Observation

Most candidates who attempted this question performed very well. However some of them could not state the importance of customer service. They stated the activities that are described as customer service. For b part of the question, they explained the 4 P’s of marketing.

The expected responses to the question include:

4(a).Importance of customer service to a business

i. Encourages repeated purchases / patronage of a company’s products.

ii. Builds confidence in the consumer to buy the product because of the warranty period./ customer retention.

iii. Increases sales for the firm.

iv. Results in efficient use of the products by customers.

v. Helps the customer to make better decision in the selection of goods.

vi. Ensures handling of feedback and complaints.

4(b) Functions of Marketing

i. Buying / selling

This includes purchases of raw materials and goods from source and transfer of ownership of such goods to the consumer at the right quality and price.

ii. Pricing

Marketing helps in fixing prices of goods at a reasonable level to give profit to the company.

iii. Transporting

Goods produced must be moved to the final consumers. Middlemen and producers must choose the most suitable means of moving their goods to the point where they are required.

iv. Financing

Marketing finances the operations of the manufacturer through deposits and prepayments made by customers.

v. Risk bearing

Anticipating business risk and taking appropriate measures to reduce their impacts through insurance cover.

vi. Grading and standardising

This ensures that goods conform to the required standard and quality with respect to taste, size and colour.

vii. Warehousing

This makes it possible for goods to be produced ahead of demand when needed.

ix. Promotion

It involves activities such as advertising, sales promotion, personal selling and public relations that aim at attracting buyers’ attention.

x. Product development

This identifies market needs or wants and designs an effective product based on the result of market research.