Marketing and Tasty Snacks Jenny

Specimen Paper for UPF Marketing-1 with answers Section A – Multiple Choice
Questions – 2 marks each (10 marks)
1. __________________ is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.

a. Mass marketing
b. Market segmentation
c. Market targeting
d. Market positioning

Answer: c 2. _______________ factors are the most popular bases for segmenting customer groups.

a. Geographic
b. Demographic
c. Psychographic
d. Behavioral

Answer: b 3. The stage is the product life cycle that focuses on expanding the market and creating product awareness and the trial is the:

a. decline stage.
b. introduction stage.
c. growth stage.
d. maturity stage.

Answer: b  4. A price reduction to buyers who buy in large volumes is called a(n):

a. quantity discount.
b. cash discount.
c. seasonal discount.
d. trade discount.

Answer: 5. A company is practicing ________________ if it focuses on subsegments with distinctive traits that may seek a special combination of benefits.

a. micromarketing
b. niche marketing
c. mass marketing
d. segment marketing

Answer: b Section B: Case Study Read Item A and then answer the questions that follow. Item A Tasty Snacks Jenny is studying for her A-levels. At the same time, she enjoys working part-time in a local cafe in the village where she lives. She has noticed that the prices charged to customers in the cafe seem to be much higher than the actual costs of making the meals and drinks. She is sure that the owners must be making a good profit. Jenny is now considering whether she should carry on with her studies or whether she should just leave school and set up her own cafe.
Jenny could set up the cafe in the village where she lives which is in a tourist area. She is also considering a busier but more expensive location such as the shopping center in the town near to where she goes to school. A recent advert has caught her attention. It is advertising ‘Franchise opportunities with well known fast food brands’. She would need at least  5000 to take up one of these opportunities. Jenny is unsure whether to set up the cafe as a sole trader or as a franchise.
Questions: (20 marks)
1. Identify two methods of market research and explain how each method might help Jenny to make her business successful. (10 marks)
2. Jenny is unsure where the best place would be to locate her cafe. She is considering two locations:  the village where she lives the shopping center in the town near to where she goes to school. Advise Jenny which is likely to be the best option.
Answers: 1 – c 2- b 3- b 4 – a 5
Expected Answers: Q1. Market research methods could include

Explain/Elaborate
surveys questionnaires
focus group
internet research. or primary and secondary research as methods.

Q2. Possible areas for discussion include: Analyses- benefit(s)
Village location:

likely to cost less to buy/rent and run
convenient for Jenny
tourist area so will get customers
likely to have less competition.

Town center location: 

would be more expensive to buy/rent and run
all year round potential
likely to have more customers
likely to be more competition
Jenny will need to travel to work