WAEC SSCE - Marketing - 2015 (Essay)

Antwoorddetails

(a) Five stages in marketing planning

1. Situation analysis (marketing audit): The firm examines its present position - its strengths and weaknesses, and the opportunities and threats in the environment (market, competition, customers).
2. Setting marketing objectives: Clear, measurable goals are stated, for example the target sales volume, market share or profit to be achieved within a period.
3. Formulating marketing strategy: The firm decides how to reach the objectives - choosing the target market and designing the marketing mix (product, price, place, promotion).
4. Drawing up the action programme/budget: The strategy is broken into specific tasks, showing who does what, when, and how much money and resources are allocated.
5. Implementation: The plan is put into action, with staff carrying out the assigned marketing activities.
6. Monitoring, control and evaluation: Actual performance is compared with the set objectives, deviations are identified and corrective action is taken.

(b) Five uses of feedback in marketing research

1. Measuring customer satisfaction: Feedback shows how well the product and service meet customers' needs.
2. Improving products/services: Complaints and suggestions guide changes and improvements in the offering.
3. Evaluating marketing effectiveness: It reveals whether advertising, pricing and distribution decisions are working as intended.
4. Aiding decision making and planning: The information gathered guides management in taking better future marketing decisions.
5. Detecting problems early: It exposes weaknesses and market problems so they can be corrected before they grow.
6. Understanding market/consumer trends: It keeps the firm informed of changing tastes, needs and competitor activity.

Antwoorddetails

(a) Five importance of middlemen in marketing

1. Bridging the gap between producer and consumer: They link producers who are far away with the final consumers, making goods available where they are needed.
2. Breaking bulk: They buy in large quantities from producers and sell in smaller units that consumers can afford.
3. Provision of storage: They hold stock, thereby relieving producers of storage burden and ensuring goods are available when demanded.
4. Provision of finance/credit: They often pay producers promptly and may extend credit to buyers, easing the flow of trade.
5. Risk bearing: They take over risks of price fall, spoilage and unsold goods once they buy from the producer.
6. Provision of market information: They supply producers with information about consumer needs, tastes and complaints, and inform consumers about available goods.
7. Sales promotion: They advertise and promote goods, helping to increase sales.

(b) Five factors that determine the type of channel of distribution to be used

1. Nature of the product: Perishable goods (e.g. fish, bread) need short, direct channels, while durable goods can pass through longer channels.
2. Nature of the market: A market that is widely scattered with many small buyers needs long channels with more middlemen; a concentrated market of few large buyers suits short channels.
3. Financial strength of the company: A financially strong firm can afford its own outlets and salesforce (direct channel); a weak firm relies on middlemen.
4. Volume/quantity produced: Large-volume producers use longer channels to reach many outlets, while small producers may sell directly.
5. Cost of distribution: The firm chooses the channel that gets goods to buyers at the least cost.
6. Degree of control desired: A firm that wants tight control over pricing and promotion prefers short, direct channels.
7. Middlemen availability and competition: The number and quality of available middlemen and the channels used by competitors also influence the choice.

Antwoorddetails

(a) What is a warehouse?

A warehouse is a building or premises used for the safe storage of goods from the time they are produced or bought until they are needed for sale, use or distribution. It creates time utility by holding goods until they are demanded.

(b) Three types of warehousing described

1. Private warehouse: Owned and operated by a manufacturer, wholesaler or large retailer solely for storing its own goods. It gives full control but is costly to build and maintain.
2. Public warehouse: Owned by an individual or company and rented out to the general public/traders who pay a fee to store their goods. It suits firms that cannot afford their own warehouse.
3. Bonded warehouse: A warehouse licensed by government/customs where imported goods on which duty has not yet been paid are stored under customs control. The goods are released only when the import duty is paid.
4. Government warehouse: Owned and run by government for storing goods such as agricultural produce, strategic reserves or seized/uncleared goods.

(c) Six functions of a warehouse

1. Storage: Keeps goods safely until they are needed.
2. Protection of goods: Guards goods against theft, damage, pests and weather.
3. Stabilizing prices: Steadies supply and prices by releasing stock as demand requires.
4. Facilitates bulk buying and breaking bulk: Receives goods in large quantities and issues them in smaller lots.
5. Preparation of goods for sale: Allows grading, sorting, blending, packaging and labelling.
6. Ensures continuous/steady supply: Makes seasonal goods available all year round.
7. Provides finance/collateral: Warehouse receipts can be used as security to obtain loans.

Antwoorddetails

(a) Explanation of terms

1. Consular invoice: This is a special invoice covering exported goods that is certified/endorsed by the consul (embassy official) of the importing country stationed in the exporter's country. It confirms details such as the description, quantity and value of the goods, and it helps the importing country's customs to assess duty and check that the goods are genuine and correctly valued.
2. Waybill: This is a document that accompanies goods being transported by road or rail. It shows the name and address of the sender (consignor) and the receiver (consignee), a description of the goods, the quantity and the terms of carriage. It serves as evidence that the goods were dispatched and as a record for delivery, but it is not a document of title.

(b) Seven factors that will influence where Tochukwu locates his grocery business

1. Nearness to customers: The shop should be sited in a densely populated area or near residential estates where many buyers of groceries live.
2. Availability of good roads/transport: The site should be easily reachable by roads and transport for both customers and delivery of stock.
3. Cost of land/rent: The rent or price of the premises must be affordable relative to expected sales.
4. Security of the area: The location should be safe from theft, violence and vandalism.
5. Availability of infrastructure/utilities: Presence of electricity, water and communication facilities (needed for refrigeration and lighting).
6. Nearness to source of supply: Closeness to wholesalers/markets that supply groceries reduces transport cost and ensures fresh stock.
7. Level of competition: He should consider the number and strength of rival grocery shops already in the area.
8. Government regulations/zoning: The area must be one where trading is legally permitted, with the necessary permits obtainable.
9. Availability of parking space: Space for customers to park encourages patronage.

Antwoorddetails

(a) What is merchandising?

Merchandising is the range of activities carried out at the point of sale to present, display and promote goods attractively so as to encourage customers to buy. It involves having the right goods, in the right quantity, at the right place, at the right time and at the right price, well displayed to stimulate purchase.

(b) Merchandising activities

1. Displaying goods attractively on shelves and stands.
2. Arranging and re-stocking (facing/replenishing) goods.
3. Price tagging/labelling of goods.
4. Setting up point-of-sale promotional materials (posters, banners, special-offer signs).
5. Checking stock levels and removing expired or damaged goods.
6. Keeping the display area clean and orderly.

(c) Seven functions of merchandising

1. Attracting customers: Good display and arrangement draw shoppers' attention to the goods.
2. Stimulating impulse buying: Well-positioned goods encourage unplanned purchases and increase sales.
3. Providing product information: Labels, tags and displays inform customers about price, use and benefits.
4. Ensuring availability of goods: It keeps shelves stocked so that goods are always available when wanted.
5. Promoting sales: It supports advertising and promotions right where the buying decision is made.
6. Stock control/checking: It monitors stock, detects fast- and slow-moving items and prevents stock-outs and expiry.
7. Building brand image and loyalty: Neat, consistent display creates a good impression and keeps customers returning.
8. Providing feedback: It reports customer reactions and sales patterns to management.

Antwoorddetails

Importance of e-marketing

E-marketing (electronic/online marketing) is the buying, selling and promotion of goods and services using the internet and electronic devices.

(a) Five importance of e-marketing to an organization

1. Wider market reach: It enables the organization to reach customers all over the country and the world, beyond its physical location.
2. Lower marketing/operating cost: Online advertising and selling are cheaper than renting many physical shops or using expensive traditional media.
3. Round-the-clock (24/7) selling: The online store operates day and night, so sales can be made at any time without closing.
4. Easy access to customer information/feedback: It allows the firm to collect data on customers and receive quick feedback to improve products.
5. Faster and easier transactions: Orders, payments and delivery arrangements are processed quickly online.
6. Improved competitiveness and brand awareness: A strong online presence helps the firm compete and become better known.

(b) Five importance of e-marketing to a consumer

1. Convenience: The consumer can shop from home or office at any time without travelling to a market.
2. Wide choice/variety: Many products from different sellers can be compared and selected online.
3. Easy price comparison: The consumer can quickly compare prices and choose the cheapest or best value.
4. Access to product information: Detailed descriptions and reviews help the buyer make informed decisions.
5. Saves time and transport cost: The consumer avoids the cost and stress of moving from shop to shop.
6. Home delivery: Goods are delivered to the buyer's chosen address.