(a) Briefly state and explain four ways in which marketing is important to a business. (b) List and explain four promotional tools Jones Ltd could use.
Explanation
a. Ways in which marketing is important to a business i. Profit — Marketing makes it possible for business to achieve their objective of profitability. ii. It serves as a link between production and consumption; This is done by making it possible for goods produced to be moved from the producer to where they are needed through various channels of distribution. iii. Creates awareness — it makes it possible for consumers to be aware of the existence of products. This leads to increased sales. iv. Enhances consumers' satisfaction — This is done by providing the right product, at the right place, at the right time and at the right time and at the right price following market research results. v. Survival — Marketing strategies help a business to survive especially during the time of stiff competition and economic meltdown. vi. Marketing activities helps to increase sales of a company's product. b. Promotion tools Jones Ltd. Could use i. Trade fairs and exhibition - This is done at specific locations to encourage patronage. It will be used to introduce the products to buyers. ii. Free samples — This is done using products as samples to prospective consumers. iii. Discounts — This involves reducing the price of the products to encourage quantity bought. iv. Buy one get one free — this is used to encourage patronage of the same product. v. Coupons — This is the ticket offered to buyers to be used as discount against next purchase. vi. Gift - These are promotional items offered free to buyers of products vii. Raffle draws — This is a way of encouraging patronage by promising gift that could be won through draws. viii. After sales services — This is rendered to customers to encourage continuous patronage ix. Premium offer — This involves increasing the quantity of product for sale at the old package price. x. Party selling — The Company could finance parties with a view to using the opportunity to sell its products. xi. Contest - Customers can be invited to participate in a contest using the products as ticket to encourage sales of its products. xii. Advertising — This is done to create awareness and persuade customers to buy the company's products through the print and electronic media. xiii. Personal selling — This is a way of meeting the customer on one-on-one basis by the company in order to encourage them to buy. xiv. Public relation — This measure could be used by the business to maintain good relationship with its customers.
