QUESTIONS

• Answer the questions below. Check your answers afterwards and do corrections.
• Give yourself one hour.
• Marks: 100

1. Match each statement in column A with a statement in column B. (7 × 2 = 14)
   

   COLUMN A	COLUMN B
   1.1 Marketing Act of 1996  1.2 Advertising Standards 1.3 Consumer Protection Act of 2008  1.4 Marketing of Agricultural Products Act of 2001  1.5 Security Services Act No 36 of 2004  1.6 Agricultural Produce Agents Act of 1952  1.7 Agricultural Produce Amendment Act of 2004	A. Formation of the National Agricultural Marketing Council B. Financial markets are fair and transparent C. Marketing licence from the director of marketing D. Fidelity Funds certificates E. Dates and times for contacting clients F. Enhanced the jurisdiction of the agents councils G. Set up by the marketing communication industry H. Proposed the introduction of inspectors

2. Define the following terms:
   2.1 marketing chain
   2.2 value chain
   2.3 grading (3 × 2 = 6)
3. Name THREE factors that complicate the marketing of agricultural products. (3 × 1 = 3)
4. Ongoing improvements to the agri-business chain are vital.
   4.1 Explain how infrastructure development can improve the agri-business chain.(1 × 5 = 5)
   4.2 Suggest FOUR other ways to streamline and improve the agri-business chain. (4 × 1 = 4)
5. Choose the best answer to each question. Write only the answer number (i–iv) next to the question number (1.1–1.5).

5.1 Demand is affected by ______

1. weather conditions.
2. the price of the product.
3. the stability of the product.
4. the state of technology.

5.2 Free-marketing is a form of marketing in which the farmer markets his/her products ______

1. as directed by control boards.
2. as he pleases.
3. with the aid of agents.
4. as per agreement by members of the society.

5.3 The form of marketing where a small segment of the market is targeted is called ______

1. multi-segment marketing.
2. mass marketing.
3. niche marketing.
4. eco-labelling.

5.4 The channel of marketing in which a municipality builds a market and rents it out is called ______

1. fresh produce markets.
2. farm gate sales.
3. a stock market.
4. internet marketing.

5.5 Which one of these is not an advantage of free-marketing?

1. Sales are for cash
2. No middlemen
3. Farmers receive payments immediately
4. Farmers are motivated to work harder (5 × 2 = 10)

6. Match the items in column A with those in column B. Write only the correct numbers and letters. (5 × 2 = 10)
   

   COLUMN A	COLUMN B
   6.1 Advertising  6.2 Personal selling  6.3 Sales promotion  6.4 Publicity  6.5 Print media	A. Farmers Weekly B. Discounts C. PRO D. Talking to customers E. Radio and television F. Labelling

7. Give one word or phrase for each of the following:
   7.1 A quantity of goods offered for sale at a particular price at a particular moment
   7.2 A situation in which the demand for a product is affected by price change.
   7.3 A number of activities that a product goes through after production until it reaches the consumer
   7.4 The marketing act that protects consumers from exploitation
   7.5 The form of market in which refurbished and reconditioned goods are sold. (5 × 1 = 5)
8. The following statements are false. Replace the underlined words to make the statements correct.
   8.1 Packaging involves covering and labelling the product so that it appeals to the marketer.
   8.2 The marketing chain starts after the product has been harvested and ends when the product reaches the producer.
   8.3 Grading, packaging, cleaning and processing are part of the agri-business chain.
   8.4 The standardisation of products means the sorting of products in terms of quality.
   8.5 The Marketing of Agricultural Product Act of 2001 increased the access to markets for all farmers. (5 × 1 = 5)
9. Define each term below. Then, for each term, outline FOUR factors that affect it.
   9.1 Supply (2 + 4 × 2 = 10)
   9.2 Demand (2 + 4 × 2 = 10)
10. Read the passage below and the answer questions that follow.
    Jabu Sithole wanted to establish a co-operative society. She made copies of the identity documents of her relatives and registered the co-operative society under the name Siyakhisana. This society would concentrate on vegetable production and processing.
    She used all her money to finance the activities. Unfortunately, the business failed.
    10.1 Give two reasons for the failure of Siyakhisana Co-operative Society. (2 × 1 = 2)
    10.2 Suggest and discuss three principles that should be applied in the functioning of a co-operative. (3 × 2 = 6)
    10.3 Describe how directors of a co-operative society are selected. (1 × 1 = 1)
    10.4 Give the term used to describe working together and sharing among co-operative society members. (1 × 2 = 2)
11. Compare the following:
    11.1 Primary and tertiary co-operative (2 × 1 = 2)
    11.2 Co-operative and controlled marketing (2 × 1 = 2)
12. List three disadvantages of free-marketing. (3 × 1 = 3)

ANSWERS

1. Match each statement in column A with a statement in column B.
   1.1 A
   1.2 G
   1.3 E
   1.4 C
   1.5 B
   1.6 D
   1.7 F (7 × 2 = 14)
2. Define the terms:
   2.1 The sequence/processes the product goes through from harvesting to consumer
   2.2 An alliance of agricultural enterprises working together at different stages in production, processing and marketing
   2.3 Involves the sorting of produce according quality criteria. (3 × 2 = 6)
3. Seasonal fluctuation; perishability, as well as factors like (any one): standardisation; ineffective control over production; low value in relation to volume (bulkiness); long-term production; wide product distribution; locality restricted production; intermediaries (middlemen) are required for marketing (3 × 1 = 3)
4. Improvements to the agri-business chain:
   4.1 Infrastructure will ensure that there is enough space and shelter for storage and processing. Additional roads will make it easier to transport agricultural goods from the production site to the markets. Suitable shelters for storage must be built will enable products to last longer. These aspects work together to make the agri-business chain more effective. (1 × 5 = 5)
   4.2 participatory market chain approach; vertical co-ordination; adequate infrastructure; business linkages and value chains; vertical integration;creation of market organisations to assist producers and processors; government involvement; specialisation; diversification; hedging. (4 × 1 = 4)
5. Choose the best answer:
   5.1 the price of the product (ii).
   5.2 as he pleases (ii)
   5.3 niche marketing (iii)
   5.4 fresh produce markets (i)
   5.5 They are all advantages. (5 × 2 = 10)
6. Match the items:
   6.1 E
   6.2 D
   6.3 B
   6.4 C
   6.5 A (5 × 2 = 10)
7. One word or phrase for the following:
   7.1 Supply
   7.2 Price elasticity
   7.3 Marketing chain
   7.4 Consumer Protection Act
   7.5 Green market. (5 × 1 = 5)
8. Correct the statements:
   8.1 Consumer
   8.2 Retailer
   8.3 Agri-marketing chain
   8.4 Grading
   8.5 Marketing Act of 1996 (5 × 1 = 5)
9. Define the terms:
   9.1 Supply is the quantity of goods on the market at a particular price at a particular time. It is affected by seasonal production; weather conditions; the profit margin of the product; specialised scientific knowledge; the ability to increase supply; expected future prices; the state of technology (any four) (2 + 4 × 2 = 10)
   9.2 emand is the quantity of goods bought at a particular price at a particular moment. It is affected by the price of the product; usefulness of the produc; quality of the product; the price of competitive goods; number of consumers; preferences of consumers; the buying (purchasing) power of consumers; tradition and religions of conumers; size of households (any four) (2 + 4 × 2 = 10)
10. Read the passage below and the answer questions that follow.
    10.1 Not a broad enough membership base; poor cash flow management. (2 × 1 = 2)
    10.2 Democratic member control; Autonomy and
    10.3 Independence; Distribution based on the value of a business; Economic participation/financing of co-operatives; Concern for the community; Co- operation among members. (3 × 2 = 6)
    10.4 Democratic vote. (1 × 1 = 1)
    10.5 Pool system. (1 × 2 = 2)
11. Compare the following:
    11.1 Primary is the first level with members directly represented; two or more secondary make up a tertiary, which represents interests of members of primary and secondary to government. (2 × 1 = 2)
    11.2 Co-operative marketing is organised according to the members through votes or their constitution, and it can involve marketing according to groups of products; controlled marketing is restricted or regulated marketing that can set limits on supply and determine prices. (2 × 1 = 2)
12. Farmers may not have all the necessary skills; It is riskier because if natural disaster affects production, the farmer bears all the risk alone; Prices will fluctuate because of the force of supply; A small-scale farmer will have less bargaining power; Production and marketing costs are high; farmers that operate as a one person enterprise will struggle to keep up production and focus on marketing; Some farmers may form cartels to protect themselves from competition and consumers could be exploited; Marketing is now more commercialised and specialised so experts are needed to perform this role (any three)