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Concordia University
MANA 298

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 LEVEL I BSc (HONS) MANAGEMENT LEVEL II & III BSc (HONS) TOURISM, LEISURE AND RECREATION MANAGEMENT - LEVEL III BSc (HONS) MARKETING MANAGEMENT YEAR I BA (HONS) LAW & MANAGEMENT LEVEL I SERIES MODULE TIME MAY 2007 MARKETING 13.30 – 15.30 HRS FUNDAMENTALS [MGT1203(1)] 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 MARKS. MARKETING FUNDAMENTALS [MGT1203(1)] SECTION A - COMPULSORY Read the case study and answer the questions that follow: CASE STUDY 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 e. 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. 5
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