Marketing and Tasty Snacks Jenny

Specimen Paper for UPF Marketing-1 with answers Section A – Multiple Choice Questions – 2 marks each (10 marks) 1. __________________ is the process of evaluating each market segment's attractiveness and selecting one or more segments to enter. a. Mass marketing b. Market segmentation c. Market targeting d. Market positioning Answer: c 2. _______________ factors are the most popular bases for segmenting customer groups. a. Geographic b. Demographic c. Psychographic d. Behavioral Answer: b 3.The stage is the product life cycle that focuses on expanding market and creating product awareness and trial is the: a. decline stage. b. introduction stage. c. growth stage. d. maturity stage. Answer: b 4. A price reduction to buyers who buy in large volumes is called a(n): a. quantity discount. b. cash discount. c. seasonal discount. d. trade discount. Answer: a 5. A company is practicing ________________ if it focuses on subsegments with distinctive traits that may seek a special combination of benefits. a. micromarketing b. niche marketing c. mass marketing d. segment marketingAnswer: b Section B : Case Study Read Item A and then answer the questions that follow. Item A Tasty Snacks Jenny is studying for her A-levels. At the same time, she enjoys working part time in a local cafe in the village where she lives. She has noticed that the prices charged to customers in the cafe seem to be much higher than the actual costs of making the meals and drinks. She is sure that the owners must be making a good profit. Jenny is now considering whether she should carry on with her studies or whether she should just leave school and set up her own cafe.Jenny could set up the cafe in the village where she lives which is in a tourist area. She is also considering a busier but more expensive location such as the shopping centre in the town near to where she goes to school. A recent advert has caught her attention. It is advertising ‘Franchise opportunities with well known fast food brands’. She would need at least ? 5000 to take up one of these opportunities. Jenny is unsure whether to set up the cafe as a sole trader or as a franchise. Questions: (20 marks) 1.Identify two methods of market research and explain how each method might help Jenny to make her business successful. (10 marks) 2. Jenny is unsure where the best place would be to locate her cafe. She is considering two locations: ? the village where she lives ? the shopping centre in the town near to where she goes to school. Advise Jenny which is likely to be the best option. Give reasons for your advice. (10 marks) Section A- Answers: 1 – c 2- b 3- b 4 – a 5- b Section B – Expected Answers: Q1. Market research methods could include: Explain/Elaborate †¢ surveys questionnaires †¢ focus group †¢ internet research. or primary and secondary research as methods. Q2. Possible areas for discussion include: Analyses- benefit(s) Village location: â₠¬ ¢ likely to cost less to buy/rent and run †¢ convenient for Jenny †¢ tourist area so will get customers †¢ likely to have less competition. Town centre location: †¢ would be more expensive to buy/rent and run †¢ all year round potential †¢ likely to have more customers †¢ likely to be more competition †¢ Jenny will need to travel to work.