NECO Marketing 2024 Theory — Question 6

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.)