Exam 2014, questions - Marketing metrics and analysis PDF

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marketing metrics and analysis past exam 14...

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UNIVERSITY OF WESTMINSTER WESTMINSTER BUSINESS SCHOOL

EXAMINATION PAPER SEMESTER TWO MAY 2014

MODULE CODE: MODULE TITLE: DATE: TIME:

BMKT501 MARKETING METRICS & ANALYSIS 1ST MAY 10:00am – 12:30pm

This is a CLOSED book exam. INSTRUCTIONS TO CANDIDATES:

The examination is in two Sections: A and B. Section A contains compulsory short-answer questions. Section B contains longer -answer questions from which you must answer two (2) questions only.

TIME ALLOWED: 2 HOURS and 30 MINUTES (inclusive of 15 minutes planning time). Upon the start of the examination candidates will have 15 minutes planning time. During this time you may NOT open or write in the answer booklet other than to complete the answer booklet front cover. If you wish to make notes please use the back of this examination paper.

The use of silent non-programmable calculators is permitted The use of dictionaries is not permitted.

PLEASE DO NOT TURN OVER THIS PAGE UNTIL INSTRUCTED TO DO SO BY THE INVIGILATOR BMKT501/PG/S2/13-14

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Question 1 The Worcester Organic Farm company plans a Radio advertising campaign (its first marketing activity) in 2014 at a cost of £40,000.It is anticipated that incremental sales generated as a consequence of the campaign will provide an expected Contribution Margin of £200,000. Calculate the Return on Marketing Investment (ROMI) (6 marks)

Question 2 Explain why “Cost per Click” is a more useful metric for marketers than “Cost per Impression”. In your answer provide a short definition of each metric. (6 marks)

Question 3 You are the Brand Manager of the Stella Artois lager brand in Belgium. You have been provided with the data below from the sales force concerning the average price charged in cafes/bars per 25cl glass. Prices charged are shown for the “benchmark” brand Heineken as well as for Stella Artois, whose owner seeks to maintain a price premium over Heineken. Average Price charged in 2013

Average Price charged in 2012

Average Price charged in 2011

€0.62

€0.66

€0.65

€0.60

€0.58

€0.57

STELLA ARTOIS HEINEKEN You are required to;

a) Calculate the percentage price premium for Stella Artois for the latest two time periods and comment on any changes. (4 marks) b) Comment on the trend in the average price of Stella Artois. (2 marks) (Total: 6 marks)

(Question 4 starts on the next page) BMKT501/PG/S2/13-14

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Question 4 Provide a short definition of Conjoint Analysis. Give two situations in which this methodology can be of value to marketers. (6 marks)

Question 5 a) What is meant by “Retention Rate” when referring to customers. (2 marks)

b) Provide examples of the different approaches companies can take to counting customers. (4 marks) (Total: 6 marks)

Question 6 Calculate the Customer Lifetime Value (CLV) in the scenario below (show your workings) A broadband Internet Service Provider (ISP) charges £10.50 per month. The ISP has variable costs of £2.00 per month per customer. The monthly Retention Rate and Discount Rate rates which you should make use of in your calculations of CLV are: RETENTION Rate 90% per month DISCOUNT RATE 1% per month (6 marks)

(Question 7 starts on the next page)

BMKT501/PG/S2/13-14

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Question 7 a) Calculate the percentage ACV distribution in “Supermarkets” for the Walkers brand of crisps in the Isle of Man in June 2013 using the data below. There are only four supermarkets in that channel of sale. Walkers crisps are only stocked in Supermarkets A and C. (4 marks)

b) What is the percentage numeric distribution for Walkers crisps? (2 marks)

Sales Outlets

Supermarket Supermarket Supermarket Supermarket

A B C D

All Commodity Sales Value (£000’s) 200 150 60 70 (Total: 6 marks)

Question 8 a) Distinguish between the advertising metrics “Rating Points” and “Gross Rating Points” (GRPs) (4 marks) b) Using an example from radio advertising, show how GRPs can exceed 100. (2 marks)

(Total: 6 marks)

(Question 9 starts on the next page)

BMKT501/PG/S2/13-14

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Question 9 You need to show a marketing colleague how the percentage Margin for each participant in a Distribution Channel should be calculated. Prepare an example which shows a Manufacturer selling an item to a Retailer for €2.50 which has a Variable Cost of €1.55. The same Retailer then sells to the Consumer (excluding any Taxes) for €6.50. Calculate the percentage Margins for the Manufacturer and Retailer as a percentage of the selling price. (6 marks)

Question 10

a) How would a firm calculate the Relative Market Share for one of its brands? (2 marks)

b) Give the names and a definition of two other marketing metrics which measure concentration within a market. (4 marks) (Total: 6 marks)

(End of Section A, Section B starts on the next page)

BMKT501/PG/S2/13-14

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SECTION B (each question is worth 20 marks in total). YOU MUST ANSWER TWO QUESTIONS

Question 11 Using the Market/Market Sector you have researched in your in-module Groupwork, you are required to: Select four (4) marketing metrics which are of particular relevance to the Market/Sector. For each metric provide the formula (or “construction”) and explain the purpose of each metric. (20 marks)

Question 12 You are the Product Manager for an organic meat butcher who has just launched a home delivery service for Households in the UK. Propose a suite of five (5) customer marketing metrics which you intend to monitor monthly, giving reasons for your selection. (20 marks)

(Question 13 starts on the next page)

BMKT501/PG/S2/13-14

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Question 13 a) Using the measures given in the table below, identify the two sources of unit and revenue sales growth over the four year period shown for Westminster Winterware PLC, makers of high-fashion outdoor clothing. Comment on the trends you observe and their implications for the business. (16 marks)

b) What financial marketing metric would you propose be monitored from now on? (4 marks) (Total: 20 marks)

WESTMINSTER WINTERWARE PLC YEAR 2010 2011

Revenue (£000s) Unit Sales (‘000s) Outlets Stocking Price Premium ACV Distribution % Sales on Deal Advertising Expenditure (£,000s)

2012

2013

24,384

27,577

33,067

44,254

87

103

132

183

300

450

650

900

30.0%

22.3%

15.1%

8.9%

30%

40%

48%

60%

10%

13%

20%

38%

500

750

1,163

2,034

END OF EXAMINATION

BMKT501/PG/S2/13-14

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