2023 NECO MARKETING ANSWERS
INSTRUCTIONS:- ANSWER ONLY FIVE (5) QUESTIONS IN ALL
(1a) A product is a tangible or intangible item that is offered to customers in the marketplace for consumption or use. It can be a physical object, such as a car or a smartphone, or it can be a service, such as a haircut or a software application.
(i)Consumer products: These are products that are purchased by individuals for personal use and satisfaction. Consumer products can be further divided into four subcategories: convenience products (low-priced items that consumers buy frequently and with little effort, such as snacks), shopping products (products that consumers compare and evaluate before purchasing, such as clothing), specialty products (unique products that consumers are willing to go out of their way to find, such as luxury watches), and unsought products (products that consumers may not actively seek out, such as emergency medical services).
(ii)Industrial products: These are products that are used by businesses to produce other goods or services. Industrial products can be categorized as materials and parts (raw materials or components used in the production process, such as steel or computer chips), capital items (long-lasting goods that are used in the production of other goods or services, such as machinery or buildings), and supplies and services (consumable items or activities used in the production process, such as office supplies or maintenance services)
(i)Lack of market demand: One of the main reasons for the failure of new products is a lack of demand in the market. This can occur if the product does not meet the needs or wants of the target customers, or if there is insufficient consumer interest or awareness about the product. Conducting thorough market research and understanding the needs and preferences of the target market is crucial to avoid this failure.
(ii)Poor marketing and promotion: Another reason for new product failure is poor marketing and promotion efforts. Even if a product has a strong demand, if it is not effectively marketed and communicated to the target audience, it may not gain traction in the market. Inadequate advertising, improper positioning, or a lack of effective distribution channels can hinder the success of a new product. It is essential to develop a comprehensive marketing strategy and allocate sufficient resources towards promoting the new product to maximize its chances of success.
(i) MOBILIZATION OF WORKFORCE: Before marketing their products, firms need to mobilize their workforce by recruiting, training, and organizing employees. This involves identifying the necessary skills and competencies required for marketing activities and ensuring that the right employees are in place. Mobilizing the workforce also includes assigning roles and responsibilities, setting goals, and providing necessary resources to enable effective marketing efforts.
(ii) UTILIZATION OF FEEDBACK: Firms need to collect and utilize feedback from various sources to improve their marketing strategies. This can include feedback from customers, sales representatives, market research, and social media platforms. By analyzing feedback, firms can gain insights into customer preferences, identify areas for improvement, and make necessary adjustments to their marketing plans.
(iii) PRODUCTION OF QUALITY GOODS AND SERVICES: Producing high-quality goods and services is crucial for successful marketing. Firms need to ensure that their products meet or exceed customer expectations in terms of functionality, durability, and aesthetics. Quality control processes are implemented to ensure consistency and reliability, which helps build a positive brand image and customer satisfaction.
(iv) MANAGING DISTRIBUTION NETWORK: Firms need to establish and manage an efficient distribution network to ensure their products reach the target market effectively. This involves selecting appropriate distribution channels, such as wholesalers, retailers, or online platforms, and managing relationships with distributors. Firms also need to monitor inventory levels, logistics, and transportation to ensure timely and cost-effective product delivery.
(v) ADVERTISEMENT AND PROMOTION: Advertisement and promotion activities are essential for creating awareness and generating demand for the firm’s products. This can include various marketing techniques such as print and digital advertising, social media marketing, public relations, and sales promotions. Firms need to develop compelling marketing messages, select appropriate communication channels, and allocate budgets to effectively reach their target audience and create a strong brand presence.
(i) GLOBAL REACH: Internet marketing allows businesses to reach a vast and diverse audience worldwide, transcending geographical boundaries and time zones.
(ii) COST-EFFECTIVENESS: Compared to traditional marketing channels, internet marketing is often more affordable, making it accessible to businesses of all sizes.
(iii) TARGETED ADVERTISING: Internet marketing enables precise targeting, allowing businesses to focus their efforts on specific demographics, interests, and behaviors, increasing the effectiveness of their campaigns.
(iv) MEASURABLE RESULTS: Online marketing provides real-time analytics and data tracking, allowing businesses to measure the success of their campaigns and make data-driven decisions for optimization.
(v) INTERACTIVITY AND ENGAGEMENT: Internet marketing facilitates direct and immediate interaction with customers, fostering engagement through social media, email marketing, and interactive content.
(5a) Sales Promotion is a set of short-term marketing activities and incentives designed to stimulate immediate sales and encourage customer engagement. It involves the use of various promotional techniques, such as discounts, coupons, free samples, contests, to create a sense of urgency and entice customers to make a purchase or take a specific action.
(i) INCREASE SALES VOLUME: The primary objective of sales promotion is to boost sales and generate a short-term increase in product demand.
(ii) ATTRACT NEW CUSTOMERS: Sales promotions aim to attract new customers to try a product or service by offering incentives that create curiosity and encourage trial.
(iii) ENCOURAGE REPEAT PURCHASES: Sales promotion techniques can foster customer loyalty and repeat purchases by rewarding loyal customers or offering incentives for multiple purchases.
(iv) CLEAR INVENTORY: Sales promotions help in clearing excess inventory, especially for seasonal or perishable goods, by offering discounts or special deals.
(v) INTRODUCE NEW PRODUCTS: Sales promotions can be used to create awareness and interest in newly launched products, thereby facilitating their market entry.
(vi) ENHANCE BRAND AWARENESS: Sales promotions with creative and engaging elements can increase brand visibility and awareness among the target audience.
(i) INFORMATIVE ROLE: Advertising serves to inform the target audience about a product or service, its features, benefits, and how it addresses consumers’ needs or problems.
(ii) PERSUASIVE ROLE: Advertising aims to persuade and influence consumers’ perceptions, attitudes, and buying behavior by highlighting the unique selling propositions and competitive advantages of the product or service.
(iii) REMINDER ROLE: Advertising plays a crucial role in reminding consumers about a brand or product regularly, reinforcing brand loyalty, and maintaining top-of-mind awareness.
(iv) BRAND BUILDING ROLE: Advertising contributes to building and enhancing the brand image and equity by establishing a consistent brand identity and associating positive emotions and values with the brand.
(7a) consumer market refers to a marketplace where final goods or services are traded between sellers and individuals who purchase these goods and services for personal consumption. It doesn’t include entities that buy goods for resale or for further production and manufacturing.
CHOOSE ANY FOUR (4)
(I) Identify Opportunities: Through research, firms can spot potential markets and customer needs that they can cater to.
(ii) Understand Customers: It helps them understand consumer behavior, preferences, and trends.
(iii) Competitor Analysis: Research can reveal what competitors are doing, enabling firms to strategize accordingly.
(iv) Risk Management: It reduces the risks associated with new product launches.
(v) Improve Sales: Research helps companies improve their sales efforts by providing insights into what works and what doesn’t.
(vi) Product Development: Feedback from market research can be used to improve products or services.
(vii) Establish Performance Metrics: Firms can establish performance goals based on market research.
(viii) Facilitate Decision Making: It provides data and insights that help firms make informed decisions.
CHOOSE ANY FOUR (4)
(I) Sets Direction: Marketing planning defines the direction for marketing efforts.
(ii) Resource Allocation: It helps in effective allocation of resources to achieve marketing goals.
(iii) Coordination: Marketing planning ensures that all marketing activities are coordinated and aligned with the business’s overall goals.
(iv) Risk Management: It helps identify potential risks and devise strategies to mitigate them.
(v) Competitive Advantage: With a good marketing plan, a business can gain an edge over its competitors.
(vi) Defines Goals and Objectives: It sets measurable goals and objectives for the marketing team.
(vii) Evaluation: A marketing plan provides a basis for evaluating marketing performance.
(viii) Efficiency: With a clear marketing plan, companies can operate more efficiently by avoiding wasteful spending and focusing on what works.
CHOOSE ANY FIVE(5)
(I) Cost of Production: This includes all the costs involved in producing a product such as raw materials, labor, and overhead costs. If the cost of production rises, the price of the product usually increases.
(ii) Demand and Supply: If the demand for a product exceeds its supply, the price often increases. Conversely, if the supply is greater than the demand, the price typically decreases.
(iii) Competition: In a competitive market, businesses often lower prices to attract more customers. The price may also depend on the quality, features, and benefits compared to competing products.
(iv) Quality: High-quality products usually come at a higher price due to the costs associated with superior materials, skilled labor, and rigorous quality assurance processes.
(v) Brand Image: A strong brand can command higher prices because consumers perceive their products as superior and are willing to pay extra for the brand value.
(vi) Target Market: The characteristics and purchasing power of the target audience can greatly influence the price. If a product is aimed at luxury consumers, it can be priced higher.
(vii) Marketing and Distribution Costs: These include the costs of advertising, promoting, and distributing the product. If these costs are high, the product’s price might be increased to compensate.
(viii) Government Policies: Taxes, tariffs, and regulations can affect the cost of production or sale of a product, influencing its price.
(ix) Economic Conditions: In times of economic prosperity, people are willing to spend more, allowing companies to charge higher prices. Conversely, in economic downturns, prices might have to be lowered to stimulate sales.
(x) Technological Advancements: If a product incorporates the latest technology or innovation, it can often be priced higher due to the unique features or capabilities it offers.