WAEC SSCE - Marketing - 2016 (Essay)

Detalles de la respuesta

(a) Two pricing strategies in marketing

1. Market penetration pricing: Setting a low initial price to attract many buyers quickly and capture a large market share.
2. Price (market) skimming: Setting a high initial price for a new or unique product to earn maximum profit from customers willing to pay more, then lowering it later.

Other acceptable strategies: cost-plus pricing, competitive pricing, and psychological pricing.

(b) Four attributes of a product brand

1. It has a name, term, sign or symbol that identifies the product.
2. It distinguishes the product from those of competitors.
3. It can be protected legally through registration as a trademark.
4. It conveys a particular quality, value or image to customers and builds loyalty.

Other acceptable attributes: it should be easy to remember and pronounce, and it should be suitable for use in advertising and packaging.

(c) Five importance of price to a producer

1. Determines revenue and profit: Price directly affects the total income and profit the producer earns from sales.
2. Covers cost of production: A well-set price ensures the producer recovers costs of raw materials, labour and overheads.
3. Competitive tool: Price helps the producer compete with rival firms and win customers.
4. Influences demand and sales volume: The price set affects how much of the product customers will buy.
5. Reflects product image and quality: Price can position the product as premium or economy, shaping how customers perceive it.

Other acceptable point: price guides production and investment decisions.

Detalles de la respuesta

(a) What is a product?

A product is anything that can be offered to a market for attention, acquisition, use or consumption to satisfy a want or need. It may be a tangible good (such as soap), an intangible service (such as banking), or a combination of both, and it includes the physical item together with its brand, packaging, quality and associated services.

(b) Distinction between product concept and production concept

(c) Seven reasons why new products may fail in the market

1. Poor or inadequate marketing research: The product does not match real customer needs because the market was not properly studied.
2. Wrong pricing: A price set too high or too low relative to value discourages buyers.
3. Poor timing of the launch: The product enters the market too early or too late.
4. Weak or ineffective promotion: Customers are not made sufficiently aware of the product's existence and benefits.
5. Poor product quality or design defects: The product fails to perform as expected and loses customer confidence.
6. Strong competition: Rival products that are better, cheaper or already established push the new product out.
7. Poor distribution: The product is not available where and when customers want it.

Other acceptable reasons: inadequate finance to support the launch, and over-estimation of market demand.

Detalles de la respuesta

(a) Five functions of a marketing manager

1. Planning: Setting marketing objectives and drawing up strategies and programmes to achieve them.
2. Marketing research: Organising the study of the market, customers and competitors to guide decisions.
3. Coordinating the marketing mix: Managing product, price, place and promotion decisions to satisfy customers profitably.
4. Supervising and motivating the sales force: Recruiting, training, directing and controlling sales staff to meet sales targets.
5. Sales forecasting and budgeting: Estimating future sales and allocating resources to marketing activities.

Other acceptable functions: monitoring and controlling marketing performance, and building customer relationships.

(b) Five ways a marketer will assist his/her company to deliver high quality goods and services to the customer

1. Conducting marketing research: Finding out exactly what customers want so the company produces goods of the right quality and features.
2. Providing feedback to production: Passing customer complaints and suggestions to the production department so that quality is improved.
3. Ensuring proper distribution: Making sure goods reach customers in good condition, at the right place and time, without damage or delay.
4. Giving accurate product information: Advertising and labelling truthfully so customers know how to use the product correctly and get full value.
5. Offering good after-sales service: Providing installation, repair, guarantees and prompt handling of complaints to keep customers satisfied.

Other acceptable point: recommending quality-control standards and monitoring competitors' quality.

Detalles de la respuesta

(a) What is pricing?

Pricing is the process of determining the amount of money (the price) that a seller charges a buyer in exchange for a product or service. It involves fixing a value that covers the cost of production, yields a reasonable profit, and is acceptable to the target customer.

(b) Marketing concept

The marketing concept is a business philosophy which holds that the key to achieving organizational goals is to identify the needs and wants of target customers and satisfy them more effectively and efficiently than competitors do. It puts the customer at the centre of all business activity, so the firm produces what it can sell rather than trying to sell what it produces, and earns profit through customer satisfaction.

(c) The four elements of the marketing mix (4 Ps)

1. Product: The good or service offered to satisfy customer needs. It covers quality, features, brand, design, packaging and after-sales service.
2. Price: The amount of money customers pay for the product. It covers pricing strategies, discounts, credit terms and allowances.
3. Place (Distribution): The channels and activities that make the product available to customers at the right place and time, including transport, warehousing and choice of middlemen.
4. Promotion: The communication activities used to inform and persuade customers to buy, such as advertising, personal selling, sales promotion and publicity.

Detalles de la respuesta

(a) What is sales promotion?

Sales promotion refers to the short-term incentives and marketing activities, other than advertising, personal selling and publicity, used to encourage the immediate purchase or sale of a product or service. It includes tools such as discounts, free samples, coupons, gifts and trade allowances designed to boost sales over a short period.

(b) Four objectives of advertising

1. To inform: To make customers aware of a product, its features, uses and availability.
2. To persuade: To convince customers to buy the product in preference to competing brands.
3. To remind: To keep the product in the minds of existing customers so they continue buying it.
4. To increase sales and market share: To boost demand and expand the customer base.

Other acceptable objective: to build and improve the image or goodwill of the company.

(c) Five advantages of personal selling

1. Direct, two-way communication: The salesperson interacts face to face with the customer and can answer questions immediately.
2. Flexibility: The sales message can be adjusted to suit the needs and reactions of each individual customer.
3. Immediate feedback: The seller gets instant response from the customer and can address objections on the spot.
4. Builds relationships: It helps develop long-term personal relationships and customer loyalty.
5. Closes sales effectively: Direct persuasion often leads the customer to make an immediate purchase.

Other acceptable advantage: it allows demonstration of the product and provision of after-sales advice.

Detalles de la respuesta

(a) Explain "quality" in marketing

Quality in marketing refers to the totality of features and characteristics of a product or service that determine its ability to satisfy the stated or implied needs of the customer. It is measured by how well the product meets customer expectations in terms of durability, reliability, performance, appearance and fitness for purpose. A quality product is one that consistently delivers the value the customer expects.

(b) Explanation of the following terms

1. Intensive distribution: A strategy in which the producer sells the product through as many outlets as possible so that it is available everywhere. It suits fast-moving convenience goods such as soap, salt and soft drinks.
2. Selective distribution: A strategy in which the producer uses a limited number of carefully chosen outlets in an area. It suits shopping goods such as electronics and clothing.
3. Exclusive distribution: A strategy in which the producer grants only one or very few outlets the sole right to sell the product in a given area. It suits speciality and luxury goods such as expensive cars and designer items.

(c) Six causes of customer dissatisfaction in a product

1. Poor product quality or defects.
2. High or unfair pricing relative to value.
3. Poor after-sales service and lack of support.
4. Misleading advertising that creates false expectations.
5. Non-availability of the product when and where it is needed.
6. Rude or unhelpful treatment by sales staff.

Other acceptable causes: delayed delivery, poor packaging, and unsatisfactory handling of complaints.