This document contains an exam for a marketing course with multiple questions. Question 1 asks about things that can be marketed in the state of Tigray, Ethiopia, and provides examples of Tigray's cultural and historical attractions that could be marketed as tourism destinations. Question 2 discusses different bases for market segmentation, including demographic, geographic, psychographic, behavioral, needs-based, and transactional segmentation, giving examples of each. Question 3 covers different levels in a customer value hierarchy from core benefit to potential product. Question 4 asks about determinants of service quality for service companies and lists reliability and responsiveness as important factors.

1. COURSE TITLE: ADVANCED MARKETING
Date: April, 2021
Time Allowed: 3:00 Hrs
MBA
FINAL EXAMINATION
I Answer the following questions supporting with practical examples on the separate answer
sheet provided.
1. Consider the State of Tigray, and what things do you think can be marketed? Explain by giving
practical examples. (10 points)
Almost anything can be marketed such as, Goods, Services, Events, Experiences, People, Places,
Information and Ideas. The same can be said to the state of Tigray. They also have an abundance of
attractions that can spark interests with potential visitors. The state has a rich architectural and
archaeological heritage of rock-hewn churches and monuments that somehow populate the state.
Christianity was introduced in the fourth century to this to the kingdom of Axum. Its monasteries
became centers for learning, translating Greek and Hebrew books, including the Bible in the fifth
century. The obelisks from this era are still standing in Axum today. They symbolize national pride
and consciousness for all the citizens in Tigray. Today, Tigray is a tourist magnet attracting tourists
from all over the world.
Tourists can bask in Tigray's pre-Christian monuments that are very abundant within the state. The
Axum obelisks or Steles (2nd century BC), the pre-Axumite Yeha's "Temple of The Moon" (5th
century BC), bath and palace of the Queen Sheba and the Ark of the Covenant, are among the most
prominent. The mosque of Negash which is found in the Kilte-Awlaelo district of Tigray is also
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2. another historical site. There are more than 120 rock-hewn churches and caves that serve as
monasteries scattered over the mountains of Tigrai, containing gold and silver crosses, glittering
crowns, manuscripts and stones bearing ancient Sabean inscriptions. These and other cultural heritages
are priceless assets of the country. It is also worth noting that the state of Tigray has some of the most
important historical monuments of the continent which would greatly help increase and expand upon
Tigray's overall tourism marketing efforts
2. Marketers are concerned about focusing in their marketing strategies in selected markets. What are
the levels and bases of market segmentation? Explain by giving practical examples? (16 points)
 Demographic Segmentation (Age, Gender, Occupation, Income, Family status, Education)
Demographic is one of the most common segmentation types used in market research (alongside
geographic). It is simple to use and understand, is readily accessible through common data gathering
methods, and it can eliminate irrelevant audience segments quickly and easily. For Example;- A high-
end jewellery store segments their audience by high household income. This focus ensures they don’t
waste valuable resources on targeting an audience that wouldn’t be interested in their products.
Meanwhile, a software-as-a-service company that sells software to research firms segments their target
audience by role hierarchy. This gives them the opportunity to create marketing campaigns that
resonate with relevant decision makers in their audience.
 Geographic
Geographic segmentation splits your audience depending on where they are located. For example:
Continent, Country, Region, City, and Borough/District. The fact that nearly every business will have
some kind of geographical information on their customers (obtained through address submissions for
newsletters, coupons, apps, in-house services, etc) also makes this one of the easiest to implement as
well. Example A large business with international holdings segments by geography to get a clearer
picture on its audience volumes in the United States versus the United Kingdom.
 Psychographic
Psychographic segmentation separates your audience by their personality such as, their Interests,
Attitudes, Values, Lifestyle etc. This can be especially useful for businesses which sell a product or
service that will make an impact on people with specific world views or ideas. For example, a retailer
segments their data by the value of “budget-consciousness”, separating those among their audience

3. who consider themselves particularly frugal from those who are less concerned about how much they
spend.
 Behavioral
Behavioral segmentation divides your audience by their previous behavior in relation to your
brand. For example: Awareness of the business, Previous purchases, Purchase patterns, Usage level,
Product knowledge, Product/service rating. In this regard, a local restaurant segments its audience data
by purchase patterns, specifically when the purchase was made. This allows it to investigate its
lunch-time audience compared to its dinner-time audience. By comparing the difference in the type
of meals purchased between each of these times, the restaurant is able to create a new lunch and dinner
menu that better suits its individual groups of customers.
 Needs-based
Needs-based segmentation groups your audience by similar needs and/or benefits a particular group is
seeking. Needs-based segments have four broad categories: Problem-solving needs, Functional needs,
Emotional needs and Value alignment. In many cases, a needs-based segment will fall into multiple
categories, so it is important to consider each category and how it might apply to a particular segment.
Example, a food manufacturer segments its audience by those who purchase its gluten free products.
This allows the company to explore how well its gluten free range solves the need for gluten-free
alternatives for people with celiac disease or gluten intolerance. Surveying this segment reveals that
the company’s gluten free products are meeting this segment's functional needs—i.e. dietary
requirements, nutritious, tasty, easy to prepare. However, the company also discovers that customers
in this segment are tired of eating the same gluten free meals that use their products. As a result, the
company creates a series of new recipes to bring in more meal variety and to help this segment further
enjoy the product range.
 Transactional
Transactional segmentation, or RFM modeling, looks at the spending patterns of your customers to
identify who your most valuable customers are and group them by behavior. The model catalogues
customers according to: Recency, Frequency and Monetary. Example, a clothing chain re-engages
their loyalty card customers who haven’t visited one of their stores in the last six months. By looking
at transactional data, they can first identify customers who haven’t visited in six months, and next

4. segment them according to their RFM behaviours. For example, customers who visit often, but spend
a small amount; customers who visit less frequently, but spend a lot; and customers who don’t visit
often and don’t spend much either.
From here the company could create tailored promotions aimed specifically at their two most valuable
segments: frequent visitors with low spend (let’s call the Segment A) and the sometimes visitors with
high spend (Segment B). Segment A customers might receive a promotion relating to the retailer’s
accessories, while Segment B might get a promotion showcasing new season arrivals or more
expensive items now on sale.
3. To determine the type of marketing plan, business companies should know the level in which their
products belong to. What are the product levels that constitute a customer-value hierarchy?
Explain by giving practical examples. (10 points)
Levels of product or service are also known as the Customer-Value Hierarchy which means that with the
increase of the level, the value increases related to the product of our interest. Acording to Philip Kotler the
following are the product levels:
 Core Benefit: - the very basics for which a product is purchased. It is the main functionality of a
product without which the product has no value. For example, if it doesn’t show the time
properly, the watch has no value. If we cannot call, the phone has no value. Without proper
functioning of this level, anything you add beyond this level doesn’t give you any more value.
 Basic Product: - the very first look of the product. It is mainly the physical appearance of the
product. For example, a wristwatch has the dial and leather; the phone has the bar shape, folding
shape, or slider shape body, etc.
 Expected Product: - the very good features that are expected in a product. Adjectives modify
the features of a Noun or Pronoun. Expected Product modifies the Basic Product. For example,
the customer expects that the watch should show the right time and will last longer; the phone
should work properly and has a good built-in quality. The greater a company meets the expected
product level, the sustainable brand a company can create.
 Augmented Product: - the very amazing features that exceed the customer expectation, totally.
Only the leading brands in an industry can do this. For example, Apple or Samsung brings smart
watches or completely new features on the phone that any brand couldn’t bring earlier. These

5. augmented products are Flagships most of the time. The company invests huge bucks in R&D
for maintaining the augmented product level.
 Potential Product: - the very futuristic concept of an existing product. We better don’t give any
examples here. Examples might seem weird here but these features can come to reality someday.
4. Business firms to survive grow and sustain in the competitive market situation, they are required to
attend the suitability of their offerings. Describe the determinants of service quality of companies
engaged in service rendering business. (10 points)
Though a lot can be listed as the determinants of service quality of companies engaged in service
rendering business, the following are listed.
 RELIABILITY: consistency of performance and dependability, accuracy in billing, keeping
records correctly, performing the service right at the designated time.
 RESPONSIVENESS: willingness or readiness of employees to provide service, timeliness of
service such as mailing a transaction slip immediately, calling the customer back quickly, giving
prompt service.
 COMPETENCE: possession of the required skills and knowledge to perform the service,
knowledge and skill of the contact and support personnel, research capability of the organization.
 ACCESS: approachability and ease of contact, the service is easily accessible by telephone,
waiting time to receive service is not extensive, convenient hours of operation, convenient
location of service facility.
 COURTESY: politeness, respect, consideration, friendliness of contact personnel, consideration
for the consumer's property, clean and neat appearance of public contact personnel.
 COMMUNICATION: keeping customers informed in language they can understand and
listening to them, explaining the service itself and its cost, assuring the consumer that a problem
will be handled.
 CREDIBILITY: trustworthiness, believability, honesty, company reputation, having the
customer's best interests at heart, personal characteristics of the contact personnel.
 SECURITY: freedom from danger, risk, or doubt, physical safety, financial security,
confidentiality.
 UNDERSTANDING/KNOWING THE CUSTOMER: these needs, learning the customer's
specific requirements, providing individualized attention, recognizing the regular customer.

6.  TANGIBLES: physical evidence and representations of the service, other customers in service
facility.
5. Which of the marketing mix elements generates revenue to the business organization? Identify and
explain the methods of pricing as important function of marketing. (12 points)
Pricing is one of the four main elements of the marketing mix. Pricing is the only revenue-generating
element in the marketing mix (the other three elements are cost centers—that is, they add to a
company’s cost). Pricing is strongly linked to the business model. The business model is a conceptual
representation of the company’s revenue streams. Any significant changes in the price will affect the
viability of a particular business model.
There are different methods of determining the price for products, such as,
 Cost + profit margin: Add a profit margin percentage to the costs associated with producing
and distributing the product.
 Rate of return and break-even point: Calculate the unit price: price = unit cost + [(rate of
return× investment) ÷ quantity sold]. Then determine the break-even point: the level at which
sales figures cover related fixed and variable costs.
 Market price: Set the price according to the main competitor’s price.
 Bidding price: Set the price according to available information about competitor bids and the
customers’ opinion of the product’s advantages.
 Comparison with substitute products: Set the price relative to products for which it will
substitute.
 Value-based pricing: Set the price based on how the customer values the product. Value-based
pricing attempts to establish the return generated by the product’s use from the customer’s point
of view. How a customer perceives product value, and the actual value the customer receives,
can be estimated by identifying:
 the target customer (their budget, ability to purchase)
 buyer motivation (willingness to buy, the risk involved)
 the product and its complexity (its ability to meet customer’s objectives)
 distribution (delivery, support)

7. 6. Does conflict happen in marketing channels? If Yes, what types of conflict do happen and what are
their causes? (14 points)
The answer is defiantly “YES” and the possible type of conflicts could be,
1. Vertical Channel Conflict: This type of conflict arises between the different levels in the same
channel. Example, the conflict between the manufacturer and the wholesaler regarding price,
quantity, marketing activities, etc.
2. Horizontal Channel Conflict: This type of conflict arises between the same levels in the same
channel. Example, the conflict between two retailers of the same manufacturer faces disparity
in terms of sales target, area coverage, promotional schemes, etc.
3. Multichannel Conflict: This type of conflict arises between the different market channels
participating in the common sale for the same brand. Example, if a manufacturer uses two
market channels, first is the official website through which the products and services are sold.
The second channel is the traditional channel i.e. through wholesaler and retailer. If the product
is available at a much lower price on a website than is available with the retailer, the
multichannel conflict arises.
And the potential Causes of Channel conflict could be either or all of the following.
 Goal incompatibility: Different partners in the channel of distribution have different goals that
may or may not coincide with each other and thus result in conflict. Example, the manufacturer
wants to achieve the larger market share by adopting the market penetration strategy i.e.
offering a product at low price and making the profits in the long run, whereas the dealer wants
to sell the product at a high cost i.e. market skimming strategy and earn huge profits in the
short run.
 Ambiguous Roles: The channel partners may not have a clear picture of their role i.e. what
they are supposed to do, which market to cater, what pricing strategy is to be adopted, etc.
Example, the manufacturer may sell its products through its direct sales force in the same area
where the authorized dealer is supposed to sell; this may result in the conflict.
 Different Perceptions: The channel partners may have different perceptions about the market
conditions that hamper the business as a whole thereby leading to the conflict. Example, the
manufacturer is optimistic about the change in the price of the product whereas the dealer feels
the negative impact of price change on the customers.

8.  Manufacturer dominating the Intermediaries: The intermediaries such as the wholesaler,
distributor, retailer, etc. carry the process of distribution of goods and services for the
manufacturer. And if the manufacturer makes any change in the price, product, marketing
activity the same has to be implemented with an immediate effect thereby reflecting the huge
dependence of intermediaries on the manufacturer. Example, if the manufacturer changes the
promotional scheme of a product with the intention to cut the cost, the retailer may find it
difficult to sell the product without any promotional scheme and hence the conflict arises.
 Lack of Communication: This is one of the major reasons that lead to the conflict among the
channel partners. If any partner is not communicated about any changes on time will hamper
the distribution process and will result in disparity. Example, if retailer urgently requires the
stock and the wholesaler didn’t inform him about the availability of time may lead to the
conflict between the two.