THE KENYA NATIONAL EXAMINATIONS COUNCIL
DIPLOMA IN BUSINESS MANAGEMENT
MARKETING MANAGEMENT
July 2015
Time: 3 hours
1. (a) Explain six benefits that a company may derive from embracing the marketing concept. (12 marks)
(b) The population of country X has been expanding rapidly over the years. Outline four ways in which such growth may be beneficial to a marketing firm. (8 marks)
2 (a) Peter has retained his previous level of consumption despite having an increase in the level of his income. Explain the reasons that may account for this situation. (10 marks)
(b) Explain five factors that should be considered when segmenting markets using the demographic basis. (10 marks)
3. (a) Amuka Company Ltd intends to design packaging for its products. Outline the objectives that such a packaging should achieve. (12 marks)
(b) Highlight four pricing objectives that an organization may pursue while setting prices for its products. (8 marks)
(a) In designing the marketing channel, a marketer should understand the service output levels expected by its target customers. Describe such service output levels. (10 marks)
(b) Explain five reasons that may make an organization advertise its products. (10 marks)
5 (a) One of the characteristics of services is intangibility. Explain five ways that a service firm can make its services more tangible. (10 marks)
(b) The ‘atmosphere’ in a retail store is an important factor in attracting customers to the store. Explain five ways in which such a retail store would improve its ‘atmosphere’. (10 marks)
6. (a) Describe five types of costs that a company should consider when setting prices for its products. (10 marks)
(b) Explain the measures that a marketing manager should take in order to enhance the level of service quality provided by his firm. (10 marks)
7. (a) Explain the reasons that may make a firm to undertake a public relations exercise. (10 marks)
(b) Kanuaji company has adapted the co-branding strategy for its products.
Highlight five benefits that the firm may derive from adopting this strategy. (10 marks)