentation strategy (2 marks)

e) Variable costs (2 marks)

(Total 10 Marks)

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Principles of Marketing (HMD 2103) CONFIDENTIAL
May 2009 Final Examination

Question 3
You have been hired as the marketing manager of a "teh tank" kiosk in a shopping centre at your
hometown. Choose any TWO (2) of the marketing mix strategies (4 Ps) for the stall and elaborate on
how you go about implementing the selected strategies. (4 marks)

(Total 4 Marks)
[TOTAL MARKS: 50]
END OF QUESTION

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