WAEC Marketing 2015 past questions and answers

Retailers buy in bulk from wholesalers and sell in small units to final consumers.

An automated warehouse uses computer-controlled machines to move and store goods.

Distribution covers all activities that move a product from the producer to where customers want it.

Merchandising is the set of promotional activities (displays, shelf arrangement, demonstrations) done in the shop to make consumers buy there.

E-marketing means marketing carried out over the internet, so it is also called internet marketing.

A waybill travels with the goods and gives details of the consignment, sender, receiver and carriage.

The marketing concept says a firm succeeds by finding out and satisfying customers' needs and wants better than competitors.

Customer satisfaction occurs when a product's performance meets or exceeds what the customer expected.

Selling directly to consumers removes middlemen, so the manufacturer alone sets the final price.

The marketing mix is the 4Ps: product, price, place and promotion. Packaging is part of the product, not a separate element.

Competitive pricing means setting your price by looking at what competitors charge.

Marketing is identifying and meeting customers' needs at a profit.

Goods bought by organisations to run their business or make other goods are industrial products.

Trade marks, trade names and packages help customers recognise a product; a pricing policy does not identify it.

Consumer goods are divided into convenience, shopping and specialty goods, all bought by final consumers for personal use.

Free samples are a sales promotion tool used to get people to try a product.

Market segmentation splits a market into groups of buyers with similar needs or characteristics.

A consignment note shows the sender, the receiver and a description of the goods for the carrier; it does not show their cost.

Soft drinks and cosmetics are bought by individuals for personal use, so they belong to the consumer market.

In cooperative advertising the manufacturer and the retailer share the cost of advertising the manufacturer's product.

Mail order businesses show goods in catalogues and customers order by post, phone or online.

Premiums are gifts or cheap extras given as an incentive to make people buy.

A hacker gets into other people's information on the internet without permission.

Government decisions and laws, such as fixing the minimum wage, make up the political environment.

In direct investment the firm puts its own money into factories abroad, so it carries the most risk.

The internal database holds the company's own records (sales, costs, orders), so it is the quickest and cheapest to use.

Inflation, income, employment and interest rates are economic factors.

The buyer only knows whether he is satisfied after using the product, which is post-purchase behaviour.

A cash discount is a reduction given to buyers who pay quickly.

Ordinary share capital is owners' money and is not repaid while the company exists; debentures, overdrafts and loans must be repaid.

Product differentiation is a marketing strategy, not a step in developing a new product.

A motive is a need that has become strong enough to push a person to act to satisfy it.

Bonded warehouses keep imported goods until customs duty is paid.

Money borrowed from a bank is an external source of funds, unlike personal savings.

Quality control is a production activity; the others are areas marketing research studies.

Advertising is paid for by an identified sponsor; publicity is free news coverage.

Marketing research gives the firm feedback from the market about its customers and products.

Traders selling the same product in a local market form a market union.

(a) Any five: break bulk into small quantities; link producers and consumers; store goods (warehousing); transport goods closer to consumers; give credit to retailers/consumers and finance producers; pass market information both ways; help promote and sell the product; grade, sort and repackage goods; bear some risks.
(b) Any five, each explained: nature of the product (perishable, bulky, technical goods need short channels); size and spread of the market (many scattered buyers need middlemen); the firm's resources (capital to run its own outlets); degree of control wanted over price and display; availability and cost of suitable middlemen; channels used by competitors; government regulations; the marketing environment.

List five clear points for (a); for (b) name each factor and say how it affects the channel.

(a) A building or place where goods are stored safely until they are needed.
(b) Any three, each described: public warehouse (owned by an independent firm, rented to anyone); private warehouse (owned by a firm for its own goods); bonded warehouse (holds imported goods until customs duty is paid); cooperative warehouse (owned jointly by members, e.g. farmers); automated warehouse (computer-controlled handling).
(c) Any six: safe storage and protection of goods; keeps goods until needed (time utility); allows production ahead of demand; helps stabilise prices; allows grading, blending, packaging and branding; keeps dutiable goods until duty is paid; goods can be used as security for loans (warehouse warrant); breaking bulk.

Define, then describe three named types, then list six functions.

(a)(i) Consular invoice: an invoice for exported goods, certified by the consul of the importing country in the exporting country, used to confirm the value and origin of the goods and to calculate import duty.
(a)(ii) Waybill: a document that goes with goods in transit, issued by the carrier, giving details of the goods, the sender, the receiver and the terms of carriage.
(b) Any seven, each explained: nearness to customers (residential areas); level of competition; cost and availability of premises/rent; capital available; nearness to suppliers; transport and access (good roads, parking); security; government regulations and taxes; social amenities (power, water).

In (a) give what each document is and its use; in (b) relate each factor to a grocery shop.

(a) Any five, each explained: situation analysis (where the firm is now, SWOT); setting marketing objectives (specific, measurable targets); developing marketing strategies (target market and marketing mix); drawing up tactics/action plans; budgeting; implementation; evaluation and control (compare results with targets and correct).
(b) Any five: to modify or improve the product; to improve packaging; to review prices; to adjust advertising and promotion; to change distribution channels; to reposition the product; to know customers' satisfaction; to plan new products; to motivate or retrain sales staff.

Give the stages in a logical order.

(a) Merchandising is all the promotional activities done at the point of sale (retail outlet) to make customers buy a product.
(b) Any four: shelf arrangement and display; window display; point-of-purchase materials (posters, shelf talkers); in-store demonstrations; free samples and tasting; special price offers; keeping the right stock level.
(c) Any seven: makes buyers aware of the product; attracts attention; reminds buyers; encourages impulse buying; helps product positioning; builds brand identity; ensures good shelf arrangement; keeps adequate stock; encourages customer loyalty; gathers information on buyers and competitors; increases sales.

Merchandising happens in the shop, not in the media.

(a) Any five: reaches a national and global market; low cost compared with traditional media; business runs 24 hours a day; quick launch of products; easy market research and customer feedback; results can be measured/tracked; increases sales and profit; lower operating costs.
(b) Any five: shop at any time from anywhere; wider choice of products; easy comparison of prices; product information readily available; saves time and transport cost; can interact with sellers; competition lowers prices; home delivery.

Keep the organisation's benefits and the consumer's benefits separate.