43 questions. Try each one, then open the answer to check yourself and read the explanation.
Which of the following items is an example of industrial goods?
Answer: A (Cassava tuber)
Cassava tubers are raw materials processed into garri, starch and flour, so they are industrial goods.
The first institution to introduce a degree programme in marketing in Nigeria is University of
Answer: B (Nigeria, Nsukka)
The University of Nigeria, Nsukka was the first to offer a degree in marketing in Nigeria.
Which of the following marketing terms is applied to a buyer that obtains a desired product by offering something in return?
Answer: D (Exchange)
Getting a product by giving something in return is exchange.
A company's orientation that concentrates on mass distribution and low cost of its product is a
Answer: B (production concept)
The production concept focuses on low costs and wide distribution.
Which of the following business orientations stresses that promotional efforts are necessary before customers buy a product?
Answer: C (selling concept)
The selling concept says customers must be pushed by promotion before they buy.
A set of controllable variables that a firm uses to pursue its objectives is
Answer: D (marketing mix)
The marketing mix is the set of controllable variables (4Ps).
A feature of product as a marketing mix element is
Answer: B (warranty)
Warranty is part of the product; credit terms, discounts and allowances belong to price.
In marketing, the term product refers to
Answer: B (anything that can be offered for consumption)
A product is anything offered to a market for use or consumption that can satisfy a need: goods, services, ideas and more.
Milk, sugar and bread bought by Amaka for her children's breakfast are examples of
Answer: B (convenience goods)
Cheap everyday items bought often are convenience goods.
Companies that purchase goods for further processing is an example of
Answer: B (an industrial market)
Firms buying goods to process further form the industrial market.
Which of the following statements explains an organizational market?
Answer: D (Purchasing is done by trained personnel)
Organisational buyers are trained purchasing staff who follow formal procedures.
At what stage in the buying process does a consumer consider product attributes of available brands?
Answer: B (Alternative evaluation)
Brands are compared on their attributes during evaluation of alternatives.
The last stage in the consumer buying decision process is
Answer: D (post-purchase decision)
Post-purchase behaviour is the last stage.
The process of collecting and analyzing relevant information to solve a marketing problem is marketing
Answer: B (research)
Marketing research gathers and analyses information to solve a specific marketing problem; an audit reviews the whole marketing operation.
An information required for marketing planning is
Answer: C (previous year's sales volume)
Past sales figures help set realistic marketing targets.
The purpose of feedback from customers who use a company's product is to
Answer: B (improve the quality of products)
Customer feedback shows what to improve in the product.
Use the following information to answer questions 18 and 19
A retailer's cost and selling price for a bag of rice are ₦10,000 and ₦14,000 respectively.
What is the company's mark-up on cost?
Answer: C (40%)
Mark-up = ₦14,000 − ₦10,000 = ₦4,000; on cost = 4,000/10,000 × 100 = 40%.
Use the following information to answer questions 18 and 19
A retailer's cost and selling price for a bag of rice are ₦10,000 and ₦14,000 respectively.
What is the retailer's profit per bag of rice if he incurs an additional cost of N500 on each bag of rice?
Answer: B (₦3,500)
Total cost = ₦10,000 + ₦500 = ₦10,500; profit = ₦14,000 − ₦10,500 = ₦3,500.
Which of the following activities is not a function of advertising? It
Answer: C (is used in place of personal selling)
Advertising informs and reminds consumers, and by creating demand it encourages middlemen to stock the product. It supports personal selling but is not used in place of it.
An example of a non-personal means of reaching the target audience by an identified sponsor is
Answer: D (billboard)
A billboard is an advertising medium: non-personal and paid by an identified sponsor.
A reason for granting quantity discount is to
Answer: B (encourage bulk purchases)
Quantity discounts reward buying in large quantities.
Coupon is used as a sales promotional tool targeted at
Answer: B (consumers)
Coupons are given to consumers for price reductions.
The creation of awareness for products at the point of sale is
Answer: D (merchandising)
Merchandising is promotional activity at the point of sale, such as displays and shelf arrangement.
An example of merchandising activities is
Answer: B (displaying products at the retail store)
Displaying goods in the shop is merchandising.
The channel member who does not take title to goods is the
Answer: C (agent)
Agents sell on behalf of the owner and never own the goods.
Which of the following distribution channels would be used to sell tractors and cranes?
Answer: A (Producer → Agent →Consumer)
Costly industrial machines go through a short channel, often via an agent, to the user.
The document that shows the details of goods being transported is the
Answer: C (waybill)
A waybill gives details of goods in transit.
One of the reasons transportation is important is that it
Answer: C (facilitates the distribution of goods)
Transport moves goods from producers to consumers.
An example of a government warehouse is
Answer: B (bonded warehouse)
Bonded warehouses are controlled by government customs to hold goods until duty is paid.
Which of the following goods are kept in bonded warehouse?
Answer: B (Dutiable goods)
Bonded warehouses keep dutiable (imported) goods until duty is paid.
A body that comprises sellers of onions in an area is an example of a
Answer: B (market union)
Sellers of one product in an area form a market union.
An example of market facilitator is
Answer: A (transportation companies)
Transport firms help distribution without owning the goods.
A method of engaging in international marketing with the lowest business risk is
Answer: B (exporting)
Exporting needs little investment abroad, so it carries the lowest risk.
A form of engaging in international marketing that involves the pooling of resources between local and foreign firms is
Answer: A (joint venture)
In a joint venture local and foreign firms pool resources.
One of the benefits of e-marketing is that it
Answer: C (broadens a company's customer base)
E-marketing reaches many more customers, even abroad.
One of the uses of e-marketing platform is to
Answer: D (promote goods and services)
E-marketing platforms are used to promote goods and services.
An entrepreneur who intends to establish a frozen fish shop will need a
Answer: A (reliable power supply)
Frozen fish must be kept cold, so steady electricity is essential.
(a)(i) What is entrepreneurship? (ii) List and explain four sources of fund to an entrepreneur.
(b) Outline six factors influencing the choice of location of a market outlet.
(a)(i) Entrepreneurship is the process of identifying a business opportunity, organising resources to start and run a business, and bearing the risks in order to make profit.
(a)(ii) Any four, explained: personal savings; loans from family and friends; bank loans; bank overdraft; ploughed-back profit; trade credit; hire purchase/leasing; government grants and schemes; cooperative societies.
(b) Any six: nearness to customers; level of competition; cost of rent/land; accessibility and transport; security; availability of power, water and other amenities; nearness to suppliers; government regulations; availability of parking/space.
Give each point as a full sentence, with an example where possible.
(a)(i) What is marketing? (ii) Outline six functions of marketing. (b) List and explain four marketing concepts.
(a)(i) Marketing is the process of identifying customers' needs and wants and satisfying them profitably through the creation and exchange of goods and services.
(a)(ii) Any six: buying; selling; transportation; storage; standardisation and grading; financing; risk bearing; marketing research/information; promotion; pricing.
(b) Any four, explained: production concept (cheap, widely available products); product concept (best quality and features); selling concept (aggressive selling and promotion); marketing concept (identify and satisfy customers' needs better than competitors); societal marketing concept (customer satisfaction plus society's long-term welfare).
Give each point as a full sentence, with an example where possible.
Amaka decided to establish a warehousing business. (a) State five activities Amaka is expected to carry out in the business. (b) State five e-marketing ethics Amaka could adopt for her warehousing business.
(a) Any five: receiving and inspecting goods; storing goods safely; keeping records of goods in and out; protecting goods from theft, fire and damage; sorting, grading and packing; releasing goods to owners when needed; issuing warehouse receipts; insuring goods; maintaining the building.
(b) Any five: protect customers' personal data and privacy; give truthful information about services and prices; do not send spam/unsolicited messages; get customers' consent before using their data; respond promptly to enquiries and complaints; use secure payment systems; respect copyright and others' content; deliver services as advertised; avoid false reviews.
Give each point as a full sentence, with an example where possible.
(a) Explain the following terms in marketing: (i) needs; (ii) wants; (iii) exchange; (iv) demand; (v) transaction. (b) Okon Enterprises Ltd sells electronic appliances at his retail outlet at No. 4 Okeke Adamu Street, Lagos. Telephone No.; 06012345678. He intends to offer 15% discount to encourage the sales of his newly introduced Blenders, Television and Radio sets. You are required to design a sample of a handbill showing the products with the advertising message.
(a)(i) Needs: basic human requirements such as food, clothing and shelter.
(ii) Wants: the particular products people desire to satisfy needs, shaped by culture and personality.
(iii) Exchange: obtaining a desired product from someone by offering something in return.
(iv) Demand: wants backed by the ability and willingness to pay.
(v) Transaction: a trade of values between two parties, e.g. money for goods.
(b) The handbill should show: the firm's name, Okon Enterprises Ltd, as a heading; an attention-getting headline (e.g. 'GRAND PROMO: 15% OFF!'); the products named and pictured (blenders, television sets, radio sets); the message that they are new and the 15% discount; the full address (No. 4 Okeke Adamu Street, Lagos) and telephone number 06012345678; a call to action (e.g. 'Visit us today!') and the offer period if any; a neat layout, framed, with a slogan.
For (b), draw a neat, framed handbill containing every detail given in the question.
Adamu, a wholesaler in Lagos, who deals in frozen foods has customers in the northern parts of the country. (a) State four factors that would affect the choice of the mode of transporting the goods to his customers. (b) List and explain four transportation documents he would use in the course of delivering the goods to his customers.
(a) Any four: perishability of frozen foods (need refrigerated, fast transport); cost of transport; distance; speed/urgency; safety and security on the route; availability of refrigerated trucks or rail; reliability; quantity of goods.
(b) Any four, explained: waybill (accompanies goods in transit, giving details of goods and receiver); consignment note (filled by the sender when handing goods to a carrier); delivery note (lists goods delivered, signed by the customer as proof of receipt); invoice (shows goods supplied and amount due); certificate of insurance (shows the goods are insured in transit); manifest (list of all goods on the vehicle).
Give each point as a full sentence, with an example where possible.
Mr. Okon is planning to establish a noodle manufacturing company. He observed that the market for the product is large with many competitors. (a) List and explain four external marketing environmental factors that would affect his business. (b) Explain four sales promotional tools he would use to introduce his new products to the market.
(a) Any four, explained: economic (income, inflation, interest rates affect demand and costs); political-legal (government policies, NAFDAC rules, taxes, import rules on wheat); social-cultural (eating habits, tastes); technological (new production and packaging methods); demographic (population size and age, many young people eat noodles); competitive (many existing noodle brands); natural (supply of raw materials).
(b) Any four, explained: free samples/tasting; coupons; price-off/introductory discounts; premium offers/free gifts; bonus packs; contests and sweepstakes; demonstrations (cooking displays); trade allowances to dealers.
Give each point as a full sentence, with an example where possible.