MARKETING

LECTURES 15, 16, 17 and 18

Difference between Market and Marketing

A market is any space within which trade takes place between buyers and sellers for a well
defined product. This space can be a produce market, a shop, internationally between countries
or over the internet.

Marketing is all those activities that facilitate trade. These include activities that identify
consumers’ needs such as market research and those activities that satisfy consumers needs e.g.,
packaging and distribution. Marketing activities therefore support the marketing of goods and
services.

Institute of Marketing definition of Marketing: the management process responsible for

identifying, anticipating and satisfying consumer’s requirements profitably.

Marketing Activities

Market research – the process of gathering information about potential customers.

Packaging – creating a suitable package for product usage and for advertising

Branding - differentiating the product of a company from other brands and establishing loyal
customers.

Pricing - identifying the right price that will encourage sales

Advertising – methods used such as the media to inform and encourage the purchase of goods
and services

Sales promotion – short-term methods used to encourage consumers to buy during a specified
period

Distribution - methods used to make the product available to consumers. For example wholesale,
retail or internet.

The Marketing Mix

The marketing mix also referred to as the 4 Ps of marketing, categorizes all the various strategies
used in the marketing of goods and services. These categories are product, promotion, pricing

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and place. The purpose of the marketing mix is create perceived value for the customer or target
market.

(1) Product this includes product designing, packaging, labelling and branding.
(2) Promotion advertising, public relations and sales promotions.
(3) Pricing includes various pricing strategies and methods.
(4) Place distribution of products.

Market Research

Market research is the gathering, recording and analysing of data to address the marketing
problems of a business. Market research must be specific to the problem of a business. The
marketing problem must therefore be clearly identified so that the appropriate market research
may be conducted.

Types of Market Research

Consumer Research – garners information on consumers’ feelings, thoughts and reactions

towards a company’s good or service.

Product Research – determines customer acceptance of the product whether it may be changes
in an existing product or a new product.

Distribution Research – used to identify the most suitable channel of distribution for particular
products based on effectiveness of those channels.

Advertising Research- Identifies the most suitable media to present the advertising message.

Sales Research- Research on the target market eg size of market, potential, age, sex, income and
geographic variables.

The Marketing Research Process

This consists of five steps:

1. Identifying or defining the problem.

2. Developing information sources.

3. Collecting the information.

4. Analysing the data by using charts and graphs

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5. Presenting the findings.

Reasons for Conducting a Market Research

Market research provides managers with current, relevant, accurate and reliable information
concerning competitors, advertising, distribution and potential and loyal customers. This
information assists managers in making decisions about packaging, product design, pricing,
distribution and advertising.

Consumer taste – Identification of consumer taste will enable the firm to produce goods and
services that will cater to the preferences of the consumer. Eg. Cadbury assortment of chocolates

Competition – Identification of the competing firms will allow the firm to adjust its marketing
strategy to gain a market advantage. Eg. Sell at lower prices than competitors.

Consumer Behaviour – Research on consumer behaviour will allow the firm to adjust their
products and services to changes in the factors that influence behaviour. Eg. Increased
consumption of fish during the Lenten season.

Factors that Influence Consumer Behaviour

The following factors will cause consumers to either increase or decrease their demand for a
product.

-The price of a commodity

Consumers can afford to buy more of a good when its price falls and less when its price rises.

-The prices of other goods and services (substitutes and complements)

Substitute products are those that can be used alternatively as they satisfy the same need for a
consumer. For example, a weekly shopper may decide to purchase fish instead of chicken
because the price fish has fallen significantly less than the price of chicken. Therefore either fish
or chicken will be adequate for dinner. If by the next week the price of fish rises and becomes
more expensive than chicken then the consumer will opt for chicken.

Complements are goods that are used together e.g. bread and butter. If the price of butter rises
then its demand will fall and so will the demand for bread. Conversely if the price of butter falls,
its demand will rise and so too will the demand for bread.

Income of consumers

As income level rises consumers will demand more goods and services

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-Taste and Preferences

A change in consumers taste for goods and services will impact their demand. For example,
changes in fashion will result in a drastic decline in demand for an outgoing fashion and a rise in
demand for what is trendy.

-Quality

A Consumer’s main motivation for the purchase of product may be the quality of the product
rather than the price. Eg perceived higher quality of Apple products

-Expectations of a future Rise in Price

If consumers expect the price of a commodity to rise in the near future, they will try to purchase
more now, before the price increases.

-Brand Loyalty

Brand loyalty will ensure a continuous demand for a product regardless of changes in its price or
the prices of other goods and services.

-Spending Patterns

Consumer spending surveys compile information on consumer spending patterns based on

income levels. This informs businesses of what goods and services are in demand.

-Changes in the size of the population

A population decline will cause demand to fall in a particular region. One reason for a population
decline in a region is migration.

Types of Market Structures

The term market structure refers to the level of competition experienced by businesses in an
industry. This factor determines the nature of the product sold, how easy it for new businesses to
enter that industry and the amount of information available concerning that industry.

Monopoly

A monopoly exists when only one supplier has control over an entire market for a particular
good or service. Examples of monopoly in Caribbean countries are a single electricity and water
supplier which may be owned by the government or a private company. The monopolist sells a
product for which there are no close substitutes. The monopolist controls the market because it is
difficult for other firms to enter such industries. The challenges include high start-up costs and
difficulty in obtaining strategic raw materials or information regarding business operation. The
monopolist has great market power and can therefore set the price of products sold in the market.

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Oligopoly

Oligopoly describes a market structure in which there are few large firms. They offer the same
product for sale and compete aggressively for market dominance. Examples of firms in this
market structure are telecommunications and petroleum companies. Entry into this industry is
also difficult as start-up costs are very high, there is control of strategic raw material and
information is not easily available.

Perfect Competition

This market structure is characterized by many buyers and many sellers of a product. The
product is not unique as it is available from many sellers. Firms in this market structure are price
takers as they cannot sell above the price of their competitors. Firms must accept the market’s
price as there are several competitors. There is perfect knowledge about the business and there
are no barriers of high start-up cost and control of strategic raw materials.

Monopolistic Competition

Similar to perfect competition this market structure involves many sellers. However, this market
structure differs from perfect competition in that each firm sells a branded product. Firms in this
market structure are a monopolist for their brand. There is freedom of entry and exist into the
industry as there are no barriers such as strategic raw material, very high start –up cost and lack
of information.

How Price is Determined

The price of a good tells us the value of that product in terms of money. A rational consumer will
try to get the greatest value for money spent on goods and services. He will therefore weigh and
compare the prices of commodities before making a decision to purchase.

Prices in a market economy are determined by the level of demand and the level of supply for
each particular product.

The demand for a particular product is the amount that consumers are willing and able to buy at
a given price. The law of demand states that when prices are high demand will fall and when
prices are low demand rises ceteris paribus (meaning all other things remaining unchanged.).

The supply of a particular commodity is the amount that firms are willing and able to supply at a
given price. When prices are high supply will rise and when prices are low supply fall. Suppliers
are willing to sell more at higher prices as profits will be high, and unwilling to sell large
quantities when prices fall because of low profit margins.

The equilibrium price in a particular market is the price at which consumers and suppliers are
willing to trade a certain quantity of a commodity. For example, consumers are willing to buy 55
litres of milk at $3 and suppliers are willing to supply 55 litres at that price. If the price increases

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to $4 there will be a fall in demand to 30 litres as some consumers are not willing to buy milk at
this price.

Illustrating Price Equilibrium

The demand and supply curves are drawn from the demand and supply schedules. Price is
measured on the vertical axis and quantity on the horizontal axis. The demand curve slopes
downwards from left to right and the supply curve slopes upwards from left to right. The
intersection of the two curves indicates the equilibrium price and quantity.

Factors affecting changes in demand

i. Taste and Fashion

ii. Climate and Weather
iii. Changes in real income
iv. Changes in the price of substitutes and complements
v. Expectations

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 vi. Advertising

Factors affecting changes in supply

i. Weather conditions
ii. Price in factor input
iii. Taxation or subsidy
iv. Technology
v. Prices of related commodities

The Price

Pricing objectives

 Survival – low pricing

 Current profit maximisation – price to maximise profit
 Market share leadership – Low prices to gain market share
 Product quality leadership – High prices for high quality to cover R&D.

Pricing strategies

 Average cost pricing – total cost/total quantity

 Break even Analysis – Point of no loss or profit
 Penetration pricing – low pricing
 Psychological pricing- High price to gain perceive high value or pricing goods at $10.99
 Predatory pricing – eg. price wars to remove competition
 Limit Pricing – low prices to limit competition

Packaging and Presentation of Goods

Packaging refers to designing and producing the container that holds the product. A good
package must identify, protect and advertise the product. It must also make the product
convenient to use. Therefore products such as toothpaste are best packaged in a tube as it has to
be squeezed out. Milk must be poured from its container. Egg containers are so shaped to hold
them securely.

A package must also sell the product. It must first attract customer to buy. It must provide
information about the product i.e. ingredients, amount of contents, price, the name and address of
the manufacturer and instructions for usage. The brand name is also displayed on the package.

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Branding

A brand is any identifiable feature of a product which makes it different from its competitor. A
brand may be a name, term, symbol, design or combination of these. Examples of brand names
include: Avon and Colgate. A brand symbol e.g.

represents the Nike brand. A branded product will increase the value of the product in the eye of
the consumer and enable consumers to recognise a product instantly.

Labelling – Labels are important features of a product that provides customers with vital
information on grade, product description, ingredients, uses, caution, expiry date, date of
manufacture and storage.

Copyright, Patent & Trademark

Intellectual Property- is any creation of the mind. Songs, books, ideas, machine designs and
other inventions are the intellectual property of the person who has designed or created it.
Copyrights, patents and trademarks are used to protect the intellectual property of owners.

Copyright is a form of intellectual property right that legally protects the creators and innovators
of original works. Copyright protects creators’ expressions such as music, painting, movie,
photograph, writings etc. Individuals who wish to use works that are copyrighted must request
permission from its creator. Copyright law allows creators of original work to be paid for them.
Other forms of intellectual property rights are patents and trademark.

A Patent is the right granted to the inventor of a process, machine, technique, formula or other
composition of matter. It protects innovation. It also excludes others from making and selling
that invention for a number of years. For eg. a franchisee receives a special licence to reproduce
the product and must pay the fee to the franchisor

Trademark legally protects brand names. It gives the seller exclusive rights to use a particular
brand name.

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Product Life Cycle

A new product progresses through a sequence of stages from introduction to growth, maturity,
and decline. This sequence is known as the product life cycle and is associated with changes in
the marketing situation, thus impacting the marketing strategy and the marketing mix.

The product revenue and profits can be plotted as a function of the life-cycle stages as shown in
the graph below:

Product Life Cycle Diagram

Pre Introduction- Market research and product development

Introduction Stage

In the introduction stage, the firm seeks to build product awareness and develop a market for the
product

Growth Stage

In the growth stage, the firm seeks to build brand preference and increase market share.

 Product quality is maintained and additional features and support services may be added.
 Pricing is maintained as the firm enjoys increasing demand with little competition.
 Distribution channels are added as demand increases and customers accept the product.
 Promotion is aimed at a broader audience.

Maturity Stage

At maturity, the strong growth in sales diminishes. Competition may appear with similar
products. The primary objective at this point is to defend market share while maximizing profit.

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Decline Stage

As sales decline, the firm has several options:

 Maintain the product, possibly rejuvenating it by adding new features and finding new
uses.
 Harvest the product - reduce costs and continue to offer it, possibly to a loyal niche
segment.
 Discontinue the product, liquidating remaining inventory or selling it to another firm that
is willing to continue the product.

Methods of Promoting Sales

Promotion includes all forms of advertising, public relations and sales promotion.

Advertising is the paid presentation of goods or services through the media for the purpose of
encouraging consumer patronage. The media refers to television, radio, magazines, newspapers,
billboards, websites etc.

The Purpose of Advertising

-to attract attention and create awareness

-to inform and educate customers

-to increase sales

-to introduce new products onto the market

-build loyalty with customers

-to differentiate from competitors

Types of advertising

Informative Advertising

Informative advertising is often used when launching a new product, or for an updated or
relaunched product. The objective is to develop initial demand for a good, service, organization,
or cause. It is used when a new product is put on the market on when an old product has been re-
launched or updated.

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Informative advertising will tell the consumer and marketplace about the product, explain how it
works, provide pricing and product information, and should build awareness for the product as
well as the company. The image of the product and the company should be compatible and
complementary. There should be enough information to motivate the consumer to take some sort
of action.

Persuasive Advertising

Marketers use persuasive advertising to increase the demand for an existing good, service, or
organization. The idea is persuade a target audience to change brands, buy their product, and
develop customer loyalty. After the purchase, the quality of the product will dictate whether or
not the customer will remain loyal or return to the previous brand.

Persuasive advertising is highly competitive when there are similar products in the marketplace,
and products are competing for their share of the market. In this situation, the winning product
will differentiate itself form the competition and possess benefits that are superior to, or compete
strongly with, the competition.

Reminder Advertising

Reminder advertising reinforces previous promotional information. The name of the product,
testimonials of past customers, public response, and sales techniques are repeated in the hopes of
reminding past customers and garnering new ones. It is used to keep the public interested in, and
aware of, a well-established product that is most likely at the end of the product life cycle.

Competitive Advertising

Promotes one product over a competitor

Defensive Advertising

Reacts to competitive advertising to maintain market share.

Forms of Advertising

Direct Forms Indirect Forms

Circulars Press: Newspapers, Magazines, Journals
Catalogues Television, Radio, Website, Social Media
Free Samples Cinema Screens
Souvenirs Posters, signs and wallscapes
Word of Mouth Point of Sale: Speciality shop display
Cell Phones Exhibitions, fairs, carnivals
Chat room Mobile Caravans

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Sales Promotion

Sales promotion is a marketing strategy that is used to induce customers to buy immediately.

Examples of sales promotion methods are:

a. A sale on items.

b. Bargain packs, e.g. ‘two for price of one’.

c. Coupons. These are printed in the daily newspaper or magazines. The holders of coupons are
allowed a discount on the items bought.

d. Games, e.g. guessing riddles

e. Contest. Purchasers may receive a prize if they are the winners of a contest.

f. Trading Stamps. These are given to purchases with each item bought. Booklets filled with
these stamps may be returned by customers for goods, services or money in exchange. This
predates the loyalty card.

g. Loss–Leader. A loss-leader is a product that is in high demand and is therefore used to attract
consumers to a business location by cutting its price very low. The business uses a loss leader to
attract large number of persons to its location so that other items will be sold. The profits lost on
this product will be made up on the high sales turnover of the other products that will be bought
along with the loss-leader.

Public Relations

Public relations activities are aimed at creating a favourable impression of a business in the eyes
of the public. Public includes its customers, its suppliers, the government and the surrounding
community. Public Relations activities include sponsorship of local sporting events, press
conferences, and donations to charity.

Techniques of Selling

These are methods used to sell products more effectively by focusing on each customer’s
personal needs. Selling techniques include:

1. Personal Selling

2. After-sale services such as warranty and installation

3. Merchandising

4. Good Customer Relations

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Personal Selling

This is the use of sales persons to present and sell goods and services of a firm. Sales persons
promote a firm’s goods directly to a specific consumer. They locate new customers, provide
display services, demonstrate the use of products, deliver goods, collect payments and provide
the firm with feedback

After Sales Services

Customers are entitled to these services once they have made a purchase. They include delivery,
installation and warranty. These services are free and therefore usually encourage consumers to
buy.

Merchandizing

Merchandizing refers to self-service methods of sale. This is used in supermarkets and

department stores. It allows for a better display of goods and creates a more comfortable
shopping environment.

Good Customer Relations

Building good relationships with customers ensures customer satisfaction, repeat customers and
recommendation to new customers. The sales staff must be trained in the principles of good
customer relations. This entails, listening to customers being helpful and polite.

Terms of Sale

A business establishment may offer its customers various terms to settle accounts i.e the way that
payment are made for purchases.

Cash

This is preferable by most businesses and therefore customers are encouraged to make cash
payments. They are usually offered a lower payment amount for goods bought for cash.

Credit

Customers are allowed to pay at intervals over a short- term, usually one to three months to settle
outstanding balances.

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Hire Purchase

Hire-purchase is a long term payment plan e.g. 24 – 36 months. Interest is charged to the
customer increasing the amount owed.

Cash Discount

A cash discount is a reduction in the price of a good that is paid for immediately or over a short
period of time by a customer. For example, if a an appliance store offers 5% discount on items
bought for cash then 5% of the sale price would be deducted from the actual bill

Trade Discount

A trade discount is the reduction in the price of a good given by a manufacturer or a wholesaler
to a retailer to allow the retailer to make a profit or to encourage bulk buying. Thus if an
appliance manufacturer offers 10% trade discount to retailers then 10% of the catalogue price or
the quoted price would be deducted from the retailers’ actual bill.

Consumer Organizations

Consumerism is defined as the education and the protection of consumers to prevent their
exploitation.

Consumer exploitation includes:

 overcharging
 offering poor quality goods and services
 short measurements and weights

Consumerism is practised by various groups in the economy: the government, private

institutions, and private firms.

Consumerism practiced by the government

This is done through various government agencies. These include:

1. The Consumer Affairs Commission – This institution was set up to disseminate information
about consumer rights and responsibilities as well as provide consumers with an avenue for
redress if they are exploited.

Consumer Rights

-The right to safety

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-The right to be informed

-The right to choose

-The right to be heard

-The right to redress

-The right to consumer education

-The right to a healthy environment

Consumer Responsibility

-The responsibility to beware

-The responsibility to be aware

-The responsibility to think independently

-The responsibility to speak out

-The responsibility to complain

-The responsibility to be an ethical consumer

-The responsibility to respect the environment and avoid waste, littering and contributing to
pollution.

2. The Fair Trading Commission – This agency was set up to administer the fair trading act. It
is concerned with matters such as; Tied selling (marrying of goods), misleading advertising
(untruths about goods and services presented for sale), untrue sale (an announced sale for which
the price of items remain the same).and the use of market dominance to squeeze firms out of the
industry (For example, large firms may drop the price of their goods so low that small firms are
unable to compete with them.)

3. The Bureau of standards -The bureau carries out regular checks on business enterprises to
ensure that goods and services offered for sale meet the standards stipulated by this institution.

Functions are as follows:

 Protect the consumer or user against danger

 Protect public health or industrial health, welfare and safety
 Protect the environment
 To ensure acceptable quality of goods
 Research in relation to international quality standards

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  Examination and testing of goods
 Establishment of quality standards
 Collection and publication of data on specification and standards
 Advising on quality control systems
 Certification of goods that meet quality standards

4. The Ombudsman

The Ombudsman is a government official who protects the rights of citizens who may suffer any
kind of injustice from dealing with a government agency or a government official. For example,
the Ombudsman will investigate the death of a loved one due to the negligence of a public
hospital. He/she has the power to:

 to summon witnesses to appear and give evidence under oath

 to enter and inspect any government department or authority
 to examine any necessary documents

Consumerism practiced by private Institution

-Local consumer groups

-Radio talk show hosts listens to consumers’ complaints

Consumerisms practiced by private firms

-Offering warranty/guarantees on items sold

-Labels carry information on ingredients, nutritional content and health risks that may be
associated with the product.

Links in the Distribution Chain

Manufacturers must find the most efficient ways of getting the goods manufactured into the
hands of consumers.

The channels/chains of Distribution

Channels of distribution refer to the means by which commodities reach the hands of consumers
from the plant of manufacturers. This may be done directly from the manufacturer to the
consumer or indirectly through middlemen such as wholesalers and retailers.

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Types of Channels

1. Direct Channel – Manufacturer – Consumer

Goods are bought directly from the producer e.g. purchasing furniture from a manufacturer.

2. Indirect channels (a) Manufacturer – Retailer – Consumer

Goods are bought from a middle man e.g. a retailer. Retailers display goods, sell in small
convenient quantities and offer credit. They therefore aid manufacturers in moving goods
quickly.

3. Indirect channel (b) Manufacturer –Wholesaler – Retailer – Consumer

The wholesaler is a second muddle man/link on the chain. The wholesaler purchases in bulk
from the manufacturer and stores them in large warehouses. They therefore assists manufacturers
by moving large amounts of items from plants. Retailers purchase goods from wholesalers and
sell them in smaller quantities to consumers.

Wholesaler

The wholesaler purchases goods in large quantities from producers and thus assumes some of the
risk of the manufacturer such as, warehousing goods.

Roles include:

 Breaking bulk for sale to retailers

 Warehousing facilities
 Assumes risk: By buying larger quantities
 Helps manufacturers advertise goods
 Key source of market research
 Maintain price stability by incremental releases of stock onto market

Retailer

They provide goods directly to the consumer. They possess ownership of the goods and bare all
risk of losses should demand fall or taste change.

Role:

 Breaking bulk
 Provides outlets to targeted markets
 Provides credit facilities

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  Provides delivery service to customers
 Gives technical advice on product
 Provides aftersales service
 Source of market intelligence

Methods of Retailing

There are several methods by which retailers can offer items for sale.

Community Shops and Convenient Stores

These locations tend to serve a particular community. Opening hours include all weekend days,
holidays and very late in the evenings. Costs for some commodities that are not government
controlled tend to be higher than other types of retail outlets. Community shops in particular cut
and shape products to suit customers and offer credit.

Department Stores

These stores carry a several lines of goods under one roof. A department store may feature a
clothing department, household items, stationery, hardware etc. It provides convenience to
customers who can pick up several items in one place, and allows the businessman the cost
effectiveness of operating several business entities in one location.

Mail Order

Companies that retail through mail order benefit from reduced operational cost of location and
staff. Since display areas are not required only an office and storage facility are necessary for the
operation of this business. Orders are made from catalogues and goods are delivered by courier
or mailed to customers. This saves time and effort of consumers to visit shopping locations.

E-commerce

Orders are made by customers over the internet from the websites of businesses. Payments are
also made over the internet. Packages are delivered by mail or courier.

Tele- marketing

Tele –marketers introduce the company’s goods and try to obtain orders via the telephone.

Vending Machines

These self-service machines are placed at various locations by their owners. Customers are
required to place the required funds inside these machines and are then instructed on how to

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make their choice. The machine then dispenses the product. This type of business is very cost
effective as owners may only pay a fee for locating the vending machine.

Forms of Transportation

Transportation is an integral part of the daily commercial and industrial activities of a country.
Transportation moves raw materials from source to manufacturers and finished goods to
consumers. It also makes possible overseas trade and thus foreign exchange earnings for an
economy.

There are various modes/forms of transportation that can be used to transport goods.
Commodities may be transported by land, air, sea and pipeline. The mode of transportation will
depend on weight and size of the commodities being transported, as well as the urgency for
delivery and the transportation costs.

Modes/Forms of Transportation

 Land
 Road
 Rail
 Air
 Sea
 Pipeline

Land-Road

Types of transportation include trucks, vans, cars etc. It is the most popular mode of transport as
all types of goods can be transported by road. Road transport is affected by bad roads, traffic
congestion and challenging terrain. Lengthy delays can affect perishable goods such as farm
produce being transported from rural areas to cities.

Land-Rail

This is a cheap form of transportation over long distances. Trains are suitable for heavy and
bulky things such as bauxite. Trains are a very slow mode of transportation.

Air

Types of transportation include cargo planes and helicopters. Because of the high cost involved
with air transportation it is suitable for important documents and expensive items e.g. jewellery.

Sea

Cargo ships and barges are some of the types of transportation used for transporting goods by
sea. Goods such as oil, bauxite and cars are transported by sea.

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Pipeline
Pipelines are used to transport commodities such as water and gas. High costs are involved in
laying pipes initially. However overtime it becomes very economical.

Factors that influence Choice of Channel of Distribution

1. Type of product – size, shape, weight, fragility, how expensive

2. Consumers – target market influences the channel
3. Quantity to be delivered – fewer goods would require a wholesaler or retailer.
4. Frequency of delivery- more frequent deliveries would mean longer channel.
5. Location – Remote areas require an agent.
6. Budget- Middleman can absorb cost of transportation
7. Speed – eg perishable items may require quick transport by air.

Importance of Transport:

 It brings goods form producers to final consumers

 Carries raw materials and crops to factories
 Helps to minimise inventory holdings and keeps costs down
 It minimises risk of shutdown of factory if raw materials are not available
 Reduces expenses and makes goods more competitive internationally
 It widens the market and demand for the product hence promoting economies of scale
and specialisation.
 It increases employment
 It brings a variety of products to the consumer

Transportation Network Facilities:

 Refrigeration facilities
 Adequate dock spaces
 Adequate parking spaces for aircrafts, lorries and containers
 Handling and moving facilities eg. forklift
 Warehousing space

The unavailability of the above facilities can seriously hamper transportation and distribution
channels.

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Problems of Distribution

Distribution locally is challenged by poor road conditions and difficult terrain especially in the
rural areas. Spoilage of perishable goods is very costly and therefore types of transportation used
must be equipped to carry perishable goods.

Problems encountered in Overseas Transportation

The challenges faced in transporting goods internationally will impact foreign exchange
earnings. These challenges include:

 Inadequate facilities for temporary storage eg. warehousing space

 Inadequate equipment and tools
 Transport system and networks that do not connect to ports or receiving points and
distribution road routes.
 misdirection of goods – goods mistakenly sent to the wrong destination
 Poor communication within the distribution network
 Lack of understanding of customs regulations.
 flight delays
 Strikes by airport and ship port workers.
 narcotics found in containers
 Pilferage- goods stolen in transit.

Measures to mitigate problems of distribution

 careful checks before loading packages for shipment

 contingency plan when strikes occur
 public awareness on the consequences of narcotics found in containers
 making persons responsible for any goods lost in their care
 Properly labelled goods
 Properly educated about laws governing distribution
 Proper planning and implementation
 Implementation of good industrial relations practices
 Ensure adequate funding for equipment and tools
 Government intervention to improve connectivity of distribution networks.

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