TITLE: BE201 MARKETING EXAM SPRING 2022

SUBJECT: MARKETING
DATE: MARCH 18 | 14:00 – 17:00
INSTRUCTIONS:

This exam tests your knowledge and understanding of the theories, methods,
models, and other course content covered in course BE201 Marketing in spring
2022. All questions are based on the assigned reading area for the exam.
The exam consists of multiple-choice questions, and three essay questions, and can
yield max. 80 points in total. For a passing result 40 points are required.
Please read the following instructions carefully
1. This exam is an individual assignment. You may not use course materials of
any kind, your own notes, or seek help from other sources.
2. DigiExam is programmed to lock down students’ computers during testing,
not allowing access to any programs or pages outside the test itself. If you
attempt exiting the exam to use the browser for any reason, your exam will
be terminated.
Questions 1 – 25 (25 pts in total)
PLEASE READ THE INSTRUCTIONS CAREFULLY.
The “correct answer” for some questions may include several options.
You must select all correct options in an answer to get a point. No partial points
will be awarded.
No negative points (-1) will be awarded to wrong answers. If your answer is
incorrect, you will receive 0 points, not -1.
Max 25 points in total.

1. The neutralization of post-purchase cognitive dissonance may be reduced

through the following means:
a. Selectively forgetting things.
b. Buying something else.
c. Reversing the purchasing decision.
d. Minimizing the importance of an issue.

2. The stages of the hierarchy of effects model are…

a. Awareness, Knowledge, Preference, Purchase
b. Awareness, Knowledge, Liking, Preference, Purchase
c. Awareness, Knowledge, Liking, Preference, Conviction, Purchase
d. Awareness, Knowledge, Liking, Preference, Evaluation, Conviction,
Purchase

3. To make sense of the external marketing environment, we primarily use…

a. Porter’s 5 forces
b. PESTLE
c. Environmental scanning
d. SWOT

4. The controls used to measure marketing effectiveness are referred to as

a. Portfolio analysis.
b. Customer insight analysis
c. Marketing metrics
d. The STP process.
5. Customer segmentation in business markets by organizational characteristics
includes the following categories of criteria…
a. Firmographic
b. Operational
c. Economic
d. Geological

6. Of the target market approaches, the approach that is used when there are
only a few market segments, is known as…
a. Differentiated marketing
b. Concentrated marketing
c. Customized marketing
d. Undifferentiated marketing

7. The three elements of a proposition are…

a. Base proposition, embodied proposition, augmented proposition
b. Core proposition, enhanced proposition, add-on proposition
c. Base proposition, enhanced proposition, add-on proposition
d. Core proposition, embodied proposition, augmented proposition

8. Variable costs can be, for example…

a. Salaries
b. Overtime payments
c. Rent
d. Energy costs

9. What are some of the main elements that characterize user-generated

content?
a. The content is freely accessible to the public.
b. The content is amateur in nature.
c. The content is fragmented.
d. The content is not protected by copyright laws.

10. The five principal marketing communications tools include:

 a. Sales, public relations, and personal selling
b. Advertising, direct marketing, and in-store promotion
c. Public relations, advertising, and direct marketing
d. Sales, in-store promotion, and advertising

11. The relative strength of the tools of the marketing communication mix
differ. Which of the following are considered to have a low level of
credibility?
a. Public relations
b. Advertising
c. Personal selling
d. Sales promotion

12. Successful brands are said to have three core brand elements, including…
a. Brand promise & positioning
b. Brand positioning & pricing
c. Brand pricing & performance
d. Brand performance & promise

13. The five dimensions of psychosocial meaning are centred around the
concept of…
a. Brand image
b. Brand personality
c. Brand value
d. Brand positioning

14. Keller’s brand-building pyramid includes the following “building blocks”…

a. Salience, imagery, retention
b. Salience, performance, evaluation
c. Performance, feelings, resonance
d. Salience, feelings, resonance

15. There are two main issues associated with the management of marketing
channels:
a. The purpose of the channel, and its design.
 b. Design of the channel, and the relationship between channel
members.
c. The relationship between channel members, and the available
resources for channel use.
d. The available resources for channel use, and the purpose of the
channel.

16. Distribution channels are structured in a number of ways, the use of

intermediaries is relevant for…
a. Direct channel structures
b. Indirect channel structures
c. Multichannel structures
d. All of the above

17. The criteria for assessing the effectiveness for market segmentation
includes…
a. ...buyers can be reached through appropriate promotional and
distribution channels.
b. ...the segment is large enough to provide a sufficiently large and long-
lasting stream of revenue.
c. ...the competition can be evaluated and responded to with relative
ease.
d. ...there is little risk of forward or backward integration that would
change the market segment.

18. The success of marketing communication depends on the extent to which

the message engages their audiences. These audiences can be seen to fall
into three main groups…
a. General stakeholders, customers, investors.
b. Customers, media, investors.
c. Customers, general stakeholders, investors.
d. Channel members, customers, general stakeholders.

19. In a B2B context, the types of purchase made by decision-making units are
referred to as…
a. Buyclasses
b. Buysectors
 c. Buyphases
d. Buystages

20. The customer portfolio matrix allows you to categorize your clients with the
use of two dimensions:
a. Customer’s market value & sustainability
b. Customer positioning & nature of relationship
c. Customer attractiveness & relationship strength
d. Customer’s potential for profit & sustainability

21. The 3Es of sustainable marketing are…

a. ...ecological, equitable, environmental.
b. ...ecological, environmental, economic.
c. ...ecological, economic, equitable.
d. ...ecological, economic, ecotonal.

22. In marketing communications, engagement refers to…

a. …the possibility of communicating with the audience on their own
terms.
b. …which audiences do we need to communicate with.
c. …what the audience’s communication needs are.
d. ... what are the desired outcomes of the communication process.

23. What does CSR stand for?

a. Corporate Sustainable Responsibility
b. Corporate Stakeholder Responsibility
c. Corporate Social Responsibility
d. Corporate Service Responsibility

24. Marketing Channel Management requires the balancing of three main

elements: optimizing channel performance, coverage, and…
a. ...traffic.
b. ...profitabiity.
c. ...attention.
d. ...resources.
25. Inseparability, one of the five core characteristics of services, means that…
a. ...the delivery of services cannot be separated from service
consumption.
b. …service design cannot be separated from organizational goals.
c. ...the delivery of services cannot be separated from organizational
processes.
d. ...service design cannot be separated from service consumption.
Question 26 (10 pts in total)
Due to the stubbornness of its owner, Kermit Café is facing hard times with a
declining customer base. Miss Piggy, exasperated by the incompetence of the
owner, has taken the liberty to hire you as an external consultant to save the day,
with very specific tasks in mind.
1. The owner has never valued marketing as something he should give much
consideration to: he thinks that customers will just follow the scent of good
coffee. Please explain to him that customers don’t just show up, and that the
process of consumer proposition acquisition has quite a lot to it. Describe
the steps of the process, and provide contextualized examples. (6 points)
ANSWER REQUIREMENTS:
• Motive development, information gathering, proposition evaluation,
proposition selection, acquisition/purchase, re-evaluation.
• Each step is explained in a way that showcases the student’s understanding
of it.
• Student has provided examples in which they show how they apply the
theory into the premise given in the question.

2. To further add detail to your explanation, let the owner also know about the
three categories of influencers that emerge at the different stages of the
proposition acquisition process, and let him know which is the most
persuasive group, and offer one practical suggestion for how this knowledge
can be utilized. (4 points)
ANSWER REQUIREMENTS
• Three categories of influencers at different stages of the proposition
acquisition process have been identified:
o key influencers (with their own blogs and huge numbers of Twitter
followers, but who are unlikely to know the consumer personally);
o social influencers (people within the consumer’s social network,
whom they might know personally, commenting in Twitter feeds and
on blogs/forums); and
o known peer influencers (for example family members or part of the
consumer’s ‘inner circle’).
• Of all three types, known peer influencers were the most persuasive.
Question 27 (20 pts in total)
Having saved Kermit Café from an early doom, Miss Piggy now approaches you
with another mission: a start-up fashion designer, Cringe Cat, has failed to sell any
of their designs over the past several months. When you investigate the brand, the
problem becomes clear quite fast: Cringe Cat has no idea how to price their
products! “It’s fashion, of course it should be expensive” is what Cringe Cat tells
you. What you must do, you realize, is…
1. Explain to Cringe Cat how prices are perceived by customers. Please make
use of the price perception formation framework to achieve this, and
provide examples of what each part of the process can entail. (15 points)
ANSWER REQUIREMENTS
Students are expected to verbalize the framework below, and provide examples
from each orange box:

2. Follow your explanation by informing Cringe Cat of four different pricing

strategies, and argue why one of them is the best option for Cringe Cat to
use (5 points).
ANSWER REQUIREMENTS
The four main pricing strategies are as follows:
• Premium pricing focuses on pricing an offering to indicate its distinctiveness
in the marketplace. For example, Aston Martin prices the DB11 in this way,
at around £150,000.
• Penetration pricing refers to setting the price low relative to the competition
to gain market share. Amazon has adopted this approach to build its now
 substantial customer base. This strategy is frequently used for new
proposition launches.
• Economy pricing involves setting the prices at a bare minimum to attract
price-sensitive customers. Supermarkets often use this approach with their
everyday low pricing approach (for example Walmart in the United States,
Aldi all over Europe, and Jumbo in the Netherlands).
• Price skimming occurs when the price is initially set high and then lowered
in sequential steps. Apple iPhone adopted this strategy, for example. This
strategy is frequently used for the launch of new offerings.

Question 28 (25 pts in total)

With a string of successes behind you, Miss Piggy has now sent you off to tackle
the most challenging task yet: a shoe manufacturer in Alaska has decided to
integrate forward and begin selling their own products directly to the consumers.
However, they have no idea how to approach selling to an unidentified mass of
potential consumers. You, maintaining a constant B2C approach to problem-
solving, take on the challenge of educating your client.
1. You begin by explaining the STP process, its key benefits, and how market
segmentation differs from product differentiation. (10 points)
ANSWER REQUIREMENT
Student is expected to be able to explain the STP process starting from what the
letters stand for (segmentation, target markets, positioning of brand/product), and
what each step entails (S: identifying similar groups of customers, T: identifying
which groups of customers to aim for, and P: creating a concept to appeal to the
target market).
Key benefits that must be mentioned:
• Enhances the company’s competitive position, provides direction and focus
for marketing strategies.
• Examining and identifying market growth opportunities in terms of new
customers, growth segments or proposition users.
• The effective and efficient matching of company resources to targeted
market segments.
Market segmentation is related to product differentiation as follows:
 • A product differentiation strategy involves highlighting a product’s
attributes and features to emphasize the differences between it and—hence
distinguishing it from—those of competitors or other product offerings.
• A market segmentation strategy requires a focus on particular segments or
groups of customers who share similar needs or characteristics.

2. You then clarify to your confused client the difference between the build-up
and breakdown methods, and explain what segmentation criteria is. To
make sure that the client understand the criteria, please provide
contextualized examples for all base types. (10 points)
ANSWER REQUIREMENT
Segmentation criteria outlined in the book in figure 6.1.
There are two main approaches to market segmentation. The first, known as the
build-up method, approaches the task from the perspective of identifying markets
that consist of customers who are similar; the second, known as the breakdown
method, identifies those groups that share particular differences.
To segment consumer markets, we use market information based around key
customer-, product-, or situation-related criteria. These are classified as
segmentation bases and include profile criteria (for example who are my market
and where are they?); behavioural criteria (for example where, when, and how does
my market behave?); and psychological criteria (for example why does my market
behave that way?).
The students’ answer should contain examples they’ve come up with.
3. To further add depth to your client’s understanding of segmentation, you
make sure to also tell them about the DAMP model: what does it stand for,
and what is it used for? (5 points)
ANSWER REQUIREMENT
The second important part of the STP process is to determine which of the
segments uncovered should be targeted and made the focus of a comprehensive
marketing programme. Ultimately, managerial discretion and judgement
determines which markets are selected and exploited.
For market segmentation to be effective, the mnemonic DAMP can be applied
(Kotler, 1984), comprising the following four criteria:
• Distinct—Is each segment clearly different from other segments? If so,
different marketing mixes will be necessary.
• Accessible—Can buyers be reached through appropriate promotional
programmes and distribution channels?
• Measurable—Is the segment easy to identify and measure?
• Profitable—Is the segment sufficiently large to provide a stream of constant
future revenues and profits?