TINIVERSITY OF COLOMBO, SRI LANKAFACULTY OF MANAGEMENT & FINANCE

Postgraduate & Mid-Career Development Unit

Master of Business Administration (MBa) in FinanceMBA in Human Resource Management (HRM)

Semester-ll (First-HalO Examination - June 2007.

MBA 536 - Marketing

Three (03) Hours

Instructions for candidates

Answer IqqE.jED questions including question Nunber 0 I .

"Marketing is a business philosophy, a function and a skill". Elaborate on thisstatement.Explain the qualities of successful relationship buijding.

(10 Marks)

ii What is the greatest single difference between the marketing concept and, respectively, theproduction, product, and selling concept? Which concepts is the easiest to apply in theshort run? Which concept offers the best long run success?

(04 Marks)

iii. John Kenneth Calbraith (1958) has agued that consumer sovereignty is really not as strongas neo - classical theory would have us believe. ......He contends that modem businesses

must make sure that an adequate demand for their products will exist when these goods areeventually made available to the consumer. According to him these businesses control thedemald for their products through adve.tisiDg and sales organization. Do you agree tviththis argument? Give reasons lbr your answer.

(04 Marls)

lv , a

b

Explain the relationship between,,tharke| ing concept,Describe the main pillars ofmarketing concept_ Whatorientation'?

and "marketing /e.r?a/c&.',is meant by the .total market

(08 Marks)

(04 Marks)

Differenriare following pairs

Marketing myopia and competitor myoplaIledonic benefits and utilitarian berteiits

a .

b .

vl , Though the demald for compact disks is gradually increasing in the market place theXY company stifl produces cassette pieces since it can manufacture them at law cost.Where does the Xy Company fall in the following matrix (Figure 1.1)? llow can theconcept 'pe.lbrmance synergy,,be related to this scenario?

Figure 1.1: principal combinations of efrtcienc! tud effectiveness

Ffficienf Inefficient

Effecrive

Ineffective

EE I

(05 Marks)

vl l , Describe the altemative ways by which people can obtain products and identify themost effective altemative. Justify your identihcation. What conditions should besatisfied to occur this altemative.

(05 Marks)

(Total ilo Marks)

'The fact that people have needs and wants and can place value on products fullydefines marketing.' Examine the validily ofthis statement.

(04 Marks)

"The mutual dependence of corporation and society implies that both br:siness decisionsand social policies must follow the principle of shared value. That is, choices must benefitboth sides. If either a business or a society pursues policies that benefit its interests at theexpense ofthe other, it will undenaine the long te.m pfosperity ofboth.,,

Explain how a company can put the broad principles of shared value into practice.How does 'Responsive CSR' differ from 'strategic CSR ?Examine the primary approaches to CSR. What are their limitations?

(16 Marks)

(Total 20 Marks)

Table I shows the classification of tlreats of a company with four strategic business units(SBUs). Evaluate each SBU and recommend actions that each SBU should take ro manageits threats. What are the possible outcomes of the principal combinations of opportunitiesand 0ueats?

l l ,

b.

Table 1 Classification of Threats

(06 Marks)

1l How a company competes is not the only key to success. At least some other factors are

requisite for the creation of a sustainable competitive advantage and thus of a strategy that

will be successful over time. Do you agree with statement? Justify your answer.

(06 Marks)

iii What techniques should the business units set up 10 track trelds and important

developments in the marketing environment? Explain how the attractiveness of an

opportunity can be evaluated? On u'hat factors does success probability of an opponunity

depend? Elaborate these factors

(08 Marks)(Total 20 Mrrks)

SBUThreats

Probabilitv of occurrel Seriousness

1 Low Low

2 Low High

3 High Lo*

4 High High

An analysis of the cost stucture of a company can reveal which value added stagerepresents the largest percentage oftotal cost . Obtair-ing a cost advantage in a key valueadded stage can rcpresent a significant sustainable competitive advantage whether thatadvantage is used to strppon a low price or a differentiation stralegy. Suggest and expiaina model that a company can employ to identify significant components that yieid eithercustomer benefits or reduce cos!.

(08 Marks)

ii. What is the end result of positioning? what does point of difference (POD) mean?Explain the important considerations in choosing PODs. How docs category point ofparity differ from competitive point of parity?

(08 Mark$

The marketing manager of a hotci wants to increase the hotel's market share. Her

stategy is to build up customer satisfaction through providing better food, clear rooms,and better-trained hotel stafi Yet he has no authority in these matters. The cateringdepartment chooses food that keeps down food costs; the maintenance department usescleaning services that that keep down cleaning costs; and the human resource departmenlhires people without regard to whether thgy are friendly and inclined to serve olherpeople. Analyse this scena o with a suitable concept.

(04 Marks)

(Iot8l 20 Marks)

l t ! .

U ,

The rationale for a separate treatment of services marketing centers on the exlstence ot anumber of characteristics ofservices. Explain the fundamentar differences between serylcesand physical products. Describe hcw dimensions of service quality differ from thedimensions of physical product quality

(10 Marks)

Table 2 brings some information related to the strategic business units (SBUS) of the peRCompany to light. Suggest appropriate models that the firm can employ to diagnose themarket position of each SBU. prescribe strategies and marketing objectives to each SBU.What will be the future position ofthe Company as a whole?

Table 2 lhlormation on Stralegic Business lJnits _ peR Company.

(10 Marks)(Total20 Marks)

Variable SBU I and 6 SBU 2 and 5 SBU 3 SBU 4 and 7Sale Rapidiy rising Low Declining Peak SalesMarkt GrowthRate

High High Lo\l Low

Cost percustomer

Average High Low Low

Profit Rising No Declining HighCustomers Early adopte.s Innovators Laggards Middle majorityCompetitors Growing

numberDeclining Stable number

beginning to declineRelativ marketshare

High Low Low High

l. What does the "Strategic Window" concept suggest?(06 Markt

ii. Why should marketing managers target their market? Explain the requirements foreffective segmentation? How can the attractiveness ofeach segment be evaluated?

(06 marks)iii. Explain the role ofmarketing in the follouing networks

a. Vertical network

, b. Inter-market networkc Customer opportunity network

(08 Marks)

(Total 20 Marks)