Professional Documents
Culture Documents
2022 ZB
2022 ZB
Important note
This commentary reflects the examination and assessment arrangements for this
course in the academic year 2021–2022. The format and structure of the
examination may change in future years, and any such changes will be publicised
on the virtual learning environment (VLE).
Information about the subject guide and the Essential reading references
Unless otherwise stated, all cross-references will be to the latest version of the
subject guide (2019). You should always attempt to use the most recent edition
of any Essential reading textbook, even if the commentary and/or online reading
list and/or subject guide refer to an earlier edition. If different editions of Essential
reading are listed, please check the VLE for reading supplements – if none are
available, please use the contents list and index of the new edition to find the
relevant section.
General remarks
Learning outcomes
At the end of this course and having completed the Essential reading and Activities,
you should be able to:
• discuss the function and effect of advertising/promotion from an
organisational perspective
• describe the pricing behaviour of firms in an uncertain environment where
information may be limited or wrong
• describe and analyse the marketing behaviour of firms and consumers.
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MN3141 Marketing management
need is presented in the question and any omissions can be addressed with the use
of assumptions.
There was one common feature that distinguished better answers from weaker ones.
The former paid attention to the narrative in the question text and made explicit
references to it where necessary. Weaker answers answered questions in more
general terms. We have been using questions based around ‘cases’ and will continue
to do so, this approach encourages students to apply their knowledge to real
situations and it is a better assessment of understanding rather than just recall of
concepts. The above guidance was given in the 2020-2021 commentary and it is
clear that a number of students did not pay attention to it. To reiterate: you cannot
perform well in this exam by demonstrating a recall of course concepts. It is their
application to the contexts provided in questions that yields the highest marks.
The exam paper questions that follow generated scores that were in line with other
courses at this level. The questions were generally well understood and there were
some very strong answers.
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Examiners’ commentaries 2022
Important note
This commentary reflects the examination and assessment arrangements for this
course in the academic year 2021–2022. The format and structure of the
examination may change in future years, and any such changes will be publicised
on the virtual learning environment (VLE).
Information about the subject guide and the Essential reading references
Unless otherwise stated, all cross-references will be to the latest version of the
subject guide (2019). You should always attempt to use the most recent edition
of any Essential reading textbook, even if the commentary and/or online reading
list and/or subject guide refer to an earlier edition. If different editions of Essential
reading are listed, please check the VLE for reading supplements – if none are
available, please use the contents list and index of the new edition to find the
relevant section.
Efficient
Overall Efficient Rinsing Ease of
Brands Low Noise Energy
cleaning Water use efficiency use
use
*Numbers shown represent mean ratings of various brands on a 10-point scale where 1 =
poor and 10 = excellent; survey conducted among a representative sample of consumers
who indicated high interest in purchasing a washing machine
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MN3141 Marketing management – Zone B
Efficient
Efficient Rinsing Ease of
Overall cleaning Low Noise Energy
Water use efficiency use
use
2 4 3 1 3 4
a) Which is the brand that may be most popular for people who take all the
criteria into account (5 marks)
b) If you were responsible for marketing the Hoover how would you position
this brand? (5 marks)
d) What other factors should the management teams for these brands
consider before deciding on their strategies? (10 marks)
For all the above questions state any assumptions that you need to make.
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Examiners’ commentaries 2022
c) Meile scores best on noise and overall cleaning and loses on environmental
concerns. The appropriate segment would likely be one which wants
performance benefits but in terms of values for example, is not too concerned
about the environment. This question asked about the segment that Meile should
target. Better answers made use of the different segmentation bases to describe
such a market. So for example the segments could be described in terms of
demographics, behavioural, geographic and psychographic terms. Better
answers prioritized those bases which appeared to better predict customer
response to the purchase of washing machines.
d) The best answers to this question identified two broad factors. The first was to do
with other influences on customer decision making which do not appear to be
considered above. The most obvious one and most commonly cited in answers
was price. Other factors could be the size and growth of different segments, for
example. Another broad factor was to do with methodology. A significant answer
here was the exclusive use of positive numbers. Negative numbers can indicate
which functional consequences present negative utility for the consumer and
which lower the value of the offering (Schwartz, 1999). For example, a utilitarian
benefits-oriented respondent that would want to indicate that high price is a very
negative consequence indicates this by giving 50 points to the attribute. Another
consumer, that is more hedonic and might see high price equalling high prestige,
may also give 50 points to the attribute. Yet, the meaning of these two numbers
is entirely different. This information does not get lost using the -10/+10 scale.
Such a discussion could also include the need to consider the issue of cognitive
load on respondents for different scales.
Question 2
A leading fashion designer is quoted as saying that she does not know what
the word ‘sustainable’ means any more. Assuming this lack of clarity is
widespread amongst businesses and consumers, discuss the implications for
fashion marketers. (25 marks)
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MN3141 Marketing management – Zone B
which brands are sustainable and which ones are not. The implication for marketers
is greater clarity of the sustainability standards to which they try and adhere and how
they do so.
Concepts to which answers could make reference include (but are not limited to):
Societal orientation; CSR/Corporate social responsibility; personal values / brand
values; positioning; psychographic segmentation; extrinsic and intrinsic cues /
confidence and predictive values. The latter two concepts were very relevant here,
but very few candidates made reference to them. Answers could follow the following
logic:
‘Sustainable’ is considered a positive attribute especially by environmentally
conscious customers (psychographic segmentation) – firms wanting to appeal to
them will use it and incorporate as part of their brand values
Another factor motivating brands to do this are various social and cultural trends
Due to customers’ information asymmetry / bounded rationality (consumers don’t
know how to measure/assess this), firms can take advantage of this and behave in
an opportunistic manner – claim sustainability where this does not really exist.
Where a product’s intrinsic cues (which have high predictive value, but which
customers find hard to assess) do not signal sustainability, firms can use extrinsic
cues (which customers can understand easily, but which do not indicate
sustainability).
Question 3
The Air Jordan was one of a series of trainers produced by Nike, but associated
with Michael Jordan (a famous basketball player), it launched in the 1980s and
has since become iconic. A more recent product is the Air Dior which swaps
Nike’s primary colours with grey tones from the Christian Dior headquarters in
Paris. Christian Dior is a famous French high end fashion brand. The Nike
swoosh is also overlaid with the Dior logo. Discuss the advantages and
disadvantages of this branding initiative from the perspective of Dior. (25
marks)
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Examiners’ commentaries 2022
Assuming that Dior does not already compete in the trainer market, this is a new
category for Dior. Since the question says that the Dior brand also appears on the
trainers, this could be classified as a brand extension.
The argument above is a fairly succinct means of making the link with the brand
strategies model and this approach is preferred to one where someone gives a
detailed description of the model, which was not asked for. Better answers would
then move onto a discussion of the advantages and disadvantages and the
arguments given could include the following advantages. A brand extension would
enable Dior to appeal to segments (perhaps lower income ones) that it has not done
previously. This move may enable it to enter a product category where it has not
previously had a presence.
Disadvantages of this move could be the following. This move may alienate existing
customers who may not appreciate the move towards contemporary street culture. It
may reposition Dior lower compared to competing brands (this assumes a lower price
point than its existing offerings) and make it harder for the brand to charge premium
prices.
Better answers covered both negative and positive aspects of the move. They took
into account Dior’s existing position in the market and the likely downward move this
strategy may involve they also recognised the advantages this may offer in terms of
growing segments. Weaker answers were more likely to focus either on positives or
negatives. Such answers would ignore the issue of the position that Dior has and way
this initiative could be seen as affecting that position.
Question 4
Your luxury watch company is reviewing proposals for a new advertising
campaign. The advertising agency is presenting some creative executions
showing images of the watch together with a breakdown of the materials used
to make them and the hours spent in their manufacture. The agency
representative says that as a high involvement purchase people need
information to address the various risks the purchase represents. The
information in the advertisement will allay the fears of rational purchasers.
Assess the effectiveness of this pitch, using course concepts. (25 marks)
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MN3141 Marketing management – Zone B
Consumers may respond to advertising that positions the brand/model using e.g.
surrogate positioning and which identifies the relevant self-concept, for example. This
type of campaign would appeal more to the emotions of potential customers rather
than rational aspects of their decision making.
Better answers identified and discussed points that supported and critiqued the
proposal. They picked up on the reference to various concepts mentioned in the
question and elaborated on them. They also referred to other associated concepts
e.g. hedonic and utilitarian goods. Weaker answers missed the links with various
course concepts mentioned in the question. They ignored their relationships with
other course concepts. They also made significant use of everyday English rather
than course concepts, such answers referred to actual watch brands in a descriptive
manner rather than making links with course concepts.
Question 5
An online newspaper runs an interactive advertisement for a car brand. Having
read the following question, “What is your relationship with the Alpha brand of
cars?” respondents have to select one of the following options:
a) I am not familiar with Alpha (5 marks)
b) I know the brand but am not interested in it (5 marks)
c) I know the brand and would consider buying it (10 marks)
d) It is my preferred brand (5 marks)
For each of the possible answers above, explain how the marketer could try
and influence the segment of consumers who selected that answer. State any
necessary assumptions.
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Examiners’ commentaries 2022
easier payment terms, free delivery and addressing any other barriers that may
inhibit purchase taking place.
d) For this part it is reasonable to assume that these respondents are already
customers. Given the product category (cars) and length of purchase cycles, the
potential for additional purchases may be limited. Perhaps have these buyers
may be asked to: Write reviews; Promote the brand to via word-of-mouth; Engage
in co-creation via members clubs etc.; Make sure the marketer explains the built-
in attributes so they extract all the value.
It is important to recognise that part (c) was worth 10 marks and all other parts were
worth 5 marks. We would therefore expect more depth and detail for part (c) than the
others. Some students believed that for part (d) the question was referring to people
who were yet to make up their minds. Where reasonable points were made and did
not overlap with part (c) then credit was given.
Question 6
Himalayan pink salt comes from mines located in Pakistan. This salt is
supposed to have various health benefits, but there is little research to support
this. Assume that you are responsible for marketing this salt in a developed
country. How would you use the marketing mix (product, place, price and
promotion) in order to do this? (25 marks)
Reading for this question
Subject guide chapters 8, 10, 11 and 12.
Approaching the question
Assuming that Himalayan pink salt is in the same broad product category as ordinary
salt this can be positioned as a healthier alternative. Ordinary salt is homogeneous
and sold at a relatively low price point, this product is differentiated. This also links
with price sensitivity – customers are more likely to be price insensitive for this
product.
Answers could also make reference to search, experience and credence goods.
Assuming that the salt is actually pink, then the product packaging can be designed
to that people can see the colour and distinguish from salt (search good). There is no
information given in the question e.g. about taste, so assuming that it is different –
this can be emphasised i.e. an experience good where people can tell the difference
on consumption. Any health claims would be in the realms of credence goods and
the possible use e.g. of credible celebrities to promote the product. The marketer
could also make use of extrinsic cues to link with health benefits, for example.
If sold as a premium good more likely to be in health food shops and speciality stores
i.e. not intensive distribution. The product may appeal initially to people interested in
health and willing to pay a premium, so initial distribution could be through a more
limited set of outlets with expansion as the product moves through the growth stage
of the plc. The marketer could also undertake direct distribution via the internet.
If the product category is at the start of the product lifecycle the challenge may be to
educate customers about it and build awareness of the category and how it differs
from ordinary salt.
If the category is at the growth /maturity stages, the challenge may be to differentiate
this brand from competing brands.
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MN3141 Marketing management – Zone B
Question 7
Energy companies in some countries are under pressure to sell businesses
they own which are involved in the extraction, refining and sale of oil and gas
products.
a) Identify and describe four different stakeholders whose interests the
energy companies may need to address. (10 marks)
b) For three of these stakeholders analyse how power, legitimacy and urgency
could be used to assess their salience to the energy companies. (15 marks)
The following is a brief illustration as to how some of the relevant points could be
made.
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Examiners’ commentaries 2022
It could be argued that environmental pressure groups may have legitimacy for
the arguments that they make however they may have limited power themselves.
As a result energy companies may pay limited attention to them. However such
groups may however, seek to lobby governments that also have the power to
change legislation that encourages divestment. They may also seek to influence
public opinion which would bring more urgency to their cause. Environmental
pressure groups could also seek to work with local communities currently affected
by climate change in order to gain urgency for their work. Institutional investors
in energy companies (such as insurance companies and pension funds) could be
said to have legitimacy, urgency and power.
Question 8
There has been a huge growth in private landlords letting their properties to
tourists seeking holiday accommodation. For tourists such accommodation
has the attraction of offering more authentic and perhaps cheaper holidays
compared to staying in a hotel. However, on social media it is now possible to
see examples of notices that hosts put around their properties advising
potential guests about how to use items such as washing machines properly,
how to avoid damaging furnishings and how not to disturb the neighbours, for
example. Discuss the nature of risk for hosts and guests in this category of
holiday accommodation, how it differs from hotels and how the two parties can
try and manage it. (25 marks)
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MN3141 Marketing management – Zone B
Customers/guests deal with landlords who are new to the property letting and who
may not be able to provide the same level of help and support that employees of
hotels can. However, the use of reviews and previous guests’ photos for example can
provide more reliable information.
Hotels vs. online booking platforms. The broad product category is similar i.e.
hotels are broad substitutes for staying in other individuals’ properties, but there are
various differences and better answers identified these. For example, within a brand
hotels are more homogeneous with more established norms of behaviour and
rules/regulations. Private properties do not have this advantage and while the
idiosyncrasies of each property may make it feel more authentic and provide a basis
for differentiation this also adds to the risk for both the holiday maker and the person
letting the property.
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