44 questions. Try each one, then open the answer to check yourself and read the explanation.
The business activity concerned with the identification and satisfaction of consumers' needs is
Answer: D (marketing.)
Marketing is about identifying and satisfying consumers' needs.
The concept that states that consumers will only buy goods that are available and affordable is the
Answer: D (production concept.)
The production concept assumes consumers want products that are widely available and cheap.
Minimum wage as an environmental factor is associated with
Answer: C (economic factor.)
The minimum wage sets workers' income, which affects purchasing power: an economic factor.
The emphasis of societal marketing concept is on
Answer: B (environmental safety.)
The societal marketing concept cares for society's long-term welfare, including a safe environment.
Limestone as a raw material in cement production is an example of
Answer: A (primary product.)
Limestone is dug from the earth unprocessed, so it is a primary product.
A tractor bought for use by a farmer is an example of
Answer: A (industrial goods.)
The farmer uses the tractor to produce crops, so it is an industrial good.
A feature of the consumer market is that
Answer: B (there are many buyers.)
Consumer markets have very many buyers, each buying small quantities.
The stage at which product requirement is prescribed in organization's buying decision process is
Answer: B (need specification.)
At the specification stage the firm sets out exactly what the product must be like.
A reason for engaging in international marketing by a company is to
Answer: A (utilize excess capacity.)
Selling abroad lets a firm use spare production capacity.
Which of the following activities would a company embark upon to solve an identified marketing problem? Marketing
Answer: B (research.)
Marketing research is carried out to solve specific marketing problems.
A series of activities that lead to marketing objectives setting is
Answer: C (marketing planning.)
Marketing planning is the process that leads to setting marketing objectives and strategies.
Marketing survey is carried out purposely to
Answer: B (collect information.)
A survey is a way of collecting information from people.
The form of advertising which aims at stimulating the demand for a particular brand of product is
Answer: A (competitive advertising.)
Competitive advertising promotes one brand against rival brands; generic advertising promotes a product class.
A voucher received by Adam for a product bought at A. A. stores that qualifies him for a price reduction in a repeat purchase is
Answer: D (coupon.)
A coupon is a voucher that gives a price reduction on a purchase.
Premium offers and coupons are elements of
Answer: C (sales promotional tools.)
Premiums and coupons are sales promotion tools.
In-store and window displays are elements of
Answer: D (merchandising.)
Displays in the shop and its windows are merchandising activities.
A psychological factor that influences consumer buying behaviour is
Answer: D (perception.)
Psychological factors are motivation, perception, learning, beliefs and attitudes.
A distribution channel member that would be used by a company that manufactures heavy drilling equipment is
Answer: B (dealer.)
Heavy industrial equipment is sold through specialist dealers who also give technical service.
Which of these transportation modes is suitable for transporting gas from Banjul to Brikama?
Answer: B (Pipeline)
Pipelines carry gas continuously and cheaply over land.
A transportation document that indicates the quantity and place of delivery of goods is
Answer: A (waybill.)
A waybill travels with the goods and shows their quantity and destination.
Which of the following individuals makes use of a warehouse?
Answer: C (A wholesaler)
Wholesalers buy in bulk and need warehouses to store goods.
Who among the following members comes first in the channel of distribution?
Answer: C (Manufacturer)
The channel starts with the manufacturer and ends with the consumer.
The aspect of a marketing plan that specifies the main goals and recommendations is the
Answer: C (executive summary.)
A marketing plan opens with an executive summary that briefly states its main goals and recommendations; action programmes give the detailed tasks.
Beans Sellers Association is an example of
Answer: B (market union.)
Sellers of one product in a market form a market union.
Funds sourced by a baker from previous year's profit for expansion is
Answer: D (retained earning.)
Profit kept in the business and reinvested is retained earnings (ploughed-back profit).
A Ministry of Education (MOE) that procures stationery for public schools' use, is an example of
Answer: C (government market.)
Government ministries buying for public services form the government market.
The combination of variables such as product, place, price and promotion constitute the
Answer: B (marketing mix.)
Product, price, place and promotion make up the marketing mix.
Use the following information to answer questions 29 and 30.
Johnson and Bitwa Ltd is into the production of soya beans milk. The business is located at the outskirts of the city and is experiencing low patronage.
Which of the following factors could have resulted to the low demand of the product?
Answer: C (Proximity to the market)
Being on the outskirts means the business is far from its market, so few customers come.
Use the following information to answer questions 29 and 30.
Johnson and Bitwa Ltd is into the production of soya beans milk. The business is located at the outskirts of the city and is experiencing low patronage.
The company can increase the sales of its products by
Answer: A (offering delivery services to customers.)
Delivering to customers overcomes the distance problem and raises sales.
A sales promotional tool aimed at encouraging stocking of products by resellers is
Answer: B (quantity discount.)
Quantity discounts reward resellers for buying and stocking large quantities.
Which of the following activities is not performed in a warehouse?
Answer: A (Designing of products)
Products are designed by the producer, not in a warehouse.
The breaking of bulk is a function of the
Answer: C (wholesaler.)
Wholesalers buy in bulk and sell in smaller lots.
Which of the following activities is not a feature of industrial market?
Answer: D (Goods are bought for final consumption)
Buying for final consumption describes the consumer market, not the industrial market.
An advertising media that has a wider coverage at a lower cost to advertisers is
Answer: B (radio.)
Radio reaches a wide audience cheaply.
The component of the marketing environment that deals with the traditions and norms of the society is
Answer: C (cultural factors.)
Traditions, norms and values belong to the cultural environment.
The starting point of the buyer decision making process is
Answer: C (problem recognition.)
The process starts when the buyer recognises a need (problem recognition).
Which of the following stages is the last in consumer buying decision making process?
Answer: C (Post purchase behaviour)
Post-purchase behaviour comes last.
The marketing function that involves the movement of goods to the target market is
Answer: B (distribution.)
Distribution moves goods to the target market.
Mr John, the purchasing officer of Ajax Ltd, bought an industrial printer for his company's use and packs of noodles for his daughter's birthday party.
(a) Identify the two types of products bought by Mr. John. (b) State four differences between the two types of products bought by Mr John. (c) Explain the five stages in decision making process that Mr John would have followed in the purchase of the noodles.
(a) The printer is an industrial product; the noodles are a consumer product.
(b) Any four: industrial goods are bought to produce/run a business, consumer goods for personal use; industrial buyers are few, consumer buyers many; industrial goods are usually costly and durable, noodles cheap and used up quickly; industrial buying is done by trained specialists after careful evaluation, consumer buying is often routine or impulsive; industrial demand is derived and inelastic, consumer demand more elastic; industrial goods use short/direct channels, consumer goods long channels; industrial goods often need technical after-sales service.
(c) Need recognition: he realises noodles are needed for the party.
Information search: he finds out about brands, prices and where to buy.
Evaluation of alternatives: he compares brands on taste, price and pack size.
Purchase decision: he buys the chosen brand.
Post-purchase behaviour: he judges whether the noodles satisfied the guests, which decides whether he buys the brand again.
Apply the stages to the noodles, not the printer.
(a) What is sales promotion? (b) Explain the following forms of sales promotion: (i) coupon; (ii) sample; (iii) premium; (iv) contest.
(c) State five advantages of magazine as an advertising medium.
(a) Sales promotion is the use of short-term incentives to encourage people to buy a product or to buy more of it.
(b)(i) Coupon: a voucher that gives the holder a price reduction on a product.
(ii) Sample: a small quantity of a product given free so people can try it.
(iii) Premium: an extra item given free or at a low price with a purchase.
(iv) Contest: a competition in which buyers or dealers win prizes, usually by showing skill or by buying the product.
(c) Any five: high-quality colour pictures; long life (kept and read many times); passed on to other readers; can target a specific audience (e.g. women, sports fans); prestige and credibility; room for detailed information; can carry coupons and samples.
Give each point as a full sentence, with an example where possible.
Premium Ltd is a manufacturer of confectioneries that sells its products to distributors nationwide.
(a) State five functions the distributors would perform in the company. (b) State five factors the company would consider in choosing a mode of transporting its products to distributors.
(a) Any five: buy in bulk from the company; store the products; transport them to retailers; break bulk; finance the company through prompt payment; bear risks; promote the products; give market information/feedback; give credit to retailers.
(b) Any five: cost of the transport; speed; nature of the goods (perishable, fragile); distance; safety and security; reliability; availability of the mode on the route; quantity of goods; flexibility (door-to-door).
Give each point as a full sentence, with an example where possible.
(a) What is market union? (b) State four roles performed by market unions to their members.
(c) State five advantages of packaging to a product.
(a) A market union is an association of traders who deal in the same product in a market, formed to protect and promote their common interests.
(b) Any four: fix common prices; settle disputes among members; protect members from unfair practices; represent members before government; pass on market information; provide welfare and savings schemes; keep order, security and cleanliness in the market.
(c) Any five: protects the product from damage and contamination; makes handling, storage and transport easier; attracts buyers (promotion); identifies the brand; carries information through the label; gives convenient sizes; preserves the product and extends shelf life; prevents adulteration.
Give each point as a full sentence, with an example where possible.
(a) What is e-marketing? (b) State four benefits of e-marketing. (c) State five reasons a company would want to engage in international marketing.
(a) E-marketing is the use of the internet and other electronic media to promote and sell goods and services.
(b) Any four: reaches a global market; low cost; available 24 hours a day; easy to measure results; quick feedback and interaction with customers; easy price comparison for buyers; fast transactions.
(c) Any five: to reach a larger market; to make more profit; to use excess capacity; saturated or declining home market; to spread risk; to earn foreign exchange; to gain economies of scale; to extend a product's life cycle; to take advantage of trade agreements or incentives.
Give each point as a full sentence, with an example where possible.
(a) Explain the following marketing terms: (i) supply; (ii) wants. (b) Wox Ltd operates on marketing and product concepts while Manti Ltd operates on production and selling concepts.
State two features each of the concepts used by the two companies.
(a)(i) Supply: the quantity of a product that sellers are willing and able to offer for sale at a given price and time.
(ii) Wants: the particular products people desire to satisfy their needs, shaped by culture and personality.
(b) Marketing concept (Wox Ltd), any two: starts with customers' needs; uses marketing research; integrated marketing; aims at customer satisfaction and long-term profit.
Product concept (Wox Ltd), any two: focus on product quality, performance and features; continuous product improvement; assumes customers want the best product.
Production concept (Manti Ltd), any two: focus on efficient mass production; low costs and low prices; wide availability.
Selling concept (Manti Ltd), any two: aggressive selling and promotion; sells what the firm makes; aims at sales volume; used for unsought goods.
Give each point as a full sentence, with an example where possible.