MALAWI ASSEMBLIES OF GOD UNIVERSITY

FACULTY OF COMMERCE & MANAGEMENT

PRODUCT AND BRAND: MKT 3053
MID-SEMESTER EXAMINATION

EXAMINATION INSTRUCTION
THIS EXAM CONTAINS 8 PAGES
TIME ALLOCATION: 2HRS
AMSWER ALL QUESTIONS ON THE ANSWER SHEET PROVIDED

SECTION A MULTIPLE CHOICE (30 MARKS)

SECTION INSTRUCTIONS
THIS SECTION CARRIES 30 MARKS
ANSWER ALL QUESTIONS IN THIS SECTION BY INDICATING A, B, C OR D ON THE ANSWER SHEET
PROVIDED

1. ________________ are a way of capitalizing on the recognition, goodwill, and any positive
associations of an established brand, and using the name to lever the brand into a new market.
A. Brand extensions
B. Brand stretching
C. Brand repositioning
D. Brand equity

2. Cadbury brand is a good example of ______________:

A. Manufacturer brand.
B. Niche brand
C. Distributor brand.
D. Generic brand.

3. ______________ provide information about content, taste, durability, quality, price, and
performance, without requiring the buyer to undertake time-consuming comparison tests with
similar offerings or other risk reduction approaches to purchase decisions.
A. Brand positioning
B. Brand names
C. Brand equity
D. Brand personalities

4. Brand name, marketing communications, packaging, price are examples of______________ that
enable consumers to form associations that give meaning to the brand.
A. Extrinsic attributes
B. Brand value
C. Brand anatomy
D. Intrinsic attributes

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5. The identities and images are developed by the wholesalers, distributors, dealers, and retailers
who make up the marketing channel. This is referred to as _________________:
A. Distributor brand.
B. Luxury brand
C. Generic brand.
D. Manufacturer brand.

6. Many retail brands adopt a single umbrella brand, based on the name of the organization. This is
referred to as ______________:
A. Corporate brands.
B. Family branding.
C. Individual branding.
D. Manufacturer brand.

7. This branding policy requires that all the products use the organization's name, either entirely or
in part, e.g. Microsoft, Heinz, and Kellogg's: _______________.
A. Family branding
B. Individual branding
C. Corporate brands
D. Manufacturer brand

8. ______________ is a strategic activity and is used to differentiate and distinguish a brand, so

that a consumer understands the brand, not just remembers it.
A. Brand positioning
B. Brand extension
C. Brand heritage
D. Brand anatomy

9. This level of rebranding refers to the renaming of a whole corporate entity, often signifying a
major strategic change or repositioning. This is known as _________________.
A. Corporate rebranding.
B. SBU (strategic business unit) rebranding.
C. Product rebranding.
D. International rebranding.

10. Many brands are deliberately imbued with human characteristics, to the point that they are
identified as having particular personalities. This is referred to as ________________:
A. Brand personalities.
B. Brand names.
C. Brand value.

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 D. Branding pyramid.

11. Good marketing is no accident, but a result of careful planning and _____________.
A. Execution
B. Selling
C. Strategies
D. Research

12. Marketing management is ________.

A. The art and science of choosing target markets and getting, keeping, and growing
customers through creating, delivering, and communicating superior customer value.
B. Monitoring the profitability of the company’s products and services.
C. Managing the marketing process.
D. Developing marketing strategies to move the company forward.

13. Chimney Sweeps employs people to clean fireplaces and chimneys in homes and apartments.
The firm is primarily the marketer of which one of the following?
A. A service
B. An image
C. A good
D. An idea

14. Marketers often use the term ________ to cover various groupings of customers.
A. Market
B. Buying power
C. Demographic segment
D. People

15. The ________ concept holds that consumers and businesses, if left alone, will ordinarily not buy
enough of the organization’s products.
A. Selling
B. Production
C. Marketing
D. Holistic marketing

16. If a firm is practicing ____________________, the firm is training and effectively motivating its
customer-contact employees and all of the supporting service people to work as a team to
provide customer satisfaction.
A. Double-up marketing
B. Interactive marketing
C. Service marketing
D. Internal marketing

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17. One of the key tasks of marketers is ____________ and to create consumer perceptions that the
product is worth purchasing.
A. To make products easily visible and available
B. To promote sales of products
C. To do marketing surveys
D. To differentiate their products from those of competitors

18. ________ markets include a wide variety of profit and nonprofit organizations, such as hospitals,
government agencies, and schools, which provide goods and services for the benefit of society.
A. Consumer
B. Business-to-business (Industrial)
C. Reseller
D. Institutional

19. The promotion “P” of marketing is also known as ________.

A. Product Differentiation
B. Distribution
C. Cost
D. Marketing Communication

20. In marketing theory, every contribution from the supply chain adds ________ to the product.
A. Cost
B. Convenience
C. Ingredients
D. Value

21. The most basic level of a product is called the:

A. Fundamental product.
B. Central product.
C. Core product.
D. Augmented product.

22. Anything that can be offered to a market for attention, acquisition, use, or consumption that
might satisfy a want or need is called a(n):
A. Idea.
B. Demand.
C. Product.
D. Service.

23. Marketing is both an “art” and a “science” there is constant tension between the formulated
side of marketing and the ________ side.

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 A. Selling
B. Management
C. Creative
D. Behavior

24. Mr. Lopez buys goods and services for use in the production of products that are sold and
supplied to others. Mr. Lopez is involved in ________.
A. Retail buyer behavior
B. Consumer buying behavior
C. Business buyer behavior
D. Post-purchase dissonance

25. Holistic marketers achieve profitable growth by expanding customer share, ________, and
capturing customer lifetime value.
A. Renewing a customer base
B. Milking the market for product desires
C. Building customer loyalty
D. Undermining competitive competencies

26. ________ pricing is the approach of setting a low initial price in order to attract a large number
of buyers quickly and win a large market share.
A. Market-skimming
B. Market-penetration
C. Value-based
D. Leader

27. What is the basic property of a service which makes it different from a product?
A. Shape
B. Intangibility
C. Size
D. Very expensive

28. Which one of the following phrases reflects the marketing concept?
A. Marketing should be viewed as hunting not gardening
B. This is what I want, won’t you please make it?
C. This is what I make, won’t you please buy it?
D. The supplier is a king in the market

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 29. The task of any business is to deliver ________ at a profit.
A. Customer needs
B. Customer value
C. Products and services
D. Improved quality

30. The solution to price competition is to develop a differentiated:

A. Product, price, and promotion.
B. Offer, delivery, and image.
C. Package and label.
D. International Web site.

SECTION B TRUE OR FALSE (10 MARKS)

SECTION INSTRUCTIONS
THIS SECTION CARRIES TEN MARKS
ALL QUESTIONS CARRY 1 MARK EACH
ANSWER ALL QUESTIONS IN THIS SECTION BY INDICATING TRUE OR FALSE

31. Businesses spend most of their advertising Kwachas on business-to-business markets. Is this
statement true or false?
A. True
B. False

32. Institutional markets consist of people who buy products and services for personal use. Is this
statement true or false?
A. True
B. False

33. Convenience products usually have intensive distribution because sales of these products tend
to have a direct relationship to availability. Is this statement true or false?
A. True
B. False

34. Service Marketing Mix is the most visible part of the marketing strategy of an organization. Is
this statement true or false?
A. True
B. False

35. Marketers have long been concerned with the issue of brand equity. Is this statement true or
false?
A. True
B. False

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 36. The value of any business is primarily dependent on its ability to acquire, continue to acquire,
and retain customers. Is this statement true or false?
A. True
B. False

37. Customer brand equity, relates to the value received by individual customers from a branded
product or service, over and above the value received from an unbranded version of the same
product or service. Is this statement true or false?
A. True
B. False

38. Customer brand equity focuses on the individual customer’s willingness to pay a price more
than some benchmark for the branded product. Is this statement true or false?
A. True
B. False

39. Organizational brand equity is concerned with the number of customers willing to pay that
price. Is this statement true or false?
A. True
B. False
40. Brand equity is a critical outcome, not only of marketing strategy, but also of overall corporate
performance. Is this statement true or false?
A. True
B. False

SECTION C STRUCTURED QUESTIONS (20 MARKS)

SECTION INSTRUCTIONS
THIS SECTION CARRIES SIXTY MARKS
ALL QUESTIONS CARRY 20 MARK EACH
ANSWER ALL QUESTIONS IN THIS SECTION ON THE ANSWER SHEET PROVIDED

41. Define a brand (2 Marks)

 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.
42. Briefly discuss six functions of a brand (6 Marks)
 Identify the maker
 Simplify decision making and reduce risk
 Simplify product handling and tracing
 Organize inventory and accounting

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  Offer legal protection
 Signify quality
 Create barriers to entry
 Secure a competitive advantage
 Secure price premium
43. Define Branding (2 Marks)
 Endowing products and services with the power of the brand. It is all about creating
differences between products.
44. Briefly discuss five advantages of a strong brand (5 Marks)
 Improved perceptions
 Greater loyalty
 Less vulnerable to competitors
 Less vulnerable to crises
 Larger margins
 More inelastic responses to price increases
 More elastic responses to price decreases
 Greater trade cooperation
 Increased marketing communication effectiveness
 Possible licensing opportunities
 Brand extension opportunities
45. List down five components of brand equity
 Brand Recognition
 Brand Trial
 Brand Preference
 Brand Awareness
 Brand Loyalty

SECTION D

Instructions: There are three questions in this section from which you should answer TWO. Question 46
is compulsory. Choose any one between 47 and 48.

46. The Cola-Cola company manufactures and markets a wide variety of beverages with around 500
nonalcoholic brands of beverages including sparkling and still beverages. The still beverages
include water, juices, enhanced waters, juice drinks, coffees, teas, sport drinks and energy
drinks. Explain how this company has used secondary brand association to gain brand equity.
(20 Marks)
 Hence to leverage brand equity, the Coca-Cola Company uses various convenient and
successful ways to build secondary brand association. The following are the ways,
company has built secondary brand association while introducing its new product Diet
Coke in 1986.

 Country of Origin:
This signifies that consumers have a high level of familiarity and trust with the Coca-
Cola Company and its brands which lead the consumers to react in a favorable way.

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 Brand Extension:
Developing extensions of the brand is far more favorable in terms of cost for the
company than to produce a complete new product. Diet Coke is a successful example
of brand extension that promoted from the brand franchise of the parent product,
Coca-Cola. It has launched around six extensions and increases its market share
without even substantial advertisements. This helped the company with regards to
advertising and promotional activities, customer perceived image, distribution and
consumption behaviour of consumers.

 Co-branding:
Coca-Cola Company has used many other bodies to sell it products, for example, using
Taygrin ( The Hiphop artist), 2008 in its summer campaign. Similarly, it used co-
branding as a secondary brand association market approach again while introducing
Diet Coke in the market. For this strategy, Jean Paul was appointed as creative
director for its new brand (London, 2012). As Jean Paul is a famous luxury fashion
designer, consumers relate this association with Diet Coke as a health and diet
conscious brand. Coca-Cola successfully targeted young women and girls and linked
them with fashion and style. Moreover, company also embraced advance technologies
by offering Diet Coke coupons on every purchase of make-up tutorials at Facebook
(Waltzer, 2012). To better associate Diet Coke campaign with style and fashion,
company refreshed the brand image and made it appealing for individual fashionistas
(Keller, 2012).

 Sponsorship:
Diet Coke has been involved in numerous sponsorship activities around the world.
Heart Truth Campaign has remained actively supported by Diet coke in association
with the national heart and blood institute which contributed to brand equity. Coke
also sponsored Ugly Betty as its secondary brand association strategy to enhance its
brand awareness among its potential customers. According to 2012 report, Diet Coke
also sponsored a TV show ‘Style to Rock’, produced by Rhianna which boosted the
fashion awareness and discovered fashion creativity among people of London (Anon,
2012). On top of all that, Diet Coke has signed another sponsorship with Taylor Swift
to improve its sales.

 Third Party:
Diet Coke has improved its world-wide brand image due to its environmentally
responsible operations (Keller, 2008). This has led to creating a positive and
constructive perception and attitude of consumers towards Diet Coke. In addition,
Lowe (2013) reported that Coca-Cola Company has won The Coveted Sustainable Pack
annual prize at the UK Packaging Awards due to its plastic recyclable bottle plant.

 Distribution Channels:

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 Company uses extensive means of distribution to make certain the availability of Diet
coke everywhere. For instance, McDonalds, serving Diet Coke in white plastic cup and
Pizza Express is serving drink in a glass bottle. Extensive distribution affects the
perceptions of consumers and changes the purchasing behavior

47. Analyse and explain the importance of branding as a marketing tool. (20 Marks)
The importance of brands include the following:-

 Assisting in the identification of the business. The business that uses branding
can clearly be seen, quickly identify and sought after-products.
 Branding allows time and energy saving through practicality through loyalty
and identical purchasing.
 The customer is guaranteed of finding the same quality irrespective of time
and place of buying the product
 Branding provides common self-image that is presentable to others
 It allows for satisfaction brought through intimacy and familiarity with the
brand that the consumers have using for years.
 Branding provides ethical standards in business due to satisfaction linked to
the responsible brand behavior in its societal relationships.

48. Branding requires Marketing, advertising, and public relations as key components for proper
execution. Explain. (20 Marks)
 Advertising: It’s a wonderful thing to create a unique, user-friendly brand that the
public is sure to embrace. However, if the public doesn’t find out about the brand—
and much of the public will find out through advertising—all that effort, time, and
money will go to waste. The look and attitude of the advertising also help define the
brand in the public’s mind.
 Marketing: In devising the personality of the brand and determining how it will be
presented to the public, marketing, which is usually done in-house and through
consultants, helps to create the entity that the brand will become. To sell a product,
an organization needs to be clear in what it wants to sell. For example, a person owns
the recipe for Oreo cookies, but if that person decided to sell the recipe and not the
cookies, he or she would be making a very large marketing mistake (Johansson &
Hirano, 1999). Marketing is not just selling; it is to know what exactly to sell and how
to sell it as part of a larger well thought and well formed plan.
 Public-relations: If advertising is the juggernaut of public attention, public-relations is
the stealth bomber. Public-Relations generates publicity for the brand, helps solidify
the public’s opinion of the brand, and defines the brand—all without being perceived
by the public. Advertising is obvious, marketing is invisible, but public-relations is the
most difficult of all things to be: subtle. It is also arguably the most valuable,
indispensable part of the Branding process. Without public relations, it would be
impossible to create a truly world-class brand, no matter what the budget or how
exciting the product. Public-relations is absolutely essential to Branding

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