WAEC 2019 MARKETING ANSWERS
1a) Entrepreneurship refers to the concept of developing and managing a business venture in order to gain profit by taking several risks in the corporate world. Simply put, entrepreneurship is the willingness to start a new business.
product concept” is based upon the idea that customers prefer
products that have the most quality, performance, and features, some customers prefer a product that is simpler and easier to use.
The Selling Concept proposes that customers, be individual or organizations will not buy enough of the organization’s products unless they are persuaded to do so through selling effort. So organizations should undertake selling and promotion of their products for marketing success.
Production Concept is a belief that states that the customers would always acquire products which are cheaper and more readily available (or widely available). The production concept advocates that more the products or
production, more would be the sales.
The societal marketing concept holds that the organization’s task is to determine the needs, wants, and interests of a target
market and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the well being of both the individual consumer and society
5a Advertising is any communication, usually paid-for, specifically intended to inform and or influence one or more people.
(1) direct mail
(2) newspapers and magazines
(3) radio advertising
(4) television advertising (5) film advertising
(6) outdoor advertising
1. It Is a Costly Function
One strong objection to advertising is that it is a very costly function. Many studies have proved that the cost of ads exceeds that of sales by a small but significant percent. In theory, the high cost of advertising is covered by increased sales of the advertised product, but this usually is not the case.
Advertising is an indirect cost which is added into distribution expenses. When expenses increase, the selling price of products does too. With large advertisers spending thousands of dollars a week solely on ads and marketing, advertising costs make up a significant part of the price of an advertised product. Thus, consumers have to pay higher prices for products.
Advertising is an economic waste because unbalanced advertising causes certain goods to cost more than they should.
- Misleading Claims About Products
Some advertisers cleverly create misleading impressions of their goods—they present a very rosy picture of their products with the object of increasing their sales. In reality, their item is of inferior quality
- Encouragement of Monopoly
Advertisement restricts competition among products. Big industrialists and manufacturers can use advertising to increase their monopolistic control over the market against the public interest. Advertising increases awareness about a few products but causes all other options to be overlooked.
- Confusion About Characteristics of Products
Many similar products are advertised on the market, but producers put great emphasis on minor differences in the formula, technique, or make of advertised goods. For example, there are many brands of shaving creams which perform the same function but are advertised as dramatically different products. Due to misinformation disseminated by advertising, it has become impossible for the average buyer to judge with any certainty the quality of the product they are buying.
This is the basic function of warehousing. Surplus commodities which are not needed immediately can be stored in warehouses. They can be supplied as and when needed by the customers.
- Price Stabilization:
Warehouses play an important role in the process of price stabilization. It is achieved by the creation of time utility by warehousing. Fall in the prices of goods when their supply is in abundance and rise in their prices during the slack season are avoided.
- Risk bearing:
When the goods are stored in warehouses they are exposed to many risks in the form of theft, deterioration, exploration, fire etc. Warehouses are constructed in such a way as to minimise these risks. Contract of bailment operates when the goods are stored in wave-houses.
Loans can be raised from the warehouse keeper against the goods stored by the owner. Goods act as security for the warehouse keeper. Similarly, banks and other financial institutions also advance loans against warehouse receipts. In this manner, warehousing acts as a source of finance for the businessmen for meeting business operations.
Demand: is the total amount of
goods and services that all
consumers are willing and able
to purchase at a specific price in
a marketplace. In other words, it
represents how much
consumers can and will buy from
suppliers at a given price level in
Need: is a consumer’s desire for
a product’s or service’s specific
benefit, whether that be
functional or emotional.
Exchange: process is simply
when an individual or an
organisation decides to satisfy a
need or want by offering some
money or goods or services in
Market: is the exchange of goods
and services takes place as a
result of buyers and sellers being
in contact with one another,
either directly or through
mediating agents or institutions
Transaction: is an activity in
which goods, services or money
is passed from one account or
person to another; and act of
doing business; an agreement,
exchange, contract that takes
place between two parties and
establishes a legal obligation.