Observation

Most candidates did not attempt the question and those that did not performed well in the question.

The expected responses to the question include:

(a)        Market Segmentation: This is the process of dividing a company’s market
into identifiable groups in a way that specific products can be developed to satisfy each group.                                                                                                           

            (b)        Functions of Marketing

1. Risk bearing    - it involves calculation of marketing risk and taking necessary insurance cover to reduce their impact on marketing of goods and services;

(ii)       Distribution     - marketing ensures that goods and services are moved from
points of production to points of consumption ;
(iii)       Exchange - marketing ensures that goods and services are sold and sales
targets are set and met to achieve company’s marketing objectives;

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1. Warehousing - through warehousing goods can be produced ahead of

                        demand and then stored until they are needed;

(v)        Promotion/ Advertising - it creates adequate awareness of the company’s
products and services;

                        (vi)       Standardisation and grading - it establishes specified quality that products must
conform to and classify them into different sizes to suit each
market segment;

(vii)      Pricing - marketing determines the pricing structures, margin and discount policies and pricing strategies to be adopted by a company;

(viii)     Product development - marketing identifies the consumers’ needs and wants and
plans and designs effective products based on the identified needs and
wants;

(ix)       Marketing research - marketing provides information on marketing mix and
how they could be effective to the target market;

                        (x)        Financing - marketing provides income to the company through
sales of goods and services.