WAEC SSCE - Marketing - 2017 (Essay)

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(a) What is a market in marketing?

In marketing, a market is the set of all actual and potential buyers of a product or service who have the need or want for it, the money (purchasing power) to buy it, and the willingness and authority to spend that money. It is not just a physical place but the total demand made up of people or organizations able and willing to buy.

(b) Four functions of marketing

1. Buying and selling (exchange): Acquiring goods and transferring ownership from seller to buyer.
2. Transportation: Moving goods from the point of production to the point of consumption.
3. Storage (warehousing): Keeping goods safely until they are needed, creating time utility.
4. Financing and risk-bearing: Providing funds for marketing activities and accepting the risks of loss or damage.

Other acceptable functions: grading and standardisation, market information, and promotion.

(c) Explanation of the following

1. Government market: This consists of government agencies, ministries, departments and parastatals that buy goods and services to carry out their public functions, such as building roads, running hospitals and providing security.
2. Reseller market: This consists of wholesalers and retailers (middlemen) who buy goods in order to resell them at a profit rather than for their own consumption.
3. Industrial market: This consists of firms and organizations that buy goods and services to use in producing other goods and services, or in running their operations, for example a factory buying raw materials and machinery.

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(a) Four reasons for the advertisement

1. To create awareness: To inform the public that the fruit juice exists and where it can be bought.
2. To increase sales and demand: To persuade more people to buy the juice and raise the company's sales volume.
3. To compete with rival brands: To win customers away from competing fruit-juice producers.
4. To build brand image and loyalty: To create a favourable impression of the product so that customers keep buying it.

Other acceptable reason: to introduce a new flavour or remind existing customers about the product.

(b) Three advantages and three disadvantages of choosing television as the advertising medium

Advantages of television

1. Wide coverage: It reaches a very large audience across many locations at the same time.
2. Combines sight and sound: Motion, colour, picture and sound make the message lively and convincing, and can show the juice being enjoyed.
3. High impact and memorability: The audio-visual message attracts attention and is easily remembered.

Disadvantages of television

1. Very expensive: Producing and airing television adverts costs a lot, which small firms may not afford.
2. Short-lived message: The advert lasts only a few seconds and cannot be kept and re-read like print.
3. Wasted coverage: It reaches many viewers who are not potential buyers, so part of the cost is wasted, and viewers may switch channels or leave during adverts.

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(a) Five functions of a retailer to consumers

1. Provides goods in small quantities: The retailer breaks bulk and sells in the small units that individual consumers need.
2. Provides convenient location: The retailer sites shops near consumers so they can buy easily without travelling far.
3. Offers variety of goods: The retailer stocks assorted products and brands, giving consumers a wide choice under one roof.
4. Gives information and advice: The retailer informs consumers about new products, their uses and prices.
5. Provides after-sales and credit services: The retailer may deliver goods, allow credit, and offer guarantees or repairs to consumers.

Other acceptable function: keeps goods in stock so they are readily available when needed.

(b) Five functions of a wholesaler to producers

1. Buys in bulk: The wholesaler buys large quantities from the producer, giving the producer a ready and steady market.
2. Provides storage: The wholesaler warehouses goods, relieving the producer of the cost and risk of holding large stocks.
3. Provides finance: By paying promptly, often in advance or cash, the wholesaler provides the producer with working capital.
4. Bears risk: The wholesaler takes over risks such as price changes, spoilage and loss once the goods are bought.
5. Assists in distribution and promotion: The wholesaler spreads the producer's goods to many retailers and helps advertise and promote them.

Other acceptable function: provides the producer with market information about customer demand and preferences.

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Marketing environmental factors explained

The marketing environment is made up of the external forces that affect a company's ability to serve its customers. The following are key factors:

(a) Political factors

These are the influences arising from government activities, laws, policies and political stability. Government regulations on prices, taxation, import and export, consumer protection and business licensing, as well as the level of political stability, affect how a firm markets its products.

(b) Cultural factors

These are the beliefs, values, customs, traditions, language and religion of the people in a market. Culture shapes what people buy, how they use products and what advertising appeals are acceptable, so marketers must respect cultural norms and taboos.

(c) Technological factors

These are the developments in science and technology that affect production, distribution and promotion. New machines, computers, the internet and improved methods create better products and new marketing channels, while making old products and methods obsolete.

(d) Economic factors

These are conditions in the economy such as income levels, inflation, interest rates, employment and general purchasing power. They determine how much customers can afford to spend and therefore the demand for a firm's products.

(e) Social factors

These are features of the society such as population size, age structure, family size, education, lifestyle and social class. They influence the type, quantity and quality of goods and services that people demand.

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Stages in the consumer buying decision process

(a) Problem recognition

This is the first stage, where the buyer becomes aware of a need or problem, a gap between his present state and a desired state. The need may be triggered by internal factors (such as hunger) or external factors (such as an advertisement). Recognising the need starts the buying process.

(b) Information search

Having recognised the need, the consumer looks for information about products that can satisfy it. He gathers information from personal sources (friends, family), commercial sources (advertising, salespeople), public sources and his own past experience to know the available options.

(c) Evaluation of alternatives

The consumer compares the different brands and products he has identified, judging them against criteria such as price, quality, features, durability and brand image, in order to rank them and decide which best satisfies his need.

(d) Purchase decision

At this stage the consumer selects the preferred brand and actually buys it. The final choice may still be affected by the attitudes of others and by unexpected situations such as a change in price or income. He also decides where, when and how to buy.

(e) Post-purchase behaviour

After buying and using the product, the consumer evaluates whether it has met his expectations. If satisfied, he feels confident, may buy again and recommend it to others; if dissatisfied, he may return the product, complain or avoid the brand in future.

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(a) What is electronic marketing?

Electronic marketing (e-marketing) is the use of electronic media and the internet, such as websites, e-mail, social media and mobile phones, to promote, buy, sell and distribute goods and services, and to interact with customers. It carries out marketing activities through digital channels rather than face-to-face or paper methods.

(b) Three uses of electronic marketing

1. To advertise and promote products online to a wide audience.
2. To buy and sell goods and services electronically (online transactions).
3. To communicate with customers and provide information or after-sales service quickly.

Other acceptable uses: conducting online marketing research and processing electronic payments.

(c) Five methods of engaging in international marketing of cassava chips (explained)

1. Direct exporting: The producer sells and ships the cassava chips directly to buyers or distributors in foreign countries without using middlemen at home.
2. Indirect exporting: The producer sells through home-based export merchants or agents who then handle the sale to foreign markets.
3. Licensing: The producer allows a foreign firm to use its brand, recipe or process to make and sell the cassava chips abroad in return for a royalty or fee.
4. Joint venture: The producer partners with a foreign company to jointly produce and market the chips overseas, sharing capital, risk and profit.
5. Direct investment (foreign branch/subsidiary): The producer sets up its own factory or sales outlet in the foreign country to produce and sell the chips there.

Other acceptable method: franchising and contract manufacturing abroad.