NECO 2025 MARKETING-OBJ; ExamgrandComNg
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NECO 2025 MARKETING-ESSAY-ANSWERS; EXAMGRANDCOMNG
INSTRUCTION: ANSWER FIVE(5) QUESTIONS ONLY

(1a)
[TABULATE]
=NEED=
(i) A need is something essential for survival, such as food, water, and shelter.
(ii) Needs are limited and must be satisfied to live a healthy life.

=WANT=
(i) A want is something desirable but not essential, like a smartphone or designer clothes.
(ii) Wants are unlimited and based on personal preferences or lifestyle.

(1b)
(i) Value:
Value refers to the worth or importance placed on a good or service by an individual or society. It reflects the satisfaction or benefit a consumer expects to receive from consuming a product or service. Value can be measured in terms of money, utility, or preference.

(ii) Exchange:
Exchange is the process through which goods, services, or money are transferred between two or more parties. It involves giving up something of value in return for something else. For example, paying money to buy a product is a typical exchange in a market system.

(iii) Service:
A service is an intangible economic activity that provides benefits or satisfaction to consumers without resulting in the ownership of a physical product. Examples include healthcare, education, banking, and transportation. Services are usually consumed at the point of delivery.

(iv) Transaction:

A transaction is a completed agreement between a buyer and a seller to exchange goods, services, or financial instruments. It involves at least two parties and typically includes the transfer of money, goods, or services. Transactions are recorded in business for accountability and financial reporting.

(2a)
The marketing environment refers to all the external and internal factors that affect a company’s ability to develop and maintain successful relationships with its customers. It includes forces such as competitors, customers, economic trends, technological changes, legal regulations, and social and cultural influences. These factors influence how businesses make decisions regarding marketing strategies and operations.

(2b)
(i) Product:
A product is anything that can be offered to a market to satisfy a need or want. It includes physical goods, services, experiences, ideas, or a combination of these. A product has features, quality, design, brand name, and packaging that influence consumer perception and choice.

(ii) Price:
Price is the amount of money a customer pays to obtain a product or service. It is a key element in the marketing mix that affects demand, profitability, and market positioning. Pricing decisions consider factors like cost of production, competitor pricing, consumer perception, and market conditions.

(iii) Place:
Place refers to the distribution channels or locations through which a product reaches the final consumer. It involves decisions about how and where to make the product available whether in physical stores, online platforms, or through intermediaries like wholesalers and retailers. Effective placement ensures convenience and accessibility for the target market.

(iv) Promotion:

Promotion includes all marketing activities aimed at communicating the value of a product to consumers and persuading them to buy. This includes advertising, sales promotion, personal selling, and public relations. The goal is to raise awareness, generate interest, and drive sales.

(3a)
A market is a place or system where buyers and sellers interact to exchange goods, services, or ideas for value, typically through the mechanism of price. It may be physical (like a traditional marketplace) or virtual (such as online platforms). A market includes all potential customers who share a particular need or want and are willing and able to make purchases to satisfy them.

(3bi) Consumer Market: The consumer market consists of individuals or households that purchase goods and services for personal use or consumption, not for resale.

=Characteristics=
(i) Large Number of Buyers:
The consumer market is typically broad and diverse, consisting of many individuals or families with different needs, preferences, and income levels.
(ii) Emotional Buying Decisions:
Purchases in consumer markets are often influenced by emotions, tastes, trends, brand perception, and personal preferences rather than purely rational or economic considerations.

(3bii) Organisational Market:
The organisational market refers to businesses, government agencies, and institutions that buy goods or services for operational use, production, or resale.

=Characteristics=
(i) Bulk Purchasing:
Organisations usually buy in large quantities to support production, operations, or resale, making purchases more structured and often involving contracts or tenders.
(ii) Rational and Professional Decision-Making:

Buying decisions in organisational markets are based on logical factors such as cost-efficiency, quality, supplier reliability, and long-term value. Purchases are often made by a team or department after thorough evaluation.

(4a)
Consumer behaviour refers to the study of how individuals, groups, or organizations select, purchase, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants. It involves understanding the decision-making processes and factors that influence buying choices, such as psychological, personal, social, and cultural elements.

(4b)
(i) Cultural Factors:
Culture is a fundamental influence on consumer behaviour. It includes values, beliefs, customs, and traditions shared by a group of people. Culture shapes what people consider important, acceptable, or desirable. For example, in some cultures, modesty in dressing is valued, influencing fashion purchases.

(ii) Social Factors:
These involve the influence of family, friends, social groups, and societal roles. Consumers often make choices based on opinions or expectations of others. For instance, a teenager may buy a particular phone brand because their friends use it, or a parent may choose products based on family needs.

(iii) Personal Factors:
These are characteristics unique to each individual, such as age, gender, occupation, income level, education, and lifestyle. A young single professional may prioritize luxury and technology in purchases, while an elderly retiree may focus more on comfort and health-related products.

(iv) Psychological Factors:

These include internal influences such as motivation, perception, learning, beliefs, and attitudes. For example, a person motivated by self-esteem may buy designer clothes to boost confidence, while past experience with a brand can influence future buying decisions due to learned trust or disappointment.

(5)
(i) Market Demand
Market demand refers to the willingness and ability of customers to purchase a product at a given price. When demand for a product is high and supply is limited, prices can be increased because customers are more willing to pay. Conversely, when demand is low, prices may need to be reduced to encourage purchases. Seasonal factors, consumer preferences, and trends all influence demand.
Example: A small business selling raincoats can charge higher prices during the rainy season due to increased demand, but may need to offer discounts during the dry season to maintain sales.

(ii) Competition
Competition refers to the pricing and marketing strategies of rival businesses offering similar products. In a highly competitive market, a small business must consider the prices set by competitors. If competitors offer similar products at lower prices, a business may be forced to adjust its prices to remain attractive to customers. Alternatively, it may offer added value to justify higher prices.

Example: If a competing local bakery reduces the price of bread, your business may need to reduce its price as well or differentiate by emphasizing better quality or customer service.

(iii) Cost of Raw Materials and Inputs
This refers to the market prices of the resources used to produce or deliver your product. Increases in the cost of inputs such as raw materials, labor, packaging, or transportation will raise the overall cost of production. As a result, the final product price must be adjusted upward to maintain profit margins. Conversely, a fall in production costs can allow for more competitive pricing.
Example: If the cost of cooking oil and flour increases, a small bakery must increase the price of pastries to avoid losses.

(iv) Government Policies and Regulations
These include laws, taxes, tariffs, subsidies, and price control measures imposed by the government. Government interventions can significantly impact how a product is priced. For example, taxes such as Value Added Tax (VAT) increase product costs, which businesses often pass on to consumers. Similarly, government-imposed price ceilings may prevent a business from charging above a certain amount, limiting profit potential.
Example: If the government imposes a 10% excise tax on beverages, a small beverage producer will need to raise the product’s price to cover the additional cost.

(v) Economic Conditions
This refers to the general state of the national or local economy, including inflation, unemployment, and consumer income levels. In times of economic growth, consumers generally have higher disposable income and may be willing to pay more for products, allowing for higher pricing. During a recession or inflation, consumers become more price-sensitive, forcing businesses to lower prices or offer cheaper alternatives.

Example: During an economic downturn, a small fashion retailer might introduce lower-cost clothing lines or offer discounts to retain customers who are cutting back on spending.

(6a)
Distribution refers to the process through which goods and services are moved from the producer or manufacturer to the final consumer. It involves all the activities, people, and organizations that facilitate the transfer of products, including transportation, warehousing, wholesalers, retailers, and agents. The goal of distribution is to ensure that the right product reaches the right place, at the right time, and in the right quantity.

(6b)
(i) Nature of the Product
The type of product being sold greatly influences the distribution method.
Perishable goods, such as food or flowers, require a quick and direct distribution channel to avoid spoilage. Durable or industrial goods may use longer channels involving wholesalers and retailers. Bulky or fragile products may need special handling and direct delivery.

(ii) Target Market or Consumers:
Understanding the location, size, and buying habits of the target market is essential.
If the customers are widespread, a broader channel with multiple intermediaries (like wholesalers and retailers) may be needed. For concentrated or niche markets, direct selling or online platforms may be more effective and economical.

(iii) Cost of Distribution:
A businessman must consider the cost involved in using a particular channel.
Some channels involve multiple intermediaries, which can increase the overall cost due to commissions and handling fees. The chosen channel should provide a balance between cost-effectiveness and service quality to ensure the product remains competitively priced.

(iv) Nature and Size of the Business:
The scale of the business operation affects the choice of distribution.

Large businesses with strong logistics and financial capacity may opt for direct distribution through company-owned outlets or online platforms. Small businesses may rely on established wholesalers or retailers to reach customers more effectively without bearing the burden of distribution infrastructure.

(7a) A marketing intermediary is an individual or organization that acts as a link between the producer and the final consumer in the distribution of goods and services. These intermediaries such as wholesalers, retailers, agents, and distributors help in the movement, promotion, and sale of products by performing various essential marketing functions like storage, transportation, financing, and risk-bearing.

(7b)
(i) Facilitating Distribution:
Middlemen help in making goods available to consumers at the right place and time. They bridge the gap between producers and consumers by purchasing in bulk and selling in smaller quantities, thereby making products more accessible. This reduces the burden on manufacturers and improves convenience for customers.

(ii) Financing:
Middlemen often provide financial support to producers by buying goods in advance or on cash basis. By doing this, they enable manufacturers to maintain steady production and reduce the risk of financial strain. They may also offer credit facilities to retailers and consumers, enhancing sales and customer loyalty.

(iii) Risk Bearing:
Middlemen take on various risks associated with the distribution of goods. These risks include damage, theft, spoilage, and price fluctuations. Once they take ownership of the goods, they bear these risks, relieving producers of such uncertainties and allowing them to focus on production.

(iv) Promotion and Information Flow:

Middlemen assist in advertising, product display, and giving feedback from customers to producers. They play a role in promoting products through various marketing strategies and help educate customers on product usage and benefits. Additionally, they gather and relay consumer preferences and complaints back to the producer, which helps in improving product quality and customer satisfaction.

(8a)
Adaptation of marketing plans for international marketing refers to the process of modifying a company’s marketing strategies such as product features, pricing, promotion, and distribution to suit the specific cultural, economic, legal, and consumer conditions of foreign markets. Since international markets differ from the domestic market, businesses must tailor their marketing approaches to meet local customer preferences, regulatory requirements, and market dynamics to achieve success abroad.

(8b)
(i) Direct Exporting
This involves Ogodo Enterprises selling its products directly to customers or businesses in foreign countries without using local agents or intermediaries. Ogodo can handle all aspects of the export process itself, packaging, shipping, invoicing, and managing customer relationships abroad. Though this requires more effort and knowledge of international trade procedures, it allows the company to retain full control over pricing, branding, and customer service. It’s ideal if Ogodo wants to establish a strong brand presence in targeted foreign markets.

(ii) Using Export Agents or Distributors
This involves hiring foreign agents or distributors who help sell Ogodo’s products in overseas markets. An export agent helps find buyers and handles local negotiations, while a distributor buys the product in bulk and resells it abroad. This method reduces the burden on Ogodo Enterprises and provides access to local market expertise and established distribution networks. It’s especially helpful if Ogodo has limited experience in international business.

(iii) Online or E-Commerce Marketing:
This method involves selling products internationally through digital platforms and online marketplaces. Ogodo Enterprises can set up an e-commerce website or use platforms like Amazon, Alibaba, or Jumia Global to showcase and sell products to customers around the world. This method reduces the need for physical presence abroad and minimizes costs, making it ideal for small businesses seeking to test new international markets with low risk.

(iv) Trade Fairs and International Exhibitions: This involves participating in global trade shows, expos, or product fairs to attract international buyers and partners. Ogodo can showcase its products at international exhibitions, network with potential clients, and gain direct feedback from foreign markets. Trade fairs also open opportunities for bulk orders, foreign partnerships, or export contracts. It’s a cost-effective strategy for building brand awareness and exploring export potential in new regions.

(9)
(i) Identify and Define the Business Idea:
This is the first step where the entrepreneur determines what goods or services to market. It involves identifying a product that meets consumer needs or fills a gap in the market. At this stage, the individual considers personal interests, skills, and current market trends to define a viable business idea.

(ii) Conduct Market Research and Feasibility Study:
Once the idea is defined, it is important to research the target market to understand customer preferences, competitor analysis, pricing strategies, and demand levels. A feasibility study evaluates the financial and operational viability of the outlet, including location, capital requirements, and supply sources.

(iii) Prepare a Business Plan:
A detailed business plan outlines the objectives, strategies, operational structure, marketing approach, and financial projections for the outlet. It serves as a roadmap for managing the business and is also essential for sourcing funds from investors or financial institutions.

(iv) Secure Capital and Resources:
To bring the business idea to life, the entrepreneur needs to raise adequate capital. This can come from personal savings, loans, grants, or partnerships. In addition, other necessary resources such as equipment, furniture, signage, and stock must be acquired.

(v) Register the Business and Begin Operations:

The final step involves fulfilling legal requirements such as registering the business name, obtaining necessary licenses, and setting up tax identification. Once all formalities are complete, the outlet is launched, and promotional activities begin to attract customers and build a loyal customer base.

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