ST.

PAUL’S UNIVERSITY
Private Bag 00217 Limuru, KENYA
Tel: 020-2020505/2020510/0728-669000/0736-424440

SCHOOL OF BUSINESS AND LEADERSHIP STUDIES

VIRTUAL EXAMINATIONS
MAY-AUGUST 2023 SEMESTER
MAK 501: MARKETING MANAGEMENT
DATE: AUGUST, 2023 TIME:12 Hours
INSTRUCTIONS:
1. Answer ALL Questions.
2. Submit your answers in word format unless otherwise instructed. Type your answers in
a word document. Do not PDF your document.
3. Submit your answers via the Exam Portal.
4. For images (photographs, graphs, and calculations, etc), use legible writing. Take an
image (Photo) of all the answer sheets and submit it via the Exam Portal. Remember to
number the answer sheet pages.
NOTE: No submissions will be accepted in any other mode e.g. emails, WhatsApp, etc.

5. The examinations start at 9.00 am and all the answer scripts MUST be posted on the
portal by 9.00 pm the same day (within 12 hours).
6. Submit your answer sheets as one document. Click the “SUBMIT” button to ensure
that your answer sheet is uploaded to the portal.
7. Allow yourself enough time to confirm that your submission has gone through. You
will receive an automated email receipt on successful submission.
NOTE: Submission deadlines must be observed.

8. On the front page of each answer script, you are required to observe the following
instructions:
− Write your student number in full

− Write the unit code and title

− Write the date of examination

− Write the name of the lecturer

− Write “SUPPLEMENTARY” or “DEFERRED EXAM” as the case may be, (if

you are taking a supplementary or deferred examination.
Question 1
Customer lifetime value (CLV)determination requires the development of a quantitative formula
that conclusively captures the concept. Propose how a business would change if it fully embraced
the customer equity concept and maximized CLV.
(10 Marks)

If a business fully embraced the customer equity concept and maximize customer lifetime value (CLV),
it would likely experience the following changes:

1. Increased customer loyalty: By putting a priority on maximizing CLV, firms would give attention to
developing solid bonds with their clients. Customers would feel appreciated and invested in the
company's success as a result, increasing consumer loyalty.

2. Improved customer satisfaction: To maximize CLV, firms must offer top-notch goods and services
that satisfy their clients' requirements. Customers would be more likely to suggest the company to
others and return, which would increase customer satisfaction.

3. Increased revenue: The company's revenue would rise as a result of maximizing CLV. Long-term
sales would increase if businesses could keep clients and promote repeat business.

4. Better resource allocation: Companies could allocate their resources more skillfully if they
concentrated on CLV. They would be able to determine which clients are worth the most money and
focus their efforts accordingly.

5. Improved marketing effectiveness: To maximize CLV, companies must gain a thorough

understanding of the wants and preferences of their target market. This would allow them to create
marketing techniques that are more effective and appeal to their target market.

6. Long-term growth: By optimizing CLV, firms can achieve sustainability and long-term growth. They
would be less dependent on attracting new clients and more concentrated on maintaining and
expanding their current clientele.
Question 2
Some critics strongly denounce the practice of brand extensions arguing that they feel that too
often companies lose focus and consumers become confused. Other experts maintain that brand
extensions are a critical growth strategy and source of revenue for the firm. What do you think?
Take a position and use practical local examples of companies involved in this
(10 Marks)

I believe that brand extensions can be a valuable growth strategy when executed thoughtfully and
strategically. While there are potential risks and challenges associated with brand extensions, they can
indeed serve as a source of revenue and contribute to a company's expansion if approached with careful
consideration.

Position: Brand Extensions as a Strategic Growth Opportunity

When brand extensions are in line with the company's basic values, target market, and preserve a strong
relationship to the original brand, they can be effective. With proper execution, brand extensions could:

1. Leverage Existing Brand Equity: Companies with high brand equity can use their reputation and
client base to their advantage when launching new goods or services. This lessens the need to start from
scratch when developing a new brand and speeds up consumer adoption.

2. Tap into New Markets: Extensions allow a well-known brand to penetrate markets or demographic
groups that may not have been previously accessible. When the new good or service aligns with the
principles and characteristics of the current brand, this can be very beneficial.

3. Increase Revenue Streams: Successful brand extensions can open up new sources of income for the
business. A brand can increase sales without eroding the market for its current products by focusing on
various client demands or preferences.
4. Enhance Consumer Loyalty: Customers are more likely to extend their allegiance to new products
under the same brand umbrella when they have positive connections with the original brand. Increased
cross-selling and a higher customer lifetime value may result from this.

5. Mitigate Risk: Companies can lower the risks associated with depending too much on a particular
product or market sector by diversifying their product portfolio through brand extensions. Other
successful expansions can offer stability if one product encounters problems.

Practical Local Examples:

Example 1: Coca-Cola
Coca-Cola has effectively introduced new goods through brand extensions while leveraging its well-
known brand. Coca-Cola Life, Coca-Cola Zero Sugar, and Diet Coke are a few examples. With these
extensions, Coca-Cola is able to reach a wider market without deviating too much from its primary
brand identity. They cater to various consumer preferences for lower sugar or calorie options.

Example 2: Samsung
Originally recognized for its electronics, Samsung has expanded its brand into a number of industries,
including mobile technology, home appliances, and even building. While expanding its product line,
Samsung keeps up a steady brand reputation for innovation and quality, giving customers confidence in
any new products falling under the Samsung brand.
Question 3
Some observers maintain that good marketing is mostly an art that lends itself to rigorous analysis
and deliberation. Propose 10 ways of managing a holistic marketing organization for the long run
based on the above statement.

(10 Marks)

Based on the notion that effective marketing is primarily an art that lends itself to careful research and
consideration, the following ten methods for managing a holistic marketing organization for the long
term are provided:

1. Create a customer-centric culture: A customer-centric culture is essential to holistic marketing

because it places the customer at the center of all marketing initiatives. The organization as a whole
needs to adopt this culture from the top down.

2. Use data to guide decision-making: Although marketing is an art, it's also crucial to use statistics
to guide choices. In order to create efficient marketing strategies, holistic marketers should use data to
understand consumer behavior, preferences, and trends.

3. Invest in marketing research: A complete marketing strategy must include marketing research. It
aids in the understanding of customer wants and preferences, the spotting of market trends, and the
creation of successful marketing plans.

4. Create a strong brand identity. Holistic marketing requires a strong brand identity. It fosters client
loyalty and trust while helping to distinguish the brand from rivals.

5. Integrate marketing activities: Holistic marketing necessitates the coordination of all marketing
activities, such as public relations, sales, advertising, and digital marketing. All marketing initiatives will
be coordinated and working toward the same objectives thanks to this integration.
 6. Create a long-term marketing plan. A long-term marketing plan that outlines the company's
marketing objectives, plans, and strategies is necessary for holistic marketing. To keep this strategy
current and useful, it should be reviewed and updated frequently[5].

7. Invest in staff training and development: Employees that are knowledgeable and skilled are
necessary for holistic marketing. To make sure that staff have the skills and knowledge necessary to
implement successful marketing strategies, organizations should engage in employee training and
development.

8. Collaborate with other departments: Holistic marketing necessitates cooperation with other
divisions, such as operations, finance, and product development. Through this cooperation, it is made
sure that all departments are working toward the same objectives and that marketing plans are in line
with the general aims of the company..

9. Measure and examine marketing performance. Holistic marketing calls for thorough examination
of marketing results. This facilitates data-driven decision-making and aids marketers in understanding
the efficacy of their marketing strategies.

10. Keep up with marketing trends: Holistic marketers should stay current on best practices and
emerging trends in the industry. Attending conferences, reading trade journals, and networking with
other marketers are all examples of this.
Question 4
Describe how E-commerce and M-commerce have been adopted for channel integration by
companies in Kenya. In your responses, use local examples with pictorial evidence
(10 Marks)

E-commerce in Kenya:
E-commerce, the process of buying and selling products or services online, has gained significant
traction in Kenya. Many companies have adopted E-commerce as a way to integrate digital channels
into their business operations. Here are a few examples:

1. Jumia Kenya:
Jumia is one of Kenya's biggest e-commerce sites, offering everything from electronics to clothing.
Customers may easily explore products, place orders, and have items delivered to their doorsteps via
the company's website and mobile app. By combining online platforms, users can access a wide range
of products without going to physical storefronts.

2. Kilimall:
Another widely recognized e-commerce site in Kenya is Kilimall. Kilimall offers online shopping for a
range of goods, just like Jumia does. The platform offers exclusive discounts, promotions, and deals,
which draws customers who are concerned about prices to it.
M-commerce in Kenya:
M-commerce, or mobile commerce, refers to the use of mobile devices (smartphones and tablets) to
conduct online transactions. Kenya has a high mobile penetration rate, making M-commerce a powerful
channel for reaching customers. Here are examples of M-commerce adoption:

1. M-Pesa:
Safaricom's M-Pesa mobile money transfer service has completely changed how Kenyans conduct
business. Despite not being a standard e-commerce platform, M-Pesa enables users to send and
receive money, pay bills, and even purchase goods and services using their mobile devices. This type
of M-commerce has revolutionized how people do business in Kenya by enabling financial inclusion.
2. Masoko:
M-Pesa's developer, Safaricom, has introduced Masoko, a new e-commerce platform. This platform
integrates online and mobile shopping, enabling customers to purchase a variety of goods. Customers
can pay with M-Pesa, allowing for the seamless integration of mobile and web purchases.
Channel Integration in Kenya:
In Kenya, the combination of e-commerce and M commerce has increased consumer convenience,
widened business potential, and boosted financial inclusion. Businesses that use these channels give
customers the freedom to shop and conduct business using their preferred digital devices. You can visit
the websites or mobile applications of Jumia, Kilimall, M-Pesa, and Masoko to observe how these
platforms connect E-commerce and M-commerce channels for a smooth client experience even though
I am unable to provide visual proof.