Preliminary Certificate in Marketing

09th July, 2017 – Examination

PCM II 2017 – 94th Intake, 27th Year
Candidate’s Registration Number
(As per in the examination admission form / Student ID) 0 0 0 0 0

Part One 1st Marker 2nd Marker Final Marks

For Examiner’s use only
Question 01

Examiner’s Comments Part Two

Question No.

Question 02

Question 03

Question 04

Question 05

Question 06

Question 07

Question 08

Question 09

Second Examiner’s Comments Question 10

Question 11

Part Three

Question No.

Question 12

Question 13

Question 14

Question 15

Total
Instructions to Candidates

Time: 0930 hrs – 1230 hrs Duration: Three (03) hours

There are three parts in this question paper.

Part One

 This part has 40 multiple choice questions. It is a compulsory section. Candidates

are expected to select the most suitable answer and tick the selected answer in the
given box in the question paper itself.

Part Two

 Candidates are expected to answer the questions in the space provided in the
question paper. All answers are compulsory.

Part Three

 Candidates are expected to answer only two questions out of four.

 Answers should be written in the additional supplementary answer sheets provided
and they should be attached to the question paper itself.

Other Instructions

 State your Registration Number on the front cover of the answer book and on each
and every additional paper attached to it. Your name must not appear anywhere in
the answer book or answer scripts.
 Always start answering a question on a new page.
 You are reminded that answers should not be written in pencil or red pen except in
drawing diagrams.
 Answer the questions using:

 Effective arrangement and presentation

 Clarity of expression
 Logical and precise arguments
 Illegible hand writing will be penalised.

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 PART ONE
Read the Question and Select the Most Appropriate Answer
Tick Your Choice in the Given Space

Question 01
Question 1.1
Fill in the blanks with the appropriate words in the correct sequence:

______________ is the management process responsible for ______________anticipating

and ______________customers’ requirements profitably.

a) Marketing, identifying, satisfying

b) Marketing, production , satisfying
c) Internal Marketing, identifying, satisfying
d) Marketing communication, identifying, communicating

Question 1.2
The moral philosophies/principles that define right or wrong behaviour in marketing is known
as:
a) Marketing Ethics
b) Marketing Concept
c) Marketing Myopia
d) None of the above

Question 1.3
A sale is not the end of a process but the start of an organization’s relationship with a
customer. Such an approach is termed as:
a) Production Approach
b) Transaction Approach
c) Direct Marketing
d) None of the Above

Question 1.4
Fill in the blank with the appropriate word:

______________is a process that occurs within an organisation whereby the functional

process motivates, aligns, and empowers employees at all management levels to deliver a
satisfying customer experience and moulding the corporate culture.

a) Competitor Orientation
b) Ambush Marketing
c) Internal Marketing
d) Marketing Communication
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Question 1.5

Fill in the blank with the appropriate word:

A company’s ______________consists of the actors and forces outside marketing that affect
the marketing management’s ability to build and maintain successful relationships with target
customers.

a) Corporate Culture
b) PESTEEL Factors.
c) Marketing Environment
d) None of the Above

Question 1.6

Which micro environmental factor is missing from the list: suppliers, competitors, publics,
customers?

a) Demographic
b) Technological
c) Distributors
d) Political

Question 1.7

The key elements of the extended marketing mix includes:

a) People, Place, Product

b) Product, Process, Physical evidence
c) Promotion, Place, Process
d) People, Process, Physical evidence

Question 1.8

Fill in the blank with the appropriate word:

______________ represent a systematic attempt to supply continuous, useful, updated

stream of information to decision makers for decision making.

a) Market Research
b) Marketing intelligence
c) Marketing information systems
d) Qualitative Research

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Question 1.9

A method of data collection which involves either a face to face respondent or a group of 5-
20 respondents is known as:

a) Survey research
b) Observational research
c) Experimentation
d) Depth Interviews

Question 1.10

One of the key advantage of secondary data is:

a) Relevant to the information requirement

b) Sufficient amount of information could be collected
c) Specific and very focused
d) Relatively quicker to extract

Question 1.11

A market place in which all the individual and households buy goods and services for
personal consumption is defined as:

a) Consumer market
b) Industrial market
c) Business market
d) International market

Question 1.12

With reference to organizational buying behaviour, there are three major types of buying
situations. These three types are:

a) Straight Re-buy, Modified Re-buy and New task Purchase

b) Problem recognition, Modified Re-buy and New task Purchase
c) Straight Re-buy, Modified Re-buy and Post purchase evaluation
d) Straight Re-buy, Evaluation of alternatives and New task Purchase

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Question 1.13

Fill in the blank with the appropriate word:

______________ is arranging for a market offering to occupy a clear, distinctive and

desirable place relative to competing products in the minds of the target consumers.

a) Targeting
b) Geographical Segmentation
c) Positioning
d) Segmentation

Question 1.14

Organisations use wide range of positioning tools or variables to gain a slot in the customer’s
mind. ‘Signal’ Toothpaste is a well-known brand in Sri Lanka and the positioning tool used is
“Signal - Strong teeth and prevention of decay”.

The positioning variable/tool used by ‘Signal’ is known as:

a) Product Category Leader

b) Benefit Positioning
c) Unique Selling Proposition
d) None of the above

Question 1.15

The Five stages of the product life cycle in the correct sequence is:
a) Development, Maturity, Decline, Introduction and Growth
b) Development, Maturity, Decline, Growth and Introduction
c) Introduction, Development, Maturity, Decline and Growth
d) Development, Introduction, Growth Maturity and Decline

Question 1.16

The Four (04) key steps in building a brand in the brand development process are:

a) Brand Recognition, Brand acceptance, Brand Awareness and Brand Loyalty

b) Brand Recognition, Brand acceptance, Brand Preference and Brand Awareness
c) Brand Recognition, Brand acceptance, Brand Preference and Brand Loyalty
d) Brand Recognition, Brand Awareness, Brand Preference and Brand Loyalty

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Question 1.17

The Product Life Cycle stage in which the sales rise rapidly and the product starts making
profits is known as:

a) Growth
b) Decline
c) Maturity
d) Introduction

Question 1.18

Fill in the blank with the appropriate word in reference to Services Marketing:

______________ means that services cannot be seen, tasted, felt, heard or smelt before
they are bought.

a) Perishability
b) Variability
c) Inseparability
d) Intangibility

Question 1.19

Less frequently purchased consumer products that customers compare carefully on

suitability, quality, price and style are known as:

a) Staple products
b) Shopping products
c) Convenience products
d) Specialty products

Question 1.20

Fill in the blank with the appropriate word:

A ______________ is a name, term, sign, symbol or design or a combination of them,

intended to identify the goods or services of one seller or group of sellers and to differentiate
them from those of competitors.

a) Product
b) Commodity
c) Brand
d) Place

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Question 1.21

A pricing strategy, whereby a monetary amount or percentage is added to the cost of the
product is referred to as:

a) Cost - based pricing

b) Internal oriented pricing
c) Psychological pricing
d) Breakeven analysis

Question 1.22

With reference to pricing strategies, which of the following is the most marketing-oriented
way of pricing?

a) Mark-up pricing
b) Competitor-based pricing
c) Cost-plus pricing
d) Value based pricing

Question 1.23

1. Price is the only element in the Marketing Mix which generates revenue
2. Price should be set in isolation; it should not be well blended with other Marketing Mix
variables

From the above statements, which one is correct?

a) Only statement 1 is correct

b) Both statements are correct
c) Only statement 2 is correct
d) Both statements are false

Question 1.24

Fill in the blank with the appropriate word:

______________ is a set of activities - consisting of order processing, materials handling,

warehousing, inventory management and transportation - used in the movement of products
from producers to consumers or end users.

a) Exclusive distribution
b) Physical distribution management
c) Channel management
d) Process management

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Question 1.25

Fill in the blank with the appropriate word:

______________ sell direct to the final consumer and may either purchase directly from the
manufacturer or deal with a wholesaler, depending on the purchasing power and volume

a) Brokers
b) Retailers
c) Agent
d) Wholesalers

Question 1.26

Fill in the blank with the appropriate word:

A marketing _______________ links producers to other middleman or to those who

ultimately use the products.

a) Communication
b) Campaign
c) Intermediary
d) Concept

Question 1.27

The first three steps/stages in the selling process in the correct sequence are:
a) Prospecting and Qualifying, Handling objections, Approach
b) Prospecting and Qualifying, Pre-approach, Handling objections
c) Prospecting and Qualifying, Pre-approach, Approach
d) Awareness, Pre-approach, Approach

Question 1.28

The key role of marketing communication is:

a) Inform, Persuade and Remind

b) Inform, Persuade and Design
c) Branding, Persuade and Remind
d) Inform, Distribute and Remind

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Question 1.29

With reference to the communication process model encoding means:

a) Relates to the interpretation of the message by the receiver

b) Relates to the interpretation of the message by the sender
c) Relates to putting the message in a form accessible to the receiver
d) Relates to putting the message in a form accessible to the sender

Question 1.30

You are devising the promotion mix for a business-to-business product targeted at business
organisations. Which of the following elements of the promotion mix would be
appropriate?

a) TV advertising, sales promotion and trade fairs

b) Personal selling, trade fairs and trade magazine advertising
c) Trade fairs, consumer promotions and TV advertising
d) Consumer promotions, direct marketing and radio advertising

Question 1.31

Fill in the blank with the appropriate word:

______________ consists of short-term incentives to encourage purchase or sales of a product

or service.

a) Advertising
b) Sales Promotion
c) Public Relations
d) Personal Selling

Question 1.32

Immediate national launch of a product is known as:

a) The Sprinkler strategy
b) Waterfall strategy
c) Commercialization strategy
d) None of the above

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Question 1.33

Fill in the blank with the appropriate word:

A ______________ represents the broad, long term tasks that the organisation wants to
accomplish through the conduct of its business. It provides the organisation a clear purpose
and direction, keeping on track and preventing it from drifting.

a) Mission statement
b) Corporate objectives
c) Marketing communications
d) New product development

Question 1.34

The commonest mechanism for structuring internal and external audit information to provide
a critical analysis is known as:

a) The SWOT Analysis

b) AIDA Model
c) The BCG Matrix
d) The Delphi Method

Question 1.35

One useful device for identifying growth opportunities is the product/market expansion grid
developed by Ansoff which gives the marketer four strategic options to achieve sales growth.

The four strategic options are:

a) Market Penetration, Market Extension, Test Marketing And Diversification

b) Market Penetration, Market Development, Product Development and
Diversification
c) Market Extension, Market Development, Product Development and Test
Marketing
d) Market Penetration, Market Development, Product Development and Market
Extension

Question 1.36

Good marketing objectives should conform to the following criteria:

a) Specific, Measurable, Aspirational, Relevant and Timeframe

b) Strategy, Monitor, Accepted, and Timeframe
c) Specific, Monitor, Aspirational, Reduce and Timeframe
d) Strategy, Measurable, Actionable, Relevant and Timeframe

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Question 1.37

Fill in the blank with the appropriate word:

Plans are nothing or useless unless they degenerate into action. ______________ is the step
and activities that are required to bring plans to life.

a) Marketing Control
b) Sales Forecasting
c) Contingency Planning
d) Implementation

Question 1.38

Fill in the blank with the appropriate word:

______________is a social networking site designed specifically for the business community.

a) Myspace
b) Facebook
c) LinkedIn
d) Instagram

Question 1.39

A social networking and micro blogging website that enables users to send and read messages
limited to 140 characters is known as:

a) Viral marketing
b) Intranet
c) Email
d) Twitter

Question 1.40

Fill in the blank with the appropriate word:

A site sometimes referred to as an online personal journal, designated for an individual to

write about his/her daily experiences, to illicit thoughts and often allowing readers to offer
their comments is known as.

a) Blog
b) Extranet
c) Instagram
d) E-commerce
(Total 40 Marks)

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 PART TWO
Answer All Questions in the Given Space
Question 02
a) Identify four (04) key functions/activities of Marketing.

 .........................................................................................................................................

 .........................................................................................................................................

 .........................................................................................................................................

 .........................................................................................................................................

b) The Evolution of the Marketing Concept followed four main Orientations. Fill in the blanks
with emphasis on relevant orientations.

Concept / Orientation Emphasis/Aims

Profitability through
Product Orientation
…………………………………………………………………….
Profitability through
Selling Orientation
…………………………………………………………………....

(04 Marks)
Question 03
a) What is Relationship Marketing?

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b) Identify four (04) benefits of relationship marketing.

1) ……….………………………………………………………..……………………………………………………………….

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 2) ……….………………………………………………………..……………………………………………………………….

3) ……….………………………………………………………..……………………………………………………………….

4) ……….………………………………………………………..……………………………………………………………….

(04 Marks)

Question 04

From the Buyer’s view point, age of customer relationships, the seven P’s might be better
described as the seven C’s. Identify the relevant C’s.

Sellers View (7P’s) Buyer’s View (7C’s)

Product

Price

Place

Promotion

People

Process

Physical Evidence

(04 Marks)
Question 05

Explain the following terms.

 Secondary data

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  Primary data
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 List Three (03) advantages of collecting primary data.

1) ……….………………………………………………………..…………………………………………………….

2) ……….………………………………………………………..…………………………………………………….

3) ……….………………………………………………………..…………………………………………………….

(04 Marks)
Question 06
a) What is Market Segmentation?

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b) Identify the five (05) key requirements for effective segmentation.

1) ……….………………………………………………………..………………………………………………………………..

2) ……….………………………………………………………..…………………………………………………………………

3) ……….………………………………………………………..…………………………………………………………………

4) ……………………………………………………………………………………………………………………………………

5) ……………………………………………………………………………………………………………………………………

(04 Marks)

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Question 07

a) To ensure that pricing decisions are effective and consistent with the organisation’s
objectives, marketers should consider the five factors (5 C’s of Pricing). Fill the boxes with
the five factors.

PRICING DECISIONS

b) Briefly explain the following pricing strategies.

 Market Penetration pricing strategy

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 Market skimming pricing strategy

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(04 Marks)

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Question 08
Briefly explain the following with relevant product examples.

a) Intensive Distribution
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b) Selective Distribution
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c) Exclusive Distribution

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(04 Marks)

Question 09
a) Identify four (04) key characteristics of a successful salesperson.

1) ……….………………………………………………………..………………………………………………………………

2) ……….………………………………………………………..………………………………………………………………

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 3) ……….………………………………………………………..………………………………………………………………

4) ……….………………………………………………………..………………………………………………………………

b) Identify four (04) direct marketing tools an organisation could use in order to develop a
direct relationship with its customers.
1) ……….………………………………………………………..…………………………………………………………………

2) ……….………………………………………………………..………………………………………………………………..

3) ……….………………………………………………………..………………………………………………………………..

4) …………………………………………………………………………………………………………………………………..

(04 Marks)

Question 10
a) What is marketing planning?

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b) Identify four (04) functions that objectives serve in an organisation:

1. ……………………………….…………………………………………………………………………………………………

2. ……………………………….…………………………………………………………………………………………………

3. ………………………………………………………………………………………………………………………….........

4. ………………………….………………………………………………………………………………………………………

(04 Marks)

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Question 11
Briefly explain the following terms with reference to Digital Marketing.

a) Digital Marketing
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b) Search Engine Optimization (SEO)?

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d) Identify four (04) key advantages of using digital marketing.

1. ……………………………….………………………………………………………………………………………………….

2. ……………………………….…………………………………………………………………………………………………..

3. ……………………………….…………………………………………………………………………………………………..

4. ……………………………….…………………………………………………………………………………………………..

(04 Marks)
(10 Questions x 4 Marks)
Total of 40 Marks

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 PART THREE
Select 2 Out of 4 Questions and Answer Them in Supplementary Sheets.
Attach Your Answer Sheets to The Question Paper.

Question 12

Explain briefly the three (03) key components/conditions of the marketing concept and list
three (03) benefits of implementing the marketing concept in an organisation.
(10 Marks)

Question 13

Briefly explain key stages of the Consumer Buying Decision Process with reference to a
product of your choice.
(10 Marks)

Question 14

With the aid of a diagram, explain the five (05) different levels of a product with relevant
examples.

(10 Marks)
Question 15

With reference to Marketing planning, an organization has to conduct two types of audits in
order to identify its current situation.

Explain the two (02) types of audits the organization has to conduct, indicating its purpose
and the key areas to be considered and list three (03) benefits of marketing planning to an
organization.
(10 Marks)

(10 Marks x 2 Questions)

(Total of 20 Marks)

(Total Marks 100)

- END -

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