Question 5
What is marketing? State three functions of marketing. Explain the terms, credit, loans.
Observation
The expected response is:
(a) MARKETING:
- Marketing means all business activities that assess as well as influence the type of goods and services which consumer demand and ensure that such good are produce and brought to the consumer at the right price, place and time.
- Marketing has to do with the particular means through which goods are brought from the producers to the consumers.
- It is also the activities and process of creating, delivering and exchanging
offerings that have values for customers, clients, partners and society at large.
(b) FUNCTIONS OF MARKETING:
- Determination of products
- Determination of quantity of goods
- Determination of time of demand
- Advertising of products.
- Making sales of products
- Choice of means of distribution
- Pricing policy of goods
- Determination of place of sales of goods
- Determination of storage of goods.
(c) EXPLANATION OF THE FOLLOWING TERMS
- CREDIT:
- Credit refers to sales in which the seller allows the buyers to take possession of goods and services which the buyer will pay for in a future date.(this is called credit sales)
- Credit can also refers to a situation where a person called the borrower is given a sum of money by another person called the lender, which the borrower has to refund in a stated future date.
- HIRE PURCHASE:
This type of credit sales is for very expensive goods such as motor vehicle, machine and television sets. The buyer has to pay initial deposit to the seller and take the goods home for his/her use with the agreement to pay the balance amount in a monthly installment. At any time he default to pay the monthly installment, the seller can reclaim the ownership of the goods. Until the buyer has paid the last installment, he is regarded as having hired the goods from the seller.
Majority of the candidates who attempted this question answered it correctly.