Observation

 

 

Most candidates who attempted the question showed complete ignorance of the topic. Some candidates applied advertisement and communication in answering the question

 

The expected responses to the question include:
           

3 (a) Factors that will influence the choice of channel of distribution:

 

a) Size of the order   

                                                 

If purchasers are buying in large quantities, the producer can bypass the middlemen and sell directly to the consumers.
                  

b)Nature of the products

                                                     

The nature of goods determines the channel to use. For example, perishable goods would require a short channel.

 

c) Location of customers

                                                           

If the customers are scattered all over the place, a long channel would be used, while a shorter channel will be used when customers are concentrated in an area.

 

d) Channels used by the competitors

 

The channels used by the competitors of the firm must be considered before choosing any particular channel.

 

e) Financial resources of the producer

 

A rich producer can use his own salesmen, thus using a shorter channel while a less privileged producer will prefer a longer channel.

 

f) Number of potential buyers/size of the market

 

When the number of buyers is large, the producer will prefer to use a longer channel, while a shorter channel will be chosen if the buyers are not many.

 

g) Unit value of the product

 

The more expensive the product, the shorter the channel of distribution is likely to be.

 

3 (b)  Ways by which export promotion council achieve their objectives

 

a) The Council helps in the development and exportation of raw and semi-processed products derived from agriculture and mining to other countries thereby earning foreign exchange.                                                        

 

b) The Council gathers information and publishes them for the benefit of citizens seeking for business opportunities to exploit so as to remain in business.

 

c) It assists businessmen to obtain export credit financing and insurance for their goods in transit.

 

d) It supports and encourages private sector businesses to participate in international trade fairs and exhibitions to create awareness for their products.

 

e) It provides information on latest technologies to businesses to improve the quality of their products thereby meeting international standards.

 

f) It organizes local exhibitions jointly with chambers of commerce.

 

g) It explores different avenues to penetrate into new markets abroad for the benefit of its citizens.

 

h) It organizes training workshops and seminars in export management and international marketing for the personnel and agencies involve in foreign trade. 

 

i) It prepares and issues publications on the various activities of the council to encourage citizens to participate in the export business.

 

j) It assists exporters in the preparation of export documents.