PAST PAPER QUESTIONS AND ANSWERS

CLO 2: Marketing planning (research,

analytical tools, STP)
1. Mark Haskins, CEO of the CB Group has hired you as a marketing research consultant to
guide the Group’s marketing team on how to acquire key market insights. In your first
presentation to the team, you are required to explain the following:
1. Five (5) major differences between qualitative and quantitative research methods.
[CLO 3]                                                                                                       (7 marks)
Answer: Students should first define both qualitative and quantitative research
                                                                                                                                  (2 marks).
Qualitative Research is primarily exploratory research. It is used to gain an understanding
of underlying reasons, opinions and motivations.

Quantitative Research is used to quantify the problem by way of generating numerical data
or data that can be transformed into usable statistics. It is used to quantify attitudes,
opinions, behaviours and other defined variables – and generalise results from a larger
sample population.

Then outline any five of the following differences (5 marks)

 b. The impact of errors in survey research and expand on sample design errors.
[CLO 3]                                                                                                     (13 marks)

Answer: Students should first make the point that errors impact the accuracy and quality of
information acquired. And there are two types of errors; random errors and systematic errors.
Systematic errors result from mistakes or problems in the research design or flaws in the execution of
the research process.

1. Sample Design Error

2. Measurement Error
Students should then expand on sample design errors as follows:
 2. A supermarket regularly monitors a wide range of customer feedback measures. Key data
is presented to the Board of the Supermarket every three months.
Below is an example of the type of data presented to the Board.

a) Identify three (3) strengths and weaknesses of the graph in conveying information about the
    research findings, giving reasons for your suggestions.                                      (6 marks)
    [CLO 5]

Strengths include:
∙ Clear bar chart, with shading used to differentiate findings from different years
∙ Key to explain what the shading represents
∙ Categories being focused on clearly identified in the X axis

Weaknesses include:
∙ No indication as to what the scale(s?) on the Y axis represents. Can’t be percentages as it
goes up to 120. Different data sets reported on different scales
∙ No indication of sample size
∙ No indication of statistical significance
∙ Ordering of the X axis – sometimes useful to order these according to largest responses
down to lowest responses.
∙ Last year/this year are only relevant terms for a relatively short period and only to an
audience that knows what time periods were being covered. Would therefore be better to
state the specific time periods the research refers to.
∙ Problem of misinformation if non-response/weightings/response rates are not evident.       

b) The Board is considering using the first two (2) categories (customer satisfaction and
      customer complaints) as the basis of a marketing campaign.
      What advice would you give to the supermarket on the use of research findings in marketing
      material, taking into consideration the Code of Conduct for marketers?
      Give reasons for the suggestions you make.
(14 marks)
Key areas which should be identified include:
∙ Results cannot be used to mislead the public
∙ Facts should be clearly differentiated from interpretation
∙ Research conclusions must be clearly and adequately supported by the research data
∙ Protecting the anonymity of respondents in situations where verbatim excerpts are
presented

Guidance to the client may include some or all of the following points:
∙ If you are likely to want to attribute verbatim comments, we need to make sure that
respondents are informed of this and that permission is sought for recontact to seek
consent for use of the verbatims
∙ If the findings are to be published (e.g. in marketing or press material), members of the
public must be able to access the technical details. How will this be arranged?
∙ Any graphs/charts and other materials drawing on the results provide enough technical
detail to ‘enable reasonable interpretation’ of the validity of the results. This should
include:
o Information on sample size o Information on the questions asked o information on
weighting
∙ Any marketing material being prepared should be checked by the researcher before
publication to ensure that it is not using the results inappropriately.

SECTION B –– Short Answer Questions (30 marks)

3. Based on your knowledge of measurement in research:

a. Define the role of measurement in the data acquisition process.                 (2
marks)
 Answer: Students should first make the point that in order to make sense of the
vast amount of data acquired through market research, there needs to be some
system of measurement in place. The procedure is used to assign numbers that
reflect the amount of an attribute possessed by a person, object, or event.

b. Describe the two (2) statistical measures which are applied to ordinal scales.
                                                                                                                      (4 marks)

Answer: Students should first make the point that the two statistical measures
applied to ordinal scales are:
1. Mode - The category which is selected most frequently is called the mode
2. Median - The median refers to the category in which the 50th percentile response
falls when all responses are arranged from lowest to highest.

c. Distinguish between reliability and validity in the measurement process.  (4

marks)

Answer: Students should make the point that reliability is the degree to which a
measure is free from random error and therefore gives consistent results.
Measuring procedure yields the same results on repeated trials. 
While validity is the degree to which the research actually measures what the researcher was
trying to measure. The extent to which a measure or instrument provides data that
accurately represents the concepts of interest

4. Based on your knowledge of ethics in marketing research:

a. Define ethics within the context of marketing research.                             (2
marks)

Answer: Students should make the point that ethics in market research speaks to
moral principles or values, generally governing the conduct of an individual or
group. The two key factors which are considered by research clients in their
relationship with research suppliers: Confidentiality and honesty.

b. Identify four unethical practices done by research suppliers.                      (4

marks)
 Answer: Students should identify any of the following four unethical practices:

c. Identify four unethical practices done by research clients.                          (4

marks)

Answer: Students should identify any of the following four unethical practices:
 5. Based on your knowledge of sampling:
a. Explain why sampling errors occur.                                                            (2 marks)

Answer: Students should make the point that sampling errors occur because the
sample selected is not perfectly representative of the population.

b. Briefly describe any two (2) probability sampling methods.                      (4 marks)

Answer: Students should identify and describe any of the following four random
sampling methods
1. Simple Random Sampling
2. Systematic Sampling
3. Stratified Sampling
4. Cluster Sampling
c)  Briefly describe any two (2) non-probability sampling methods.           (4 marks)

Answer: Students should identify and describe any of the following four random sampling
methods
1. Convenience Sampling
2. Judgement Sampling
 3. Quota Sampling
4. Snowball Sampling

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1. Determining the research design is the second step of the marketing research process.
1. What is research design and what role does it play in marketing research? (4
marks)
Answer: A research design is the framework or plan for a study and is used as a guide to collect
and analyse data. Consider the research design as playing the role of a blueprint which ensures
that the study:
 Will be relevant to the problem (effectiveness)
 Will use economical procedures (efficiency)
b. Briefly describe the three types of research designs (6 marks)
Answer:

2. Based on your knowledge of exploratory research:

a. Outline five key uses of exploratory research (5 marks)
Answer: Five uses of exploratory research are as follows:
I. Formulating a problem for more precise investigation or for developing hypotheses
II. Establishing priorities for further research
III. Gathering information about the practical problems of carrying out relevant research
IV. Increasing the marketer’s familiarity with the problem
V. Clarifying concepts
b. Describe projective techniques and focus groups (5 marks)
Answer: Projective techniques involve using vague stimulus that an individual is asked to describe, expand on,
or build a story around.
 3. Based on your knowledge of causal research:
a. Outline the two main objectives of causal research (2 marks)
Answer: Causal research has two objectives
1. Understanding which variables are the cause, and which variables are the effect
2. Determining  the nature of the relationship between the causal variables and the effect
predicted
b. Explain what an experiment is, and the main difference between experiments
done in the laboratory versus experiments done in the field (8 marks)

Answer: An experiment is a scientific investigation in which an investigator manipulates and

controls one or more independent variables and observes the dependent variable(s) for variation
concomitant to the manipulation of the independent variables.

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JPS Goes '360'

The Jamaica Public Service Company (JPS) has announced the launch of its rebranded service, JPS Energy
Solutions, which, it says, will position the company as a 360-degree, one-stop energy provider. The primary products
and services provided by this arm of the company are the sale and maintenance of solar PV systems and energy
audits for residential and commercial customers; combined heat and power (CHP) generation; power factor
correction, and intelligent energy devices.
This development comes as part of the company's core strategy to provide every type of energy solution, whether
traditional, renewable, or co-generative in nature.
 As stated by Tishan Wade Lee, director of market strategy and economic development, "JPS has a vested interest in
Jamaica's future and will continue to offer customers the best energy solution to meet their needs. This means that in
addition to the traditional means of receiving electricity from our distribution network, the company is also in a position
to provide renewable options to all customer categories. This ranges from installing a couple of solar panels on the
roof of your home to constructing power plants for large businesses."
The JPS is also leveraging its expertise in the sector to provide consultancy services and increased energy-efficiency
options for every type of customer. The company slashed prices throughout the JPS eStore to ensure that energy-
management devices are accessible to more Jamaicans, and now, with the addition of the services of the rebranded
Energy Solutions arm, individuals and companies will have the broadest possible range of their energy needs met.

 
Source:  Jamaica Gleaner. Monday | January 29, 2018 

2. According to Ansoff’s Product/Market Expansion Grid, which two (2) strategies did JPS
utilize in their new energy campaign? (3 marks)

Any of these three (3) could have been utilized by JPS – Diversification would not apply. (1.5
mark for each correct answer)
 Market development occurs when the company grows by developing new market
segments for current products in its portfolio.
 Market Penetration occurs when the company grows by increasing sales of current
products to current market segments without changing the product. 
 Product development occurs when the company offers a modified or new product to the
current market segment.
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Lotteries company Supreme Ventures Limited (SVL) has signed an agreement with the
Guyana Gaming Authority. The agreement should see SVL opening up gaming operations in
Guyana, a market currently dominated by the Princess Hotel and Casino and affiliate of the
Canadian Bank Note Company, Guyana Lottery. Guyana Marriott is also looking to get a toe-
hold into the market.
SVL, in a statement to shareholders on the Jamaica Stock Exchange, said the agreement with
Guyana Gaming Authority is subject to a confidentiality clause, and in this regard, will make full
disclosure of its plans for the market as soon as SVL is able and permitted to.
It's not clear if the Guyana agreement is part of ideas put forward by at least one newly appointed
director Gary Peart to boost revenue earnings. Last October, Peart told journalists that he is
confident that the lottery and gaming company could, in months, increase profit by $1 billion
under the new board of directors. “We have some ideas, which ultimately we will discuss with
the other board members and if we get consensus around it, it will help the company forward. I'm
sure that when we go in they will also have their ideas which we can always discuss and that's
what makes a company strong, when the leadership of the company is constantly looking at
different ways for it to grow,” he told the Caribbean Business Report during an emergency
press conference last year.
Of the $135 billion industry; SVL Group recorded revenue totalled $45 billion for its financial
year ended 2016, a two per cent increase over prior year's result. The company noted in its
financial report that the growth was mainly driven by Personal Identivation Number (PIN) code
products which grew 26 per cent. However, Cash Pot revenues fell by $429.214 million,
attributable to a low payout trend.
Currently, SVL has Super Lotto as the Group's only multi-jurisdictional game. Company
financials showed that Super Lotto continue to contribute positively to the portfolio with sales
increasing by $22.735 million or 4 per cent in 2016. Jackpots were won in Jamaica and St
Maarten in 2016 and in Jamaica and Barbados (twice) in 2015. Aside from that, SVL airs
international horse-racing for locals to bet on.
Reports from Guyana list games such as 'Lotto Supa 6,' 'Lucky 3,' 'Daily Millions,' and 'Draw De
Line'; along with a range of popular 'scratch' games as gaming products currently offered by the
Guyana Lottery Company. Additionally, Guyana Lottery was recently handed a five-year
renewable contract that allows it to introduce new games using Video Lottery Teller Machines
such as casino slot machines and online gambling.
QUESTION

The decision to enter this new market would probably have been made after several analyses, including
use of the Product/Market Expansion Grid.
With the aid of a diagram, describe the two (2) possible strategies proposed in the Grid, that SVL could
use in expanding to Guyana.                                            [12 marks]
Possible strategies open to SVL are Market Development Strategy (Existing product taken to new
market) or Diversification (new product introduced in a new market)

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Medical Disposables & Supplies Snags 3M

Distribution Deal
Healthcare and consumer products distributor, Kingston-based Medical Disposables and
Supplies Limited (MDS), has been appointed as a distributor for the United States-based
technology company 3M, expanding its portfolio in disposable supplies and medical
instruments.
 
3M is a US$27 billion diversified company and one of 30 companies that make up the Dow
Jones Industrial Average.
While there is no comparative data for Jamaica, the market for medical disposables and
supplies is considered a US$44.1 billion business in the United States, and according to
Freedonia Industrial Studies, US demand for the products will rise 4.2 per cent annually to
US$54.1 billion in 2020.
MDS General Manager Kurt Boothe told the Financial Gleaner that local markets are growing
as well, noting that "one of our strategies is to diversify our product lines. While our number-one
segment is pharmaceuticals, we want to diversify in medical supplies and consumer goods.
Medical supplies is one of our strengths. It's important that we expand in this area with a top
brand and one which is well respected."
He said that 3M would allow the company to bring clients "disposable supplies and medical
instruments of the highest quality as we continue to bring world standard offerings to Jamaica".
Boothe did not share the value of the 3M deal, but noted that his company has, in preparation
for offering more product categories, invested in excess of $100 million in retooling, new
infrastructure, and new systems for operations over the past two years.
According to Boothe, "Our consumer division, which is our newest division, established in April
2017, is expected to grow by 50 per cent this financial year." MDS is eyeing new niche areas
across the three segments of its business, namely pharmaceuticals, medical disposables, and
consumer goods, hence its deal with 3M and its push in consumer goods and operational
retooling.
 At March year end, MDS crossed the $2 billion mark in revenues for the first time. MDS was
founded by managing director Myrtis Boothe in 1999. The company listed on the junior market
of the Jamaica Stock Exchange in December 2014.
Source: The Jamaica Gleaner | June 10, 2018 

1. (a) Draw and label Ansoff’s Product/Market Expansion Grid. (8 marks)

Answer:  Students are rewarded full marks for drawing and labelling the Product
Expansion Grid correctly (2x 4 = 8 marks)
 (b) Based on the article, explain the two (2) components of the Product/Market
      Expansion Grid utilized by the company. (4 marks)

Answer: Students are rewarded 2 marks for correctly identifying and explaining
any of the two concepts listed below. (2 x 2 =4 marks)

Diversification takes place when a company seeks growth by acquiring or starting up a

business outside the companies current products and markets.

Market development occurs when the company grows by developing new market
segments for current products in its portfolio.

Market Penetration occurs when the company grows by increasing sales of current
products to current market segments without changing the product. 

2. (a) Define a Business Portfolio? (2 marks)

   (b) From the article, which one (1) of the portfolios is considered as the companies’
      Cash Cow?” Give a quotation from the article to support your answer.  (2 marks)

Answer (a): Students are rewarded 2 marks for correctly identifying and
explaining the concept.
A Business Portfolio is a collection of business and products that make up the company.

Answer (b): Students are rewarded 1 mark for the identifying the Cash cow and 1
mark for the quotation.
- The Cash Cow from the article is “Medical Supplies”
Qoute : “One of our strategies is to diversify our product lines. While our number-one segment
is pharmaceuticals, we want to diversify in medical supplies and consumer goods. Medical
supplies is one of our strengths.”

3. (a) Define Target Market? (2 marks)

   (b) There are three (3) factors to consider before choosing your target market.
        Which two (2) did the company use in their decision to partner with 3M?
(4 marks)
c) Based on the article, which Target Market Strategy was utilized by the company?
Give an advantage and disadvantage for the given strategy. (6 marks)

Answer a: Students are rewarded 2 marks for correctly identifying and explaining
the concept.
(a) A Target Market is a set of buyers sharing common needs or characteristics that the
company decides to serve. 

Answer b:  Of the (3) three factors, the two factors to that apply to the article before
choosing your target market:
1. Segment Size and Growth - paragraphs 1, 4 and 7.
2. Company objectives and resources – paragraph 5

Answer c: Students are rewarded 2 marks for correctly identifying and explaining
the strategy, and 2 marks each for stating one advantage and one disadvantage 

There are (4) four types of Target Marketing Strategy: – 

Undifferentiated (Mass) Marketing, Differentiated (Segment) Marketing, Concentrated

(Niche) Marketing & Micromarketing (Customization)  

The strategy utilized by MDS was Concentrated (Niche) Marketing – paragraph 6.

Concentrated (Niche) Marketing is a market-coverage strategy in which a firm goes

after a large share of one or a few segments or niches.

Advantage
- Stronger market position based on extensive knowledge of consumer needs
 Company can market more effectively and efficiently by channeling its  marketing
mix specifically to their customer
 The Company can use their limited resources to cater to the needs of customers
who are overlooked by larger competitors.
Disadvantage
 Company can be swallowed up by larger competitors who over time have
entered the same market.
 Larger than normal loss can occur if the market goes sour or loses momentum

4.  (a) Explain the concept of Market Segmentation. (8 marks)

    (b) Give two (2) ways that the company can benefit from one (1) of the segmentation
          concepts mentioned above . (4 marks)

Answer a: 2 marks are awarded for the definition of Market Segmentation,

while1.5 marks are awarded for correctly identifying and explaining each market
segment.  (2 + (1.5 x 4) = 8 marks)
Market Segmentation is dividing the market into smaller segments with distinct needs,
characteristic or behaviour that might require separate marketing strategies or mixes.

There are (4) four types of Market Segments:

1. Geographic Segmentation is dividing the market into different geographical units
such as nations, states, regions, countries, cities and neighborhoods.

2. Demographic segmentation is dividing the market based on variables such as age,

gender, family size, family life cycle, income, occupation, education, religion, race
generation and nationality.

3. Psychographic Segmentation divides the market based on social class, lifestyles or

personality

4. Behavioural Segmentation divides buyers into segments based on their knowledge,

attitudes, uses or responses to a product.

Answer B:  One mark is awarded for correctly identifying the segment, and 1.5
marks for each stated benefit. (1 + (1.5 x 2) = 4 marks)

 Geographic or Demographic can be used based on the content of the article.

Benefits:
 The company knows who and where to sell their products
 Determine where the marketing opportunities exist
 Strengthen their position in the market place
 Establish or strengthen their marketing mix – 4”ps
5. (a) Explain the three (3) characteristics of the Marketing Information Systems (MIS) 
(6 marks)    
Answers 5 (a):  2 marks each will be awarded for describing the characteristics of MIS

1. Internal Database is an electronic collection of consumer and marketing information

obtained from data sources within the company network.  Eg .Point of Sale
2. Marketing Intelligence is the systematic collection and analysis of publicly available
information about consumers, competitors, and developments in the marketplace. E.g.
Mass Media, 
3. Marketing Research is the systematic design, collection, analysis, and reporting of
data relevant to a specific marketing situation facing an organization.
  (b) State four (4) ways how a budding entrepreneur can utilize MIS in his/her
business. 
(4 marks)

Answers 5 (b):  1 mark each will be awarded for any of the below. 

 Gain Insight into Customer Motivation

  Determine Customer Purchase Behavior

  Measure Customer satisfaction and loyalty

 Measure Market Share 

 Effectiveness of Marketing mix/strategy

 Fresh and deep insights into customer needs and wants

 Gain information through  the use of CRM/ Internal database

 Information gained can inspire action on opportunities in the marketplace

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Sugar Control!
 
The Government will, starting next January, enforce restrictions on
 the use of sugary drinks in the diets of students and public health
 patients, as part of its efforts to stem growing obesity in the country.
Health Minister Dr Christopher Tufton made the announcement in Parliament yesterday, saying
that his ministry, as well as the Ministry of Education, Youth and Information, will be working
with the manufacturers and distributors of sugary drinks to provide the policy guidelines on what
the requirements are for the products to be allowed in use.
“Starting next week, we will meet with manufacturers. We will explain what the guidelines mean,
in terms of the preferred amount, and they will have to conform to those guidelines,” he said, in
his contribution to the sectoral debate. He said that manufacturers would need to reformulate
their products, using other products that are available.
“But, effective January 2019, sugary drinks will be restricted as part of the response to the
obesity crisis in our school system,” he said. Dr Tufton's announcement comes two days before
the Medical Association of Jamaica (MAJ) opens its annual conference in Kingston, at which
obesity will be the focus.
On Monday, MAJ executives told the Jamaica Observer that locally, 60 per cent of adults are
overweight or obese and 67 per cent of deaths in Jamaica are linked to obesity. The numbers in
children are not far behind. According to MAJ President Dr Clive Lai, the rate of obesity among
boys has moved from 5.3 per cent to 10.3 per cent, while the overweight and/or obese rate for
girls has moved from 6.6 per cent to 9.9 per cent. Dr Lai also said that if Jamaica can control
obesity, the National Food Industry Task Force projects that over the next 15 years the country
could save $77 billion in health-care costs.
Currently, the Government's annual expenditure to treat non-communicable diseases, which are
subsets of obesity, is US$170 million and, due to the free user-fee policy within the public health
care system, this cost may increase if obesity levels are not controlled.
Yesterday, Tufton described sugary drinks as beverages that contain sugar and syrup added by
manufacturers. However, the designation does not apply to 100 per cent juices or unsweetened
milk. He said, however, that his ministry would not be stopping there, as it has taken the view
that, if it is going to influence the policy and impose it in schools, the public health system must
also lead by example.
He said that both ministries have been studying a policy to determine what is to be served to
students instead, starting with the Government-owned manufacturer, Nutrition Products
Limited. 
“The initiative is to provide a framework for young people to eat healthy, nutritional meals and
the policy will need the support of all stakeholders,” Dr Tufton said.
He said, however, that the school standards would not focus only on the use of sugar, but also
on the intake of saturated fats, cholesterol, sodium, and on increasing the consumption of
vegetables and fruits.
He also noted that the manufacturers were already aware of the Government's position, and
some were already making plans to fit in with the new policy.

2. (a) Describe the four (4) variables of Market Segmentation. (4 marks)

    (b) Which of the four (4) variables was featured in the article? Give a Quotation to 
     highlight your answers.   (2 marks)

Answer for 2 (a).  1 mark each for correctly describing/defining the variable of market
segmentation

Geographic Segmentation is dividing the market into different geographical units such as
nations, states, regions, countries, cities and neighborhoods.

Behavioural Segmentation divides buyers into segments based on their knowledge, attitudes,
uses or responses to a product.
Psychographic Segmentation divides the market based on social class, lifestyles or
personality

Demographic segmentation is dividing the market based on variables such as age, gender,
family size, family life cycle, income, occupation, education, religion, race generation and
nationality.

Answers for 2 (b):  1 mark for correctly identifying the variable and 1 mark for the
relevant quotation

Demographic Segmentation was the variable that was used in the article.

“On Monday, MAJ executives told the Jamaica Observer that locally, 60 per cent of adults are
overweight or obese and 67 per cent of deaths in Jamaica are linked to obesity. The numbers in
children are not far behind. According to MAJ President Dr Clive Lai, the rate of obesity among
boys has moved from 5.3 per cent to 10.3 per cent, while the overweight and/or obese rate for
girls has moved from 6.6 per cent to 9.9 per cent.”

1. a. Differentiate between mass marketing and target marketing.                   [4 marks]

Mass marketing involves appealing to the whole market, not just a sefment in the
market
Target marketing involves appealing to a segment of the market e.g. a specific
segment that the firm wishes to sell its products to
b. Explain the concept of niche marketing and briefly explain
    whether it could be used to market Noni juice for controlling
    diabetes.                                                                                                     [8 marks]
Niche marketing is a strategy based on identifying and satisfying small segments of a
larger market. Allows specialist firms to develop alongside large firms in the market

c. Briefly describe TWO benefits of market segmentation and

    TWO drawbacks of market segmentation                                                   [8 marks]
(i) The marketer can spot and compare marketing opportunities. He can examine the needs of
each segment and determine to what extent the current offering satisfies these needs. Segments
which have low level of satisfaction from current offerings represent excellent opportunities for
the marketer.
  (ii) With the help of knowledge about different segments, the marketer can better allocate the
total marketing budget. Differences in customer response to different marketing tools serve as
the basis for deciding on the allocation of market funds to different customer groups.
(iii) The marketer can modify his product/service and marketing appeals to suit the target
segment.
(iv) Segmentation facilitates setting up of realistic selling targets and priorities.
(v) Management can identify new profitable segments which deserve special attention.
  (vi) It is possible to deal with competition more effectively by using resources more effectively.
(vii) Appropriate service packages can be developed for each market segment.
 Disadvantages of Market Segmentation:
Market segmentation suffers from the following disadvantages:
(i) Segmentation increases costs. When a firm attempts to serve several market segments, there
is a proliferation of products. Cost of production rises due to shorter production runs and
product variations.
(ii) Larger inventory has to be maintained by both the manufacturer and the distributors.
(iii) Promotion and distribution expenditures increase when separate programme are used for
different market segments.
(iv) When characteristics of a market segment change, investment made already might become
useless.

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1. a) Define strategic planning. Discuss the steps involved. [10 marks]

Answer:  The process of developing and maintaining a strategic fit between the
organization's goals and capabilities and its marketing opportunities is called strategic
planning. At the outset, beginning at the corporate level, each company must define its
overall purpose and mission. What is our business? Who is the customer? What do our
customers value? Answers to these questions are crucial in writing a clear mission statement.
Mission statements need to be carefully defined in terms of customer needs. Missions should
be realistic, motivating, and fit the market environment. Missions then lead to setting
business and marketing objectives/goals in the planning process. This is followed by
decisions regarding what portfolio of businesses and products is best for the company and
how much support to give each one. Next, each business and product develops detailed
marketing and other functional strategies. In this step, plans are drawn at the business unit,
product, and market levels in support of companywide plans.

b. Explain the concept of a strategic business unit.     [2 marks]

Answer: A unit of the business that can operate independently with responsibility for a particular
range of products or activities, generating its own P&L

c. In the space provided below, draw and label a diagram of the BCG Growth-Share Matrix.
[8 marks]                     
                                                                                                                         
2. Describe the 2 major categories of environmental factors which impact all marketing
plans. [2 marks]   
     Answer: The marketer contends with the Micro and macro or broad environmental
factors                                                                          
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3. Marketers can obtain needed information from internal data, competitive marketing
intelligence, and marketing research. Compare and contrast each of these. [6 marks]
Answer:  Internal databases are built upon records of consumer and market information data
sources within the company network. For example, the accounting department provides
records of sales, costs, and cash flows; operations reports on production-related issues; sales
and marketing provide data on resellers, competitors, buyer behavior, and the industry; and
marketing provides information on customer transactions, demographics, and buying
behavior. Internal data are cheaper sources that are easy to access. Competitive marketing
intelligence is a collection and analysis of publicly available data about consumers,
competitors, and developments in the industry. It can come from quizzing employees,
studying competitors' ads and annual reports, analyzing competitors' products, monitoring
Internet buzz, and researching the Internet. In addition to internal data and competitive
marketing intelligence, marketers often need formal studies of specific situations. To address
this need, they conduct marketing research to collect, analyze, and report secondary and
primary data to better form decisions. 

 -------------------------------------------------------------------------------------------------------------------
CLO 3: Consumer Buying Behaviour
JPS Goes '360'
The Jamaica Public Service Company (JPS) has announced the launch of its rebranded service, JPS Energy
Solutions, which, it says, will position the company as a 360-degree, one-stop energy provider. The primary products
and services provided by this arm of the company are the sale and maintenance of solar PV systems and energy
audits for residential and commercial customers; combined heat and power (CHP) generation; power factor
correction, and intelligent energy devices.
This development comes as part of the company's core strategy to provide every type of energy solution, whether
traditional, renewable, or co-generative in nature.
 As stated by Tishan Wade Lee, director of market strategy and economic development, "JPS has a vested interest in
Jamaica's future and will continue to offer customers the best energy solution to meet their needs. This means that in
addition to the traditional means of receiving electricity from our distribution network, the company is also in a position
to provide renewable options to all customer categories. This ranges from installing a couple of solar panels on the
roof of your home to constructing power plants for large businesses."
The JPS is also leveraging its expertise in the sector to provide consultancy services and increased energy-efficiency
options for every type of customer. The company slashed prices throughout the JPS eStore to ensure that energy-
management devices are accessible to more Jamaicans, and now, with the addition of the services of the rebranded
Energy Solutions arm, individuals and companies will have the broadest possible range of their energy needs met.

 
Source:  Jamaica Gleaner. Monday | January 29, 2018 

3. JPS’s new campaign has targeted both residential and commercial customers for the sale and
maintenance of solar PV systems. With both customers in mind, explain (5) five differences
between the Business buying behaviour versus the Consumer buying behavior in this scenario.
(10
marks)

Students are expected to use the above Criteria as a means to compare the Business and
Consumer Buying Behavior. Each correct comparison is worth 2 marks (2 x 5 = 10 marks)

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Sugar Control!
 
The Government will, starting next January, enforce restrictions on
 the use of sugary drinks in the diets of students and public health
 patients, as part of its efforts to stem growing obesity in the country.
Health Minister Dr Christopher Tufton made the announcement in Parliament yesterday, saying
that his ministry, as well as the Ministry of Education, Youth and Information, will be working
with the manufacturers and distributors of sugary drinks to provide the policy guidelines on what
the requirements are for the products to be allowed in use.
“Starting next week, we will meet with manufacturers. We will explain what the guidelines mean,
in terms of the preferred amount, and they will have to conform to those guidelines,” he said, in
his contribution to the sectoral debate. He said that manufacturers would need to reformulate
their products, using other products that are available.
“But, effective January 2019, sugary drinks will be restricted as part of the response to the
obesity crisis in our school system,” he said. Dr Tufton's announcement comes two days before
the Medical Association of Jamaica (MAJ) opens its annual conference in Kingston, at which
obesity will be the focus.
On Monday, MAJ executives told the Jamaica Observer that locally, 60 per cent of adults are
overweight or obese and 67 per cent of deaths in Jamaica are linked to obesity. The numbers in
children are not far behind. According to MAJ President Dr Clive Lai, the rate of obesity among
boys has moved from 5.3 per cent to 10.3 per cent, while the overweight and/or obese rate for
girls has moved from 6.6 per cent to 9.9 per cent. Dr Lai also said that if Jamaica can control
obesity, the National Food Industry Task Force projects that over the next 15 years the country
could save $77 billion in health-care costs.
Currently, the Government's annual expenditure to treat non-communicable diseases, which are
subsets of obesity, is US$170 million and, due to the free user-fee policy within the public health
care system, this cost may increase if obesity levels are not controlled.
Yesterday, Tufton described sugary drinks as beverages that contain sugar and syrup added by
manufacturers. However, the designation does not apply to 100 per cent juices or unsweetened
milk. He said, however, that his ministry would not be stopping there, as it has taken the view
that, if it is going to influence the policy and impose it in schools, the public health system must
also lead by example.
He said that both ministries have been studying a policy to determine what is to be served to
students instead, starting with the Government-owned manufacturer, Nutrition Products
Limited. 
“The initiative is to provide a framework for young people to eat healthy, nutritional meals and
the policy will need the support of all stakeholders,” Dr Tufton said.
He said, however, that the school standards would not focus only on the use of sugar, but also
on the intake of saturated fats, cholesterol, sodium, and on increasing the consumption of
vegetables and fruits.
He also noted that the manufacturers were already aware of the Government's position, and
some were already making plans to fit in with the new policy.

 
3. Based on the government’s initiative to provide a framework for young people to eat
healthy, nutritional meals, explain how restrictions on sugary drinks in schools will
influence the Consumer’s buyer behavior process. (10 marks)
Answers:  2 marks each for correctly identifying the (5 ) five steps in the Consumer
Buying behavior process,  and stating that consumers will now look to more healthier
alternatives such as water or fruit juice as their choices are now limited.

Consumer Buyer Behaviour Process

---------------------------------------------------------------------------------------------------------------------

 
 
 
 Earlier this year in February, Salada Foods Jamaica Limited gave shareholders a sneak peek of a
new brand of coffee that was meant to tease the taste buds of millennials.
 
General Manager, Dianna Blake-Bennett is reported to have said, that while the new brand,
Mountain Bliss 876 would soon be on the shelves, "Our Mountain Peak brands have been around
for 50 years and we want to keep those that have been faithful. At the same time, we want to
engage with a new group of coffee drinkers and we decided that best way to do that is to launch a
new brand".
 
The primary target is college students and young professionals who are emergent coffee
consumers, but Salada is hoping even its brand-loyal traditional Mountain Peak market will buy
the new product. "It's really a different consumer base, because there may be older persons who
may want to consume the product so that will give us a bigger market share when it comes to the
coffee beverage market," Blake-Bennett said.
 
The trendy new packaging is a clear departure from the decades-old Mountain Peak brand.
Mountain Bliss 876 comes in two offerings - Classic and Gold.
 
"The Classic is an agglomerated product so what we have is a product that is different from our
Mountain Peak product. It gives a burst of flavour with that big coffee aroma coming out," said
Blake-Bennett.
 
Extracted and modified from Gleaner article of February 2018 by Neville Graham.

QUESTIONS:
1. Using the appropriate consumer buying/decision-making process, explain how you would
go about choosing and purchasing a new coffee brand which Marketers undoubtedly want
to stimulate consumer adoption of.   [20 marks]
– (5 marks) Students to recognize that it’s a new range of products so it is likely to be the
adoption process: Adoption process is the mental process an individual goes through from first
learning about an innovation to final regular use.

Stages in the process for new products: (15 marks)

 Awareness    Interest Evaluation    Trial Adoption

The reg process: (max of 15)

1. Need recognition – targeted persons have a problem – that of rising cholesterol
levels. They must therefore identify a solution which fits into their lifestyle – a
regular breakfast item, a bagel,  which is tasty and also healthy
2. Info search – info can be had from a number of sources;
Commercial sources – exposure to ads, testimonials, strong stimulus of taste testing in possibly supermarkets.
Brochures could be placed in gyms and selected doctors’ offices for persons who are already
health conscious or sick respectively
Personal sources – word of mouth of family, neighbours and friends. 
Experiential sources – possibility by sampling or taste testing in the stores plus being served by someone else
at a function or some event etc.
Generally though the info will seek to encourage at least a trial of the product. Info easy to come by with the
comprehensive advertising programme launched by Campbell’s.
3. Evaluation of alternatives – assessing and comparing the attributes and prices of different
possible solutions. By asking others for their opinions. 
3. Purchase – once the intention to purchase is formed then as this is not a big investment,
very few things could come between the intention and the actual purchase of others. –
maybe only the attitude of others could be discouraging.
3. Post purchase – are the consumers expectations exceeded or not by perceived
performance of the product. What’s the likelihood of cognitive dissonance

1. a) A consumer's behavior is influenced by 4 factors/characteristics; list these: [4 marks]

Answer:

b. Identify the 5 consumer adopter categories and briefly explain the profile of each :    [15
marks]

Innovators, Early Adopters, Early Majority, Late Majority and Laggards.

 Innovators are adventurous and eager to try new ideas, daring and risk taking
 Early adopters – respected role models and are generally ‘opinion leaders’
 Early Majority – Adopts new products just before the average consumer. Tends to
deliberate before using the new item
 Late majority – highly skeptical individuals who adopt the new item just after the
average user. Approaches innovations with much caution
 Laggards – suspicious of innovations and the last to try a new product.

c. A new product is more likely to be adopted if it possesses certain characteristics. Write

one sentence each, identifying and explaining each of the five characteristics.  [5 marks]
Answer:

-------------------------------------------------------------------------------------------------------------

Present a comphrehensive document on the differences between the consumer and business
markets [25 marks]

Consumer market define – all the individuals and households that buy or acquire goods and
services for personal consumption [3 marks]
Business market – is huge – involves far more dollars and items than the consumer markets – for
example the large number of business transactions involved in the production and sale of a single
set of Goodyear tires [3 marks]
Characteristics of the business market:
MARKET STRUCTURE AND DEMAND – business markets contain fewer but larger buyers.
Business buyer demand is derived from final consumer demand. Demand in business markets
fluctuates more and more quickly;

NATURE OF THE BUYING UNIT business purchases involve more buyers. – business buying
involves a more professional purchasing effort:

TYPES OF DECISIONS AND THE DECISION PROSCESS; business buyers usually face
more complex buying decisions. The business buying process is more formalized. In business
buying, buyers and sellers work more closely together and build close lone-term relationship [ 14
marks]
---------------------------------------------------------------------------------------------------------------------

CLO 4: Making product decisions

(new product development, product
life cycle, marketing strategies) 
 
Question 8
a)Advise Marketing Executives on the typical steps to be followed in developing new product
and make recommendations concerning two important decisions the company must contemplate 
during the commercialization of any new product/service. [15 marks]
b) Once launched, each product has a life cycle, although its exact shape and length is not known
in advance. Briefly explain each step in the PLC focusing on how Marketers can handle the
decline stage by prolonging/rejuvenating the product life. How can this happen? [10 marks]
Answer:  a) Students to outline that because products ‘die’ or fail for a myriad of reasons, the
marketer must be constantly grappling with the acquisition and/or development of new products.
The latter refers to the development of original products, product improvements, product
modifications, and new brands developed from the firm’s own research and development. (1
mark)

New product development embraces: (12 marks – 1½ marks for each of the 8 steps correctly
identified and explained)

1. Idea generation the systematic search for new-product ideas (from internal and external
sources): Crowdsourcing Inviting broad communities of people— customers,
employees, independent scientists and researchers, and even the public at large—into the
new-product innovation process 
2. Idea screening - reducing new-product ideas to spot good ideas and drop poor ones as
soon as possible
3. Concept Development & Testing  - a detailed version of the new-product idea stated in
meaningful consumer terms: and tested with a group of target consumers to find out if the
concepts have strong consumer appeal
4. Marketing strategy development designing an initial marketing strategy for a new
product based on the product concept
5. Business analysis - review sales, costs, and profit projections to find out whether these
factors satisfy the company’s objectives
6. Product development management- concept is developed into a physical product to
ensure that the product idea can be turned into a workable market offering
7. Testing product and its proposed marketing program are tested in realistic market set
8. Commercialization/launching - Introducing the new product into the market. At this
stage, the company launching a new product must first decide on introduction timing.
Next, the company must decide where to launch the new product; In a single location, a
region, the national market, or the international market. Confidence, capital, and capacity
are required to launch new products on a large-scale basis. Hence, many firms plan a
market rollout over time. (Additional 2 points for elaborating on the 2 important
decisions companies must face at this stage)

The Case mentions that Cash Pot revenues fell by $429.214 million. There was a similar
 result the year before. The game has been in existence since the company started in 2001.
With your knowledge of the Product Life Cycle (PLC), identify the game’s possible stage in
the PLC and two (2) suggested methods of rejuvenating sales in the product.
[12 marks]

The Cash Pot game is now 17 years old and probably in late maturity to early decline stage. Efforts
should therefore be made to extend its PLC. Strategies include:

Extension strategies extend the life of the product before it goes into decline. Again businesses
use marketing techniques to improve sales. Examples of the techniques are:

 Advertising – try to gain a new audience or remind the current audience

 Price reduction – more attractive to customers
 Adding value – add new features to the current product
 Explore new markets – try selling abroad
 New packaging – brightening up old packaging, or subtle changes 

 
 
 CLO 5: Marketing strategies in going
global and modes of entry used to enter
the global market

Lotteries company Supreme Ventures Limited (SVL) has signed an agreement with the
Guyana Gaming Authority. The agreement should see SVL opening up gaming operations in
Guyana, a market currently dominated by the Princess Hotel and Casino and affiliate of the
Canadian Bank Note Company, Guyana Lottery. Guyana Marriott is also looking to get a toe-
hold into the market.
SVL, in a statement to shareholders on the Jamaica Stock Exchange, said the agreement with
Guyana Gaming Authority is subject to a confidentiality clause, and in this regard, will make full
disclosure of its plans for the market as soon as SVL is able and permitted to.
It's not clear if the Guyana agreement is part of ideas put forward by at least one newly appointed
director Gary Peart to boost revenue earnings. Last October, Peart told journalists that he is
confident that the lottery and gaming company could, in months, increase profit by $1 billion
under the new board of directors. “We have some ideas, which ultimately we will discuss with
the other board members and if we get consensus around it, it will help the company forward. I'm
sure that when we go in they will also have their ideas which we can always discuss and that's
what makes a company strong, when the leadership of the company is constantly looking at
different ways for it to grow,” he told the Caribbean Business Report during an emergency
press conference last year.
Of the $135 billion industry; SVL Group recorded revenue totalled $45 billion for its financial
year ended 2016, a two per cent increase over prior year's result. The company noted in its
financial report that the growth was mainly driven by Personal Identivation Number (PIN) code
products which grew 26 per cent. However, Cash Pot revenues fell by $429.214 million,
attributable to a low payout trend.
Currently, SVL has Super Lotto as the Group's only multi-jurisdictional game. Company
financials showed that Super Lotto continue to contribute positively to the portfolio with sales
increasing by $22.735 million or 4 per cent in 2016. Jackpots were won in Jamaica and St
Maarten in 2016 and in Jamaica and Barbados (twice) in 2015. Aside from that, SVL airs
international horse-racing for locals to bet on.
Reports from Guyana list games such as 'Lotto Supa 6,' 'Lucky 3,' 'Daily Millions,' and 'Draw De
Line'; along with a range of popular 'scratch' games as gaming products currently offered by the
Guyana Lottery Company. Additionally, Guyana Lottery was recently handed a five-year
renewable contract that allows it to introduce new games using Video Lottery Teller Machines
such as casino slot machines and online gambling.
QUESTIONS
Supreme Ventures Limited (SVL) has decided as part of its expansion thrust, to go for the
Guyana market.
In deciding to go outside of its domestic market, a company would look at two (2) options in
marketing strategies that could be pursued.
Describe these two (2) possible marketing strategies when going international.
[6 marks]

Taking your business global and successfully selling your products and services in international
markets can pose many challengers.
As companies begin to market its products abroad, one essential strategic decision is whether to
use a standardized marketing mix (product, price, place, promotion, people, physical evidence,
process management) and a single marketing strategy in all countries or whether to adjust the
marketing mix and strategies(Adaptation), to fit the unique dimensions of each local market
(Vrontis and Thrassou,2007)
Standardization is the ability to use standard marketing internationally: The ability for a
company or business to use the same marketing strategy from one country to the next, and
across various cultures.
Product adaptation is the process of modifying an existing product, so it is suitable for different
customers or markets. An adaptation strategy is particularly important for companies that
export their products because it ensures that the product meets local cultural and regulatory
requirements.

Monique Powell, managing director and sole shareholder in Powell Interactive Ltd, which trades
as QuickPlate, left her full-time job as regional marketing manager (Digital & Social Media
Marketing) at Scotiabank to focus on a new dining delivery service. The decision, she said, was a
sign of the level of her confidence. In Jamaica, QuickPlate, which was registered at the start of
2016, has been operational for close to six months after being launched on March 31.

QuickPlate is an international franchise which is currently seeking partners for its technology-
driven service throughout the Caribbean region. It is a technology-driven food ordering and
delivery service which seeks to target and serve both customer and fellow business organizations
such as restaurants. The company is headquartered on Molynes Road in St Andrew with a team
of six individuals, and while the current focus is on Kingston and St Andrew, the managing
director said that all efforts are now concentrated on rolling out the service island-wide, and
eventually expand to other parts of the Caribbean. 

Powell has invested her resources in developing the service for Jamaicans who want to eat well
without leaving their homes and without entering their kitchens. The firm partners with some of
the best restaurants around town to bring great food to the very doorstep of the target consumer.
She was very clear about the consumer whom they were catering to. “We serve …diners, for
whom we provide an online portal through which they can quickly and easily order from local
restaurants and have the food delivered to their doorsteps,” the managing director states. There
are currently eight restaurants on the company’s website. Payment is made by credit or visa debit
card. Delivery time promised is one hour. Delivery charge is $500. 
 The company targets the restaurants which QuickPlate helps to tap into the delivery segment,
and generate additional revenue “without the hassles typically associated with setting up              
e-commerce facilities and managing deliveries”, Powell states. Further, they leverage advanced
fleet-management technology that allows us to ensure that delivery personnel get where they
need to be as fast as possible, and allows diners to track their assigned delivery riders on a map
in ‘real time’.”  

The fledgling company is focused on profit maximization and Powell has been noted as saying
that, “Based on our research I strongly believe there is a sizable market for the services we offer
and I believe that if we continue to scale efficiently, focus on continual service improvement and
listening to our customers, we can claim a large part of that market.”

Extracted and modified from an article in the Jamaica Observer. 

Questions:
1. While ‘QuickPlate’ was concentrating on rolling out the service island wide initially, the
aim was eventually to ‘go global’ and expand to other parts of the Caribbean. Describe
the 2 general global marketing mix strategies available to them. Which would you
recommend and why?  Make particular reference to the possible treatment choices of the
product element of the global marketing mix. [12 marks]
Answer: Students to point out that once the decision is made to go global (whether to go
global, which markets to enter and how to enter) the next area of decision making is about
the design of the global marketing program. (1 mark)

Will it be a standardized approach or one of adaptation for treatment of the marketing mix?
And each element of the marketing mix must be systematically considered.
Students to describe each approach: (2 marks = 1 for each of the descriptions)
 Standardized marketing mix involves selling the same products and using the same
marketing approaches worldwide
 Adapted marketing mix involves adjusting the marketing mix elements in each target
market, bearing more costs but hoping for a larger market share and ROI

(4 marks for a balanced argument for either approach=2 for each)  In this case, the firm
could opt for adaptation as they would be catering to different palate preferences and lifestyles.
The firm should choose to adapt their existing product and even inventing new products because
of the different socio-cultural dimensions of the global consumer.  Marketing programs will be
arguably more effective if tailored to the unique needs of each targeted customer group.
Consumers in different countries, even Caribbean countries, still have widely varied cultural
backgrounds and still differ significantly in their needs and wants, spending power, product
preferences, and shopping patterns. Standardized global marketing does not take these
differences into account and may therefore be less effective, albeit less expensive

On the other hand, some global marketers believe that technology is making the world a smaller
place and that consumer needs around the world are becoming more similar. This paves the way
for "global brands" and standardized global marketing. Global branding and standardization, in
turn, result in greater brand power and reduced costs from economies of scale.  
 [5 marks for making particular reference to the treatment of the product element of
the global marketing mix]
More specifically by focusing on changing the product, more than likely the other elements
of the marketing program would also be changed to some degree. With the real focus on 
product adaptation, essentially students should explore the choices open to QuickPlate in
terms of the approach to the treatment of the ‘product’ globally. And while Straight
product extension, meaning marketing a product in a foreign market without any change,
was not the most attractive for Quickplate, the choice would centre around, Product
Adaptation or Product Invention:
 Product adaptation involves changing the product to meet local conditions or wants
 Product invention consists of creating something new for a specific country market
o Maintain or reintroduce earlier products
o Create new products

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Jamaican Teas has tapped into a market niche in Trinidad & Tobago, having discovered that the
Indian population is a lover of herbal teas.
 
The tea maker is developing targeted products to deepen its market penetration there, including a
new tea made from basil leaves, which will be packaged as Tulsi - the name by which tea
drinkers in the eastern Caribbean know the herb.
 
"We now have about 35 products under teas, but we recently launched some new products for
the Trinidad market which are doing very well," said Jamaican Teas CEO John Mahfood.
"There is a large Indian community in Trinidad - half of the population - they like herbal teas;
they are very into turmeric tea, neem and moringa." He said. "These are the teas which are
growing for us. Interestingly, they also drink cerassee, but they have a different name for it -
cerraille. This was discovered recently, when one of our shareholders who is Indian, said in
Trinidad, they drink a lot of cerassee, but they call it something else."
 
From there, Jamaican Teas decided to research whether there would be receptivity to the product.
 
We added the name to the cerassee and all of a sudden, they started to buy it," he said. Jamaica
Teas claims the position of the largest manufacturer of teas in the Caribbean. It produces Tetley
teas under licence, but also distributes its own brand called Caribbean Dreams.
 
Jamaicans too, are lovers of cerassee tea, which is often home-brewed. The herb largely grows
untended, presenting supply challenges for the manufacturer. To support its export thrust, the
company is seeking to whip up small farmer interest in supplying the herb - dried or green.
"We have not been able to get much and we wanted to see if we could get some new suppliers,"
Mahfood said, referring to his company's press advertisement on the weekend, offering to pay
 "top price" for cerassee. "We have not been able to do as much as we like because of the
shortage," he said.
Jamaican Teas needs annual supplies of seven tonnes of the dried cerassee product. It also needs
40 tonnes of ginger annually, which it also wants to source locally. Currently, the root crop is
imported, as the ginger shortage in Jamaica is severe. "We are offering $350 per pound for dried
cerassee and $400 per pound for dried ginger. It's a good opportunity for small farmers,"
Mahfood said.
 
The tea maker, while noting his near 17-year presence in Trinidad, still described it as "the most
difficult" Caribbean market. "You have to be very good with the pricing to compete. It's a tough
market to penetrate. We have been there since 2000. Finally, after 17 years, it is our biggest
market, even though the population is half that of Jamaica." Mahfood said. "It shows that with
perseverance and research, exports can progress; it shows me that you have to do your research
and visit your markets in order to get to know them."
 
For Jamaica Teas, Trinidad ranks about equal with New York in sales, often taking the number-
one spot with about 20 per cent of exports. Florida rounds out the top three.
 
Exports for Jamaica Teas are 55 per cent of total sales. The company head said the top-selling tea
is peppermint, which is around 30 per cent of total sales, followed by the regular Tetley Black
tea, which contributes 20 per cent, then ginger teas. Cerassee is just about four per cent of total
sales. "If we could get the cerassee, it would really improve the sales. With the ginger, we have
to import it because we can't get it locally. We would prefer to get it locally because we want to
support the farming community, even though I get it cheaper from China," Mahfood said.
 
Extracted and modified form Gleaner articles.
 
QUESTIONS:
1. Describe the 2 global marketing programs which multi-national companies tend to pursue.
Further, in the Trinidadian market, cite at least 2 ways in which the firm has modified any element of
the marketing mix. Why have they done this? [10 marks]

Answer: Question objective: For students to reflect strong appreciation for the fact that
the global marketing program revolves around the principle of standardization and
adaptation.
Students to point out that once the decision is made to go global (whether to go global,
which markets to enter and how to enter) the next area of decision making is about the
design of the global marketing program. Will it be a standardized approach or one of
adaptation. And each element of the marketing mix must be systematically considered.
Students to describe each approach: (3 marks = 1.5 for each of the descriptions)
 Standardized marketing mix involves selling the same products and using the same
marketing approaches worldwide
-Adapted marketing mix involves adjusting the marketing mix elements in each target
market, bearing more costs but hoping for a larger market share and ROI

Students are expected to specifically address the issue of which of these 2 global marketing
programs, Jamaican Teas has opted for - clearly the alternative of adaptation. (1 mark) This is
 reflected by them catering to local norms by modifying both the selection of herbs they use and
the names the products are called by, also the firm has been payingparticular attention to the
element of price. Students can cite any 2 of the following ways in which the firm has modified
any element of the marketing mix in Trinidad: (4 marks = 2 for each of the reasons given)
i)For starters, the company has been focusing on herbal teas because culturally the large Indian
community in Trinidad - half of the population - they like herbal teas; they are very into turmeric
tea, neem and moringa. The CEO was quoted as saying that, "We now have about 35 products
under teas”. 
ii)Further, in developing targeted products to deepen its market penetration in this market; it has
launched new teas such as the one made from basil leaves, and even specifically packaged it as
Tulsi, - the name by which tea drinkers in the eastern Caribbean know the herb. Also, having
discovered that drink cerasee, but they have a different name for it - cerraille. We added the
name to the cerasee and all of a sudden, they started to buy it," he said. 
iii)Although Jamaica Teas produces Tetley teas under licence, it has also been prudent to develop its
own brand which the islands can readily identify with and relate to, Caribbean Dreams.
iv) And while not muchinfo is given as to how they have been manipulating price in the Trinidadian
market, the CEO did allude to the fact that they are not using a uniformpricing approach but
rather that, "You have to be very good with the pricing to compete. It's a tough market to
penetrate. We have been there since 2000. Finally, after 17 years, it is our biggest market, even
though the population is half that of Jamaica”.

Finally, students should also note ‘why’ global firms opt to adapt their global marketing
programs; it is simply that by so doing there are better able to respond to the specific socio-
cultural needs of the customers and more likely to secure larger market shares, stronger
loyalty among their target segments and greater profitability.(2 marks for definitively
identifying the adaptation approach in the case and explaining why)
 (iii) Describe the three (3) key approaches to entering the international market (5 marks)
EXPORTING:
Entering a foreign market by selling goods produced in the company’s home country, often with
little modification [1 mark]
JOINT VENTURING 
Entering foreign markets by joining with foreign companies to produce or market a product or
service [2 marks]
DIRECT INVESTMENT
  Foreign direct investment used to involve a company investing in building or upgrading a
factory in another country. Today, this definition has been expanded to include the acquisition of
a controlling interest in a company in another market.
[2 marks]

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Poultry producer Jamaica Broilers Group is now going after markets on the east coast of the United States,
with the acquisition of a hatchery in Big Valley, Pennsylvania.

The company has not disclosed the terms of the transaction, saying only it would grow its hatching capacity by
40 per cent.

The acquisition positions Jamaica Broilers as a key supplier of baby chicks to small producers. And it is now the
largest independent supplier of fertile hatching eggs in the US, according to Group Senior Vice-President for
Finance & Corporate Planning Ian Parsard.

Broilers closed the purchase of the Bell & Evans Hatchery last Wednesday, October 4. It will rename the
business International Poultry Breeders Hatchery Inc. Jamaica Broilers already operates a hatchery in Iowa
under the International Poultry Breeders subsidiary, from where it would truck baby chicks to the east coast.

Parsard said the Pennsylvania facility will reduce delivery mileage by an average of 500 to 600 miles, and
otherwise offers the Jamaican company an opportunity to extend its market reach.

"It does open up a number of other frontiers in terms of markets. Because of this expansion we can do
contract hatching for producers who require baby chicks. We can get into the markets even up to the eastern
side of Canada," Parsard said.

"We have been supplying into that market for some time, but what this acquisition will do in part is to make
the logistics more efficient. So instead of trucking chicks all the way over from Iowa in the west, we can do so
from the Pennsylvania hatchery," he said.

Jamaica Broilers declined to disclose the cost of the acquisition, but Parsard said they expect the facility to pay
back the investment in three to five years.

Extract from The Gleaner dated Wednesday October 11, 2017

ANSWER ALL QUESTIONS

QUESTION 1

 Jamaica Broilers has chosen to enter the east cost of the United State markets through the
direct investment entry mode.  List the other choices available to international marketers, and
write on the benefits of the direct investment mode.

1. Exporting Entering a foreign market by selling goods produced in the company’s home
country, often with little modification [1 marks]

2. Joint venturing Entering foreign markets by joining with foreign companies to produce or
market a product or service, through the following agreements:  [2 marks]
 Licensing 
  Contract manufacturing 

 Management contracting 

 Joint ownership 

Definition – Direct investment:  entering a foreign market by developing foreign-based assembly

or manufacturing facilities [2 marks]

Benefits:  [5 marks]
 lower operational costs in the form of cheaper labor or raw materials
 foreign government investment incentives
 freight savings
 develops a deeper relationship with the government, customers, local suppliers, and
distributors

QUESTION 2

Advise Jamaica Broilers Senior Vice President for Finance and Corporate Planning Ian Parsard
on the features for standardized global marketing and adapted global marketing

Standardized global marketing:  an international marketing strategy that basically uses the same
marketing strategy and mix in all of the company’s international markets [5 marks]

Adapted global marketing:  an international marketing strategy that adjusts the marketing strategy and
mix elements to each international target market, bearing more costs but hoping for a larger market
share and return [5 marks]