WAEC Marketing 2017 past questions and answers

In licensing a firm lets a foreign company use its patent, trademark or know-how in return for a fee (royalty).

Unsought goods (e.g. insurance) are things people do not think of buying, so they need aggressive selling.

Research steps are: define the problem, plan the research, collect and analyse data, and report the findings. Acting on the findings comes afterwards.

Goods bought to help produce other goods are industrial goods.

A label gives information about what is in the product and how to use it.

Research starts by defining clearly the problem to be studied.

Advertising is any paid, non-personal presentation of ideas, goods or services by an identified sponsor.

Home sampling delivers free samples to chosen households so they can try the product.

Promoting and offering products for sale online is electronic marketing (e-marketing).

Traders selling the same goods, such as foodstuffs, form a market union to protect their interests.

Perishable goods spoil quickly, so they need fast transport.

Organisational buying is shaped by the firm's objectives, policies and procedures; taste and preference are personal factors.

The production concept assumes buyers want cheap, widely available products, so the firm focuses on efficient production.

A private company cannot sell shares to the public, so bank loans are a key source of funds.

Political stability is a political factor; inflation, income and exchange rates are economic.

Displaying products to attract buyers is done in shops, not in warehouses.

The nature of the product (perishability, bulk, technicality) is the main factor in choosing a channel.

Packaging is the product's physical wrapping and presentation, designed to protect it and attract buyers.

On the internet the audience can respond, click and communicate with the advertiser.

This is the definition of marketing research.

Packaging covers designing and producing the container or wrapper for a product.

Promotion communicates with customers to make them aware of the product.

Wholesalers and retailers buy goods to resell at a profit; they make up the reseller market.

Haggling means buyer and seller bargain until they agree on a price.

Product, price, place and promotion together form the marketing mix.

Demand is a desire for a product supported by the ability and willingness to pay.

Trade promotions such as dealer sales contests reward middlemen; samples, coupons and premiums are aimed at consumers.

Place means making the product available to customers, i.e. distribution.

Electronic marketing is done online, so an internet connection is essential.

Merchandisers arrange goods in shops; the other terms all mean middlemen.

A premium is an extra item given free or cheaply with a product, like a toothbrush with toothpaste.

Cost-plus pricing adds a fixed mark-up to the cost of producing the item.

Consumer behaviour studies how people and organisations choose, buy and use products.

A school leaver has no business record for loans and cannot issue debentures, so personal savings are the realistic source.

A firm sells abroad mainly to reach a bigger market and increase sales.

Warehouses store goods and can sort, grade and pack them; merchandising takes place at the retail outlet.

Banks help marketing by providing finance but do not buy or sell the goods, so they are facilitators.

A label tells buyers about the product: its name, contents, use and maker.

(a) A market is the set of actual and potential buyers of a product who have the need, the money and the willingness to buy it.
(b) Any four: buying; selling; transportation; storage/warehousing; standardisation and grading; financing; risk bearing; marketing research/information; promotion.
(c)(i) Government market: government ministries and agencies that buy goods and services to provide public services.
(ii) Reseller market: wholesalers and retailers who buy goods to resell at a profit.
(iii) Industrial market: firms that buy goods and services to use in producing other goods and services.

Define each market by who buys and why.

(a) Any four: to inform people about the juice; to persuade them to buy; to remind existing buyers; to build a brand image; to increase sales and market share; to counter competitors' advertising; to introduce a new flavour or pack.
(b) Advantages (any three): reaches a very large audience; combines sight, sound and movement so the product can be demonstrated; very attractive and memorable; reaches both literate and illiterate people; prestige.
Disadvantages (any three): very expensive; message is short-lived; viewers may switch channels during adverts; needs electricity and a TV set; cannot reach rural areas without power well; hard to target a specific group.

Give each point as a full sentence, with an example where possible.

(a) Electronic marketing is the promotion and sale of goods and services using the internet and other electronic media (websites, e-mail, social media, mobile phones).
(b) Any three: advertising products; selling and receiving orders online; receiving payment; market research and customer feedback; customer service; communicating with customers and suppliers.
(c) Any five, explained: direct exporting (selling to foreign buyers yourself); indirect exporting (through export agents or merchants); licensing; franchising; joint venture with a foreign firm; direct investment (setting up a plant abroad); contract manufacturing; selling through an online store/e-commerce platform.

Give each point as a full sentence, with an example where possible.

(a) Political: government actions, laws, policies and stability that affect business (e.g. bans, taxes, import restrictions).
(b) Cultural: the beliefs, values, language, religion and customs of a society that shape what people buy.
(c) Technological: new inventions and methods (internet, machines) that create new products and change how firms produce and market.
(d) Economic: income, inflation, interest rates, exchange rates and employment levels that affect people's purchasing power.
(e) Social: population size and structure, family, reference groups, social class and lifestyles that influence buying.

Define each factor and give an example of how it affects marketing.

(a) Problem recognition: the buyer notices a need, triggered by internal (hunger) or external (advert) stimuli.
(b) Information search: the buyer looks for information from personal, commercial, public and experience sources.
(c) Evaluation of alternatives: the buyer compares brands using criteria such as price, quality and features.
(d) Purchase decision: the buyer chooses a brand and makes the actual purchase.
(e) Post-purchase behaviour: after use, the buyer feels satisfied or dissatisfied, which affects repeat buying and word of mouth.

Give each point as a full sentence, with an example where possible.

(a) Any five: sells in small quantities; stocks a variety of goods; locates near consumers; gives information/advice on products; offers credit to regular customers; delivers goods; gives after-sales service; displays goods so customers can choose.
(b) Any five: buys in bulk, giving producers quick sales; stores goods (warehousing); finances producers by paying promptly or in advance; bears risks; gives market information and feedback; helps advertise products; packages and grades goods; distributes goods to retailers.

Give each point as a full sentence, with an example where possible.