Question 1 (Marks: 10)
Q.1.1 Thandi owns a Bakery in Cape Town called Special Moments Bakery. She imports special flours from Brazil. These ingredients are generally grown in the summer and exports take place in autumn. Thandi must therefore buy in bulk and freeze excess stock to ensure supply all year round. Thandi’s sales have recently dropped. A customer survey has revealed that customers find the cakes too expensive.
Customers have also complained about the payment equipment being too slow. They suggested Thandi include Zapper as a payment option. To address these concerns, She would like to offer a two for one special hoping to attract more customers and will be introducing zapper to 2 facilitate the payment process.
Read the scenario above and answer the following:
Identify an example of the Ownership gap and explain how Thandi plans on closing this gap.
Identify an example of the Time Gap and explain how Thandi plans on
closing this gap. (4)
Q.1.2 Explain the importance of relationship marketing and green marketing. (6)
Question 2 (Marks: 10)
Read the following Scenario and answer the questions to follow
Xolani has just completed matric and has enrolled at a University in Cape Town, to complete a BCom Degree. His dad is unable to drop and fetch Xolani due to work commitments and therefore believes it best to purchase Xolani an entry-level car, not more than R150 000. He has given Xolani the freedom to choose and purchase the car. Xolani has two older brothers who are car enthusiasts with lots of experience.
He decides to take them along to the car dealerships. They helped him find a car that was safe with a fair number of additional features and style. Xolani was happy to be
driving himself to Varsity on his first day.
Q.2.1 Read the scenario above and identify examples of the following family roles. You may make assumptions as you see fit. Explain your answers. (5)
• Decision maker
Q.2.2 Read the scenario above and identify examples for each phase of Xolani’s decision
making process, when purchasing his car. (5)
Question 3 (Marks: 10)
This question is related to the STP process: Segmentation, targeting and positioning.
Q.3.1 Explain the terms Segmentation, targeting and positioning, in your own words. (6)
Q.3.2 Briefly describe the following in relation to Mr Price clothing:
• Describe two demographic variables used by Mr Price clothing.
• Describe the targeting strategy approach by Mr Price clothing
• Describe the positioning method adopted by Mr Price clothing.
If you are unfamiliar with the Mr Price Clothing store. Visit their online store by clicking here:
Question 4 (Marks: 25)
Below is an image of the Converse Chuck Taylor All Star Sneaker. It sells for approximately R1200 and can be purchased at retailers like, Edgars, Sport Scene, Total sports, Superbalist and other sneaker outlets.
Picture source: https://www.thesportsbank.net/fashion/converse-sneakers-find-the-one-that-speaks-to-you/
Q.4.1 Is the Converse Chuck Taylor All Star Sneaker a consumer product or an Industrial
product? Explain your answer. (6)
Q.4.2 A product is said to have 5 layers: Core, Tangible, Augmented, potential product and product image. Provide an example for the following layers in relation to the Converse Chuck Taylor All Star Sneaker.
• Product image (9)
Q.4.3 Converse would like to expand their product mix by adding new product lines.
Should they use related or unrelated diversification. Choose one and explain your choice. (5)
Q.4.4 Converse was introduced in the 1920’s. Below is an image of the sneakers from its introduction phase in the 1920’s.
What stage of the product lifecycle do you believe the Converse All Star to be in currently (the year: 2022)? Justify your answer. (5)
Question 5 (Marks: 25)
Q.5.1.1 Explain the concept of price elasticity using the example of the sneakers. (6)
Q.5.1.2 Would the Converse All Star sneaker be considered, elastic pricing or
inelastic pricing, justify your answer? (4)
Q.5.2 The price of a product plays two major roles in marketing, explain each role, using
examples related to the Converse All Star sneaker. (4)
Q.5.3 Which one of the following pricing objectives would be considered most appropriate for the Converse All Star sneaker? Justify your answer.
• Profit orientated goals
• Sales orientated goals.
• Increasing market share (6)
Q.5.4 If Converse introduced a new SMART WATCH for Men and Women, should they
launch the product using Market Skimming or Marketing Penetration? Explain your choice. (5)
Question 6 (Marks: 20)
Customer satisfaction is the desired result of any supply chain management strategy.
Q.6.1 In your own words, explain to the managers of Converse, the relationship between
flexibility, inventory, and customer satisfaction. (9)
Q.6.2 Converse sneakers are produced in Indonesia. Identify the most suitable method of
transport to be used for delivery from Indonesia to stores in South Africa. Motivate your answer. (5)
Q.6.3 Would the following warehousing activities be necessary for Converse’s business?
• Bulk breaking Explain your answer. (6)
Question 7 (Marks: 20)
Q.7.1 In your own words, explain the concept of Integrated brands communications (IBP) (3)
Q.7.2 Considering the Converse All Star Sneaker, select three of the seven marketing
communication tools you deem to be most appropriate. Justify your choices. (9)
Q.7.3 Converse must be aware of trends that impact on the future of marketing
communications. Discus four marketing communications trends, relevant to the Converse All Star sneaker. (8)
Answers to Above Questions on Marketing Theory
Answer 1: Ownership gap is defined as the gap between the time that consumers purchase a product and time when they actually acquire the ownership over the product. In the given case scenario of Thandi, there is an ownership gap identified in respect to the bakery products whereby the Bakery products are prepared much earlier, but their ownership is transferred to the end consumer at a different time. Thandi is trying to address this ownership gap by including Zapper and the payment options that would significantly reduce the time for payment process.
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