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Marketing Management(Mktg 330) I Question Paper

Marketing Management(Mktg 330) I 

Course:Business Administration

Institution: Kenya Methodist University question papers

Exam Year:2010



TIME : 2 HOURS
INSTRUCTIONS Answer Question ONE and any Other TWO Questions

CAFFEINATED PLAIN WATER
Albert Hussein had a problem as a student, especially during exam seasons. His reading habit was that of staying up and crams all night long. He did not like coffee or soda, but wished someone would caffeinate plain water.
After school, he shared this idea of caffeinate plain water to his father’s friend who owned a beverage company. The chemist at the beverage company helped Hussein develop a formula for water that incorporated as much caffeine as an eight- ounce cup of coffee. Hussein took up the formula, patented it and branded it Hussein water. He packaged it in half, and one (1) litre bottle, and launched the product into the market place.
The new product became a hit in the market place. The market was large and diverse. The key customers included athletes, individuals who work late night, and people tired of their teeth turning brown from coffee. Reaching this consumer reguired distribution in convenient stores, and other retail outlets. Hussein therefore entered into partnership agreement with various retailers to distribute his caffeinated water.
By the end of the second year, the sales for this product had grown to 18% of the soft drink market. Competitors have noticed and are introducing similar products. Hussein must now think of how to undertake continued growth in the future.

Question 1
a) Explain reasons that made caffeinated plain water an instant success.
b) Explain the characteristics of the target market that Hussein targeted with his new product
c) Now that competitors are introducing similar product, advice Hussein who have approached you for advice, on how to continue growth in the future. (10marks)

Question 2
a) Amka Limited is a new company that intends to sell its merchandise in the East African market. Advise the management on the criteria to use in segmenting the markets. (10marks)
b) Galileo Ltd who have been operating under the product concept intends to embrace the marketing concept. Explain the features of the marketing concept that. Differentiate it from the product concept. (10marks)

Question 3
a) Explain the circumstances under which a firm may choose to use selective distribution strategy for its product. (10marks)
b) A company’s product promotional mix is highly influenced by whether a company chooses a push or pull strategy in promotion. (10marks)
c) One of the tools for facilitating implementation of a marketing strategy is the marketing plan. Describe the factors that may account for this trend. (18marks)

Question 4
a) There has been a significant increase in consumerism globally over the last several years. Explain the factors that may account for this trend. (10marks)
b) Explain the factors that may determine the amount of budgetary allocation for a promotional campaign undertaken by an organization. (10marks)

Question 5
a) Explain how economic factors may affect consumer behaviors. (10marks)
b) Explain how consumer behaviors may affect the marketing mix of a fast moving Consumer goods (FMCG) FIRM. (10 marks)

Question 6
a) Explain the factor that may account for the increased use of prizes as a method of Sales promotion of consumer goods by manufacturers in Kenya. (10marks)
b) These are certain external stimuli that may trigger the purchasing need in organizational buying. Outline such external stimuli. (8marks)






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