Preliminary Certificate in Marketing Examination PCM II 2019 … II 2019 - QP.pdf · b) Political,...

Preliminary Certificate in Marketing 07 July 2019 – Examination

PCM II 2019 – 102nd Intake, 29th Year

Candidate’s Registration Number (As per in the examination admission form / Student

ID) 0 0 0 0 0

For Examiner’s use only

Examiner’s Comments

Second Examiner’s Comments

Part One 1st Marker 2nd Marker Final Marks

Question 01

Part Two

Question No.

Question 02

Question 03

Question 04

Question 05

Question 06

Question 07

Question 08

Question 09

Question 10

Question 11

Part Three

Question No.

Question 12

Question 13

Question 14

Question 15

Total

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Instructions to Candidates

Time: 0930 hrs – 1230 hrs Duration: Three (03) hours

There are three parts in this question paper. Part One

This part has 40 multiple choice questions. It is a compulsory section. Candidates are expected to select the most suitable answer and tick the selected answer in the given box in the question paper itself.

Part Two

Candidates are expected to answer the questions in the space provided in the question paper. All answers are compulsory.

Part Three

Candidates are expected to answer only two questions out of four.

Answers should be written in the additional supplementary answer sheets provided and they should be attached to the question paper itself.

Other Instructions

State your Registration Number on the front cover of the answer book and on each and every additional paper attached to it. Your name must not appear anywhere in the answer book or answer scripts.

Always start answering a question on a new page.

You are reminded that answers should not be written in pencil or red pen except in drawing diagrams.

Answer the questions using:

Effective arrangement and presentation Clarity of expression Logical and precise arguments

Illegible hand writing will be penalised.

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PART ONE

Read the question and select the most appropriate answer Tick your choice in the given space

Question 01

Question 1.1

Fill in the blank with the appropriate words:

According to Philip Kotler, marketing is the process by which companies _____________ for

customers and build strong _____________ in order to capture value from customers in return.

a) Create awareness, customer relationships

b) Create satisfaction, customer relationships

c) Create value, customer relationships

d) Facilitate relationships, customer satisfaction

Question 1.2

An organization focusing on improving production and distribution efficiency is said to be:

a) Product oriented organisations

b) Customer oriented organisations

c) Marketing oriented organisations

d) Production oriented organisations

Question 1.3

A process that occurs within an organization whereby the functional process motivates, aligns,

and empowers employees at all management levels to deliver a satisfying customer experience

and molding the corporate culture is referred to as:

a) Marketing mix

b) Sales promotion

c) Marketing ethics

d) Internal marketing

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Question 1.4

Identifying and understanding the key requirements of the customers and then offering them

with the appropriate marketing mix, that meets and exceeds these requirements better than

competitors leads to the:

a) Creation of a competitive advantage

b) Creation of economies of scale

c) Creation of distribution efficiency

d) None of the above

Question 1.5

The internal marketing environment of an organization comprises of:

a) Customers, suppliers, public, competition and political

b) Political, legal, social, economic, competitors and technological environments

c) Staff relationships, resource constraints and corporate culture

d) Staff relationships, supplier relationships and competitors

Question 1.6

The key factors of a macro environment are as follows:

a) Suppliers, intermediaries, competition, customers and public

b) Political, intermediaries, competition, economic and public

c) Political, economic, social, technological, ecological, ethical and legal

d) Economic, intermediaries, political, competition, customers and public

Question 1.7

Ethical environment refers to:

a) The rules of conduct and moral principles governing the behaviour of marketing

activities

b) Bargaining power of suppliers, bargaining power of shareholders, threats of new

substitutes, bargaining power of public and bargaining power of buyers

c) The rules of conduct and moral principles governing the behaviour of competitor

activities

d) Related to issues on investment policy, tax structures and policies adopted by

the government to attract investment

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Question 1.8

The process element of an extended marketing mix refers to:

a) All procedures, systems and policies a consumer needs to go through in dealing

with the organization

b) Deals with all aspects of giving tangibility to the intangible service offered to the

consumer

c) The physical environment which surrounds the purchase

d) The way a new product is introduced to the market

Question 1.9

The key elements of the extended marketing mix are as follows:

a) Public relations, people and process

b) People, packaging and process

c) Public relations, people and packaging

d) People, process and physical evidence

Question 1.10

Qualitative research is:

a) Collection of data, which is difficult or impossible to quantify

b) Collection of sales figures over the last 03 months

c) Number of customer complaints for the last 02 months

d) Analyzing accounts receivables for the last 06 months

Question 1.11

“Changing the pricing to monitor different responses from customer” is a good example for

which primary data collection method:

a) Experimentation

b) Observational research

c) Desk research

d) Depth Interviews

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Question 1.12

The decision making unit of a buying organization is called its buying centre. The buying centre

consists of:

a) Users, customers, competitors, buyers and deciders

b) Users, influencers, buyers, deciders and gatekeepers

c) Users, influencers, competitors, deciders and gatekeepers

d) Users, influencers, buyers, suppliers and gatekeepers

Question 1.13

Unilever Sri Lanka offers several washing powders such as Surf Excel for the removal of tough

stains, Rin for whiter clothes etc, targeting different market segments.

This type of target marketing strategy is known as:

a) Mass marketing

b) Differentiated marketing

c) Individual marketing

d) Undifferentiated marketing

Question 1.14

“Sensodyne toothpaste – provides lasting protection from tooth sensitivity”

The above statement is a good example of which positioning variables?

a) Quality/ Price positioning

b) Against the competitor

c) Product category leader

d) Benefit positioning

Question 1.15

Describe the term classified for consumer products that are relatively inexpensive and

frequently purchased by consumers.

a) Shopping products

b) Specialty products

c) Convenience products

d) Prestige products

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Question 1.16

Fill in the blank with the appropriate word.

A _____________ is a name, term, sign, symbol or design or a combination of them, intended

to identify the goods or services of one seller or group of sellers and to differentiate them from

those of competitors.

a) Brand

b) Product

c) Packaging

d) Publicity

Question 1.17

A service organization must consider the following service characteristics when designing

marketing programmes:

a) Intangibility, inseparability, variability, perishability and ownership

b) Intangibility, inseparability, segmenting, differentiation and ownership

c) Intangibility, inseparability, variability, packaging and differentiation

d) Intangibility, packaging, variability, perishability and ownership

Question 1.18

The key marketing objective during the introduction period of the product life cycle would be:

a) Create awareness

b) Maintain brand loyalty

c) Increase sales

d) Create differentiation

Question 1.19

1. Fundamental level is the basic level of the five levels of a product’s concept.

2. Better fuel economy, enhanced design, computerized systems are good examples for the

potential level of the five levels of a product’s concept.

From the above statements:

a) Only statement 1 is correct

b) Both statements are correct

c) Only statement 2 is correct

d) Both statements are false

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Question 1.20

1. Price and people are the only elements of the marketing mix which generates revenue.

2. Customers often equate price with quality.

3. Basically there are three main pricing objectives.

From the above statements:

a) Only statements 1 and 2 are correct

b) Only statements 2 and 3 are correct

c) Only statements 1 and 3 are correct

d) All statements are correct

Question 1.21

Which of the following elements of the marketing mix has a direct correlation to both how the

customer perceives value and the revenues which can be achieved for the organization?

a) Product

b) Price

c) Place

d) Promotion

Question 1.22

With reference to pricing strategies, which one does not reflect differences in the company cost

structures, objectives, resources, and marketing strategies?

a) Mark-up pricing

b) Competitor-based pricing

c) Cost-plus pricing

d) Value based pricing

Question 1.23

Fill in the blank with the appropriate word

A marketing _____________ links producers to other middleman or to those who ultimately use

the products

a) Communication

b) Campaign

c) Intermediary

d) Concept

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Question 1.24

Intermediaries such as supermarkets stocking a wide variety of goods for households such as

groceries, food items, personal care products, confectionary, and consumer durables are known

as:

a. Franchisees

b. Distributors

c. Modern Trade

d. Agents

Question 1.25


A good _____________ system ensures that the right goods are in the right place, at the right

time in the right quantity, with the right support services, which also decreases costs and

increases customer satisfaction.

a) Marketing management

b) Logistic and transport

c) Planning management

d) Physical distribution

Question 1.26

An ideal distribution strategy for consumer durables such as refrigerators, washing machines,

mobile phones and computers would be:

a) Intensive distribution

b) Selective distribution

c) Exclusive distribution

d) Mass distribution

Question 1.27

The type of advertising objectives used heavily when introducing a new product to the market

with the objective of building primary demand is known as:

a) Reminder advertising

b) Informative advertising

c) Persuasive advertising

d) Direct marketing

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Question 1.28

Selecting an appropriate message and using the best media for communications, are both key

decisions when developing which element of the marketing mix?

a) Product

b) Place

c) Price

d) Promotion

Question 1.29

The key role of marketing communications is:

a) Inform, persuade and remind

b) Interest, desire and attention

c) Action, distribution and attention

d) Attention, interest and action

Question 1.30

In selecting the communication channels, the marketer has two broad choices/types. Two broad

types of communication channels are referred to as:

a) Personal and non-personal communication channels

b) Retailers and marketing channels

c) Marketing Intermediaries and non-personal communication channels

d) Non-personal communication channels and retailers

Question 1.31

Objectives and task method in setting the promotional budget refers to:

a) Setting the promotional budget as a percentage from competitors spend

b) Setting the promotional budget as a percentage of sales of the firm

c) Listing down all the activities required to achieve the promotional objectives and

attaching a cost to it

d) Setting the budget based on what the firm could afford

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Question 1.32

With reference to the communication process model:

a) Decoding means converting the sender’s ideas into a message

b) Normally the message originates from the sender

c) From the response, the communication process completed

d) Noises are only relevant to the receivers

Question 1.33

In the marketing planning process, the question “how can we ensure arrival” refers to:

a) Situational analysis

b) Marketing objectives

c) Action plan

d) Evaluation and control

Question 1.34

One useful device for identifying growth opportunities is the product/market expansion grid

developed by Ansoff which gives the marketer four strategic options to achieve sales growth.

The four strategic options are:

a) Market penetration, market extension, test marketing and diversification

b) Market penetration, market development, product development and

diversification

c) Market extension, market development, product development and test

marketing

d) Market penetration, market development, product development and market

extension

Question 1.35

Identify the type of marketing control required to evaluate the level of customer satisfaction:

a) Efficiency control

b) Customer satisfaction

c) Profitability control

d) Annual plan control

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Question 1.36

a) A marketing objective is a clear statement of what the organization is going to achieve

through its marketing activities.

b) A marketing budget is a comprehensive, systematic, independent and periodic

examination process of a company’s marketing activities.

From the above

a) Both statements are correct

b) Only the statement b is correct

c) Only the statement a is correct

d) Both statements are incorrect

Question 1.37

A site sometimes referred to as an online personal journal, designated for an individual to write

about his/her daily experiences, to illicit thoughts and often allowing readers to offer their

comments is known as:

a) Blog

b) Extranet

c) Instagram

d) E-commerce

Question 1.38


_____________ earns the attention of customers, makes the organization easy to be found and

draws customers to the website by producing interesting content.

a) Outbound marketing

b) M-marketing

c) Permission marketing

d) Inbound marketing

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Question 1.39

Which one of the following is NOT a digital platform used to reach customers via digital

technologies in a cost-effective manner?

a) E-mail marketing

b) Hoardings

c) Mobile marketing

d) Interactive TV marketing

Question 1.40

Which of the following is NOT a key advantage of using digital marketing?

a) Fast, easy access and long term exposure

b) Cost effective and measurable

c) Instantaneous feedback

d) None of the above

(Total 40 Marks)

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PART TWO

Answer all questions in the given space

Question 02

a) What is a marketing concept?

………………………………………………………………………….………………………………………………………………….

……………………………………………………………………………….……………………………………………………………

…………………………………………………………………………………….………………………………………………………

b) List two (02) benefits of implementing the marketing concept philosophy within an

organization.

.………………………………………………………………………………………………………….……………………

………….……………………………………………………………………………………………….……………………

(04 Marks)

Question 03

The micro environment is made of actors close to the organization that affects its ability to

serve its customers. Identify (Fill in the boxes) and briefly explain three (03) of these actors.

a. .......................................................................

………………………………………………………………………….………………………………………………………………….

……………………………………………………………………………….……………………………………………………………

…………………………………………………………………………………….………………………………………………………

b. .......................................................................

………………………………………………………………………….………………………………………………………………….

……………………………………………………………………………….……………………………………………………………

…………………………………………………………………………………….………………………………………………………

Micro Environment

a) __________

b) _____________

d) ____________

c) ______________

e) __________

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c. .......................................................................

………………………………………………………………………….………………………………………………………………….

……………………………………………………………………………….……………………………………………………………

…………………………………………………………………………………….………………………………………………………

(04 Marks)

Question 04

a) What is a marketing mix?

………………………………………………………………………….………………………………………………………………….

……………………………………………………………………………….……………………………………………………………

…………………………………………………………………………………….………………………………………………………

b) List down the 04 (four) key characteristics of an effective marketing mix.

a. ……….………………………………………………………..…………………………

b. ……………………………………………………………………………………………

c. ……………………………………………………………………………………………

d. ……………………………………………………………………………………………

(04 Marks)

Question 05

a) What is packaging?

………………………………………………………………………….………………………………………………………………….

……………………………………………………………………………….……………………………………………………………

…………………………………………………………………………………….………………………………………………………

b) Identify four (04) functions of packaging:

a. …………………………………………………………………………………….………

b. ……………………………………………………………………………….……………

c. ……………………………………………………………………………….……………

d. …………………………………………………………………………………….………

(04 Marks)

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Question 06

The following diagram illustrates the stages of a new product development process. Fill in the

blanks in the correct sequence:

(04 Marks)

Question 07

Briefly explain the following pricing strategies:

a) Market skimming pricing strategy

………………………………………………………………………….………………………………………………………………….

……………………………………………………………………………….……………………………………………………………

…………………………………………………………………………………….………………………………………………………

b) Psychological pricing strategy

………………………………………………………………………….………………………………………………………………….

……………………………………………………………………………….……………………………………………………………

…………………………………………………………………………………….………………………………………………………

c) Promotional pricing strategy

………………………………………………………………………….………………………………………………………………….

……………………………………………………………………………….……………………………………………………………

…………………………………………………………………………………….………………………………………………………

………………………………………………………………………………………….…………………………………………………

a) _____________

b) _____________

c) Concept Development &

Testing

d) _____________

g) _____________

f) _____________

e) _________

h) _______________

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d) Competitor-based pricing strategy

……………………………………………………………………………….……………………………………………………………

…………………………………………………………………………………….………………………………………………………

………………………………………………………………………………………….…………………………………………………

(04 Marks)

Question 08

a) Identify the five (05) commonly used marketing communications mix or the promotions mix

– tools an organization could use to communicate with its target market.

1. …………………………..……………………………………………………………

2. …………………………………………………………………………………………

3. …………………………………………………………………………………………

4. …………………………………………………………………………………………

5. …………………………………………………………………………………………

b) Identify the four (04) major media types an organization could use to communicate with its

target markets.

1. …………………………………………………………………………………………

2. …………………………………………………………………………………………

3. …………………………………………………………………………………………

4. …………………………………………………………………………………………

(04 Marks)

Question 09

Briefly explain the following:

a) What is internal audit and its purpose in the marketing planning process?

………………………………………………………………………….………………………………………………………………….

……………………………………………………………………………….……………………………………………………………

…………………………………………………………………………………….………………………………………………………

b) What is external audit and its purpose in the marketing planning process?

………………………………………………………………………….………………………………………………………………….

……………………………………………………………………………….……………………………………………………………

…………………………………………………………………………………….………………………………………………………

(04 Marks)

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Question 10

a) What is marketing planning?

………………………………………………………………………….………………………………………………………………….

……………………………………………………………………………….……………………………………………………………

…………………………………………………………………………………….………………………………………………………

b) Identify four (04) benefits of a marketing plan to an organisation.

1. …………………………………………………………………………………………

2. …………………………………………………………………………………………

3. …………………………………………………………………………………………

4. …………………………………………………………………………………………

(04 Marks)

Question 11

Explain the following terms:

a) What is search engine optimization (SEO)?

………………………………………………………………………….………………………………………………………………….

……………………………………………………………………………….……………………………………………………………

…………………………………………………………………………………….………………………………………………………

b) What is viral marketing?

………………………………………………………………………….………………………………………………………………….

……………………………………………………………………………….……………………………………………………………

…………………………………………………………………………………….………………………………………………………

c) What is intranet?

………………………………………………………………………….………………………………………………………………….

……………………………………………………………………………….……………………………………………………………

…………………………………………………………………………………….………………………………………………………

………………………………………………………………………………………….…………………………………………………

(04 Marks)

(04 Marks x 10 Questions)

(Total of 40 Marks)

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PART THREE

Select 2 out of 4 questions and answer them in supplementary sheets.

Attach your answer sheets to the question paper.

Question 12

Identify the difference between a “consumer market and “business-to-business market” and

explain key stages of the consumer buying decision process.

(10 Marks)

Question 13

Explain the four bases/variables of segmenting a consumer market with relevant product

examples and list three (03) benefits of market segmentation.

(10 Marks)

Question 14

Briefly explain with relevant examples the different alternative channels available for an

organization for the distribution of consumer products and list two (02) criteria to be

considered in choosing the right channel structure.

(10 Marks)

Question 15

Identify two (02) key characteristics of a successful salesperson and explain briefly the seven

(07) major steps in the selling process.

(10 Marks)

(10 Marks x 02 Questions)

(Total of 20 Marks)

(Total 100 Marks)

-END-

Preliminary Certificate in Marketing Examination PCM II 2019 … II 2019 - QP.pdf · b) Political,...

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