Examiners’ commentaries 2022

Examiners’ commentaries 2022

MN3141 Marketing management

Important note

This commentary reflects the examination and assessment arrangements for this
course in the academic year 2021–2022. The format and structure of the
examination may change in future years, and any such changes will be publicised
on the virtual learning environment (VLE).
Information about the subject guide and the Essential reading references
Unless otherwise stated, all cross-references will be to the latest version of the
subject guide (2019). You should always attempt to use the most recent edition
of any Essential reading textbook, even if the commentary and/or online reading
list and/or subject guide refer to an earlier edition. If different editions of Essential
reading are listed, please check the VLE for reading supplements – if none are
available, please use the contents list and index of the new edition to find the
relevant section.

General remarks

Learning outcomes
At the end of this course and having completed the Essential reading and Activities,
you should be able to:
• discuss the function and effect of advertising/promotion from an
organisational perspective
• describe the pricing behaviour of firms in an uncertain environment where
information may be limited or wrong
• describe and analyse the marketing behaviour of firms and consumers.

What the examiners are looking for

The guidance as in previous years remains that you should pay special attention to
the content of the Subject guide, you should read the relevant chapters of Kotler and
Armstrong and you should keep up-to-date with developments in marketing by
reading the business sections of newspapers, relevant blogs and listen to podcasts
on the subject. There is also value in observing the practice of marketing as you visit
shops whether physical ones or online and seeking to understand why advertisers
design campaigns in the way that they do. You will find questions which present you
with a specific marketing context. Your answers to such question will benefit from
reading the business media, however there will be no advantage to be gained from
being familiar with the specifics of the business context. All the information that you

1
MN3141 Marketing management

need is presented in the question and any omissions can be addressed with the use
of assumptions.
There was one common feature that distinguished better answers from weaker ones.
The former paid attention to the narrative in the question text and made explicit
references to it where necessary. Weaker answers answered questions in more
general terms. We have been using questions based around ‘cases’ and will continue
to do so, this approach encourages students to apply their knowledge to real
situations and it is a better assessment of understanding rather than just recall of
concepts. The above guidance was given in the 2020-2021 commentary and it is
clear that a number of students did not pay attention to it. To reiterate: you cannot
perform well in this exam by demonstrating a recall of course concepts. It is their
application to the contexts provided in questions that yields the highest marks.
The exam paper questions that follow generated scores that were in line with other
courses at this level. The questions were generally well understood and there were
some very strong answers.

Examination revision strategy

Many candidates are disappointed to find that their examination performance is

poorer than they expected. This can be due to a number of different reasons and
the Examiners’ commentaries suggest ways of addressing common problems
and improving your performance. We want to draw your attention to one particular
failing – ‘question spotting’, that is, confining your examination preparation to a
few question topics which have come up in past papers for the course. This can
have very serious consequences.
We recognise that candidates may not cover all topics in the syllabus in the same
depth, but you need to be aware that examiners are free to set questions on any
aspect of the syllabus. This means that you need to study enough of the syllabus
to enable you to answer the required number of examination questions.
The syllabus can be found in the Course information sheet in the section of the
VLE dedicated to this course. You should read the syllabus very carefully and
ensure that you cover sufficient material in preparation for the examination.
Examiners will vary the topics and questions from year to year and may well set
questions that have not appeared in past papers – every topic on the syllabus is
a legitimate examination target. So although past papers can be helpful in
revision, you cannot assume that topics or specific questions that have come up
in past examinations will occur again.
If you rely on a question spotting strategy, it is likely you will find yourself
in difficulties when you sit the examination paper. We strongly advise you
not to adopt this strategy.

2
 Examiners’ commentaries 2022

Examiners’ commentaries 2022

MN3141 Marketing management – Zone B

Important note
This commentary reflects the examination and assessment arrangements for this
course in the academic year 2021–2022. The format and structure of the
examination may change in future years, and any such changes will be publicised
on the virtual learning environment (VLE).
Information about the subject guide and the Essential reading references
Unless otherwise stated, all cross-references will be to the latest version of the
subject guide (2019). You should always attempt to use the most recent edition
of any Essential reading textbook, even if the commentary and/or online reading
list and/or subject guide refer to an earlier edition. If different editions of Essential
reading are listed, please check the VLE for reading supplements – if none are
available, please use the contents list and index of the new edition to find the
relevant section.

Comments on specific questions

Candidates should answer FOUR of the following EIGHT questions. All
questions carry equal marks.
Question 1
This question is about consumers’ evaluation of different washing machine
brands.

How customers feel about different brands*

Efficient
Overall Efficient Rinsing Ease of
Brands Low Noise Energy
cleaning Water use efficiency use
use

Meile 7.4 5.8 7.3 6.3 7.5 4.8

Shark 6.5 6.9 7.2 6.5 6.2 5.6

Hoover 5.2 6.2 7.5 7.3 5.4 5.2

*Numbers shown represent mean ratings of various brands on a 10-point scale where 1 =
poor and 10 = excellent; survey conducted among a representative sample of consumers
who indicated high interest in purchasing a washing machine

3
MN3141 Marketing management – Zone B

Efficient
Efficient Rinsing Ease of
Overall cleaning Low Noise Energy
Water use efficiency use
use

2 4 3 1 3 4

*Numbers shown represent mean importance ratings of various attributes/features as

measured on a 5-point scale where 1 = not at all important and 5 = extremely important;
survey conducted among a representative sample of consumers who indicated high
interest in purchasing a washing machine

a) Which is the brand that may be most popular for people who take all the
criteria into account (5 marks)

b) If you were responsible for marketing the Hoover how would you position
this brand? (5 marks)

c) Which segment of customers do you think the marketing team at Meile

should target? (5 marks)

d) What other factors should the management teams for these brands
consider before deciding on their strategies? (10 marks)

For all the above questions state any assumptions that you need to make.

Reading for this question

Subject guide chapter 14.
Approaching the question
a) This question required students to show customer attitudes to the different brands
and one means of doing so was to perform some basic calculations to establish
customer attitudes using the compensatory approach. Better answers showed
how the calculations had been performed e.g. that for the Meile brand a total
score of 107.9 would be obtained by multiplying customers’ evaluation of the
different attributes by the score customers gave Meile on the different criteria.
The strongest answers recognized that the compensatory approach was not the
only means by which attitudes could be calculated. Results that could be obtained
using non-compensatory approaches were also necessary for a full mark.
b) This question required students to use the results from the analysis for part (a) to
explain the positioning choices open to Hoover management. Students should
recall that positioning refers to the space a brand occupies in customers’ minds
in relation to the alternatives. In this case the brand could be positioned on those
attributes where it scores most highly and better answers would explain how it
compares to other brands. It can be helpful for students to think of a positioning
map when writing about the concept and some better answers drew a cross and
showed where Hoover could be positioned in relation to its competitors. Hoover
could position this brand in terms of rinsing efficiency and/or ease of use, where
it scores the highest. The above could make it more attractive to segments where
these benefits matter the most e.g. the elderly.

4
 Examiners’ commentaries 2022

c) Meile scores best on noise and overall cleaning and loses on environmental
concerns. The appropriate segment would likely be one which wants
performance benefits but in terms of values for example, is not too concerned
about the environment. This question asked about the segment that Meile should
target. Better answers made use of the different segmentation bases to describe
such a market. So for example the segments could be described in terms of
demographics, behavioural, geographic and psychographic terms. Better
answers prioritized those bases which appeared to better predict customer
response to the purchase of washing machines.
d) The best answers to this question identified two broad factors. The first was to do
with other influences on customer decision making which do not appear to be
considered above. The most obvious one and most commonly cited in answers
was price. Other factors could be the size and growth of different segments, for
example. Another broad factor was to do with methodology. A significant answer
here was the exclusive use of positive numbers. Negative numbers can indicate
which functional consequences present negative utility for the consumer and
which lower the value of the offering (Schwartz, 1999). For example, a utilitarian
benefits-oriented respondent that would want to indicate that high price is a very
negative consequence indicates this by giving 50 points to the attribute. Another
consumer, that is more hedonic and might see high price equalling high prestige,
may also give 50 points to the attribute. Yet, the meaning of these two numbers
is entirely different. This information does not get lost using the -10/+10 scale.
Such a discussion could also include the need to consider the issue of cognitive
load on respondents for different scales.

Question 2
A leading fashion designer is quoted as saying that she does not know what
the word ‘sustainable’ means any more. Assuming this lack of clarity is
widespread amongst businesses and consumers, discuss the implications for
fashion marketers. (25 marks)

Reading for this question

Subject guide chapter 8 and 13.
Approaching the question
This is a deliberately broad question and can draw upon a range of different topics.
The keyword in this question is ‘sustainable’ and students needed to demonstrate an
understanding of the concept which they would have gained from their study of the
societal marketing concept and corporate social responsibility. The question also
refers to a ‘fashion designer’. The link between the fashion industry and sustainability
is not explicitly made in the course and this is where broader reading is necessary.
Nevertheless, the question can still be answered based on first principles, with the
fashion industry representing a consumer good and relevant associations could have
been made with consumerism (which is covered in chapter 13 of the subject guide).
There were some very good and thoughtful answers to this question and the better
ones, in general, took the following approach.
Students do need to explain what sustainability means and its application to the
fashion industry. Answers should then move onto explain what is meant by the phrase
‘lack of clarity’, this does not need industry-specific knowledge and students should
be able to present the argument that how sustainability is measured in the industry
varies and firms use different metrics. If, as the question suggests this lack of clarity
is widespread - when consumers are faced with choices they find it hard to decide

5
MN3141 Marketing management – Zone B

which brands are sustainable and which ones are not. The implication for marketers
is greater clarity of the sustainability standards to which they try and adhere and how
they do so.
Concepts to which answers could make reference include (but are not limited to):
Societal orientation; CSR/Corporate social responsibility; personal values / brand
values; positioning; psychographic segmentation; extrinsic and intrinsic cues /
confidence and predictive values. The latter two concepts were very relevant here,
but very few candidates made reference to them. Answers could follow the following
logic:
‘Sustainable’ is considered a positive attribute especially by environmentally
conscious customers (psychographic segmentation) – firms wanting to appeal to
them will use it and incorporate as part of their brand values
Another factor motivating brands to do this are various social and cultural trends
Due to customers’ information asymmetry / bounded rationality (consumers don’t
know how to measure/assess this), firms can take advantage of this and behave in
an opportunistic manner – claim sustainability where this does not really exist.
Where a product’s intrinsic cues (which have high predictive value, but which
customers find hard to assess) do not signal sustainability, firms can use extrinsic
cues (which customers can understand easily, but which do not indicate
sustainability).

Question 3
The Air Jordan was one of a series of trainers produced by Nike, but associated
with Michael Jordan (a famous basketball player), it launched in the 1980s and
has since become iconic. A more recent product is the Air Dior which swaps
Nike’s primary colours with grey tones from the Christian Dior headquarters in
Paris. Christian Dior is a famous French high end fashion brand. The Nike
swoosh is also overlaid with the Dior logo. Discuss the advantages and
disadvantages of this branding initiative from the perspective of Dior. (25
marks)

Reading for this question

Subject guide chapter eight.
Approaching the question
This question is about the brand strategies model, but it can be approached without
explicit reference to that model – though it may be hard to score a very high mark
without some reference to the model. The question asks students to assess this
development from the perspective of Dior, students who answered this question from
the perspective of Nike did still score but were unable to maximise their marks.
It was clear that some students were aware of the specifics of this story and others
were not. Knowledge of the specifics of the case would not give students any added
advantage. For example, those who appeared to be familiar made the point that these
shoes were limited edition and cost far more than the usual Nike sneakers. This
observation led to some different conclusions compared to answers which assumed
that the sneakers were in the same price range as Nike’s usual offerings, however
there was no mark advantage to be gained as a result.

6
 Examiners’ commentaries 2022

Assuming that Dior does not already compete in the trainer market, this is a new
category for Dior. Since the question says that the Dior brand also appears on the
trainers, this could be classified as a brand extension.
The argument above is a fairly succinct means of making the link with the brand
strategies model and this approach is preferred to one where someone gives a
detailed description of the model, which was not asked for. Better answers would
then move onto a discussion of the advantages and disadvantages and the
arguments given could include the following advantages. A brand extension would
enable Dior to appeal to segments (perhaps lower income ones) that it has not done
previously. This move may enable it to enter a product category where it has not
previously had a presence.
Disadvantages of this move could be the following. This move may alienate existing
customers who may not appreciate the move towards contemporary street culture. It
may reposition Dior lower compared to competing brands (this assumes a lower price
point than its existing offerings) and make it harder for the brand to charge premium
prices.
Better answers covered both negative and positive aspects of the move. They took
into account Dior’s existing position in the market and the likely downward move this
strategy may involve they also recognised the advantages this may offer in terms of
growing segments. Weaker answers were more likely to focus either on positives or
negatives. Such answers would ignore the issue of the position that Dior has and way
this initiative could be seen as affecting that position.

Question 4
Your luxury watch company is reviewing proposals for a new advertising
campaign. The advertising agency is presenting some creative executions
showing images of the watch together with a breakdown of the materials used
to make them and the hours spent in their manufacture. The agency
representative says that as a high involvement purchase people need
information to address the various risks the purchase represents. The
information in the advertisement will allay the fears of rational purchasers.
Assess the effectiveness of this pitch, using course concepts. (25 marks)

Reading for this question

Subject guide chapter 10.
Approaching the question
The proposal assumes that customer decision making is rational and when making
such purchases people will gather information, analyse it and behave accordingly.
This approach also assumes that for a product such as a luxury watch such attributes
can be measured and assessed. For some consumers, decision making may work in
this manner and some answers explained how such a campaign could try and justify
the prices charged.
This answer requires students to recognise the difference between utilitarian and
hedonic goods (which is covered in various places in the Subject guide). Luxury
watches are hedonic goods, bought for their aesthetics, the emotions that they elicit
and so on. Consumers may not necessarily focus on the risk reducing elements of
an advertising campaign.

7
MN3141 Marketing management – Zone B

Consumers may respond to advertising that positions the brand/model using e.g.
surrogate positioning and which identifies the relevant self-concept, for example. This
type of campaign would appeal more to the emotions of potential customers rather
than rational aspects of their decision making.
Better answers identified and discussed points that supported and critiqued the
proposal. They picked up on the reference to various concepts mentioned in the
question and elaborated on them. They also referred to other associated concepts
e.g. hedonic and utilitarian goods. Weaker answers missed the links with various
course concepts mentioned in the question. They ignored their relationships with
other course concepts. They also made significant use of everyday English rather
than course concepts, such answers referred to actual watch brands in a descriptive
manner rather than making links with course concepts.

Question 5
An online newspaper runs an interactive advertisement for a car brand. Having
read the following question, “What is your relationship with the Alpha brand of
cars?” respondents have to select one of the following options:
a) I am not familiar with Alpha (5 marks)
b) I know the brand but am not interested in it (5 marks)
c) I know the brand and would consider buying it (10 marks)
d) It is my preferred brand (5 marks)

For each of the possible answers above, explain how the marketer could try
and influence the segment of consumers who selected that answer. State any
necessary assumptions.

Reading for this question

Subject guide chapter four.
Approaching the question
This question is about the hierarchy of effects and how marketers may respond when
they find out that different percentages of responses to an online poll are in different
response categories.
a) This part refers to people who answered “I am not familiar with Alpha”, for such
people who are not familiar with the brand, Alpha needs to raise awareness of
the brand amongst target audience. Using the promotion mix, marketers can use
raise awareness of the brand and link the brand to the category need for example.
So if Alpha is a sports car, awareness raising promotion could make people
aware that Alpha belongs to that category of cars.
b) This part refers to people who know the brand and are not interested in it. The
options open to Alpha are to (a) ignore these people, (b) find out reasons for
disinterest and perhaps change their attitudes towards the brand, but given the
limited resources, this could be difficult and it may be more profitable to
communicate with one of the other groups. A great deal would depend on the
size and potential value of this segment.
c) For this part, those people who know the brand and would consider buying it, the
firm could try and convert potential buyers from having purchase intention to
purchase. The managers of Alpha could make use of incentives for example to
stimulate purchase. They could also use personal selling – to overcome any
doubts and ensure purchase is made and finally they could consider use of e.g.

8
 Examiners’ commentaries 2022

easier payment terms, free delivery and addressing any other barriers that may
inhibit purchase taking place.
d) For this part it is reasonable to assume that these respondents are already
customers. Given the product category (cars) and length of purchase cycles, the
potential for additional purchases may be limited. Perhaps have these buyers
may be asked to: Write reviews; Promote the brand to via word-of-mouth; Engage
in co-creation via members clubs etc.; Make sure the marketer explains the built-
in attributes so they extract all the value.

It is important to recognise that part (c) was worth 10 marks and all other parts were
worth 5 marks. We would therefore expect more depth and detail for part (c) than the
others. Some students believed that for part (d) the question was referring to people
who were yet to make up their minds. Where reasonable points were made and did
not overlap with part (c) then credit was given.

Question 6
Himalayan pink salt comes from mines located in Pakistan. This salt is
supposed to have various health benefits, but there is little research to support
this. Assume that you are responsible for marketing this salt in a developed
country. How would you use the marketing mix (product, place, price and
promotion) in order to do this? (25 marks)
Reading for this question
Subject guide chapters 8, 10, 11 and 12.
Approaching the question
Assuming that Himalayan pink salt is in the same broad product category as ordinary
salt this can be positioned as a healthier alternative. Ordinary salt is homogeneous
and sold at a relatively low price point, this product is differentiated. This also links
with price sensitivity – customers are more likely to be price insensitive for this
product.
Answers could also make reference to search, experience and credence goods.
Assuming that the salt is actually pink, then the product packaging can be designed
to that people can see the colour and distinguish from salt (search good). There is no
information given in the question e.g. about taste, so assuming that it is different –
this can be emphasised i.e. an experience good where people can tell the difference
on consumption. Any health claims would be in the realms of credence goods and
the possible use e.g. of credible celebrities to promote the product. The marketer
could also make use of extrinsic cues to link with health benefits, for example.
If sold as a premium good more likely to be in health food shops and speciality stores
i.e. not intensive distribution. The product may appeal initially to people interested in
health and willing to pay a premium, so initial distribution could be through a more
limited set of outlets with expansion as the product moves through the growth stage
of the plc. The marketer could also undertake direct distribution via the internet.
If the product category is at the start of the product lifecycle the challenge may be to
educate customers about it and build awareness of the category and how it differs
from ordinary salt.
If the category is at the growth /maturity stages, the challenge may be to differentiate
this brand from competing brands.

9
MN3141 Marketing management – Zone B

There may also be ethical considerations if the marketer is encouraging people to

pay higher prices for a product that is no better than white salt.

Question 7
Energy companies in some countries are under pressure to sell businesses
they own which are involved in the extraction, refining and sale of oil and gas
products.
a) Identify and describe four different stakeholders whose interests the
energy companies may need to address. (10 marks)

b) For three of these stakeholders analyse how power, legitimacy and urgency
could be used to assess their salience to the energy companies. (15 marks)

Reading for this question

Subject guide chapter three.
Approaching the question
This question was about stakeholders and their salience. There were many
expansive answers which did not score as well as students may have hoped because
while they contained a lot if descriptive detail about the different types of stakeholders
there was limited application to the context given.
a) The four different stakeholders would be: customers/consumers (people who buy
their products); government – given the strategic nature of energy in any
economy; shareholders who own the companies and to whom the directors will
need to respond; international pressure groups – who will be conducting
campaigns against hydrocarbons. This was a straightforward and easy part of
the question.
b) The following points are indicative of the answers that could be given, credit was
given principally for the rationale given rather than the labels that students
attached to different groups. Answers should have explained the levels of power,
legitimacy and urgency students would expect with each stakeholder group and
their reasons why. Better answers will refer to the salience framework that
involves the following concepts:
• Latent stakeholders. Low salience involves the possession of only one of the
attributes (whether power, legitimacy or urgency).
• Discretionary stakeholders. They only have legitimacy.
• Expectant stakeholders. Moderate salience involves possession of two
attributes.
• Expectant stakeholders are distinguished from latent stakeholders because
they may be ‘expecting’ something and as such their stance
is active rather than passive (the latter being a feature of latent stakeholders).
• Definitive stakeholders. High level of salience requires possession of all three
attributes. Such stakeholders are likely to be dominant stakeholders, who
subsequently have an urgent claim.

The following is a brief illustration as to how some of the relevant points could be
made.

10
 Examiners’ commentaries 2022

It could be argued that environmental pressure groups may have legitimacy for
the arguments that they make however they may have limited power themselves.
As a result energy companies may pay limited attention to them. However such
groups may however, seek to lobby governments that also have the power to
change legislation that encourages divestment. They may also seek to influence
public opinion which would bring more urgency to their cause. Environmental
pressure groups could also seek to work with local communities currently affected
by climate change in order to gain urgency for their work. Institutional investors
in energy companies (such as insurance companies and pension funds) could be
said to have legitimacy, urgency and power.

Question 8
There has been a huge growth in private landlords letting their properties to
tourists seeking holiday accommodation. For tourists such accommodation
has the attraction of offering more authentic and perhaps cheaper holidays
compared to staying in a hotel. However, on social media it is now possible to
see examples of notices that hosts put around their properties advising
potential guests about how to use items such as washing machines properly,
how to avoid damaging furnishings and how not to disturb the neighbours, for
example. Discuss the nature of risk for hosts and guests in this category of
holiday accommodation, how it differs from hotels and how the two parties can
try and manage it. (25 marks)

Reading for this question

Subject guide chapter five.
Approaching the question
This question describes the holiday accommodation product category and explains
some of the challenges facing private landlords and their guests. The question
describes some of the methods landlords use to manage risk and the question asks
students to describe the nature of risk for hosts and guests. Students are also asked
to compare the risks with those faced by hotels and their guests and how landlords
and their guests can see to manage the risks.
There are a number of course topics that can be used to answer this question. The
Subject guide coverage of risk in chapter six is very important. An understanding of
services marketing, branding and cues will also be important. While holiday
accommodation involves the rental of a physical good the accompanying services
are intangible and indeed there can be intangible elements to the products.
themselves (e.g. it is possible that the customer does not know exactly what the
accommodation will be like prior to arrival).
This question is about the ways that risk can exist for different parties to an exchange
and the management of risk by those parties. It also deals with the similarities and
differences within a product class (substitute goods) and the existence of sub-classes
within a category.
Landlords face risk of customers who do not look after the property and damage it
and cause nuisance to neighbours. They need to exercise various ways of managing
that risk including the options mentioned here, and they may also need to screen
customers. Better answers pointed out that whereas branded hotels are able to
establish expectations about the service they offer and what is expected of guests,
landlords may find this more difficult to undertake.

11
MN3141 Marketing management – Zone B

Customers/guests deal with landlords who are new to the property letting and who
may not be able to provide the same level of help and support that employees of
hotels can. However, the use of reviews and previous guests’ photos for example can
provide more reliable information.
Hotels vs. online booking platforms. The broad product category is similar i.e.
hotels are broad substitutes for staying in other individuals’ properties, but there are
various differences and better answers identified these. For example, within a brand
hotels are more homogeneous with more established norms of behaviour and
rules/regulations. Private properties do not have this advantage and while the
idiosyncrasies of each property may make it feel more authentic and provide a basis
for differentiation this also adds to the risk for both the holiday maker and the person
letting the property.

12