Question

4a. Explain the following terms in marketing: (i) needs; (ii) wants; (iii) exchange; (iv) demand; (v) transaction.
b. Okon Enterprises Ltd sells electronic appliances at his retail outlet at No. 4 Okeke Adamu Street, Lagos, Tel No. 06012345678. He intends to offer a 15% discount to encourage sales of his newly introduced Blenders, Television and Radio sets. Design a sample of a handbill showing the products with the advertising message.

Accepted Answer

(a)(i) Needs: basic necessities demanded for the sustenance of human life, such as oxygen.
(ii) Wants: what a consumer desires but lacks the ability to pay for; a demand not backed by ability to pay is merely a want.
(iii) Exchange: the act of giving and taking. Exchange occurs in marketing when a person gives out goods and the other pays money for it.
(iv) Demand: a want that is backed by the ability to pay for it. Demand is said to take place if a consumer desires a good and also has the ability to pay for it.
(v) Transaction: a unit of interaction between two or more persons.

(b) See sample handbill in the Diagram column — showing Okon Enterprises Ltd's name, address and phone number, and the Blender, Television and Radio sets each advertised with their old price crossed out, a 15% discount, and new discounted price.

WAEC Marketing 2022 Theory — Question 4

Sign up free to unlock