Section A: Provide short answers to both question below. Word
limit per answer is 250 words.
1. Using a food product of your choice, briefly discuss how each of the 3
stages of the positioning strategy would apply to position your product
(25 marks).
2. Using the consumer decision-making process, briefly discuss how it
applies to downloading a free app on your phone (25 marks).
Section B: Of the below questions 3-12, clearly highlight the
correct answer from a, b, c, or d. Only one answer is correct.
Each correct answer is worth 2 mark.
3. The notion of a competitive advantage in a product market centres on a
firm providing:
a. A unique product or service
b. A unique consumer benefit
c. The lowest price among competitors
d. Market share leadership
4. Which one of the following is NOT a fundamental feature of the marketing
concept?
a. Defining needs in front of production
b. Profits through customer satisfaction
c. Efficiency of production
d. Customer focus
5.The evoked set is identified in the ___________ stage of the consumer
decision making process.
a. Problem recognition
b. Information search
c. Information evaluation
d. Purchase
6. People with similar demographic and / or psychographic profiles may
interact differently with the same product. The way marketers use this
information to segment a market is known as:
a. Relationship Segmentation
b. Geodemographic Segmentation
c. Bohemian Segmentation
d. Behavioural Segmentation
7. The …………. encompasses the key benefits consumers seek when making a
purchase in the product category.
a. Actual product
b. Core product
c. Total product
d. Potential product
8. What are the marketers’ two main priorities at the Introduction stage of
the Product Life Cycle (PLC)?
1) Launch planning a. 3 & 4
2) Creating shelf space b. 1 & 5
3) Generating awareness c. 2 & 4
4) Stimulating responses d. 3 & 5
5) Stimulating trial
9. The three distinct benefits of _________ are its ability to communicate, its
ability to act as an incentive, and its invitation to consumers to buy now.
a. Direct Mail
b. Sale Promotion
c. Advertising
d. Personal selling
10. The Simpsonwood Conference and Retreat Centre rents out for $75 per
day per person. It is a place stressed out people can go to unwind and to
rethink their loves. An article in a local newspaper on the retreat and how
helpful it has been to a variety of people who have stayed there is an
example of
a. Advertising
b. Direct marketing
c. Sales promotion
d. Public relations and publicity
11. There are a number of benefits that can be gained from attending
exhibitions and shows. Which of the following are examples of these
benefits?
1. Corporate boost
2. Lead generation
3. Relationship building
4. Market presence
5. Product launch and demonstration
a. 1, 2, 3, 4 & 5
b. 1, 3 & 4
c. 3, 4 & 5
d. 1, 2, 3 & 4
12. Which theory states that people are motivated to take action to resolve
inconsistencies between attitudes and behaviours?
a. The theory of cognitive dissonance
b. The theory of affective disjunction
c. The social judgment
d. Self-perception theory
Section C: Case study
FOCUS GROUP INTERVIEWING: IN-DEPTH VIEWS FROM GROUP DISCUSSIONS
Focus group interviews, which are generally informal group discussions about marketing
ideas or concepts conducted by a marketer or marketing research firm, are used by most
major organisations in developing marketing or business plans. In the 1980s, focus group
interviewing became one of the most widely practised types of marketing research,
expanding from the packaged goods industry into financial services and industrial
applications.
However, the function of focus group interviewing is expected to change. Traditionally,
companies have relied on focus group interviews to define the input going into quantitative
studies, but the new trend is to conduct focus group interviews after tabulating research
results, to provide insight into why the results were achieved. The trend is also towards
higher costs (the average today is £1,400 for 90 minutes and £1,900 for an extended, video
recorded group lasting two and a half hours).
Other changes pertain to moderator guides and their reports. The moderator guides will be
expected to involve clients in the development process. Their reports will concentrate on
providing conclusions that interpret the findings and on making recommendations for action
by the client. The reports will also contain fewer actual quotations from individual focus
group participants. The post-focus group debriefing techniques are also being altered. The
shift is towards disciplined debriefing that asks participants their reactions to the group
session. Such debriefing can provide the link between concept development and application
and can serve as a rough check on validity and reliability.
Another new development in focus group interviewing is the use of electronics to offer
three-way capabilities. Computerised decision-making software can supplement research
findings and consolidate opinions from three different audiences. For example, in
healthcare research in a hospital setting, the three audiences would be former patients,
medics and employees. The advantages of using electronics include easier scheduling of
participating groups and more interaction among the three audiences.
A major UK service retailer was faced with declining sales and two new competitors. In
order to re-establish itself as the dominant force in its market, it decided to undertake some
in-depth qualitative marketing research using focus groups. The retailer’s new competitors
were opening stores at the rate of six per month, and the company realised it had to act
quickly to defend its position. However, it had conducted no consumer research for many
years and was uncertain why its customers preferred its stores, how competitors were
perceived and what types of people constituted its customer profile. Before modifying its
marketing mix and launching an advertising campaign to combat its new competitors, the
company had to gain a better understanding of its target market. For approximately £14,000
(1989), using a specialist consumer qualitative agency, in just three weeks the company had
a good “feel” for its standing in its core trading area, as perceived by customers. The table
shows that the information resulted from a fairly “standard” programme of focus groups.
Each group had eight consumers, four of whom were shoppers in the retailer’s stores, four
of whom shopped in competitors’ stores. Each group lasted three hours, and a free
merchandise voucher and buffet meal were provided for participants. The same moderator
ran all eight groups to maintain consistency. Each session was tape recorded, the tapes
being transcribed later into a report and presentation to the retailer’s board of directors.
Two sessions were video recorded, and several were secretly viewed by the company’s
marketing executives.
QUESTIONS FOR DISCUSSION – Answer both questions
13. Discuss 2 strengths and 2 weaknesses of focus group marketing research
(100 words. 12 marks).
14. This retailer chose to commission a programme of focus groups. Given the
aims of the company’s research, what other research tools might the company
have used? Explain your selection (150 words. 18 marks).
