UNIVERSITY OF MAURITIUS
FACULTY OF LAW AND MANAGEMENT
SECOND SEMESTER EXAMINATIONS DATE
BSc (HONS) BUSINESS STUDIES
LEVEL I MONDAY
BSc (HONS) MANAGEMENT WITH FINANCE 14 MAY 2007
BSc (HONS) MANAGEMENT
LEVEL II & III
BSc (HONS) TOURISM, LEISURE AND RECREATION
MANAGEMENT - LEVEL III
BSc (HONS) MARKETING MANAGEMENT
BA (HONS) LAW & MANAGEMENT
SERIES MODULE TIME
MAY 2007 MARKETING 13.30 – 15.30 HRS
INSTRUCTIONS TO CANDIDATES
TIME ALLOWED: TWO (2) HOURS
NO. OF QUESTIONS SET: FOUR (4)
NO. OF QUESTIONS TO BE ATTEMPTED: THREE (3)
SECTION A IS COMPULSORY AND CARRIES 30 MARKS.
SECTION B: ANSWER ANY TWO (2) QUESTIONS. EACH QUESTION CARRIES 20
MARKETING FUNDAMENTALS [MGT1203(1)]
SECTION A - COMPULSORY
Read the case study and answer the questions that follow:
Portland Promotional Products Ltd
Established in the late 1995s, PPP specialises in the manufacture and
supply of business and advertising gifts and employs a total of 30 peopl
The company’s proud boast is that it supplies promotional products ‘from
a few pence to the limit of your imagination’. These products, which
amongst other items include pens, ke y rings and desk accessories, are
printed with the client’s name and de signed as giveaways to customers.
The business and promotional gifts market has become increasingly
competitive over the past few years partly as the result of buyers becoming
more demanding in their purchasing patterns, and partly because the
number of companies within the industry has increased dramatically; the
barriers to enter in this industry have been relatively low. Having
experienced a decade of sales and profit growth, PPP’s management was
concerned to find that the sales performance in 2005 was static, and that in
2006 it declined. This was despite an apparent general increase in demand
within the industry as a whole. Mo re worryingly, profits had by the end
of 2006 virtually disappeared. At the same time average order size and
level of repeat buying had both declined.
With no sign that the next 12 months would see an improvement, a local
market research agency was co mmissioned to conduct what PPP’s
Managing Director referred to as ‘a bi t of image research’ in order to find
out why the company’s performance in its market was so disappointing.
The research findings suggested that:
1. Although level of awareness of the company amongst buyers of
business and advertising gifts ar e high, the company is generally
viewed as old fashioned and having a reactive selling approach.
2 2. There is nothing distinctive about the company or its products.
3. The company’s advertising material and catalogue are adventurous.
4. Prices are perceived to be slightly above the industry norms.