NABTEB Marketing 2024 Theory Past Questions

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(i) Needs refer to the basic requirements for human survival, such as food, water, shelter and clothing. They are physiological necessities that every individual requires to live. (ii) Wants are the desires for specific products or services that go beyond basic needs. These are not essential for human survival but are important for our overall well-being and quality of life. (b) Four functions of marketing in a company: i. Identification of customer needs: Marketing helps companies identify the needs and wants of their target audience, allowing them to develop products and services that meet those needs. ii. Product development: Marketing research helps companies understand customer preferences and develop new products or improve existing ones to meet those needs. iii. Promotion: Marketing involves promoting products or services to potential customers through various channels such as advertising, public relations and sales promotion. iv. Distribution: Marketing helps companies determine the most effective channels for distributing their products or services to customers, whether through retail stores, online platforms or other distribution channels. (c) Four concepts of marketing: i. Production concept: This concept holds that consumers will favour products that are widely available and inexpensive, so the firm should focus on production efficiency and distribution. ii. Product concept: This concept holds that consumers will favour products that offer the most quality, performance and features, so the firm should focus on continuous product improvement. iii. Selling concept: This concept holds that consumers will not buy enough of a firm's products unless it undertakes a large-scale selling and promotion effort. iv. Marketing concept: This concept holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction more effectively than competitors.

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(a) Consumer products are goods or services that are purchased by individuals or households for personal consumption. They are useful for personal satisfaction or needs, e.g clothing, food and beverages, electronics. (b) Three modes of transportation: i. Air transportation: This mode of transportation is typically used for transporting goods over a long distance such as shipping products between different countries or regions. It is fast and efficient but expensive. ii. Rail transportation: Rail transportation is commonly used for transporting large quantities of goods over long distances. It is cost-effective and environmentally friendly but is slower than air transportation. iii. Road/truck transportation: Truck transportation is commonly used for transporting goods over short to medium distances. It is flexible and can deliver goods directly to a customer's doorstep but can be more expensive than rail transportation for long hauls. (c) Three categories of industrial products: i. Raw materials: These products are used as inputs in the production process to create other goods or services. Examples include steel, chemicals and raw agricultural products. ii. Capital goods: These products are used in the production process to produce other goods or services. Examples include machinery, equipment and vehicles. iii. Consumer desirables (component parts/supplies): These products are designed to last for a long period of time and are used by individuals or households for personal consumption. Examples include appliances, furniture and care items used in maintaining industrial operations.

Model answer

(a) Eight sales promotional tools: i. Free trials and samples ii. Discounts and rebates iii. Loyalty programs iv. Referral marketing v. Advertising and sponsorships vi. Trade shows and events vii. Email marketing and newsletters viii. Social media contests and giveaways (b) Six benefits the company would derive from using sales promotional tools: i. Increased sales: It boosts revenue and drives sales growth through targeted promotions. ii. Brand awareness: It enhances brand visibility and recognition through consistent promotional efforts. iii. Customer engagement: It encourages customer interaction, loyalty and retention through engaging promotions. iv. Competitive advantage: It differentiates the company's products from those of competitors through unique and effective promotions. v. Market penetration: It helps enter new markets, attract new customers, and expand the customer base. vi. Cost-effectiveness: Sales promotions can be more cost-effective than other marketing strategies such as advertising, while gathering valuable customer data and insights for future promotional activities.

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(a) Four functions the association would perform to its members: i. Market Research: Providing market intelligence, trends, and analysis to help members make informed business decisions. ii. Promotion and Marketing: Promoting member products or services through collective marketing campaigns, trade shows, and advertising. iii. Networking Opportunities: Facilitating connections and collaborations among members through events, conferences, and meetings. iv. Standardization and Certificates: Establishing industry standards, certification programs, and quality control measures to ensure consistency and excellence. (Also acceptable: dispute resolution, information sharing, support services.) (b) Four types of market facilitator: i. Group Buying Agents: They negotiate better prices and terms with suppliers on behalf of association members, leveraging collective purchasing power. ii. Industry-Specific Marketplace: Provides a platform for association members to showcase and sell their products or services to a targeted audience, increasing visibility and sales. iii. Distributors: They purchase products from manufacturers and resell them to retailers or end-users. They often provide additional services such as storage, transportation and customer support. iv. Joint Marketing and Advertising Agencies: They develop and execute marketing campaigns that promote the products or services of association members, increasing brand awareness and driving sales.

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(a) Four reasons/sources from which Adamu could get funds: i. Bank Finance: Obtaining loans, overdrafts and other credit facilities from banks. This provides flexible funding but often requires collateral or security. ii. Government Grants and Subsidies: Receiving funding or support from government programs for specific industries, projects or initiatives. These are often competitive and require meeting specific criteria. iii. Internal Funds: Using profits, reserves or retained earnings to finance business activities. This is the most cost-effective and controlled source of finance to a business. iv. Leasing and Hire Purchase: This involves financing specific assets such as equipment or vehicles through leasing or hire purchase agreements, allowing businesses to use assets without owning them outright. (Also acceptable: trade credit, crowd funding, debt finance.) (b) Four factors that would influence Adamu's choice of location: i. Market Proximity: Being close to his target customers and understanding their needs and serving them effectively is important. ii. Transportation and Logistics: Easy access to transportation modes (air, sea, land) for smooth supply chain management and distribution. iii. Access to Funding and Finance: Proximity to banks, investors and venture capital firms for easy access to funding. iv. Energy and Utilities: Access to affordable and reliable essential services such as electricity, road, water and gas. (Also acceptable: environmental factors, proximity to partners and suppliers, government policies.)

Model answer

(a) (i) Demand: Demand refers to the quantity of a product or service that consumers are willing and able to purchase at a given price level and at a particular period. Demand is determined by various factors such as the price of a commodity, income of the consumer, price of related commodities, advertising etc. (ii) Products: A product is anything that can be offered to satisfy a customer's need or want. This can be a tangible good such as a phone, clothing, furniture etc, or intangible services such as healthcare, education, consulting etc, or an idea or concept such as insurance, financial services etc. (iii) Market: A market is a place or point of contact where buyers and sellers meet to the act of buying and selling. Market can also mean a group of consumers or organisations that have a demand for a specific product or service and have the ability to purchase it. A market can be divided/segmented based on geographical, demographic, psychological or behavioural factors. This can also include needs and wants, preferences, buying behavior etc. (b) Two types of distribution channels: i. Selective Distribution: Partnering with a limited number of retailers or intermediaries in a given area. ii. Direct sales: Selling directly to consumers through company-owned stock, websites or sales teams. (Also acceptable: Intensive distribution, Online channels, Hybrid channels, Third-party logistics.) (c) (i) Functions of a Wholesaler: - Buying and storing: Purchasing goods in bulk and storing them in warehouses. - Selling and distribution: Selling goods to retailers and distributing them to various locations. - Marketing and Promotion: Promoting products to retailers and sometimes to end-users. (Also acceptable: breaking of bulk, financing, risk bearing.) (ii) Functions of a Retailer: - Buying and storing: Purchasing goods from wholesalers and storing them in retail stores. - Selling and customer service: Selling goods to end-consumers and providing customer support. - Product demonstration: Demonstrating products to customers to show their features and benefits. (Also acceptable: managing inventory, after sales service, display and merchandising.)