(a) What is marketing? (b) Explain any six reasons why a manufacturer may sell directly to consumers.

Assessment: WAEC SSCE - Commerce - 1990 (Essay) Subject: Commerce

Question 1 Report

(a) What is marketing?

(b) Explain any six reasons why a manufacturer may sell directly to consumers. 
 

Answer Details

(a) What is marketing?

Marketing is the process of identifying, anticipating and satisfying customers' needs and wants profitably. It embraces all the business activities involved in moving goods and services from the producer to the final consumer, including product planning, pricing, promotion and distribution.

(b) Six reasons why a manufacturer may sell directly to consumers

  1. To reduce the cost of distribution: By cutting out wholesalers and retailers, the manufacturer saves the profit margins that middlemen would take, and can charge lower prices.
  2. To earn higher profit: Selling directly allows the manufacturer to keep the middlemen's profit for himself.
  3. Nature of the goods: Goods that are perishable, bulky, fragile, or highly technical are better sold directly to reach consumers quickly and in good condition.
  4. To have direct contact with customers: Direct selling enables the manufacturer to obtain first-hand information and feedback about consumers' needs and complaints.
  5. To control price and quality: The manufacturer can fix his own prices and ensure that customers get genuine products of the right quality and standard.
  6. Where goods are made to order or middlemen are unwilling: Custom-built goods, or products that middlemen are reluctant to stock, must be sold directly, especially where the market is small or few in number.

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