MEMORANDUM

PROGRAMME BCOM IN MBM

MODULE NAME MARKETING 2B
MODULE CODE MKT320
MODULE NQF LEVEL 7
ASSESSMENT EXAMINATION MEMO
SEMESTER 2ND SEMESTER
DATE WRITTEN 23 NOVEMBER 2022

NUMBER OF PAGES 10
TOTAL MARKS 120
DURATION 2 HOURS
EXAMINER SIBONELO MALINGA
MODERATER CEBO GQADUSHE

REQUIREMENTS:
Learner Requirements: Stationery and Answer Book
Equipment Requirements: None

Please answer ALL questions.

PLEASE READ THE ASSESSMENT RULES AND REGULATIONS THAT FOLLOW

Learners are warned that contravening any of the assessment rules or disobeying the instructions
of an invigilator could result in the assessment being declared invalid. Disciplinary measures will
be taken which may result in the learners’ expulsion from Damelin.

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MEMORANDUM

ASSESSMENT RULES AND REGULATIONS

Please ensure that you have read and fully understand the following assessment rules and
regulations prior to commencing with your assessment:
1. To be permitted access to the assessment, a learner must arrive with:
- an Identity Document or other official proof of identity (for example,
- a student card, passport or driver's license card with photo); and
- the required exam stationery.
2. No learner may enter the examination room more than 30 minutes after the assessment
sitting has commenced and no candidate may leave the room less than one hour after the
assessment sitting has commenced.
3. No extra time will be allowed should a student arrive late.
4. All learners must sign the Attendance Register for the assessment on arrival.
5. It is the responsibility of learners to familiarize themselves with the assessment rules prior
to sitting for the assessment.
6. All assessments are to be written on the date and time officially stipulated by the College.
7. It is the responsibility of learners to ensure that they are writing the correct paper and that
the question paper is complete
8. Cell phones must be switched off prior to entering the exam venue. Cell phones and
wallets may be placed under candidates' chairs rather than at the front of the room.
9. Learners may not handle cell phones or wallets during the exam.
10. No weapon of any description may be taken into the assessment room.
11. All personal belongings are to be placed at the front of the examination room. Personal
belongings brought to the assessment are at the owner's risk.
12. Smoking is not permitted, and learners will not be allowed to leave the examination room
in order to smoke
13. Once the assessment has commenced, all conversation of any form between candidates
must cease until after candidates have left the room, after the assessment.
14. Only the official College examination book, as supplied by the College, may be used.
15. Learners must ensure that their student number is written on the answer book.
16. Learners are responsible for ensuring that they follow the instructions in the assessment
for submitting their answers.
17. Please read the instruction appearing on the assessment paper carefully
18. The number of every question must be clearly indicated at the top of every answer.
19. No pages may be torn out of the answer book. All question papers and scrap paper must
be handed to the invigilator after the assessment.
20. Learners finishing earlier are to leave the examination room as quietly as possible on the
instruction of the invigilator and may not talk until outside the building where the
assessment is being written.
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21. Only under exceptional circumstances will a learner be permitted to leave the examination
room during the assessment, and if the invigilator gives permission. An invigilator must
accompany the learner. Only one learner at a time may be absent from the examination
room.
22. Candidates may not act dishonestly in any respect.

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MEMORANDUM

SECTION A:

Question 1 (TRUE OR FALSE) [20 Marks]

1.1. A supply chain can be described as the chain of activities involved in sourcing and
processing raw materials which are cultivated from the earth to the final stages of the
product where it is discarded. T (2)

1.2. The activities of logistics are quite simple in nature and don’t often require specialized
teams to perform their activities. F (2)

1.3. Within the supply chain, no primary decisions must be made. F (2)

1.4. The supply chain exists so that goods and services can be delivered to customers that
create a demand for the product. T (2)

1.5. Safety inventory is regarded as inventory held in times when demand exceeds
expectations. T (2)

1.6. One often overlooked channel member in South Africa is spaza shops. T (2)

1.7. Order lead time refers to the time between a customer first placing an order and the
point when the customer receives the goods. T (2)

1.8. In developing countries, where manufacturing activities are limited by factors such as
capital investment, skills and lack of infrastructure, wholesalers play a pivotal role in getting
products closer to consumers. T (2)

1.9. Market considerations do not include the size of the market, the markets geographic

concentration, order sizes and the buying behavior of customers. F (2)

1.10. Channel objectives must be set in such a way that they assist in reaching overall
marketing objectives. T (2)

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Question 2 (MATCH THE COLUMNS) [10 Marks]

2.1. Involve determining specifications and J Aesthetics of a product

quality standards of final products as
well as planning the production
processes for new products or products
that must be adapted to market
conditions.
2.2. Refer to stock on hand and can consist I Inventories
of raw materials for production
processes, as well as ancillary
components that are needed for the
end-product.
2.3. Refers to product’s ability to appeal to H Planning
a person’s five senses such as look,
sound, smell, taste, and touch.
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2.4. It is a systematic approach that can be G Cost Leadership Strategy

used to identify how more customer
value can be created in a supply chain.
2.5. The finished or semi-finished goods F Outbound Logistics
created in operation activities are now
warehoused, transported, and
delivered to retailers, wholesalers or
final customers in this stage.
2.6. Businesses that are engaged with re- E Retailers
selling of individual items to the larger
public.
2.7. Businesses that are mainly involved in D Agents
international trade as well as
agricultural markets.
2.8. Is an approach taken by producers of C Value-Chain Analysis
convenience goods where it is
important to keep prices per unit low
as customers are largely price
sensitive.
2.9. Is a method appropriate for goods that B Differentiation
are unique, are positioned in terms of
their uniqueness and are targeted at
customers that are less price sensitive.
2.10. Is an approach used for products that A Focus Strategy
are specialised in nature and is targeted
to niche markets.

2.1. H 2.2. I 2.3. J 2.4. C 2.5. F 2.6. E 2.7. D 2.8. G 2.9. B 2.10. A

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Question 3 (MULTIPLE CHOICE) [10 Marks]

3.1. These are businesses that are engaged with the re-selling of merchandise to retailers.
(2)

A. Conglomerates
B. Wholesalers
C. Retailers
D. None of the above

3.2. This refers to production processes that involve adapting, modifying, and processing the
materials and/or goods received in inbound logistics into finished or semi-finished goods.
(2)

A. Operations
B. Service
C. Inbound logistics
D. All of the above
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3.3. This is a system of distributing products to cover a large market by making venture
opportunities possible. (2)

A. Retailing
B. Sales
C. Franchising
D. Strategising

3.4. A situation where an intermediary can perform a certain task at a lower cost that the
primary channel member. (2)

A. Economic understanding
B. Socioeconomics
C. Economic justification
D. None of the above

3.5. This support activity includes recruitment, selection, and training of all staff.
(2)

A. Marketing Management
B. Public Relations Management
C. Supply Chain Management
D. Human Resource Management

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SECTION B
Question 4 [40 Marks]

4.1. Define Value-Chain Analysis. (5)

4.1.1. The term “Value Chain” was first coined by Michael Porter.
4.1.2. It is a systematic approach that can be used to identify how more customer value
can be created in

a supply chain.
4.1.3. Michael Porter also proposed that creating customer value is key in creating a
competitive

advantage.
4.1.4. The essence of the value chain is that manufacturing activities can be divided into
nine
value-creating activities and that all these activities contribute towards customer

satisfaction.
4.1.5. This is a somewhat different chain of thought that focuses mainly on production as
a means to

achieving customer satisfaction.

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4.2. Explain the following main principles of supply chain management:

4.2.1. Communication (3)

As information is considered a factor of production from economic principles, and

considering that more than one entity, person and department have roles to play in the
transformation of raw materials into final goods, communication becomes central in
achieving the production and delivery of goods to final customers. Technology aids the

principles of communication.

4.2.2. Flexibility (4)

There is a saying that the only constant is change. Change is inevitable and all
organisations must make provision for changes in the environment that flexible
operating systems that allow for responsiveness for change. The wider business
environment such as a change in the credit policy in a specific country may see a rise in
the purchases of homes. Within the supply chain of houses, all entities may now need to

increase their output for all processes involved in the sale of homes.

4.2.3. Customer service (3)

The supply chain exists so that goods and services can be delivered to customers that
create a demand for the product. The performance of the supply chain can have a huge
impact on customer service and therefore activities such as delivery and turnaround
times are essential elements of the

supply chain.

4.2.5. Inventories (3)

Inventories refer to stock on hand and can consist of raw materials for production
processes, as well as ancillary components that are needed for the end product such as
tyres for a car. The direct and indirect costs of holding inventories is high for any
organisation. This represents capital that is tied up, waiting for revenue to be received.
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4.4. List five (5) advantages of franchising for the franchisor. (10)

4.4.1. Easily able to acquire funds - This is because of finance options being more

accessible for established businesses than ones that are not established.
4.4.2. No shareholding - The franchisee operates on a license basis and does not have

any ownership of the franchisors business.

4.4.3. High level of flexibility with regards to national and brand advertising.

4.4.4. Franchisees can absorb a substantial amount of distribution costs.

4.4.5. Because of individual franchisees being owners of the business, they are normally
more motivated to keep the business thriving and growing as compared to staff who just

earn a salary.

OR
4.4.6. Franchising provides the franchisor to opportunity to experience rapid growth.
4.4.7. Franchises can strengthen their brand position in the market because of national
advertising campaigns that are largely funded by loyalties received.

4.5. List and explain four benefits that the Internet presents to both the company and the
customer. (12)

Immediacy – Being able to deliver a product as soon as the customer wants

and requests it has proven to be the most important benefit of the internet
associated with direct distribution. The customer has to just download the product

online at any time. This translates to a powerful marketing advantage.

Availability – A firm is able to distribute its product 24 hours a day, seven days
a week whenever it suits the customer. Another benefit is that it can serve

international customers who are in different time zones.

Automation – By creating a website that automatically handles transaction as

well as online distribution of the product ensures that there is little intervention

from the company’s part.

Cost saving – Since the product is distributed over the internet, this results
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in huge savings for both the customer and the company.

Reach – Additional to the benefits mentioned above, by using online

distribution a company is able to extend its customer base internationally, hence

increasing revenues.

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SECTION C [40 Marks]

Question 5 (20 Marks)

Most supply chains will make use of two or more carriers. Managers must decide which
combination will serve their objective of efficiency and responsiveness.

Using the above statement as your basis, discuss five factors that must be considered when opting
between the various modes of transport.

5.1. Cost
Cost amongst the various transport modes differ significantly. Air transport is
much more costly than water transport. These costs must be considered with
respect to customer requirements in terms of lead times. Customers are generally
willing to accept the fact that faster transportation will cost far more than

transportation that takes a longer period to deliver.

5.2. Time
Time and cost of transport are two related factors that have in inverse relationship.
The higher the costs, the shorter the delivery time. This factor is considered
against the bulk and weight of the product and the perishability of the product.
Products that are perishable will require transportation that takes less time whilst
products that have a long shelf life will most probably suit transport services that

take longer.

5.3. Accessibility
Air and water transport have limited accessibility as compared to road transport.

Most physical distribution requires a mixed mode of transport to be used.

5.4. Capability
Product factors such as size, value, bulk and weight may result in only selective
modes being used. Heavy products will normally be transported by water and road
transport while products that are light in weight may necessitate the use of air

transport.

5.5. Frequency
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This refers to the number of times a specific transport mode makes trips in relation
to each other. The number of trips made by trucks is far greater than the number

of trips an aircraft or ship makes.

Question 6 (20
marks)
Discuss four factors that impact on the scope and frequency of evaluations of
channel member performance.

6.1. Degree of control

In a situation where the manufacturer has strong contractual agreements with

intermediaries, the manufacturer may have the right to a large amount of information.

This situation will increase the scope and frequency of evaluations. Franchisors

also have a large scope when evaluation the performance of franchisees.

6.2. Importance of channel members

Some manufacturers distribute their products only through intermediaries and do

not deal with customers directly. As such, the performance of these

intermediaries becomes very important to the manufacturer as these
intermediaries’ performance has a direct result on the success of the

manufacturer.

6.3. Nature of the product

Complex products tend to require sales and after sales support versus generic

products which do not require any of these. Low value high volume items
such as memory sticks may only be evaluated in terms of sale numbers versus a
laptop which may require evaluation of product training as well as after sales

service.

6.4. Number of channel members

Intensive distribution strategies are normally used for generic products and

selective distribution strategies are used for specialised products. The

number of channel members here along with the type of product influences the

scope and frequency of audits.

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