WAEC Marketing 2016 past questions and answers

Exchange is the act of getting something from someone by giving something in return, i.e. buying and selling.

In supermarkets customers pick goods themselves from the shelves and pay at the checkout: self service.

Geographical pricing charges different prices in different locations, e.g. to cover transport costs.

The marketing mix is the blend of product, price, place and promotion used to satisfy a target market.

A bank overdraft is short-term credit used to meet temporary cash shortages.

Market unions regulate trading among their members, including agreeing a common price.

Quality, what customers can afford and competitors' prices all affect price; competition among the firm's suppliers does not directly set its selling price.

The stages are need recognition, information search, evaluation of alternatives, purchase decision and post-purchase behaviour.

Specialty goods are costly items with special features that buyers make extra effort to get, such as branded electronics; noodles and fruits are convenience goods.

The societal marketing concept balances customer wants, company profit and the long-term welfare of society.

A consignment note is filled in by the sender and goes with goods handed to a carrier such as a railway or transport company.

A shop sells a loss leader at a very low price to draw customers in, hoping they buy other goods too.

Laws and bans made by government are political influences on marketing.

The marketing concept puts the customer at the centre: the customer is king or boss.

A warehouse protects goods from theft; pilfering is what it prevents.

Multiple shops are branches of one firm that usually sell a single line of goods; department stores and malls sell many lines.

A brand is a name, term, symbol or combination of them that identifies a seller's product.

Air transport is the fastest, so perishables reach the market before they spoil.

Sampling lets consumers try a product free or for a token price so they will buy it later.

Primary data is collected first-hand from the target market for the current study.

Premiums, displays and free samples are short-term incentives to buy; a pricing policy is a separate marketing mix decision.

The entrepreneur bears the risk of the business and is rewarded with profit.

The retailer sells directly to the final consumer.

Advertising that exaggerates or misrepresents a product to attract buyers is deceptive advertising.

A warehouse is a building used to store goods.

Demand is the quantity people are willing and able to buy, so it depends on what they can afford.

A tied shop sells only the products of the one manufacturer it is tied to.

A merchandiser arranges and displays goods attractively at the point of sale.

After searching for information, the buyer compares the options: this is evaluation of alternatives.

At introduction the product is new and unknown, so heavy advertising is needed to create awareness.

Exchange of goods and services between countries is foreign (international) trade.

In a joint venture a foreign firm and a local partner share capital, ownership and control of a new business.

Cash and carry wholesalers give no credit or delivery, so they can charge lower prices.

Critics say advertising can mislead people with exaggerated claims.

An entrepreneur spots opportunities and brings new ideas into business: innovation.

The production concept, focused on making goods cheaply and in quantity, was the earliest orientation.

A quantity discount rewards buying in large volumes.

Mail order firms sell goods shown in catalogues.

(a) Pricing is the process of deciding the amount of money a firm will charge for its product.
(b) The marketing concept is the business philosophy that a firm achieves its goals by finding out the needs and wants of its target market and satisfying them better than competitors; the customer is the centre of all its activities.
(c) Product: the good or service offered to satisfy needs (quality, design, brand, packaging).
Price: the amount the customer pays for the product.
Place: the channels and physical distribution that make the product available where and when needed.
Promotion: communicating with customers to inform and persuade them (advertising, sales promotion, personal selling, publicity).

Name all four Ps and say what each one covers.

(a) A product is anything, tangible or intangible, offered to a market to satisfy a want or need.
(b) Product concept: consumers prefer products with the best quality, performance and features, so the firm concentrates on improving the product. Production concept: consumers prefer products that are widely available and cheap, so the firm concentrates on efficient mass production and wide distribution.
(c) Any seven: poor or no market research; product does not meet a real need; poor quality or design; wrong price; poor promotion; poor distribution; bad timing of launch; strong competition; poor packaging or branding; high production costs; changes in consumer taste; government restrictions.

For (b), state the focus of each concept and contrast them.

(a) Any two: penetration pricing; skimming pricing; cost-plus pricing; competitive (going-rate) pricing; psychological pricing; discriminatory pricing; promotional/loss-leader pricing; geographical pricing.
(b) Any four: short and easy to pronounce; easy to remember and recognise; distinctive; suggests the product's benefits or quality; legally protectable; not offensive in any language/culture; adaptable to new products.
(c) Any five, explained: price determines revenue and profit; helps the firm recover its costs; is a tool for competing with rivals; affects the quantity demanded; helps position the product (quality image); helps the firm achieve market share objectives; affects survival of the firm.

Give two named strategies and explain how price affects the producer.

(a) Quality is the ability of a product to meet or exceed customers' needs and expectations (its durability, reliability, performance and fitness for use).
(b)(i) Intensive distribution: using as many outlets as possible, e.g. for convenience goods like soft drinks.
(ii) Selective distribution: using a limited number of chosen outlets in an area, e.g. for shopping goods.
(iii) Exclusive distribution: giving one dealer sole right to sell the product in an area, e.g. luxury cars.
(c) Any six: poor quality; product does not perform as advertised; high price; poor packaging; poor after-sales service; scarcity/unavailability; harmful side effects or defects; rude sales staff; short shelf life; misleading advertising.

Give an example for each type of distribution.

(a) Sales promotion is the use of short-term incentives (samples, coupons, premiums, price-offs, contests) to encourage purchase of a product.
(b) Any four: to inform customers about a product; to persuade them to buy; to remind them of the product; to create and build brand image; to introduce a new product; to counter competitors; to increase sales.
(c) Any five: face-to-face, two-way communication; message can be adjusted to each buyer; questions and objections answered immediately; product can be demonstrated; builds lasting customer relationships; immediate feedback; can close the sale on the spot.

Define sales promotion, then give advertising objectives and personal selling advantages separately.

(a) Any five: planning marketing activities; organising the marketing department; directing and motivating sales staff; carrying out/coordinating marketing research; developing products; setting prices; choosing distribution channels; planning promotion; controlling and evaluating marketing performance; budgeting.
(b) Any five, explained: carry out research to find customers' needs and expected quality; pass customer feedback and complaints to production; take part in product design and testing; set quality standards with production; monitor competitors' products; ensure good packaging and handling in distribution; provide after-sales service; train staff on customer service.

Separate the manager's functions from the ways marketing supports quality.