WAEC SSCE - Marketing - 2015

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A product by an organization for use in carrying out a business is called an "industrial product". Industrial products are goods that are used to produce other goods or services or for resale to other businesses. They are often more complex and expensive than consumer products and may require more technical knowledge to use. Examples of industrial products include machinery, raw materials, and supplies.

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The environmental factor that comprises of inflation, employment income level and interest rate is described as economic. This is because the economic environment refers to the overall economic conditions in a country or region, including factors that influence the production, distribution, and consumption of goods and services. These factors can have a significant impact on businesses, as they affect consumer behavior, purchasing power, and overall market conditions. Therefore, factors such as inflation, employment income level and interest rate are considered economic factors as they directly impact the economic conditions of a region or country.

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An automated warehouse is a storage facility that uses advanced material handling systems under the control of a central computer. This type of warehouse uses advanced technology such as conveyor belts, automated storage and retrieval systems (AS/RS), and robotics to move and store products. The central computer controls the movement of the products and ensures that they are stored in the correct locations. This type of warehouse is highly efficient and can handle a large volume of products in a short amount of time. Automated warehouses are commonly used in industries such as e-commerce, manufacturing, and logistics.

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Competitive price in marketing is arrived at by setting the price in relation to competitors' price. This means that a company will consider the prices of its competitors for the same or similar products, and then set its price accordingly. The aim is to ensure that the company's price is competitive and attractive to customers while still allowing for a reasonable profit margin. By setting the price in relation to competitors' price, a company can avoid pricing its products too high or too low and can remain competitive in the market. This approach is common in industries with high competition, where customers have a lot of options to choose from, and price is an essential factor in their purchase decision.

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A warehouse where dutiable goods are kept is called a "bonded warehouse". A bonded warehouse is a facility where imported goods are stored temporarily to defer payment of duties and taxes until the goods are removed. This type of warehouse is typically operated by private companies under strict government supervision and control. Bonded warehouses are commonly used to store goods that are subject to customs duty, excise tax, or other taxes and fees that must be paid before the goods can be released into the domestic market.

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A source of funds that a limited liability company will not pay back is known as equity financing. This is where the company raises funds by issuing shares to investors in exchange for a stake in the company. Unlike debt financing, equity financing does not have to be repaid, and the investors do not have a legal right to demand repayment. Instead, they share in the company's profits and losses and may benefit if the company performs well. Therefore, the correct option is "Ordinary shares".

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Marketing can be defined as the process of identifying and satisfying customers' needs profitably. It involves activities such as market research, product design and development, pricing, promotion, and distribution. The aim of marketing is to create value for customers and build strong relationships with them, leading to increased sales and profitability for the business. Marketing involves understanding customer needs and wants, creating products and services that satisfy those needs, communicating the value of those products and services to customers, and delivering them in a way that meets their expectations.

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A method of selling goods through the use of a catalogue is called mail order. Mail order is a type of retailing in which customers place orders for goods by mail or online, rather than visiting a physical store. Customers typically browse through a catalogue, select the items they want to purchase, and then place an order by mail or online. The goods are then shipped to the customer's address. Mail order is a convenient way for customers to shop, as it allows them to order products from the comfort of their own homes.

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The selling of goods in small units is normally performed by retailers. Retailers are businesses or individuals that sell products or services directly to consumers for personal or household use. They typically purchase goods from wholesalers or manufacturers and sell them to the end-user at a higher price to cover their expenses and make a profit. Retailers can operate in physical stores, online stores, or both, and they play a crucial role in the distribution chain by making products easily accessible to consumers. Examples of retailers include department stores, supermarkets, convenience stores, and e-commerce sites.

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Pricing policy cannot be used to identify a product. A pricing policy is a strategy used by businesses to set the price of their products or services based on various factors such as production cost, competition, and demand. On the other hand, a trade mark is a symbol, design, or word used to distinguish a product or service from those of other companies. A trade name is a name used to identify a company or business. A package is the physical container that holds the product.

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A market that deals in soft drinks and cosmetics is a consumer market. A consumer market is a type of market in which individuals or households purchase goods and services for their own use. The soft drinks and cosmetics are products that are primarily targeted towards individual consumers, rather than businesses or government organizations. Therefore, the market for these products is considered a consumer market.

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The correct answer is: "Advertising is paid for while publicity is not." Advertising refers to the process of promoting or selling a product or service through paid channels, such as television, radio, print media, or online advertising. Publicity, on the other hand, is the practice of getting attention for a product or service through non-paid or earned media, such as news articles, press releases, or social media posts. Unlike advertising, publicity is not paid for and is often seen as more credible since it is not directly controlled by the company.

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The answer is: "Cost of goods." A consignment note is a document used in transportation to confirm the receipt or shipment of goods. It includes important information about the goods being transported, such as the name and address of the sender and recipient, the quantity and description of the goods, and any special handling requirements. However, the cost of goods is not typically included in a consignment note, as this information is usually handled through other documents such as invoices or receipts.

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An authorized person who accesses other people's information on the internet is called a "web hacker." A web hacker is a person who uses unauthorized access to penetrate a computer system or network and obtain confidential or sensitive data. This type of activity is considered illegal and unethical because it violates the privacy and security of individuals and organizations. Web designers create websites, web owners own websites, and web providers offer internet services, but none of them involve accessing other people's information without permission.

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The stage of "Product differentiation" is not a stage in product development. Product differentiation refers to the process of making a product more attractive by differentiating it from competitors' products in some way, such as through unique features, design, or branding. However, the actual development of the product would have already taken place during earlier stages such as idea generation, concept development, and market analysis. Therefore, product differentiation is more of a marketing strategy than a stage in the product development process.

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The process of dividing a market into homogenous groups of buyers is known as segmentation. In this process, the market is divided into smaller groups of consumers who have similar needs or characteristics. These groups are called market segments. The purpose of segmentation is to identify groups of customers that are most likely to be interested in a particular product or service. By understanding the needs and characteristics of each segment, companies can tailor their marketing efforts and product offerings to better meet the needs of each group. This can help companies to be more efficient and effective in their marketing, leading to increased sales and profits.

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Another term for e-marketing is "Internet marketing". E-marketing or Internet marketing is a marketing approach that uses the internet and digital technologies such as search engines, social media, email, and websites to reach and engage with potential customers. It involves a variety of tactics such as content marketing, search engine optimization, online advertising, email marketing, and social media marketing. The goal of e-marketing is to build brand awareness, generate leads, and drive sales through digital channels.

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The way in which a product is delivered to meet the customers need is known as distribution activities. This refers to the process of making a product or service available to customers through different channels, such as retail stores, online marketplaces, and direct sales. Distribution activities involve managing the flow of goods and services from the manufacturer to the end customer, ensuring that the right product is in the right place at the right time. The goal of distribution is to ensure that customers have easy access to the product or service they want, while also minimizing the cost and time involved in getting it to them.

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Meeting customer expectations regarding the quality of a product is called "customer satisfaction". Customer satisfaction refers to the extent to which a product or service meets or exceeds customer expectations. When customers are satisfied with a product, they are more likely to continue buying from the company, recommend it to others, and become loyal customers. Therefore, customer satisfaction is an important factor in maintaining a company's reputation, building customer loyalty, and achieving long-term success.

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Marketing research studies are not typically undertaken in the area of quality control. Quality control refers to the measures taken to ensure that a product or service meets certain standards of quality. While quality control is important for ensuring customer satisfaction and loyalty, it is typically the responsibility of the operations or production department of a company rather than the marketing department. Marketing research studies are more likely to focus on areas such as media effectiveness, product information, and market evaluation in order to better understand consumer preferences and behavior, and to develop effective marketing strategies.

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The channel of distribution that will be used by a company that wants to have control over its price is the "Manufacturer - Consumer" channel. This is because in this channel, the manufacturer sells directly to the end consumer without the involvement of intermediaries such as wholesalers, agents, or retailers who may influence the price of the product. By having direct contact with the consumer, the manufacturer can set and control the price of the product. This is in contrast to other channels of distribution where intermediaries may mark up the price of the product to cover their own costs and make a profit.

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Premium goods are offered either free or at a low cost to give an incentive to buyers. This is a marketing strategy used to attract and retain customers by offering them something of value in addition to their purchase. By offering premium goods, companies can increase customer loyalty, encourage repeat purchases, and create a positive image of their brand. This strategy is commonly used in industries such as telecommunications, where companies offer free or discounted phones to customers who sign up for long-term contracts.

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An offer of free sample of goods is a form of sales promotion. Sales promotion is a marketing technique that involves offering incentives to customers or potential customers to encourage them to buy a product or service. Offering free samples of goods is a common sales promotion strategy aimed at introducing potential customers to a product, increasing brand awareness and generating interest in the product. It is a low-risk way for customers to try out a product before deciding to buy, and can be an effective way for companies to attract new customers and retain existing ones.

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The business risks in a foreign market are higher in direct investment. Direct investment is a form of foreign market entry where a company fully owns and controls a business in a foreign country. This type of investment involves a significant amount of capital, time, and effort. The business risks are higher because the company is exposed to political, economic, and social risks in the foreign market. For example, changes in government policies, foreign exchange rates, and cultural differences can affect the success of the investment. In contrast, licensing, joint ventures, and exporting are less risky because they involve lower capital requirements and allow companies to partner with local businesses that have a better understanding of the market.

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The reason for granting cash discount is to encourage prompt payment. Cash discount is a reduction in the amount to be paid by a customer in exchange for prompt payment of an invoice. By offering a cash discount, a seller encourages the customer to pay the invoice earlier than the agreed upon payment terms, thus improving the seller's cash flow. This benefit outweighs the loss of profit from the discount. Additionally, it reduces the risk of bad debts and minimizes the need for bookkeeping work, making it easier to manage the accounts receivable.

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A document that accompanies goods in transit is a Waybill. A waybill is a document that lists and details the goods being transported, their origin, destination, and the carrier responsible for their transportation. It serves as a contract between the shipper and the carrier and contains all necessary information to ensure the goods are transported to the correct destination. The waybill also acts as a receipt for the goods being transported, allowing the recipient to verify that they have received the correct goods.

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The marketing concept is an approach that places the customer at the center of all marketing activities. It is a customer-centric approach that focuses on identifying and satisfying customer needs and wants. Instead of just promoting and selling products or services to customers, the marketing concept aims to build long-term relationships with customers by understanding their needs and providing products or services that meet those needs. By adopting the marketing concept, companies can create more value for customers and ultimately achieve greater success in the marketplace.

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A company that offers storage facility to a seller is a "market facilitator". Market facilitators are entities that aid in the functioning of markets by providing various services such as storage facilities, transportation, and financial services to both buyers and sellers. In this case, the company is providing storage facilities to the seller, which facilitates the seller's ability to manage their inventory and meet their customers' needs. This allows the seller to focus on other aspects of their business, such as production or sales, while the market facilitator takes care of the storage and logistics.

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(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.

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(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.

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(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.

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(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.

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(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.

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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.