UNIVERSITY EXAMINATIONS 2020/2021

EXAMINATION FOR BACHEOR OF BUSINESS INFORMATION

TECHNOLOGY/APPLIED COMPUTING
BUSS 205/ BAC 2309: PRINCIPLES OF MARKETING
FULL TIME/PART TIME/ DISTANCE LEARNING
ORDINARY EXAMINATION
DATE: AUGUST, 2021 TIME: 3 HOURS

INSTRUCTIONS: ANSWER ALL THE QUESTIONS

QUESTION ONE (20 MARKS)

Priceless international plc, a Kenyan Corporation, has invented “ Mbwanitizi” a treadmill that is
designed to exercise overweight dogs. The ‘Mbwanitiz’ dog exercise machine is aimed at dog
owners who are too idle or too busy to give their dog a decent walk. It is also thought likely to
appeal to veterinary surgeons, who might use the treadmill in treatment courses for obese dogs.

a) Comment on the choice of brand name. [2 Marks]

b) With the aid of a diagram, advice Priceless plc.’s management on the diffusion process.
[8
Marks]
c) By analyzing Mbwanitizi’s characteristics, comment on its expected rate of diffusion.
[4
Marks]
d) Explain the strategic options Priceless may pursue as they introduce this innovation.
[6
Marks]
QUESTION TWO (20 MARKS)
Ericsson: time-to-market
The mobile phone industry provides an illustration of how critical T-t-M cycles can be.
Although the market is booming, it is characterized by intense competition and rapid
technological development. Ericsson – the manufacturer on mobile phone handsets – has
recently seen its market share drop within this growing market. These difficulties are largely
attributed to the delay in launching a key product (The T28). The company is quoted as stating
that the T28 was nearly a year late and that they had to cancel the T36 because it had only a short
market life. Such delays caused Ericsson to miss out on demand for low-cost handsets aimed at
the expanding pre-pay mobile phone market.

a) From the SCENARIO above discuss the activities at the commercialization stage of the
product life cycle and their implication to Ericsson. [4 Marks]
b) Explain Strategy options that Ericsson may have pursued. [8 Marks]
c) Why is the technological environment such a dramatic force in today's market? Support
your arguments with the scenario above. [8 Marks]

QUESTION THREE (10 MARKS)

Before Janet set out to purchase product for need x that was sufficiently pressing, she had zeroed
down to 4 brands. For her to select which among the four she preferred was not easy. She had to
closely compare these products carefully. Though they were very similar she didn’t want to
make any mistakes.

a) Explain the buying behavior exhibited by Janet. [1 Marks]

b) State four possible characteristics of the products Janet was comparing. [4 Marks]
c) What name is used to refer to the four brands she was evaluating? [1 Marks]
d) At what stage of the buying decision process is she? [1 Marks]
e) Discuss THREE factors specific to Janet, that may influence her choice [3 Marks]