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MARKETING STRATEGY (M4)

MARKETING 3 (MAR303)
MEMORANDUM
MAY 2013

GENERAL

This memorandum is prepared to assist in the marking process as it indicates (a) the
correct answer and (b) how marks should be allocated.

In evaluating answers, markers must keep in mind that the IMM GSM examinations
are set on a higher education level and that the student should therefore not only
illustrate an adequate understanding of theory, but also insight into the application of
knowledge. In addition, the student should illustrate independent critical thinking.

The marker accepts that the student should be familiar with the contents of the
learner guide and the prescribed textbook. If, however, factual and correct
information is included from other valid academic sources besides the learner guide
and the prescribed textbook, such knowledge and insights also qualify for the
allocation of marks.

When answering questions the student is required to:

• Read each question carefully and thoroughly before attempting the answer, in
order to determine exactly what is required.
• Allocate sufficient time to answer each question in proportion to the marks
indicated on the examination paper.
• Number answers clearly and correctly.
• Provide answers in a legible handwritten format.
• Set out the answers in a structured format and formulate statements in full and
coherent sentences.

This memorandum should also assist students and student support centres in
preparing for future examinations. As the memorandum accompanies the
examination paper and is prepared prior to the examination session, it is not able to
include areas where the students provided incorrect answers.

The memorandum is also central to the moderating team when performing

moderation of examination scripts.

After the release of marks for any examination session, the memorandum becomes
public knowledge and is available to students.

© IMM Graduate School of Marketing

May 2013 Memorandum M4/MAR303
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Markers please note: It is impossible in a paper such as this to give detailed,

specific and model answers. Most important is the student’s identification of
the challenges and issues, the correct use of theoretical concepts and a clear
display of consistency of thought.

SECTION A (30 MARKS)

Answer the following question relating to the Kulula.Com case study.

QUESTION 1 [30]
Answers to this question span a range of options and will be subjective in how they
are presented and discussed. Trends discussed – as well as the impact thereof –
can present opportunities and/or threats.

The trends that could be discussed are:

1. Consumers
2. Competitors
3. Industry/market
4. Environment
a. Political
b. Economic
c. Socio-cultural
d. Technology
e. Environment
f. Legal

Answers must discuss the impact of the trend and the implication of this on the
marketing strategy.

Allow 6 marks for each trend discussed, 3 marks for the trend identified and 3
marks for the discussion of the impact thereof.

SECTION B (70 MARKS)

Answer the following questions relating to the Perfect Balance Private Studio
case study.
QUESTION 2 [15]

Answers must identify the SCA used by Perfect Balance Private Studio AND discuss
other possible SCAs that could be developed which are based on:
• Differentiation
• Low cost
• Synergy
• First mover advantage
• Focus/niche strategy.

© IMM Graduate School of Marketing

May 2013 Memorandum M4/MAR303
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Answers should provide a definition or a description of what an SCA is as well as the

dimensions of an SCA.

Answers will discuss some of the following meaningful competitive advantages:

• A superior product benefit
• A perceived advantage or superiority
• Low cost operations
• Legal advantage
• Global experience, skills, coverage
• Superior contacts and relationships
• Superior competencies
• Scale advantages
• Offensive attitudes
• Superior assets.

Other SCAs could be discussed (allowed subjectivity) but these need to be clearly
explained.

Allow 5 marks for a discussion on the SCA used by Perfect Balance Private Studio.

Allow 5 marks for each of the other 4 SCAs that could be developed.

QUESTION 3 [15]

Answers should include a discussion on any of the following competitive strategies

available to Perfect Balance Private Studio to obtain and maintain a sustainable
competitive advantage:

• The differentiation strategy – differentiation by:

o Product/service quality
o Branding and brand image
o Unique product characteristics
o Distribution
o Based on consumer orientation
• The low cost strategy
• The focus strategy
• The pre-emptive move strategy
• Synergy.

Allow 10 marks for the discussion on the strategy used by Perfect Balance Private
Studio.

Allow 5 marks for each of the three other competitive strategies that Perfect Balance
Private Studio could develop.

© IMM Graduate School of Marketing

May 2013 Memorandum M4/MAR303
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QUESTION 4 [40]

There are a number of possible positioning strategies:

1. Attribute positioning
2. Benefit positioning
3. Use/application positioning
4. User positioning
5. Competitor positioning
6. Product or service category positioning
7. Quality/price positioning

Allow 3 marks for each positioning strategy discussed.

Allow 4 marks for the recommendation and justification of the chosen positioning
strategy.

© IMM Graduate School of Marketing

May 2013 Memorandum M4/MAR303