Theory question 106
Marketing EnvironmentMr. 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.
Show the model answer
(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.