Question 1

Outline three marketing activities.



Advertising is used to make customers aware of goods and services being offered by suppliers. It usually involves messages that persuade consumers to buy.


Brands are created to differentiate a product from its competitors. Branded products are created to develop a loyal following.


Distribution channels move goods from producers to consumers. A business can either sell directly to consumers or sell goods and services through middlemen such as retailers and wholesalers.

Question 2

Explain what is meant by the ‘marketing mix.’


The marketing mix refers to four categories of marketing activities.  These categories are:

-product which includes the product design, package and brand

-place which refers to the distribution channels

-promotion which includes advertising and sales promotional method

-pricing includes various methods used to suit the target market e.g. penetration pricing.

Question 3

Outline two factors that influence consumer behaviour.


Consumers purchase products to a large extent based on their prices. Consumers seek value for money and therefore will purchase a substitute for a product if its price increases.

Consumers taste and preferences will also determine what products they buy. Taste and preferences will depend on culture, religion and changes in fashion.

Question 4

Differentiate between monopoly and monopolistic competition.


A market that is controlled by one supplier is a monopoly. The monopolist produces a unique product for which there are no close substitutes. Monopolistic competition differs from monopoly as it involves several suppliers in a market of a similar product, but each supplier sells a particular brand. Therefore, although competition exists each supplier has a monopoly over his own brand.

Question 5

(a) Define the term ‘demand.’

(b) Define the term ‘supply.’

(c) Explain the role these play in determining price.


(a) The demand for a particular product is the amount that consumers are willing and able to buy at a given price.

(b) The supply of a particular commodity is the amount that firms are willing and able to supply at a given price.

(c) In a market economy the demand and supply of particular commodities determine      their prices. Consumer will demand increasing amounts at lower prices and decreasing amounts at higher prices. However, producers are willing to sell more at higher prices and less at lower market prices. The market price at which both buyers and sellers wish to trade at  is the market equilibrium price.

Question 6

Differentiate between copyright, patent and trade mark.


Copyright is a one form of intellectual property right that protects creators’ expressions such as music, painting, movie, photograph, writings etc.

Patent protects innovation by excluding others from making and selling an invention for a number of years.

Trademark legally protects brand names by giving the seller exclusive rights to this name.

Question 7

Outline three methods of sale promotion.


Loss –Leader: This form of sale promotion is used to attract customer to a location that offers a product for sale at an extremely low cost. The business will lose profits on this loss-leader but it is expected that this will be made up on the high sales from other products

Bargain packs offer consumers free products or discounted products if a particular item is purchased.

Coupons allow discounts to customers on particular items when presented at a particular business location.

Question 8

Show how two selling techniques can be used to increase sales.


Good customer relations will encourage customers to purchase a company’s goods and services and also make recommendations to other customers.  This involves being very helpful, efficient and polite when dealing with customers.

Offering after sales services will encourage customers to buy and they will not incur this extra cost after buying the product.  These services include: delivery, installation and warranty.

Question 9

(a) Outline two ways in which consumers may be exploited.

(b)  Discuss how consumers might seek redress for each way mentioned above.


(a)Consumers are exploited when they are sold poor quality goods and services. They are also exploited when they are not given the correct weight or measure for products as stipulated on the package or what was asked for.

(b)To seek redress consumers may contact the offending firm concerning the complaint and require compensation. The Fair Trading Commission may be contacted if the offending firm does not compensate the consumer. Radio talk shows have also been very effective to obtain redress from offending firms for consumers.

Question 10

Discuss the importance of transportation to the distribution of goods from manufacturer through middle men to consumers.


Transportation is integral to distribution. Transportation must efficiently move goods from manufacturers through middlemen to consumers. Goods may be transported by road rail, sea or air. The choice of transportation is determined by the type of product, for example heavy and bulky products are transported by rail or sea. Perishable products are transported by sea or by road in a speedy manner.

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