WAEC SSCE - Marketing - 2018 (Essay)

Detalles de la respuesta

(a) Five reasons companies conduct marketing research

1. To identify and understand customer needs and wants.
2. To measure market demand and estimate the size of the market.
3. To study competitors and understand the competitive environment.
4. To reduce risk and provide reliable information for decision-making.
5. To discover new market opportunities and test new product ideas.

Other acceptable reasons: to determine appropriate prices and to evaluate the effectiveness of promotion.

(b) Explanation of the following sales promotional tools

1. Price-off: A temporary reduction in the normal price of a product, offering the customer a stated amount or percentage off to encourage immediate purchase.
2. Salesman competition: A contest organised among sales staff, rewarding those who achieve the highest sales with prizes or bonuses to motivate greater selling effort.
3. Free gifts: Items given free to customers who buy a product, used to attract buyers and encourage purchase.
4. Premium offer: A product or item offered at a low cost or free as an incentive to buy another product (for example, a bucket given with the purchase of a carton of detergent).
5. Samples: Small free quantities of a product given to customers so they can try it before deciding to buy the full-size product.

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(a) Four sources of fund to finance the proposed expansion by Mamaput

1. Ploughed-back profit (retained earnings): Using part of the profit already earned by the eatery to finance the new outlets.
2. Bank loan or overdraft: Borrowing money from a commercial bank to be repaid with interest.
3. Personal savings or contributions from the owner: Injecting the owner's own money into the business.
4. Bringing in partners or investors: Admitting new partners who contribute capital in exchange for a share of the business.

Other acceptable sources: trade credit from suppliers, cooperative society loans, and government or small-business grants.

(b) Four factors that would influence the location of the new outlets

1. Nearness to customers and population density: Outlets should be sited in busy areas with many potential customers, such as markets, offices and residential centres, to guarantee steady patronage.
2. Availability of infrastructure: Good roads, water, electricity and drainage are needed for a food business to operate hygienically and conveniently.
3. Cost of the site (rent or land): The rent or purchase price must be affordable and match the expected sales from the location.
4. Level of competition: Mamaput should consider the number and strength of rival eateries nearby and choose a spot where it can attract enough customers.

Other acceptable factors: accessibility and parking for customers, security of the area, and government/zoning regulations on food businesses.

Detalles de la respuesta

(a) What is a market facilitator?

A market facilitator is a person or organization that assists in the smooth exchange of goods and services between buyers and sellers, without necessarily taking ownership of the goods. Facilitators provide supporting services such as transport, storage, finance, insurance, grading and market information that make marketing transactions easier and more efficient.

(b) Four functions of market facilitators

1. Providing finance: Banks and other facilitators supply credit and loans to enable buying and selling.
2. Providing transport and storage: They move and warehouse goods so that products are available at the right place and time.
3. Providing market information: They supply data on prices, demand and supply that guide traders' decisions.
4. Bearing and reducing risk: Insurers and others accept risks such as loss, damage or theft of goods.

Other acceptable function: grading, standardising and advertising to promote exchange.

(c) Five roles of the Garri Sellers' Union in Eke market

1. Regulating prices: The union sets or guides fair selling prices to prevent under-cutting and exploitation.
2. Settling disputes: It resolves quarrels and disagreements among its members and with customers.
3. Protecting members' interests: It defends the welfare and rights of members against unfair treatment or external threats.
4. Providing financial assistance: It runs contributions or cooperative savings to give members loans and support.
5. Ensuring quality and fair standards: It sets standards of measurement and product quality to maintain customer confidence.

Other acceptable role: representing members in dealings with market authorities and government.

Detalles de la respuesta

(a) Four channels of distribution for consumer products

Channel 1 (Zero-level / Direct):

Producer → Consumer

Channel 2 (One-level):

Producer → Retailer → Consumer

Channel 3 (Two-level):

Producer → Wholesaler → Retailer → Consumer

Channel 4 (Three-level):

Producer → Agent → Wholesaler → Retailer → Consumer

In the direct channel the producer sells straight to the consumer with no middlemen; each additional level introduces one more intermediary between the producer and the final consumer.

(b) Four pricing strategies (explained)

1. Penetration pricing: Setting a low initial price to attract many customers quickly and gain a large share of the market.
2. Price skimming: Setting a high initial price for a new or unique product to earn high profit from buyers willing to pay more, then reducing it later.
3. Cost-plus (mark-up) pricing: Adding a fixed percentage of profit to the total cost of producing the item to arrive at the selling price.
4. Competitive pricing: Fixing the price based on what competitors charge for similar products, in order to remain competitive in the market.

Other acceptable strategy: psychological pricing (for example pricing an item at N999 instead of N1,000).

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Classification of products with two agricultural-based examples each

(a) Industrial products

These are goods bought by firms or organizations for further processing, for use in production, or in running a business, rather than for final personal consumption.

• Raw cotton bought by a textile mill.
• Raw rubber (latex) bought by a tyre-manufacturing company.

(Other examples: palm kernel bought for oil extraction, cocoa beans bought by a chocolate factory.)

(b) Consumer products

These are finished goods bought by final consumers for their personal or household use and satisfaction.

• A loaf of bread bought for eating.
• A bottle of refined groundnut/vegetable oil bought for cooking.

(Other examples: packaged rice, tin of tomato paste.)

(c) Primary products

These are products obtained directly from nature (farming, fishing, forestry, mining) in their raw, unprocessed form.

• Fresh cassava tubers harvested from the farm.
• Raw maize (corn) grains from the field.

(Other examples: fresh fish, raw yam.)

(d) Secondary products

These are products that have been processed or manufactured from primary (raw) agricultural materials into a more finished form.

• Garri produced from cassava.
• Flour or custard produced from maize.

(Other examples: refined palm oil from palm fruit, canned fish.)

Detalles de la respuesta

(a) What is transportation?

Transportation is the marketing function concerned with the physical movement of goods and people from one place (the point of production or supply) to another (the point of consumption or sale). It creates place utility by making products available where they are needed and links producers with middlemen and final consumers.

(b) Six factors affecting the choice of transportation mode

1. Nature of the product: Perishable, fragile or bulky goods require special modes; for example, perishable goods need fast transport such as air, while heavy bulky goods suit rail or water.
2. Cost of transportation: The firm compares the charges of each mode and chooses one that is affordable relative to the value of the goods.
3. Speed required: Urgent or perishable goods call for faster modes like air or road, while non-urgent goods can go by cheaper, slower modes.
4. Distance to be covered: Short distances favour road transport; very long or overseas distances favour water or air transport.
5. Nature of the route and available infrastructure: The presence and condition of roads, railways, waterways or airports determines which mode can be used.
6. Safety and reliability: The mode chosen must deliver the goods safely, on time and with minimum risk of damage or loss.

Other acceptable factors: quantity/volume of goods to be moved, and flexibility of the mode in reaching the final destination.