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January 2021 – Q.
4 (Marketing) Anne operates a wholesale ice-cream and
yogurt business. She wants to introduce a new ice-cream flavour to the market. a) Identify FOUR factors which could determine the packaging and presentation of this new ice-cream flavour. 4 marks - Attraction and protection of product - Product shelf life and display - Informative labelling/coding - Cost and materials - Distribution/Transportation requirements - Environmental/Legal issues b) Describe THREE methods which Anne could use to promote the sale of the new ice-cream flavour. 6 marks - Price-pack deal: Anne can offer for a limited time a certain percentage more of the product for the same price, e.g. 30% extra. This will attract customers because this technique gives them more value for their money and will prove beneficial once customers are satisfied with the product they will continue to buy even after the sales promotion is removed. - Coupons: Anne can provide customers with coupons inserted into local newspapers which can be used to save some money when purchasing this new ice-cream flavour, e.g. save $5. On-self couponing can also be applied which present coupons at the shelf where the product is available. This technique also gives customers more value for their money since the coupon reduces the actual price they pay for the item. - Bundles: Anne can create a bundle for this new flavour with a popular flavour, e.g. 1L of Chocolate fudge banded together with 1L of new flavour, therefore customers not only get two items at a bargain price but also forced to try this new flavour through this bundles purchase. - Contest/competition/games: Anne can use a completion to attract customers to purchase this new flavour, win a vacation. Customers are automatically entered into the competition by purchasing the product. - Price deal: Anne can temporarily reduce the price of the new flavour, e.g. 50% off. This introduction pricing strategy can prove successful in attracting customers to try this new flavour because the price makes it cheaper than other brands in the market. - Advertising to inform customers about goods and services on offer and try to persuade them to purchase. - Loyalty points can be offered as a reward to customers for making a purchase. This will encourage the customer to return to make future purchases to redeem these points. - Trading stamps - Rebate - Loss leader - Social media c) List FOUR techniques of selling which could be used to encourage consumers to purchase the new ice-cream flavour. 4 marks - Salesperson - Merchandising - Independent shops - Supermarkets - Department stores - E-commerce - Telemarketing 1 d) Explain TWO terms of sale which Anne may use to encourage other businesses to purchase the new ice-cream flavour. 6 marks - Credit: Anne can offer other businesses to purchase on credit. This allows buyers to purchase the item but pay for it at a future agreed time. The payment can be a one-off payment or through instalments. Under this arrangement the buyer is the owner of the item at the time the arrangement is made. All credit transactions are subject to interest charges on the outstanding balance. The seller can encourage the buyer to pay sooner by using trade discounts. - Cash: Anne can offer other businesses cash discounts when they pay for her ice-cream in cash. This method eliminates the need for Anne to extend credit to a customer and reduces the risk of a bad debt. It also means that she is able to acquire her money promptly. Customers also benefit because they do not have to pay interest and receive a discount for paying in full. - Consignment: Anne can sell her ice-cream on consignment. This is an arrangement in which items are left in the possession of another party to sell. The party selling the goods on consignment receives a portion of the profits, either as a flat rate fee or commission. May/June 2020 – No PAPER 2 January 2020 – Q. 3 (Marketing) a) Describe EACH of the following terms and state ONE example of EACH. i. Market (as it relates to marketing) 3 marks - A market is any situation that brings together two parties (buyers and sellers) to facilitate the purpose of exchanging goods and services. It can be physical such as a retail outlet, where parties meet face-to-face or virtual such as online, where there is no direct physical contact between parties. ii. Marketing 3 marks - Marketing is all those activities that enable trade to take place in the most profitable and efficient manner. It includes identifying customers’ needs and all the activities that satisfy those needs by providing the goods and services that consumers require. b) State TWO benefits/purposes of the packaging of products. 2 marks - It attracts attention: the colour and brightness of the design of a package make the product attractive to the consumer. They will be drawn to the good among others. - It provides information: the packaging provides an easy way in which all necessary information pertaining to ingredients, use, safety, nutritional facts and expiry date information can be presented to the consumers. - Ease of handling: packaging allows for easy handling and transportation and also protects the product from damage, breakage, spilling or contamination while in transit. - Promotion: the brand name is usually displayed on a product’s package as well, this allows customers to identify brands and helps to create a perception of quality from the functionality of the package and quality of the package. - Protects the product - Helps prevent health hazards 2 - Preserves the life of the product c) List THREE different forms of advertising and state the purpose of EACH form. 6 marks - Informative advertising: this form of advertising is used to educate customers on features of a product, its uses, benefits, how it compares to competitors, where it can be accessed and side effects, if any. - Comparative advertising: this form of advertising involves comparing side- by-side the benefits and features of a business’ products next to those of its competitors. It is typically used when releasing new products and typically the competing product is shown in a faultfinding light. - Persuasive advertising: this form of advertising serves to promote a business’ products through persuasion, convincing or coaxing. It is typically used when launching a new product and seeks to attract customers to try said product. - Collective advertising: this form of advertising is done jointly by a number of producers in the same industry, e.g. brush and floss your teeth daily. It is typically used by associates whose code of conduct prohibits other forms of advertising. d) i. Explain the importance of ONE of the elements of the ‘marketing mix”. 3 marks - Product: manager has to consider the design, usefulness, convenience, value, quality, accessories, warranties, etc., to aid in the attractiveness of the product/service. - Promotion: manger has to determine the strategies to be used to make the product/service attractive and ensure customers have knowledge of the product/service. - Price: manager has to assess the price to charge for their product/service and the pricing strategy to be utilize. - Place: manager has to assess their location and where the product/service will be sold. ii. Explain ONE factor that would influence a consumer to buy a particular brand of product. 3 marks - Price: consumers purchase brands based on how its price fits into their budget or income bracket. Price also creates the perception that an item is inferior or superior by the price set. In situations where quality, specification and ingredients are the same for similar products and where price varies, consumers generally choose the cheaper item over the more expensive product. - Price of substitute: consumers generally choose the substitute in a market where a product and its substitutes are closely related in terms of quality, specification and ingredients. - Quality: a consumer may sometimes ignore price or other factors if he/she wants a high quality product. The consumer will pay a high price for this product because of the satisfaction he gets from using this product. - Taste - Tradition - Income - Spending patterns - Brand loyalty May/June 2019 – Q. 4 (Marketing) a) Outline TWO functions of consumer organizations. 4 marks - Educating consumers about their rights and responsibilities 3 - Collect data on different products from time to time and test them and conduct research on consumer’s problems - File law suits on behalf of consumers - Protest against adulteration, hoarding, black-marketing and under-weight selling. Once there are unnecessary price increases they protest against it. - Help educational institute prepare courses of study keeping in view the interests of the consumers - Extend support to government by informing government agencies about adulteration, artificial scarcity, inferior quality products, etc. b) Outline TWO benefits of good customer service. 4 marks - Good customer service increase sales for a business because customers are satisfied with the service they receive when shopping and will return to make future purchases. Returning customers are also likely to try other products/services too. - Good customer service also creates customer loyalty because of the satisfaction with the service offered and the business. Returning customers are also likely to recommend the business to family and friends because of the service. - Satisfied customers help create a positive work environment because they reciprocate good attitude and politeness back to the employees. - Good customer service at a business will boost the business’ public image. Customers will attach a positive stigma to the business which will also attract other customers to the business. c) Describe EACH of the following forms of customer service. i. Warranties 2 marks - A warranty is a written guarantee a business makes regarding the condition of its product. It generally refers to terms and conditions in which repairs or exchanges will be made in the event that the product does not perform as intended. ii. Toll free numbers/Toll free call centres 2 marks - A department in which incoming and outgoing telephone and voice calls from new and existing customers are handled by a team of advisors or agents. It provides a service to customers, handles queries, offer product support, carry out telemarketing or market research. iii. Suggestion boxes 2 marks - Suggestion boxes are used by businesses to acquire additional requests, comments and questions. Customers use slips of paper to record their input and deposit it into the suggestion box. d) A trademark is a firm’s brand that allows it certain benefits in the marketplace. Explain TWO ways in which trademarks are beneficial in the conduct of a business. 6 marks - A registered trademark provides a business with the opportunity to prove another business is infringing upon your rights. It gives the owner additional protection and reduces the burden of proof. 4 - A registered trademark gives the business the right to take legal action against any business that infringes upon your trademark and demand that their business pays damages. - A registered trademark aids your business in expanding into new markets internationally. The business federal registration can be used to file for a foreign trademark. January 2019 – Q. 3 (Marketing and Logistics and Supply Chain) a) State TWO advantages to the customer of utilizing EACH of the following terms of sales: i. Cash 2 marks - Immediate satisfaction of needs/wants and payment does not include any interest - Cash sales can allow the customer to receive discounts - Customers do not have the stress of acquiring money to pay over time like Hire Purchase ii. Hire Purchase 2 marks - Customers can use/acquire an item without paying in full for it. - Customers with a lack of money can use/acquire an item and pay for it over time iii. Layaway 2 marks - No interest attached to purchase and customers pay for the item over time - Customers with a lack of money can pay for an item over time to become its owner b) Describe ONE factor that could influence the behaviour of consumers. 2 marks Same as January 2020, Q 3 (d) (ii) c) Figure 1 shows a traditional chain of distribution for a certain product. Figure 1. Traditional chain of distribution Identify EACH link in the chain by placing the correct name in EACH box above. 4 marks d) List FOUR problems that are likely to be encountered in distribution of goods. 4 marks - Hoarding by wholesalers which creates artificial shortages - Lack of adequate security measures, affected by pilferage - Significantly affected by strikes at ports; Industrial unrest - Traffic congestion/Poor infrastructure, e.g. roads - Delayed shipment due to natural disasters - Inadequate warehousing facilities - Ineffective communication - Misdirection of goods - Industrial unrest - Spoilage e) Suggest ONE appropriate mode of transportation for EACH of the following products. i. Fresh meat from processing plant to supermarket 1 mark - Road: refrigerated containers/cold storage vehicle 5 i. Cement from factory to construction site 1 mark - Road: trucks ii. Oil from oilfield to refinery 1 mark - Pipelines iii. Bauxite from mine to processing plant. 1 mark - Road: Trucks May/June 2018 – Q. 4 (Marketing) a) List FOUR marketing activities. 4 marks - Market research - Advertising - Pricing - Distribution - Packaging - Branding - Sales Promotion b) Outline TWO elements of the traditional marketing mix. 4 marks Same as January 2020, Q 3 (d) (i) c) Describe EACH of the following methods of promoting sales. 4 marks i. Public relations (PR): this is a practice used by businesses to build its public image and build mutually beneficial relationships with the public, e.g. sponsoring of football club. ii. Sales promotion: this is a short-term incentive used by a business to stimulate its demand and increase its sales, e.g. temporary price reduction, free sampling campaign. d) Kevin and Mala have been thinking of setting up a cellphone and accessories business together. i. Define the term ‘retailing’. 2 marks - This is the part of the distribution channel where customers can visit a store and buy their products. They sell goods in sizes, quantities and prices convenient to customers. ii. Describe THREE suitable types of retail outlets that Kevin and Mala could consider setting up. 6 marks - Department store: this type of business generally sells a variety of goods under one roof. Kevin and Mala could consider this business and provide a number of related products, such as radios, tablets and video games. - Retail store outlet: this type of business is generally located at convenient and highly populated places, e.g. kiosk at the mall. Keven and Mala could consider this business because city shopping areas, high streets or residential areas means many customers and once the business is meeting customers demand, the business will benefit and do well. - Online store: this type of business can be operated without having a physical location. Kevin and Mala could consider this business because it allows them to sell their products without 6 having to incur a cost of renting/leasing a physical premises and they could operate based on their terms. January 2018 – No Marketing or Logistics and Supply Chain question May/June 2017 – Q. 4 (Marketing) a) i. Define the term ‘brand name’. 2 marks - This is a name applied by a manufacturer or business to a particular good or service. It can be used and protected as a trademark. ii. Identify TWO forms of packaging. 2 marks - Plastic Boxes and containers - Shrink wrap - Cardboard and Paper boxes - Glass - Metal/Aluminum tins - Crate and Pallets iii. State TWO purposes of packaging 2 marks Same as January 2020, Q 3 (b) b) i. Describe TWO techniques used in selling. 4 marks Same as January 2021, Q 4 (4) ii. Outline TWO methods which vendors can employ to promote sales. 4 marks Same as January 2021, Q 3 (b) c) Explain TWO ways in which the existence of copyright is likely to influence the actions of producers and consumers. 6 marks - Since the copyright law gives producers the legal right to their work and against unauthorized copying of their work, they can take legal action against anyone copying and/or selling their work. This also helps to keep the earnings from their work solely theirs and not have them experience any major loss in sales by the hands of someone illegally copying and selling their work. - Consumers may be intimidated to copy and sell the work of someone else because of the fear of having to pay money as damages to the creator of the work who has taken them to court for their illegal duplication. January 2017 – Q. 4 (Marketing) a) i. Define the term ‘marketing’. 2 marks Same as January 2020, Q 3 (a) (ii) ii. List TWO elements of the marketing mix. 2 marks Same as January 2020, Q 3 (d) (i) 7 b) Differentiate between ‘perfect competition’ and ‘monopolistic competition’. 4 marks - Perfect competition is a theoretical market structure in which all firms sell identical products, are price takers, have complete knowledge of other firms’ products and prices, they can enter and exit the market without costs and market share has no influence on price. On the other hand, monopolistic competition/imperfect competition is a market structure where many producers sell products that are differentiated from one another, but are close substitutes, firms enter or exit the market freely and firms are price makers. c) i. State TWO reasons for conducting market research. 2 marks - To determine what consumers want, so the business does not waste resources producing goods/services not required by the consumers. - To assess likely demand to ensure over-producing does not occur. - To discover what will influence consumers – learn about the market. ii. Describe TWO factors which influence consumer behaviour. 4 marks Same as January 2020, Q 3 (d) (ii) d) Explain TWO ways in which the price of a good/service contributes to the marketing process. 6 marks - The price of a product represents what customers expects to pay, if a seller’s price is too high customers will not buy and if it is too low customers might think it is too inferior. Therefore, price is critical in attracting customers to purchase a product and develop a perception of its quality. - Price can be used to strategies attraction to a product. Businesses may set prices deliberately low to penetrate a new market and develop their market share and then raise the price to a more profitable level. May/June 2016 – Q. 4 & 6 (a) (i) (Marketing) *Production (b) a) List THREE examples of EACH of the following: i. Market structures 3 marks - Monopolistic/Imperfect competition - Oligopoly - Perfect competition - Duopoly - Monopoly ii. Methods of retailing 3 marks Same as January 2021, Q4 (c) b) Differentiate between ‘capital-intensive production’ and ‘labour-intensive production’. 4 mks - Capital intensive production uses large inputs of capital and relatively small amounts of labour to create its outputs of goods and services. Labour intensive production, on the other hand produces its outputs of goods and services using large inputs of labour and relatively smaller amounts of capital. c) Outline TWO purposes of branding. 4 marks 8 - Recognition and loyalty: customers are more likely to remember your business. Well thought of brands are capable of developing a strong tie/bond between their company and their consumers. - It helps motivate the buyer: brands that have proven themselves over time can be a good motivator for clients to continually purchase the product/service. This is possible if the company has a unique and appealing brand that people can easily associate with. - Branding makes it easier for a business to introduce a new product/service: a strong brand name paves the way for your business to expand into new markets and expand your existing product lines. - Helps to reduce buyer’s perceived risk of purchase d) Explain TWO ways in which packaging helps in the marketing of goods. 6 marks Same as January 2020, Q 3 (b) 6 (a) i. Define the term ‘consumer protection’. 2 marks - Consumer protection is the institution that safeguards the rights of a consumer, as well as fair trade practices in the market. It involves agencies such as the Bureau of Standards, Consumer Affairs Division and the Ombudsman. As a body it is instrumental in educating consumers on their rights and responsibility so they are not taken advantage of by businesses. January 2016 – Q. 4 (Marketing) a) i. Define the term ‘marketing’. 2 marks Same as January 2020, Q 3 (a) (ii) ii. List the FOUR elements of the ‘marketing mix’. 4 marks Same as January 2020, Q 3 (d) (i) b) i. State TWO reasons why firms engage in public relations (PR). 2 marks - Attract investors - Reduce costs - Attract new customers - Retain business leads - Retain exiting staff - Distribute information and clarify the business messages and brand identity ii. Describe THREE marketing methods, other than social media, employed by businesses to promote sales. 6 marks Same as January 2021, Q 3 (b) c) Explain TWO ways in which businesses can use social media to promote sales. 6 marks - Work with Social Media Influencers to promote sales by sponsoring their content or provide samples of your product(s) for them to review. - Build a reliable, content rich and user-friendly website for your business as well as social media accounts such as snapchat, Instagram, tiktok, etc. - Select applicable advertising strategies which best promotes your product/service and attract consumers. 9 May/June 2015 – Q. 4 (Marketing and Logistics and Supply Chain) a) Define the term ‘consumer protection’. 2 marks Same as May/June 2016, Q 6 (a) (i) b) i. List TWO rights of the consumer. 2 marks - Right to be informed - Right to choice - Right to education - Right to redress - Right to be heard - Right to safety ii. Outline TWO roles of the Bureau of Standards. 4 marks - Research in relations to international quality specifications - Examination and testing of goods - Advising manufacturers on quality control systems - Certification of goods that meet an acceptable quality - Inspection of the operations of production facilities of consumer goods - Establishment of a standard of quality for all goods to be sold to consumers - Collection and publication of data relating to specification and standards c) i. State TWO characteristics of the wholesaler as a distributor. 2 marks - They buy in bulk from manufacturers and sell in similar quantities to retailers who in turn provide goods to consumers in widely dispersed markets. - They help to reduce cost to retailers and consumers by providing transport of goods to local markets - They hold stock. This means that retailers who lack the physical capacity to hold large volumes can quickly get goods to supply to customers. - They finance retailers through credit facilities. ii. Outline ONE advantage and ONE disadvantage of E-commerce as a method of retailing. 4 marks Advantage: - Customers no longer have to join long queues, nor do they have to be placed on hold - Can read reviews to better understand and assess the items being purchased. - Can purchase a wide array of goods from anywhere in the world once their device has access to internet/Wi-Fi. - Can compare prices and quality (through assess reviews) without leaving the comfort of their home. - Able to not only buy goods but also to start their own business and sell their items without investing in a store front. - Can get digital goods instantaneously. Disadvantage - Difficult to identify scams and there is no guarantee of product quality. - Cannot physically interact (touch, see) with the goods before purchase. 10 - Have to wait a while after paying to receive the goods. - Need an ICT device and internet/Wi-Fi connection. - Possibility of information theft and fraud. d) i. Identify TWO problems related to the distribution of goods. 2 marks Same as January 2019, Q 3 (d) ii. Outline ONE measure that producers could take to avoid each problems identified.4mks - The impact of port strikes cannot be avoided, so contingency plans must be put in place for the eventuality, such as warehousing at other locations closer to markets, e.g. logistics hubs. Industrial unrest also calls for the intervention of the government to mediate - To avoid misdirection of goods it is important to have a system to check and verify destination before goods are loaded. It can also be addressed by improved communication as well as the use of well-established handling services. This may also be improved with careful labelling and documentation. - To avoid traffic delays, it may be necessary to do shipping outside of peak hours or negotiate night time delivery or utilize GIS to direct you to efficient routes to avoid traffic congestion. - Delays may also be reduced with adequate communication between parties. Use of telephones, faxes and internet will allow for instant communication that ensures goods arrive on time. - To avoid adverse weather problems, it is necessary to plan shipping. - Pilferage is a challenge and an expense as it means hiring more security or even making sure that those doing the transportation can be held financially liable for any loss. Security issues may also be addressed by hiring or training more security personnel, as well as the installation of security cameras at premises. - Hoarding and price gouging can be reduced by bypassing the wholesaler and dealing directly with retailers. - Spoilage may be reduced by holding less stock. The selection of proper channel of distribution will also prove helpful. - Inadequate warehousing may require the government to intervene through the provision of industrial estates. January 2015 – Q. 4 (Marketing) a) i. List FOUR marketing activities. 4 marks Same as May/June 2018, Q 4 (a) ii. State TWO elements of the marketing mix. 2 marks Same as January 2020, Q 3 (d) (i) b) Differentiate between ‘sales promotion’ and ‘public relations’. 4 marks - Sales promotion is a short-term tactic to persuade a potential customer to buy a product, e.g. discount vouchers. On the other hand, public relations is a communication process that promotes good relationship between a business and public and keeps the market aware of the positive aspects of the business, e.g. exhibitions, sponsorships. 11 c) List TWO examples of i. Advertising Same as January 2020, Q 3 (c) ii. Personal selling - Selling insurance - Personalized telemarketing - Door-to-door sales, e.g. cosmetics - Selling by the roadside, e.g. coconut vendor d) Outline THREE problems which a consumer might experience when purchasing goods via the Internet. 6 marks - Security- related: Buyers using this medium are required to enter credit card information, exposing them to the dangers associated with credit card and identity theft and must be mindful of using secure sites. - Product-related: Since buyers are unable to examine goods as they would in a physical store, the goods advertised on the website might not meet the expectations of the buyers in terms of quality and materials used. It might also be inconvenient for purchasers to return items. - Technology: Buyers must not only be computer literate but must have access to a computer. Buyers should also be able to depend on reliable Internet service. Moreover, if the bandwidth is inadequate and the speed is low, the purchasing process would be slow and frustrating for buyers. May/June 2013 – Q. 5 (Logistics and Supply Chain) * Business Finance (c) a) i. State TWO functions of transportation in business. 2 marks - To rapidly move perishable goods to market - To help customers easily get to and from the market - An efficient transport system saves time for consumers - Transportation increases the mobility of labour and capital - Consumers are able to enjoy goods not produced domestically - An efficient transport system saves the business time; time is money ii. Outline TWO advantages of road or land transport. 4 marks - It is relatively quick - It allows business to offer door-to-door service - It saves money in packaging due to the minimum handling required - It allows for access to rural areas that would otherwise not be accessible - Very effective and safe for the transport of fragile items as there is less handling - It is generally cheaper to establish and maintain than other transportation systems - Very cost efficient for short distances, as goods can be loaded and unloaded directly from vehicle to destination - There is flexibility for modes of transport, routes and timing, which means it can be adjusted to suit the needs of the individual b) i. Describe TWO problems related to the distribution of goods in your country. 4 marks 12 Same as January 2019, Q 3 (d) ii. Outline ONE measure that can be used to solve EACH problem described in (b) (i) above. 4 marks Same as May/June 2015, Q 4 (d) (ii) c) Discuss TWO types of commercial banking services available to businesses engaged in transportation. 6 marks - Discounting bills of exchange - Asset finance: to fund new equipment or vehicles - Providing night safe facilities for after-hours deposits - Standing orders can be used to make payments on mortgages/vehicle insurance - Chequing accounts: to allow for easy payments as well as short-term loans through overdraft facilities - Foreign exchange: allowing for currency conversion as well as foreign currency accounts when dealing with foreign clients 1