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EXAMINATION PAPER

● General Information (To be filled by the instructor)

Examination Midterm ⃝ Final ⃝ Original ⃝ Makeup ⃝

Semester Fall ⃝ Spring ⃝ Summer II ⃝


Summer I ⃝

Academic Year 2020-2021

Department Business Administration

Program MBA

MKT501

Course Title Marketing Management


Date and Time of
14/07/2021
Examination
Room/Venue of
Online
Examination
Duration of Examination 48 hours

Course Instructor Dr. Nishad Navaz


● Student’s Information (To be filled by the student)
Student ID
Student Name
‫اسم الطالب‬ ‫رقم الطالب‬

● Questions –CILOs Mapping & Mark Distribution


NO. Quiz Questions /Question Sections Measured CILOs Maximum Students’
Mark Marks

Question1 Until 1992, the Walt Disney Company had A1, B1, C3, C4 25
experienced nothing but success in the theme D5
1 (a) park business. Its first park, Disneyland, opened
(b) 1 in Anaheim, California, in 1955. Its theme song,
(c) 1 "It's a Small World After All, “promoted "an
idealized vision of America spiced with
reassuring glimpses of exotic cultures all
calculated to promote heart-warming feelings
about living together as one happy family.
There were dark tunnels and bumpy rides to
scare the children a little but none of the

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terrors of the real world.
The Disney characters that everyone knew
from the cartoons and comic books were on
hand to shepherd the guests and to direct them
to the Mickey Mouse watches and Little
Mermaid records. The Anaheim Park was an
instant success. In the 1970s, the triumph was
repeated in Florida, and in 1983, Disney proved
the Japanese also have an affinity for Mickey
Mouse with the successful opening of Tokyo
Disneyland. Having wooed the Japanese, Disney
executives in 1986 turned their attention to
France and, more specifically, to Paris, the self-
proclaimed capital of European high culture
and style. "Why did they pick France?" many
asked. When word first got out that Disney
wanted to build another international theme
park, officials from more than 200 locations all
over the world descended on Disney with pleas
and cash inducements to work the Disney
magic in their hometowns.
But Paris was chosen because of demographics
and subsidies. About 17 million Europeans live
less than a two-hour drive from Paris. Another
310 million can fly there in the same time or
less. Also, the French government was so eager
to attract Disney that it offered the company
more than $1 billion in various incentives, all in
the expectation that the project would create
30,000 French jobs.
From the beginning, cultural gaffes by Disney
set the tone for the project. By late 1986,
Disney was deep in negotiations with the
French government. To the exasperation of the
Disney team, headed by Joe Shapiro, the talks
were taking far longer than expected. Jean-
Rene Bernard, the chief French negotiator, said
he was astonished when Mr. Shapiro, his
patience depleted, ran to the door of the room
and, in a very un-Gallic gesture, began kicking it
repeatedly, shouting, "Get me something to
break!" There was also snipping from Parisian
intellectuals who attacked the transplantation
of Disney's dream world as an assault on
French culture; "a cultural Chernobyl," one
prominent intellectual called it.
The minister of culture announced he would
boycott the opening, proclaiming it to be an
unwelcome symbol of American clichés and a
consumer society. Unperturbed, Disney pushed
ahead with the planned summer 1992 opening
of the $5 billion park. Shortly after Euro-
Disneyland opened, French farmers drove their
tractors to the entrance and blocked it.
This globally televised act of protest was aimed
not at Disney but at the US government, which
had been demanding that French agricultural
subsidies be cut. Still, it focused world attention
upon the loveless marriage of Disney and Paris.

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Then there were the operational errors.
Disney's policy of serving no alcohol in the park,
since reversed caused astonishment in a
country where a glass of wine for lunch is a
given. Disney thought that Monday would be a
light day for visitors and Friday a heavy one and
allocated staff accordingly, but the reality was
the reverse. Another unpleasant surprise was
the hotel breakfast debacle. "We were told that
Europeans 'don't take breakfast,' so we
downsized the restaurants," recalled one
Disney executive. "And guess what? Everybody
showed up for breakfast. We were trying to
serve 2,500 breakfasts in a 350-seat restaurant
at some of the hotels. The lines were
horrendous. Moreover, they didn't want the
typical French breakfast of croissants and
coffee, which was our assumption. They
wanted bacon and eggs." Lunch turned out to
be another problem. "Everybody wanted lunch
at 12:30. The crowds were huge. Our smiling
cast members had to calm down surly patrons
and engage in some
'Behaviour modification' to teach them that
they could eat lunch at 11:00 AM or 2:00 PM."

There were major staffing problems too. Disney


tried to use the same teamwork model with its
staff that had worked so well in America and
Japan, but it ran into trouble in France. In the
first nine weeks of Euro-Disneyland's operation,
roughly 1,000 employees, 10 percent of the
total, left. One former employee was a 22-
yearold medical student from a nearby town
who signed up for a weekend job. After two
days of "brainwashing," as he called Disney's
training, he left following a dispute with his
supervisor over the timing of his lunch hour.
Another former employee noted, "I don't think
that they realize what Europeans are like. . .
that we ask questions and don't think all the
same way."
One of the biggest problems, however, was
that Europeans didn't stay at the park as long
as Disney expected. While Disney succeeded in
getting close to 9 million visitors a year through
the park gates, in line with its plans, most
stayed only a day or two. Few stayed the four
to five days that Disney had hoped for. It seems
that most Europeans regard theme parks as
places for day excursions. A theme park is just
not seen as a destination for an extended
vacation. This was a big shock for Disney.
The company had invested billions in building
luxury hotels next to the park-hotels that the
day-trippers didn't need and that stood half
empty most of the time. To make matters
worse, the French didn't show up in the
expected numbers. In 1994, only 40 percent of

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the park's visitors were French. One puzzled
executive noted that many visitors were
Americans living in Europe or, stranger still,
Japanese on a European vacation! As a result,
by the end of 1994 Euro-Disneyland had
cumulative losses of $2 billion. At this point,
Euro-Disney changed its strategy.

First, the company changed the name to


Disneyland Paris in an attempt to strengthen
the park's identity. Second, food and fashion
offerings changed. To quote one manager, "We
opened with restaurants providing French-style
food service, but we found that customers
wanted self-service like in the US parks.
Similarly, products in the boutiques were
initially toned down for the French market, but
since then the range has changed to give it a
more definite Disney image." Third, the prices
for day tickets and hotel rooms were cut by
one-third. The result was an attendance of 11.7
million in 1996, up from a low of 8.8 million in
1994.

Case discussion Questions

Each Answer word count should be 250 and


above.

1 (a) What assumptions did Disney make


about the tastes and preferences of French
consumers? Which of these assumptions were
correct? Which were not?

1 (b) How might Disney have had a more


favourable initial experience in France? What
steps might it have taken to reduce the
mistakes associated with the launch of Euro-
Disney?

1 (c) In retrospect, was France the best choice


for the location of Euro-Disney?

To develop an effective positioning a“


company must study competitors as
well as actual potential customers.”
Describe in detail how can you
.develop an effective positioning
Question 2 A1, B1, B2, C2 5
Each Answer word count should be 250 and
above.

References are optional

Question 3 Critically analyse the following A1, B2, C2 5


statement: “Marketers typically focus
on brand benefits in choosing points

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of parity and points of difference that
”.make up their brand positioning
Each Answer word count should be 250 and
above.

References are optional

Compare and contrast brand equity


and customer equity
Each Answer word count should be 250 and
above. A1, B1, C3, C4,
Question 4 5
D5
References are optional

Total 40

General Instructions
e.g., No mobiles, Formulae Tables, Logarithm Tables, ….

Questions

Marks (25) Question 1

Case Study: Disney in France


Until 1992, the Walt Disney Company had experienced nothing but success in the theme park
business. Its first park, Disneyland, opened in Anaheim, California, in 1955. Its theme song, "It's
a Small World After All, “promoted "an idealized vision of America spiced with reassuring
glimpses of exotic cultures all calculated to promote heart-warming feelings about living
together as one happy family. There were dark tunnels and bumpy rides to scare the children a
little but none of the terrors of the real world.
The Disney characters that everyone knew from the cartoons and comic books were on hand to
shepherd the guests and to direct them to the Mickey Mouse watches and Little Mermaid
records. The Anaheim Park was an instant success. In the 1970s, the triumph was repeated in
Florida, and in 1983, Disney proved the Japanese also have an affinity for Mickey Mouse with
the successful opening of Tokyo Disneyland. Having wooed the Japanese, Disney executives in
1986 turned their attention to France and, more specifically, to Paris, the self-proclaimed capital
of European high culture and style. "Why did they pick France?" many asked. When word first
got out that Disney
wanted to build another international theme park, officials from more than 200 locations all
over the world descended on Disney with pleas and cash inducements to work the Disney magic
in their hometowns.
But Paris was chosen because of demographics and subsidies. About 17 million Europeans live
less than a two-hour drive from Paris. Another 310 million can fly there in the same time or less.
Also, the French government was so eager to attract Disney that it offered the company more
than $1 billion in various incentives, all in the expectation that the project would create 30,000
French jobs.
From the beginning, cultural gaffes by Disney set the tone for the project. By late 1986, Disney

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was deep in negotiations with the French government. To the exasperation of the Disney team,
headed by Joe Shapiro, the talks were taking far longer than expected. Jean-Rene Bernard, the
chief French negotiator, said he was astonished when Mr. Shapiro, his patience depleted, ran to
the door of the room and, in a very un-Gallic gesture, began kicking it repeatedly, shouting, "Get
me something to break!" There was also snipping from Parisian intellectuals who attacked the
transplantation of Disney's dream world as an assault on French culture; "a cultural Chernobyl,"
one prominent intellectual called it.
The minister of culture announced he would boycott the opening, proclaiming it to be an
unwelcome symbol of American clichés and a consumer society. Unperturbed, Disney pushed
ahead with the planned summer 1992 opening of the $5 billion park. Shortly after Euro-
Disneyland opened, French farmers drove their tractors to the entrance and blocked it.
This globally televised act of protest was aimed not at Disney but at the US government, which
had been demanding that French agricultural subsidies be cut. Still, it focused world attention
upon the loveless marriage of Disney and Paris. Then there were the operational errors. Disney's
policy of serving no alcohol in the park, since reversed caused astonishment in a country where
a glass of wine for lunch is a given. Disney thought that Monday would be a
light day for visitors and Friday a heavy one and allocated staff accordingly, but the reality was
the reverse. Another unpleasant surprise was the hotel breakfast debacle. "We were told that
Europeans 'don't take breakfast,' so we downsized the restaurants," recalled one Disney
executive. "And guess what? Everybody showed up for breakfast. We were trying to serve 2,500
breakfasts in a 350-seat restaurant at some of the hotels. The lines were horrendous. Moreover,
they didn't want the typical French breakfast of croissants and coffee, which was our
assumption. They wanted bacon and eggs." Lunch turned out to be another problem.
"Everybody wanted lunch at 12:30. The crowds were huge. Our smiling cast members had to
calm down surly patrons and engage in some
'Behaviour modification' to teach them that they could eat lunch at 11:00 AM or 2:00 PM."

There were major staffing problems too. Disney tried to use the same teamwork model with its
staff that had worked so well in America and Japan, but it ran into trouble in France. In the first
nine weeks of Euro-Disneyland's operation, roughly 1,000 employees, 10 percent of the total,
left. One former employee was a 22-year-old medical student from a nearby town who signed
up for a weekend job. After two days of "brainwashing," as he called Disney's training, he left
following a dispute with his supervisor over the timing of his lunch hour. Another former
employee noted, "I don't think that they realize what Europeans are like. . . that we ask
questions and don't think all the same way."
One of the biggest problems, however, was that Europeans didn't stay at the park as long as
Disney expected. While Disney succeeded in getting close to 9 million visitors a year through the
park gates, in line with its plans, most stayed only a day or two. Few stayed the four to five days
that Disney had hoped for. It seems that most Europeans regard theme parks as places for day
excursions. A theme park is just not seen as a destination for an extended vacation. This was a
big shock for Disney.
The company had invested billions in building luxury hotels next to the park-hotels that the day-
trippers didn't need and that stood half empty most of the time. To make matters worse, the
French didn't show up in the expected numbers. In 1994, only 40 percent of the park's visitors
were French. One puzzled executive noted that many visitors were Americans living in Europe
or, stranger still, Japanese on a European vacation! As a result, by the end of 1994 Euro-
Disneyland had cumulative losses of $2 billion. At this point, Euro-Disney changed its strategy.

First, the company changed the name to Disneyland Paris in an attempt to strengthen the park's

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identity. Second, food and fashion offerings changed. To quote one manager, "We opened with
restaurants providing French-style food service, but we found that customers wanted self-
service like in the US parks. Similarly, products in the boutiques were initially toned down for
the French market, but since then the range has changed to give it a more definite Disney
image." Third, the prices for day tickets and hotel rooms were cut by one-third. The result was
an attendance of 11.7 million in 1996, up from a low of 8.8 million in 1994.

Case discussion Questions

1(a) What assumptions did Disney make about the tastes and preferences of French
consumers? Which of these assumptions were correct? Which were not?

1(b) How might Disney have had a more favourable initial experience in France? What steps
might it have taken to reduce the mistakes associated with the launch of Euro-Disney?

1(c) In retrospect, was France the best choice for the location of Euro-Disney?

Each Answer word count should be 250 and above

Answer

1(a) Disney had made the assumptions that on Mondays it would be a light day for visitors and
Friday would in turn be a heavy one and Disney tried allocating staff according to the busy days
and their specialty, but this only turned out to be the opposite.

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They made the assumption that the French don't take breakfast, but they were surprised as a
large number turned out for breakfast more than expected. They also didn't want the typical
French breakfast of croissants and coffee which is what Disney had assumed to be what the
French would want for breakfast.

Presumptions that square measure right or not right: * film maker believed that Monday would


be a light-weight day for guests and Friday a hefty one. * Disneyland concept Europeans do
not eat breakfast. * Disneyland felt that the Europeans would like the commonplace French
breakfast of croissants and coffee. * film maker diminishes the prices of the lodging and day
tickets. * film maker opens own eateries with giving French-style food administration. * Euro-
Disney modified its name.”

“Between totally different societies among the globe several see tastes and inclinations


in numerous style (Smelser). For film maker and their domain setting themselves in French a
region delivered a failure of social contrasts. film maker while not a doubt created suppositions
on French purchasers that as a general rule blew abreast of the partnership.”

Assumptions:
1- “Disney created assumption for guests a Friday are going to be troublesome day and cash are
going to be a lot of lightweight day for them”
2- “They created assumptions that nation of Europe don’t do breakfast intrinsically.
3- Disney created assumption that individuals of Europe can prefer to take low and crescent
roll breakfast.”
4- “Price of rooms of edifice and price tag of day time can scale back.”
Assumptions not Correct:
1- “Disney created assumption for guests a Friday are going to be troublesome day and cash are
going to be a lot of lightweight day for them. And its opposite essentially.”
2- “They created assumption that nation of European individuals doesn’t take
breakfast however essentially everybody needed breakfast.”
3- “Price of rooms of edifice and price tag of day time can scale back.”
Assumptions which are correct:
1. When Disneyland was trying to reduce the costs by 1/3, the number of people attended
increased from 8.8million to 11.7million. this assumed assumption was correct

1(b) when Disney opened in France initially, monetary pattern of the whole nation was in
downturn, other comparable patterns start to happen in other European nations.”

“Disney has not expected the social contrasts, shopping for conduct and inclinations that exist
between the Europe significantly French. The nation of France cited it as a social metropolis,
thought of Disneyland like socialising attack of Yankee culture into Europe. Walter Elias
Disney contemplated their social distinction and

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altered their partisanship methodology whereas problem solving procedures.”
“” “purpose once it came for promoting Walter Elias Disney separated itself as
commonplace yank vogue as a picture of luxury and largeness. The advertising would be a lot
of fruitful if Walter Elias Disney has centred on the passionate viewpoint
by creating an encounter one will get is one among a sort and extra-common. a lot of over the
administration did not contend with the general public affiliation well.””
“The implies that might beat the problems connected with the dispatch of Walter Elias
Disney are:”

“Value:  Walter Elias Disney have to be compelled to have scaled down


their worth in lightweight of the continual worsening the per capita pay
has attenuate colossally.”
“Inward selling. the inside advertising blunder was execution yank cluster model into
France. simply following not several long stretches of gap of Walter Elias Disney 100 percent of
the representatives left in sight of the lone hand into the yank work atmosphere vogue.
The wear regulation and various things essentially forgotten the French work laws.”

“Disney from the beginning promoted too extensively stupidly concerning varied public business


sectors (Assignment Help). Indeed, varied nationals incline toward varied style and
convenience. Walter Elias Disney might have opened branches in varied European nations
for operating with their needs and transference bundles to its own market.”
“Associations: To attract a lot of guests to the Walter Elias Disney it required to form solid
business associations with varied the travel trade systematic inns, travel services and aircrafts.
Through solid associations the Walter Elias Disney may need reached to a lot of guest
and transference tailor-made bundles as indicated by the requirement of purchasers.”

1(c) Disney in the location of France was a huge error as its overall loss was of 0.3 billion. 

“As a result, by the end of 1994 Euro-Disneyland had total misfortunes of $2 billion. On the
opposite hand, Paris was picked in sight of socioeconomics and subsidies. Some European lives
at a drive of almost 2 hours from Paris. Another 310 million will fly there in a very similar time or
less. Likewise, the French government was thus anxious to attract movie maker that it offered
the organization quite $1 billion in several motivators, tired the idea that the venture
would build thirty,000 French jobs. Moreover, Paris that is solely the capital of France (Ardagh,
2021) is to boot capital of European high culture and magnificence.”

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“According to my viewpoint European nation would be a good call for the Euro-Disney since
its willingness to totally different societies. to boot, the atmosphere is likewise a further profit”

Student Mark:

Question 2 Marks (5)

To develop an effective positioning a company must study competitors as well “


as actual potential customers.” Describe in detail how can you develop an
.effective positioning
Each Answer word count should be 250 and above.

References are optional

Answer

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Market locating is that the purpose at that a company changes its current image or
item standing within the business centre. A company can study actual potential customers as
well as customers through the social media.””
“Numerous organizations, instead of locating, conceive to dispatch another item or whole on
account of the many expenses and toil required to effectively reposition a whole or item.”
“Make a situating clarification which will serve to differentiate your business and the way you
would like the whole to be seen by purchasers.”

“Distinguish current market position
“Recognize your current market position and the way the new situating is going to be valuable
in separating you from contenders.”.”
“Contender situating examination”
““Recognize the states of the business centre and therefore the live of
impact each contestant will wear each other.”
4. Foster a situating technique
“” “For instance, The Coca-Cola Company sent Mother Energy Drinks in 2006 into the Australian
market. The dispatch crusade was like an expert dead, and Coca-Cola had the choice to use its
dispersion channels to induce the item into vital retailers. In any case, the flavour of Mother
Energy Drink was inferior and rehash buys were exceptionally low (CFI). Coca-Cola was
confronted with a choice: to boost and reposition the item or pull out it and gift another item.
The organization ultimately selected to reposition the item as a result of whole attentiveness. 
The organization modified the bundling, expanded the scale of the will, and worked on the
flavour of the item. The relaunch of the item enclosed another expression – "New Mother,
tastes in no manner just like the bygone one." Ultimately, Coca-Cola had the choice to
effectively reposition Mother Drinks and therefore the whole these days contends with the
2 driving caffeinated drink Red Bull.”
So, In this way a company can develop an effective positioning by studying the competitors and
potential competitors and their techniques so they can earn maximum profits.

Student Mark:

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Question 3 Marks (5)
Critically analyse the following statement: “Marketers typically focus on brand
benefits in choosing points of parity and points of difference that make up their
”.brand positioning
Each Answer word count should be 250 and above.

References are optional

Answer
“Marketers focus on the benefits of brand while making decisions either to choose points parity and
points differences that help them to make brand positioning.”
“points of parity Places of equality are the "unquestionable requirements" of any brand to be viewed as
a genuine rival in its particular class. Places of equality are the reasons shoppers add your image to the
rundown of options for thought. These ascribes are not brand differentiators, and ought not be utilized
as the critical message in your promoting. In any case, before you work on distinguishing your upper
hand, you need to ensure you have the marks of equality covered.”
“points of difference Places of separation are the characteristics that make your image special. It is your
image's incentive, its upper hand. The places of separation are the reasons why shoppers ought to pick
your image over rivalry. These credits should be reliably reflected in your image motto, and publicizing.”
Proficient Services-Points of Parity
“The last model accepts you are searching for a specialist organization to assist your business with
developing. Here are a few rules your underlying competitors will likely need to meet:”
 “have an educational site that give an outline of their ability and capacities.”
 “be receptive to your solicitations.”
 “give a far reaching suggestion that accommodates your spending plan.”
 “can give instances of their work and references.”
Proficient Services-Points of Differentiation
 “The triumphant firm will be the one that:”
 “has mastery in your industry/market portion.”
 “give adaptable installment terms.”
 “exceed all expectations in giving data that will help your choice.”
 “offers adaptable cooperation alternate”

Student Mark:

Question 4 Marks (5)

Page 12 of 14
Compare and contrast brand equity and customer equity
Each Answer word count should be 250 and above.

References are optional

Answer
Student Mark:

Student Feedback

“Brand equity shows the worth of brand. Its like a brands value and strength. Whereas, customer
equity are values that are important to customers for a longer period of time.
But equity and customer values both focus on the loyalty of customer and their importance.
Brand equity is like what the strategic issues brand face. And customer equity is like what the
values we as brand get from the customers by considering their needs.”

Brand Equity:
“Its like a value of brand and could be considered as an asset. It reflects the relationship of
customer with the business. Brand equity measures what actually a customer thinks of the
brand. And how he values brand either in a positive or negative way.

Components of Brand are:


1- “Brand awareness: The first step is to make the brand awareness, either brand know about
your business or not. It includes making the customers aware, it includes more advertising etc.”

2- “Brand loyalty: are the customers loyal enough that they buy from your brand and also
recommend to other friends and family as well.”

Customer Equity:
“Organizations regularly face the difficulties of progressively knowing clients and very high rivalry
on the lookout. Each brand's endurance over its encompassing rivals relies upon its capacity to
build client value.”

“In the present market, client value is fundamental since it assists you with assessing the
monetary benefit you can get from every one of your clients during your relationship. This
permits organizations to assess their client resource worth and settle on strong monetary choices
in regards to add-on selling, maintenance, and procurement.”

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Total marks for the Examination Paper:

END OF EXAMINATION

Date:08/07/2021

Instructor’s Signature

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