WAEC SSCE - Marketing - 2019 (Essay)

Answer Details

(a) Marketing concepts explained

1. Product concept: This holds that consumers favour products that offer the best quality, performance and innovative features. The firm therefore concentrates on making superior products and improving them continuously, believing that a good product will sell itself.
2. Selling concept: This holds that consumers will not buy enough of the firm's products unless the firm undertakes aggressive selling and promotion. Emphasis is on pushing what is already produced through hard selling, advertising and persuasion.
3. Production concept: This holds that consumers favour products that are cheap and widely available. The firm therefore concentrates on high-volume production, low cost and wide distribution/efficiency.
4. Societal marketing concept: This holds that the firm should satisfy customer needs and earn profit in a way that also protects and improves the long-term welfare of the consumer and society (health, environment, ethics), balancing company profit, customer wants and society's interest.

(b) Calculations

Cost price = \( \text{N}4{,}000 \), Selling price = \( \text{N}6{,}000 \)

(i) Markup

\[ \text{Markup} = \text{Selling price} - \text{Cost price} = 6{,}000 - 4{,}000 = \text{N}2{,}000 \]

(ii) Percentage markup on cost

\[ \frac{\text{Markup}}{\text{Cost}} \times 100 = \frac{2{,}000}{4{,}000} \times 100 = 50\% \]

(iii) Percentage markup on selling price

\[ \frac{\text{Markup}}{\text{Selling price}} \times 100 = \frac{2{,}000}{6{,}000} \times 100 = 33\tfrac{1}{3}\% \approx 33.33\% \]

Answer Details

(a) Four functions of warehousing

1. Storage of goods: It provides safe space to keep goods from the time of production until they are needed for sale or use, creating time utility.
2. Protection/preservation of goods: It guards goods against damage, theft, pests and bad weather, keeping their quality intact.
3. Regularizing/stabilizing supply and prices: By holding stock, it ensures steady supply throughout the year and helps prevent sharp price changes caused by scarcity or glut.
4. Preparation of goods for sale (grading, packaging, etc.): Goods can be sorted, graded, blended, packed and labelled in the warehouse before distribution.
5. Facilitates bulk buying and breaking bulk: It allows goods to be received in large quantities and later broken into smaller lots for buyers.

(b)(i) Three modes of transportation

1. Road transport
2. Rail transport
3. Water (sea/inland waterway) transport
4. Air transport

(b)(ii) Three transportation documents explained

1. Bill of lading: A document issued by a shipping company acknowledging that goods have been received for carriage by sea. It serves as a receipt for the goods, evidence of the contract of carriage, and a document of title to the goods.
2. Consignment note (waybill): A document that accompanies goods sent by road or rail. It shows the sender, the receiver, description of the goods and the terms of carriage, serving as a receipt and record of the consignment.
3. Airway bill: A document issued by an airline for goods carried by air. It acts as a receipt for the goods and evidence of the contract of air carriage (but, unlike a bill of lading, it is not a document of title).

Answer Details

(a) What is entrepreneurship?

Entrepreneurship is the process of identifying a business opportunity, gathering and organizing the needed resources (money, men, materials), and taking the risk of setting up and running a business venture in order to make profit. The person who does this is called an entrepreneur.

(b) Four selling skills required by an entrepreneur

1. Communication skill: ability to speak clearly and persuade customers to buy.
2. Good customer relations/interpersonal skill: ability to be friendly, patient and courteous with customers.
3. Product knowledge: thorough understanding of the goods being sold and their benefits.
4. Persuasion/negotiation skill: ability to convince buyers and reach agreement on price and terms.
5. Listening skill: ability to understand customers' needs before offering a solution.

(c) Five activities to be performed by an entrepreneur for successful operation of his market outlet

1. Sourcing and stocking goods: Buying the right goods in the right quantity and keeping the outlet well stocked.
2. Pricing the goods: Fixing fair, competitive and profitable prices.
3. Advertising and promotion: Creating awareness and attracting customers to the outlet.
4. Keeping proper records/accounts: Recording sales, purchases and expenses to track performance.
5. Providing good customer service: Attending to customers well and building loyalty.
6. Managing finance and supervising staff: Controlling cash, banking takings and directing employees.

Answer Details

(a) Five features of the post-independence era in the history of marketing in Nigeria

(This is the period from 1960 onwards, when Nigeria gained political independence.)

1. Rise of indigenous participation: Nigerians began to take over trading and marketing activities that were formerly dominated by foreign (expatriate) firms such as UAC and Leventis.
2. Indigenisation policy: Government enacted the Nigerian Enterprises Promotion Decrees (indigenisation) transferring ownership of many businesses to Nigerians.
3. Growth of manufacturing and local production: Import-substitution industries grew, so more goods were produced locally and marketed within the country.
4. Establishment of marketing boards and regulatory bodies: Commodity/marketing boards and standards bodies were set up to control the buying and export of agricultural produce and to regulate trade.
5. Expansion of infrastructure and modern retailing: Roads, banks, advertising agencies, supermarkets and department stores expanded, improving distribution and promotion.
6. Increased use of modern marketing techniques: Advertising, branding, market research and organized distribution channels became more widely adopted.

(b) Five functions of marketing in Nigeria

1. Buying: Marketers obtain goods from producers/suppliers in the right quality and quantity for resale.
2. Selling: Goods and services are moved from sellers to buyers through persuasion, promotion and exchange.
3. Transportation: Marketing moves goods from points of production to points of consumption, creating place utility.
4. Storage/warehousing: Goods are held safely until they are needed, creating time utility and steadying supply.
5. Financing: Marketing provides or arranges the funds and credit needed to move goods along the channel.
6. Risk bearing: Marketers accept the risks of price fall, spoilage, theft and changing demand.
7. Market information: Marketing gathers and supplies information about prices, customer needs and competition to guide decisions.

Answer Details

(a) What is advertising?

Advertising is any paid, non-personal form of presenting and promoting ideas, goods or services by an identified sponsor through the mass media, with the aim of informing, persuading and reminding customers so as to influence their buying behaviour.

(b) Six media of advertising

1. Television
2. Radio
3. Newspapers
4. Magazines
5. Billboards/posters (outdoor)
6. Internet/social media (online)
7. Handbills/leaflets

(c) Four disadvantages of advertising

1. High cost: Advertising, especially on television and in national newspapers, is very expensive and raises the overall cost of goods, which may be passed on to consumers as higher prices.
2. Can be misleading/deceptive: Some adverts exaggerate or make false claims, deceiving consumers into buying goods that do not perform as promised.
3. Encourages waste/impulse buying: It can persuade people to buy goods they do not really need, leading to wasteful spending.
4. Difficult to measure effectiveness: It is often hard to know exactly how much of the sales resulted from a particular advert, so money may be spent without clear returns.
5. Can promote unhealthy competition: Rival firms may spend heavily on adverts (including comparative/knocking adverts), wasting resources.

Answer Details

(a) Four elements that would qualify the company's products to be merchandised at the retail outlet include:

1. Marketability: The company's products must be marketable and have a demand among consumers. The retail outlet would not want to stock products that are difficult to sell or have little demand.
2. Quality: The company's products must be of good quality and meet the standards expected by consumers. Retail outlets typically stock products that meet certain quality standards.
3. Competitive pricing: The company's products must be competitively priced compared to similar products in the market. Retail outlets want to stock products that are priced competitively to attract customers.
4. Packaging: The company's products must be well-packaged and visually appealing to consumers. Retail outlets often prefer products that are well-packaged as they are easier to display and sell.

(b) Six functions that Miss Okon would perform as a merchandiser include:

1. Stocking and replenishing: Miss Okon would be responsible for ensuring that the retail outlet is adequately stocked with the company's products. This would involve monitoring inventory levels and replenishing stock as needed.
2. Displaying products: Miss Okon would be responsible for ensuring that the company's products are attractively displayed in the retail outlet. This would involve creating eye-catching displays and arranging products in a way that is easy for customers to find and purchase.
3. Pricing products: Miss Okon would be responsible for setting prices for the company's products in the retail outlet. This would involve taking into account factors such as competition, demand, and the cost of the product.
4. Managing promotions: Miss Okon would be responsible for managing promotions and sales for the company's products in the retail outlet. This would involve creating promotional materials, such as flyers or posters, and implementing sales strategies to increase the visibility and sales of the products.
5. Conducting market research: Miss Okon would be responsible for conducting market research to understand customer preferences, buying habits, and market trends. This information would be used to develop effective marketing strategies for the company's products.
6. Building relationships: Miss Okon would be responsible for building and maintaining relationships with the retail outlet's management and staff. This would involve effective communication, collaboration, and providing excellent customer service to ensure a mutually beneficial partnership.