MARKETING OBJECTIVES (OBJ)
(i) Intensive distribution strategy involves selling a product in as many outlets as possible.
WHILE Selective distribution involves selling a product at select outlets in specific locations.
(ii) Intensive distribution is appropriate for products such as chewing gum,candy bars, soft drink etc WHILE Selective distribution may be user for product categories such as clothing,appliances, televisions etc.
*(Pick Any Four)*
(i) Nature of product: Nature of product on the selection of a channel of distribution. In the case of industrial goods like machinery and equipment, the manufacturer sells directly to industrial user, but in the case of tools, sales take place through middlemen.
(ii) Nature of Market: Choice of suitable channel of distribution also depends on the nature of market. Location of the market and the buying habits of buyers are also analysed.
(iii) Distribution expenses: If the producer makes direct selling, he will have to spend on distribution. But if the product gets good response from the dealers, a producer will prefer to sell through them so reduce his distribution expenses.
(iv) Popularity of goods: If the goods are popular among the consumers, the dealers themselves comes forward to buy. Then the producer may not like to open his own shops to sell the goods
(v) Prompt payment: A producer may not like to sell to retailer or big consumers because they insist to make purchase on credit, He therefore, prefer to sell to a wholesaler who purchase usually on ready cash.
Market union is the coming together of various traders who sell similar commodities or products in a particular market to advance and protect the interests of its members.
Primary products are all farm produce that have not undergone processing. Example: cotton wool. Secondary products are farm produce that have undergone processing. Example: garri
[Pick any FIVE]
(i) They settle disputes among members.
(ii) They help to promote unity among members.
(iii) They encourage joint purchase of products among members to enjoy economies of scale.
(iv) They disseminate useful information in the market to their members.
(v) They offer financial assistance to members in the form of loans and grants.
(vi) They educate their members on appropriate selling techniques.
(vii) They present a common front in their negotiations with government and other organized institutions.
(viii) They mobilize financial contributions and collections among members on weekly and monthly basis.
Product Life Cycle are the stages that a product moves through in the marketplace as it enters, becomes established, and exits the marketplace. In other words, the product life cycle describes the stages that a product is likely to experience.
(i) Introduction Stage: In this stage, company profit is small (if any) as the product is new and untested. The introduction stage requires significant marketing efforts, as customers may be unwilling or unlikely to test the product. There are no benefits from economies of scale, as production capacity is not maximized.
(ii) Growth Stage: In the growth stage, sales revenue usually grows exponentially from the take-off point. Economies of scale are realized as sales revenues increase faster than costs and production reaches capacity.
(iii) Maturity Stage: In this stage, price undercutting and increased promotional efforts are common as companies try to capture customers from competitors. Due to fierce competition, weaker competitors will eventually exit the marketplace – the shake-out.
(iv) Decline Stage: In the decline stage, sales of the product start to fall and profitability decreases. This is primarily due to the market entry of other innovative or substitute products that satisfy customer needs better than the current product.
Bargaining is a type of negotiation in which the buyer and seller of a good or service bargain about the price with which to pay and the exact nature of the transaction that will take place, and eventually come to an agreement.
*(Pick Any Four)*
(i) Communication: Communication is the foundation of success in business, negotiation and relationships. Some of the most successful people in the world are the best communicators. Good communicators understand the other party and clarifies all doubts.
(ii) Patience: It can take time before you arrive at a conclusion that is beneficial to both parties. You will have to listen, take notes and comment on the other party’s problems and perspectives. And this can take up a lot of time. You will need to exercise patience while dealing with the other party to arrive at a worthy conclusion.
(iii) Body language: People tend to focus more on non-verbal skills than verbal skills. Nonverbal body language includes gestures, attires and postures. For instance, if the lead negotiator of a particular company turns up wearing a cap and t-shirt with unkempt hair and sits in a slouching position, it will create a negative appeal and the client is less likely to be persuaded into an agreement.
(iv) Communication: Communication is the foundation of success in business, negotiation and relationships. Some of the most successful people in the world are the best communicators. Good communicators understand the other party and clarifies all doubts.
(v) Etiquette: Having etiquette means managing your time effectively, addressing the other party with respect, being enthusiastic and communicating professionally. These are required to create a professional presence.
(vi) Presentation: Presentations should address the problems and solutions by putting forward a plan of action that can be easily implemented. It is vital that you use these in your negotiations.
A marketing plan outlines the specific actions you intend to carry out to impress potential customers and clients of your products or services and persuade them to buy the product or services you offer. A marketing plan may be developed as a stand alone document of a business plan.
(i) It prevent time wasting on ineffectual marketing activities
(ii) Marketing plan enables you to create guidelines for evaluating the effectiveness of different methods.
(iii) Marketing plan help raise finance for capital expenditure.
(iv) It saves money by helping to ensure that the marketing budget is spent effectively.
(v) Marketing plan helps to identify prerequisites to planned activities
(vi) Marketing planning can be advocated to minimize the risk of failure.
*(Pick Any Four)*
(i) Continuous process
(ii) Wide scope
(iii) Aid to decision-making
(iv) Uncertainty of conclusions
(v) Applied research
(vi) Commercial intelligence