a. Distinguish between; (l) primary product and secondary product (ii) market facilitator and market union b. List four market facilitators and state one fu...

Answer Details

(a) Distinctions

(i) Primary product vs Secondary product

• Primary product: A product in its raw, natural or unprocessed state, obtained directly from farming, fishing, forestry, mining or extraction (for example cocoa, crude oil, raw cotton, cassava tubers).
• Secondary product: A product that has been processed or manufactured from primary products into a finished or semi-finished form (for example chocolate from cocoa, petrol from crude oil, garri from cassava).

(ii) Market facilitator vs Market union

• Market facilitator: An individual, body or institution that assists and eases the marketing process without necessarily taking ownership of the goods (for example banks, transporters, warehouse operators, advertising agencies, insurance firms). They provide supporting services that make marketing smoother.
• Market union: An association of traders or sellers in a particular market or trade who come together to protect and promote their common interest, regulate the conduct of members and represent them in dealings with authorities.

(b) Four market facilitators and one function of each

1. Banks: Provide finance and credit, and handle payments/collections for marketers.
2. Transporters: Move goods from producers to buyers, creating place utility.
3. Warehouse operators/storage firms: Store goods safely until they are needed, creating time utility.
4. Insurance companies: Bear/cover the risks of loss or damage to goods for a premium.
5. Advertising agencies: Promote goods and create awareness to boost sales.