MNM2602/201/2/2018

Tutorial Letter 201/2/2018

Essentials of Marketing
MNM2602

Semester 2

Department of
Marketing and Retail Management

IMPORTANT INFORMATION
Please register on myUnisa, activate your myLife e-mail addresses
and make sure that you have regular access to the myUnisa module
website, MNM2602-2018-S2.

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CONTENTS

Page

1  INTRODUCTION ............................................................................................................................ 3 
2  GUIDELINES FOR ANSWERING ASSIGNMENT 01 .................................................................... 3 
3  CONCLUDING REMARKS ............................................................................................................ 7 

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1 INTRODUCTION

You are now well on your way with your studies for the academic year. Compare the guidelines to
Assignment 01 given below and make sure you understand why you have answered some question
incorrectly. The lecturer for this module is Mrs Letitia Fourie. Her contact details are as follows:

Address: AJH van der Walt Building,

Office number: 5-65
Telephone: 012 429 8303
Fax: 012 429 3759
E-mail: marketing@unisa.ac.za

Please note that lecturers should only be contacted for academic enquiries, that is, enquires about the
content of the module. Letters to lecturers may NOT be enclosed with assignments.

Administrative enquiries concerning fees, receipt of assignments, examination dates etc should be
directed to the relevant administrative departments as indicated below:

Communication with the administrative departments of the University

If you need to contact the University about matters not related to the content of this subject, please consult the
booklet my Study @ Unisa that you received with your study material. This booklet contains information on how to
contact the University (for example, to whom you can write for different queries, important telephone and fax
numbers, addresses and details of the times certain facilities are open).

Always have your student number at hand when you contact the University.

Please note that all administrative enquiries should be directed to the following:

Student admissions and registrations Study-info@unisa.ac.za

Student assessment administration for assignments Assign@unisa.ac.za
Student assessment administration for examination Exam@unisa.ac.za
Despatch: Study material despatch@unisa.ac.za
Finance finan@unisa.ac.za
ICT (myUnisa & myLIfe MyUnisaHelp@unisa.ac.za
MyLifeHelp@unisa.ac.za

Also study Tutorial letter 301 MRMALL8/2018 for further contact information.

2 GUIDELINES FOR ANSWERING ASSIGNMENT 01

QUESTION 1

Correct answer: Option 1

Page 5 – 6 in the prescribed book

The eight universal marketing functions is transport, storing, standardising and grading, financing, risk
taking, securing marketing information, buying and selling. Securing marketing information entails sellers
gathering information about consumers in order to know who and where potential buyers are. Once the
collected information has been analysed; this helps marketers to understand why certain consumers
purchase certain products, at certain locations, at certain intervals and in a certain manner. Alternatively,
gathered information provides insight on what customers seek from product offerings. Therefore Game

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Stores need to have marketing information available to know how much stock they should carry at
different times of the year for different types of products. Financing is considered a function as funding
may occur between channel members. Sellers such as retailers may offer credit to customers, or
wholesalers may offer credit to retailers in order to make it possible for them to buy their products. This
provision of financing comes at a cost in terms of interest that has to be paid. Transport aims to deliver
the product to the customer in the fastest, most efficient way. This function involves moving products
from a seller to a purchaser. In this example there is no mention of stock being transported.
Standardising and grading refers to measures set in place to ensure that products or services are
manufactured or made in such a way as to meet rules and standards set by governments. Eggs being
categorised into sizes based on their mass is one example of standardising and grading.

QUESTION 2

Correct answer: Option 3

Page 37 in the prescribed book and page 1 – 7 in the case study book

Monopolistic competition is found when a large number of businesses are marketing the same or similar
products. Each business attempts to differentiate its product to convince consumers that its product is
the one to buy. Architectural firms like OneTwoSix Architects fall into this competitive marketing
structure. Perfect competition occurs when there is unlimited sellers and not one of them can
significantly influence the other’s price. Oligopoly exists when there is relatively few businesses that
market a particular product and they have control over the supply. In South Africa cellular network
providers are an example of oligopoly. Lastly a monopoly is when a business is the sole supplier and has
complete control over the supply of a product or service. In South Africa Eskom is an example of a
monopoly.

QUESTION 3

Correct answer: Option 2

Page 94 – 96 in the prescribed book

Convenience sampling is when the sampling units are chosen simply on the basis of convenience.
Themba asking people in Brooklyn Mall which over the counter medicine they buy is an example of
convenience sampling. Probablity sampling is when each element in the a population has a known
chance of being included through a strict statistical procedure. Cluster sampling is when the population is
grouped into clusters and only some of the groups will be randomly selected from study. Simple random
sampling involves a probability sample in which each element has a know or equal chance of selection.

QUESTION 4

Correct answer: Option 3

Page 119 – 120 in the prescribed book

Learning occurs as a result of acquired knowledge. Sipho has been a chef for 25 years and in this time
he has acquired knowledge in terms of which knives last the longest. Thus he will only buy a certain
brand of knives, this is an example of learning in consumer behaviour. In the scenario where Gary’s wife
is in control of the groceries is an example of a group factor called family as his family influences the
decision with regard to the groceries that they buy. Ravi that is unsure about his expensive coffee
machine purchase is an example of cognitive dissonance. When a consumer begins to wonder whether

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he has made the right decision or lodge a complaint, even if there is nothing wrong with the product it is
known as cognitive dissonance. Jan and his family using the advertisement breaks to catch up on each
other’s days is an example of perception or more specifically selective exposure.

QUESTION 5

Correct answer: Option 2

Page 42 – 43 in the prescribed book and page 100 in the case study book

Unexpected events were identified by Jam & Daisies as a threat which is part of the macro environment.
Competitors were identified as a threat by Jam & Daisies and not an opportunity. Jam & Daisies
identified location as a weakness not a strength and location is part of the micro environment. Although
Jam & Daisies identified the weakening rand as a threat, threats are part of the macro environment not
the micro environment.

QUESTION 6

Correct answer: Option 1

Page 82 in the prescribed book and page 65 in the case study book

The table in the Dial-a-Surprize case study contains statistics related to internet growth and usage which
was collected by IMRWorld in 2008. Secondary data are data that already exist and is gathered by
someone else for another purpose. Thus the table in the Dial-a-Surprize case study is secondary data.
Primary data are data that are collected or observed from first hand experience. So if Dial-a-Surprize
conducted a survey on internet growth and usage in South Africa it would have been primary data.
Qualitative data and probability data are not part of this module’s curriculum

QUESTION 7
Correct answer: Option 4
Page 114 – 115 in the prescribed book

Safety needs include needs for safety, health and security and can include products such as insurance,
alarm systems and investments. Yolande taking out a car insurance policy provides her with a measure
of security should she be in an accident or her car stolen, thus it can be classified as a safety need.
Physiological needs are the need for food, water, sleep and sex. Esteem needs include the desire for
status, superiority, self-respect and prestige, all of which impel consumers to purchase luxury products
like expensive cars to reflect their success. Yolande did not take out an insurance policy to show status
or prestige. Social needs are reflected in a desire for love, friendship and group acceptance. Yolande did
not take out an insurance policy for friendship or acceptance but for cover.

QUESTION 8

Correct answer: Option 2

Page 143 in the prescribed book

There are five phases in the consumer decision making process. In the search for information phase the
consumer searches for information about the product. For example by asking friends and family for
advice. In the need recognition phase the consumer becomes aware of a need. For example Devi will
realise that she wants to buy a house. The phase in which Devi will evaluate different properties against

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set criteria is the evaluation phase. The purchase decision phase is when the best alternative has been
identified and the consumer makes a decision. For example Devi signs an offer to purchase on a specific
house that she likes.

QUESTION 9

Correct answer: Option 3

Page 29 in the prescribed book and page 208 in the case study book

In the Rollasole case study the following statement: “To provide superior customer service within the
continent and deliver a quality product with passion and integrity.” is their mission statement. The
mission statement is one of the elements of the micro-environment. The micro-environment consists of
forces that are close to the business that affect its ability to serve its customers.

QUESTION 10

Correct answer: Option 4

Page 39 in the prescribed book

Climate change that is threatening water supply, is an example of the physical environment. The petrol
and diesel price increasing and the unemployment rate in South Africa are examples of the economic
environment. Consumers becoming more health conscious is an example of a variable in the socio-
cultural environment.

QUESTION 11

Correct answer: 4
Page 4 in the prescribed book

The value gap is the gap that sellers and buyers must bridge to agree on an acceptable exchange rate.
The information gap is to assure that all the necessary information on the product is available to the
consumer. The ownership gap must be bridged for the consumer to become the rightful owner of the
product. The space gap is a geological space that exists between a consumer and a manufacturer.

QUESTION 12
Correct answer: Option 2
Page 124 – 125 in the prescribed book and page 200 – 211 in the case study book

Lifestyle is an individual factor that will influence the purchasing of a pair of Rollasoles. Family and
culture are considered to be group factors and is thus not an individual factor that will play a role in a
consumer purchasing Rollasoles. Price is also not considered to be an individual factor.

QUESTION 13

Correct answer: Option 1

Page 8 – 9 in the prescribed book and page 251 in the case study book

This is the correct answer as a marketing orientation will focus on the integration of all business activities
that will satisfy consumer demands, needs and preferences, as well as the profitability of the

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organisation. This is the marketing orientation that Tsogo Sun is utilising as they state in the introduction
that, with the decline in brand equity, “Project Magic” was launched to “...address the areas of concern,
raise operational delivery standards, and change employee behaviour in order for the brand to become
more appealing to guests.” Enhancing business processes and consumer satisfaction will therefore
increase Tsogo Sun’s profits, which will therefore enhance brand equity. Option 2 is incorrect, because
societal marketing is the obligation of marketing organisations not to harm the social environment and,
wherever possible, to use their skills and resources to enhance the environment. In the case study there
is no mention as to individuals’ or society’s long-term interests being considered through the service
offerings being provided. Option 3 is incorrect, as a production orientation means that the internal
capability of the organisation is the main focus instead of the needs of the market. Option 4 is incorrect,
as sales orientation focuses only on sales by a company and is based on the premise that people will
buy more products and services if aggressive sales techniques are used.

QUESTION 14

Correct answer: 2
Page 80 in the prescribed book

Step 3 in the marketing research process is used to determine the research objectives. There is four
types of objectives namely exploratory (to explore), descriptive (to describe), hypotheses testing and
predictive (to predict).

QUESTION 15

Correct answer: 3
Page 126 in prescribed book

Esteem needs include the desire for status, superiority, self-respect and prestige. These motives impel
consumers to purchase luxury products as symbols of status and success. Mary buying a
MercedesBenz to reflect success is an example of an esteem need. Brian buying milk, bread and
vegetables is a psychological need as it fulfils the basic need of hunger. Self-actualisation involves the
desire for self-fulfilment; to become all that one is capable of becoming which is illustrated by Tshepo
studying towards his BCom Marketing degree. ABI that manufactures their product in a certain area and
distributes is an example of closing the space gap.

3 CONCLUDING REMARKS

You are once again invited to contact me if you experience any academic problems in your studies.

Kind regards,

Mrs L Fourie
Department of Marketing and Retail Management
UNISA