WAEC SSCE - Marketing - 2020 (Essay)

Awọn alaye Idahun

(a) Five reasons that would have necessitated the conduct of the marketing research

1. To identify customer needs and wants: The research helps Audu Ltd discover what buyers actually want so that the company can supply the right goods.
2. To understand competition: It reveals the strengths, weaknesses, prices and strategies of rival firms so the company can position itself well.
3. To assess market size and demand: Research measures how many potential buyers exist and how much they are willing to buy, guiding stock and sales targets.
4. To reduce business risk and support decision-making: Reliable data lowers the chance of costly mistakes when the company launches products or enters new markets.
5. To find new market opportunities: It uncovers gaps, new segments or locations where the company can expand profitably.

Other acceptable reasons: to test customer reaction to a new product, to fix appropriate prices, and to improve promotional and distribution methods.

(b) Five steps the committee would take in carrying out the assignment

1. Define the problem and research objectives: Clearly state what the company wants to find out and why.
2. Develop the research plan: Decide the sources of data, sampling method, research instruments (questionnaires, interviews) and budget.
3. Collect the data: Gather primary data from the field and secondary data from existing records and reports.
4. Analyse and interpret the data: Organise, tabulate and analyse the information to draw meaningful findings.
5. Present the report and make recommendations: Prepare and submit findings and suggested actions to management for decision-making.

Implementation and follow-up of the recommendations is also acceptable as a final step.

Awọn alaye Idahun

Oliver Ltd produces fruit juice and sells to stores nationwide.

(a) Six advertising media the company could use

1. Television
2. Radio
3. Newspapers
4. Magazines
5. Billboards/posters (outdoor advertising)
6. Internet/social media (online advertising)
7. Handbills/leaflets

(b) Three benefits the company would derive from advertising

1. Increased awareness: Advertising informs many people across the country about the juice, so more potential customers get to know the product.
2. Higher sales and profit: By persuading customers to buy, advertising boosts demand, sales volume and profit.
3. Builds brand image and loyalty: Repeated adverts create a strong, recognizable brand that customers trust and buy again.
4. Competitive advantage: It helps the product stand out from rival juice brands.

(c) Four factors that would influence the choice of mode of transporting the products

1. Nature of the product (perishability): Fruit juice is perishable, so a fast, reliable mode (and possibly refrigerated transport) is preferred.
2. Cost of transportation: The firm chooses a mode whose cost is affordable relative to the value of the goods.
3. Distance/location of the stores: Nearby stores may be served by road, while very distant destinations may need rail or air.
4. Speed required/urgency of delivery: Where quick delivery matters, a faster mode is chosen.
5. Volume/quantity of goods: Large quantities may be moved by rail or large trucks, smaller loads by van.
6. Availability and condition of transport routes: The state of roads, rail and other routes to the stores influences the choice.

Awọn alaye Idahun

The advert promotes V-beauty Soap. Label A is the product package and label B is the advertising message, shown on a television advertisement.

(a) Six items found on the package of the product (A)

1. Brand name of the soap.
2. Company (manufacturer's) name.
3. Trademark or logo.
4. Bar code.
5. Manufacture date and expiry date.
6. NAFDAC number (and a picture of the soap).

(Other acceptable items: SON certificate, producer/distributor's address or number.)

(b) Three functions of the part labelled B

1. To create awareness about V-beauty Soap.
2. To educate customers on the use of the product.
3. To stimulate and increase the sale of the product (and create a unique identity for it through branding).

(c) Four advantages of using this medium (television) to advertise the product

1. It combines audio and visual effects, making the message vivid and appealing.
2. It allows the actual use of the product to be demonstrated to the audience.
3. The celebrities or models seen in the advert give the product more credibility.
4. It has wide coverage and a long-lasting effect on the audience.

Awọn alaye Idahun

(a) Four differences between organizational buying behaviour and consumer buying behaviour

Other valid differences: organizational demand is derived from consumer demand while consumer demand is direct; organizational buying involves formal procedures, tenders and negotiation while consumer buying is informal.

(b) Three influencing factors in organizational buying behaviour (explained)

1. Environmental factors: External conditions such as the level of demand, economic outlook, interest rates, technological change and government regulations affect how and when organizations buy.
2. Organizational factors: The firm's own objectives, policies, procedures, purchasing structure and available budget shape its buying decisions.
3. Interpersonal and individual factors: The interests, authority, status and relationships of the people in the buying centre, as well as the personal characteristics (age, education, attitude to risk) of the buyer, influence the choice made.

Awọn alaye Idahun

(a) Five factors that may have influenced Joan Ltd's decision to go international

1. Saturated or limited home market: When the local demand for Joan Ltd's cosmetics has been fully met and cannot grow further, the company looks abroad to find fresh customers and sustain sales growth.
2. Desire for higher profit and increased sales volume: Larger overseas markets offer the opportunity to sell more units and earn more revenue than the domestic market alone can provide.
3. Excess production capacity: If the firm can produce more cosmetics than the home market can absorb, exporting allows it to use its plant fully and spread fixed costs over more units.
4. Favourable government incentives and trade policies: Export grants, tax reliefs, and trade agreements (such as ECOWAS or AfCFTA) reduce barriers and encourage the company to sell across borders.
5. Intense domestic competition: Heavy rivalry at home may push the firm to seek less crowded foreign markets where it can win market share more easily.

Other acceptable factors: to spread business risk across several markets, availability of cheaper raw materials or labour abroad, and the strong global reputation of the brand.

(b) Five rules and regulations the company would observe while selling in other countries

1. Product labelling and packaging standards: Cosmetics must carry ingredient lists, manufacture and expiry dates, and warnings in the language and format required by the importing country.
2. Product safety and quality certification: The goods must meet the health and safety standards of the destination country (for example, certification that no banned chemicals such as mercury are used).
3. Import tariffs, customs duties and documentation: The company must pay the required duties and provide correct export documents, bills of lading, and certificates of origin.
4. Advertising and consumer-protection laws: Promotional claims must be truthful and comply with the host country's rules against misleading or offensive advertising.
5. Foreign exchange and payment regulations: The firm must follow the rules governing the repatriation of sales proceeds and the currency in which transactions are settled.

Other acceptable rules: intellectual-property and trademark registration laws, environmental and packaging-disposal regulations, and respect for cultural or religious restrictions on products.

Awọn alaye Idahun

(a) Distinctions

(i) Primary product vs Secondary product

• Primary product: A product in its raw, natural or unprocessed state, obtained directly from farming, fishing, forestry, mining or extraction (for example cocoa, crude oil, raw cotton, cassava tubers).
• Secondary product: A product that has been processed or manufactured from primary products into a finished or semi-finished form (for example chocolate from cocoa, petrol from crude oil, garri from cassava).

(ii) Market facilitator vs Market union

• Market facilitator: An individual, body or institution that assists and eases the marketing process without necessarily taking ownership of the goods (for example banks, transporters, warehouse operators, advertising agencies, insurance firms). They provide supporting services that make marketing smoother.
• Market union: An association of traders or sellers in a particular market or trade who come together to protect and promote their common interest, regulate the conduct of members and represent them in dealings with authorities.

(b) Four market facilitators and one function of each

1. Banks: Provide finance and credit, and handle payments/collections for marketers.
2. Transporters: Move goods from producers to buyers, creating place utility.
3. Warehouse operators/storage firms: Store goods safely until they are needed, creating time utility.
4. Insurance companies: Bear/cover the risks of loss or damage to goods for a premium.
5. Advertising agencies: Promote goods and create awareness to boost sales.