An-najah National University Name:- ‫امجد جالل علي‬

Faculty of Economic Second Semester 2019/2020

Marketing Department Final applied Exam

Principles of marketing 10876111

Q1:- In your opinion , which is better for companies in Palestine to adapt

conventional distribution channel or VMS ? Why?

A vertical marketing system (VMS) is better to adapt , Because the (VMS) one in which
the main members of a distribution channel — producer, wholesaler, and retailer —
work together as a unified group in order to meet consumer needs , Whereas In
conventional marketing systems, producers, wholesalers, and retailers are separate
businesses that are all trying to maximize their profits. When the effort of one channel
member to maximize profits comes at the expense of other members, conflicts can arise
that reduce profits for the entire channel. To address this problem, more and more
companies are forming vertical marketing system .

Q2:- Your manger asked you to design an effective marketing channel for the
company . Describe how ?
Designing a marketing channel system entails factors such as analysing customer needs,
establishing channel objectives, identifying major channel alternatives, and evaluating major
channel alternatives.
Analysing Customers’ Desired Service Output Levels: The marketer must recognize the service
output levels which its target customers want. Channels produce five service outputs:

1. Lot size: The number of units the channel allows a particular customer to buy at one time.
2. Waiting and delivery time: The average time consumers of that channel wait for receipt of the
goods. Customers generally prefer fast delivery channels.
3. Spatial convenience: The extent to which the marketing channel facilitate for customers to
obtain the product.
4. Product variety: The variety provided by the channel. Usually, consumers prefer a greater
collection, which enhances the chance of finding what they need.
5. Service backup: The add-on services such as credit, delivery, installation, repairs provided by
the channel.
Q3:- You were asked to design an effective marketing communication program .
Describe briefly the main steps .

1. Step 1: Know your target audience.

2. Step 2: Develop a situation analysis.
3. Step 3: Determining marketing communication objectives.
4. Step 4: Determining your budget.
5. Step 5: Strategies and tactics.
6. Step 6: Evaluation and measurement.

Q4:- Based on the common methods used to set the total budget for promotion
(advertising ) . Determine :-

A. The most logical budget setting method ,Why?.

objective-and-task method , because it is based on spending necessary to accomplish
specific promotion goals.

B. The method which is simple to use , Why? .

Percentage-of-Sales Method , because links the relationship between promotion
spending, selling price and profit per unit

C. The method that is suitable for small businesses , Why? .

Affordable method , because the companies set the promotion budget at a level that the
management finds the company can afford