LSC S2:Marketing in a Small and Medium Business Enterprise

Introduction
In this chapter, you are going to market and sell products. In the previous chapter, you explored production in business. When businesses produce products, they have to make sure that customers know that they exist. Secondly, the products must be made available to the customers in
their respective locations. Entrepreneurs have the task of knowing who their customers are, what products they will buy and at which price, and how the products will reach them. Therefore, in this Chapter, you are going to explore how you can market and sell products. You will practically do this through
collaboration with your groupmates.

Introduction to Marketing

You are already aware that entrepreneurs produce goods and services for sale in order to make a profit. This means that after the production of goods and services, the next stage is to ensure that customers get
the product to satisfy their needs. Therefore, entrepreneurs have to develop creative means of making
their goods and services visible, accessible, affordable and satisfying to consumers. What entrepreneurs do to ensure that they get customers is marketing.
Reflective questions
1.What products do you use in your daily life?
2 Have you ever asked yourself how these products move from the production centre to your home?
3 How do you come to know about the existence of these products?
4 How do sellers attract buyers to buy their goods and services?

3.1.1 Differences between marketing and selling
You have kept chickens to produce eggs for sale. After your chickens have laid eggs, you will now be having a product to market. You Will now have to figure out how people know that you have eggs for sale. You may, for instance, write a signpost with the word “eggs available”. This implies that you are marketing your eggs. On the other hand, however, when you succeed in getting customers

who give you money for your eggs, then that is selling. Selling is an action which converts the product into cash but marketing is the process of meeting and satisfying the needs of the customer. Marketing consists of all those activities that are associated with product planning, pricing, promoting and distributing the product or service. Selling focuses on the needs of the seller, whereas marketing
concentrates on the needs of the buyer

Examining the difference between marketing and selling

In your group,
1. Using Figure 3.1, identify a marketing activity in each of the pictures a,b,c and d.
2 Use the resources available at your school to discuss and agree on the difference between marketing and selling. Fill the information in Table 3.1.
4 Share what you have done with other groups.

Differences between marketing and selling

3.1.2 A simple marketing plan
What type of items do you and your family commonly buy in the market or shops? Why do you buy such items? How do you decide where and whom to buy an item from? As a future entrepreneur, what information would be useful to know about your customers before you start your business activity?

A marketing plan can be looked at as a roadmap or Intrödücing and delivering a product or service to the final customers.

Every marketing plan has to fit the needs and situations of the customers and also bring about profitable sales volumes for the business.
When designing a marketing plan, the following may be considered:
The needs of the customers.
Business competitive advantages.
The specific market to serve.
How to best satisfy the need of the customer.

3.1.3 The importance of marketing in business
When entrepreneurs produce goods and services, their main objective is to find customers for them and make profits, However, this is only possible if they creatively attract customers to buy the products, If they fail to do so, they make losses as their products get wasted. So, marketing must be a priority for each and every entrepreneur.

The following is the importance of marketing in business: It informs the audience of the products and services that are being offered by a business. It helps the entrepreneur to understand his/her customers’ tastes and preferences. It boosts sales by using different ways to promote the product or service that is being offered, Marketing helps the entrepreneur to provide customers with relevant
information about the products of the company.

It gives the entrepreneur a healthy competition based on the pricing of products and services amongst competitors. It builds the brand: Brand reputation is what makes or rea s ä brand. In order for the entrepreneur’s product or services to exist, you should aim to have a good reputation on the market through the use Of effective marketing mediums.

Explaining the importance and challenges of 3.3 marketing In your group, read the following passage carefully and answer the questions that follow:

Ugandan government urges the use of technology
In Uganda, the government has licensed several telecom operators to provide services to the population in a bid to digitalis the country and promote the use of technology in information transfer. They also want to promote cashless transactions in trade as well as in finance. The government encourages all citizens to adapt to using technology to access all services like paying for electricity, taxes, school fees, applying for university study or passport, among others.

I. Which products/services do these telecom operators provide to the citizens?
2 How do they market and sell their products in your home area?
3 Which of these telecom operators has the biggest market in your community, according to your observation? Give reasons for your answers.
4 How can marketing help the unpopular telecom operators to also attract?
5 Suggest challenges that telecom operators face in Uganda while trying to market their services products.
6 Share your findings with the class.

3.1.4 Challenges faced during marketing
Entrepreneurs face a number of challenges in marketing their products. Some of these are outlined below and you are tasked to research about them for classroom presentation.
Activity 3.4 Researching about challenges faced during marketing In your group,

1. Using the internet and library, research and discuss the following challenges faced during arketing.
2. Share your findings with the class. Entrepreneurs face a number of challenges in marketing their products.
   Some of these are outlined below and you can add more notes to explain further. Inadequate funds.
   Inadequate skills to handle data collection.
   Changing trends/environment/demographic factors.
   Inadequate information and underdeveloped infrastructure. to be used by businesses.
   Language differences.

High costs involved in collecting information about customers that businesses have to market and sell to.
Not knowing how to explain the product or service being sold.
Increasing competition.
Keeping quality consistently high.
Understanding customer behaviour.
Not finding your market segment.
Invisibility of the business.
Lack of coordination between marketing and sales departments.
Not having a marketing plan.
Lack of a brand image.

When your club wants to start a salon at school targeting learners and teachers as your customers, you need to clearly know whether what you think IS correct and that learners and teachers will come to your
saloon. To know this, you must ask them some questions. For example, how many times in a month do you cut your hair?

How much money do you pay every time you cut your hair? What IS your best hairstyle? How do you want your hair to be cut? When you get answers to such questions, then that is called market survey/research.
Market research, therefore, is the process concerned with identifying consumer needs and wants. Businesses identify and anticipate the needs of their potential customers. As you perform the next Activity, you will understand what market research involves.

3.5 Setting research questions
In your group, you have been given the area of focus to consider while doing a market survey in Table 3.2 below. On each comvx.)nent, develop a question that will help an entrepreneur carry out market research to collect relevant data from the public.

3.2.1 Importance of market research
Discussing the importance of market research In your group,

1. Read and discuss the following information (below the activity) on the importance of market research on sales and trading.
2. Add on more that you can find out using the available school resources.
3. Make a write-up and present it to the class.

Market research is important for a business because it provides the
following opportunities: Through market research, the entrepreneur is able to get information
about the best price one can set for the product or service, thus increase in sales.
Market research helps to find out the needs and expectations of customers, hence better customer management. Market research helps to increase sales and better customer management, thus the business gains the opportunity to improve business growth and development.
Market research is used to identify problems and opportunities in the market. It helps in identifying new market opportunities for existing and new products. It provides information on the nature of competition, customer satisfaction, sales performance and channels of distribution. It is also used to determine customer needs and wants. Market research helps in collecting information on consumers from a
structured distribution research. Market research helps in sales forecasting by using market share method, sales force estimate method and jury method. This helps infixing sales quotas and marketing plans.
It facilitates a smooth introduction of new products. Market research helps in testing the new products in one or two markets on a small scale. This also helps in finding out consumer response to the new products.

Methods/tools of doing market research/ collecting data
To collect data from customers, businesses apply several ways all of which aim at talking to customers and collecting information from them that can be used by entrepreneurs to make decisions.
There are many practical methods that a business enterprise can use to get feedback from its customers. The following are some of the methods that can be used to get customer feedback:
Telephone surveys. This involves calling customers and asking them a few questions about the business and its services, You may hire skilled people to do the calling and recording of the responses so that
results can be analysed later

Suggestion (feedback boxes). Suggestion boxes are placed in strategic places so that customers can write their complaints and deposit ttwn in the box. The normally indicate the areas of improvement
Questionnaires. Questionnaires are developed and given to customers to fill and return. The advantage is that the returned questionnaires can be filed and analyzed to get what customers think.
Focus groups. These are small groups of between 6—10 people that are gathered and give their impressions about a good or service. Their responses are generalized to the whole population of customers.
Direct face to face inquiry. Provide brief cards with brief questions on which customers can answer about the business and its products.
Ask questions like:

• What services should we improve?
  What new product should we introduce?
  Customers. The easiest and the most direct way to find what customers
  think about your business, products and services is asking them.
  Through employees. These interact with the customers most. Employees can provide information bout customers in terms of the business aspects they complain about, what they complement about the business and other issues concerning it.
  Be your customer. This works best in large organizations with branches where staff may not know one another. A number of staff pretends to be customers and goes through the same experience that other customers go through.

A market survey tool

Designing a market survey tool Activity 3.7 In your group,
I. Read and discuss the following text about the key steps
in research:
Key steps in research Marketing research is conducted using a systematic approach. An example is as follows:
Define the problem: This is the first stage of market research which gives justification for the research to be conducted. The problem becomes the focus of the research. For example, why are sales of our products failing in upcountry towns?
Decide on the method for collecting data: The methods of data collection have to be discussed ahead under the topic. Design a questionnaire to be used for collecting data.
Select the criteria to be when approaching each
respondent (a to ask questions): Do you choose randomly. or do you set procedures to follow?

Decide on the method of analyzing any data collected: You have to determine the level of accuracy required.
Specify the amount of money needed to conduct the
research: This depends on each activity to be done. Also indicate a time frame for the research process.
Carry out a quality examination to identify mistakes in the procedures or techniques used to identify, select, process, and analyze information and the error of omission made. Consult officials/stakeholders to be affected and, or benefit from the research and agree on the methodology, survey questionnaire and target respondents.
Conduct the market survey: This will include the collection, analysis and interpretation of data.
Carry out a quality audit: This should spot out mistakes, lapses in research methodology and error of omission.

Select a product of your choice.

Using one of the methods of doing market research and
key steps in research that you have discussed, design your
own market survey tool for the product you have chosen.
Present your work to the class.

3.2.3 Carrying out market research
Carrying out market research and data analysis
activity 3.8 In your group,
1 Select any one product that is common and familiar to all
learners in your school.
2 Use it as a trial to demonstrate market research.
3 You will move out of class to interview five learners from
other classes to fill the sample customer satisfaction
survey template.
4 Share your work with other groups.

Customer satisfaction survey template
I. How likely is it that you would recommend this company to a friend or family member?

ungue
Overpriced
Impractical:
Good value for money
Poor quality
Unreliable
How well do the products meet your need?
Extremely well
O Very well
Somewhat well
Not so
e Not at all well
How wou’d you rate the quality of the product?
Very high quality
High quality
Neither high nor low quality
Low quality
Very low quality
How would you rate the value for money of the product?
Excellent
Above average
Average
Below average
Poor
How responsive have we to your questions or
concerns ?
Extremely responsive
Very responsive
Somewhat responsive
Not so responsive
Not at all responsive
Not applicable

8. How long have you been a customer of the company?
o, This is my first purchase
O Less than six months
o Six months to one year
One-two years
Three or more years
O I haven’t made a purchase yet
9 How likely are you to purchase any of the products
again?
O Extremely likely
Very likely
o Somewhat likely
o Not so likely
o Not at all likely

activity 3.9 Designing a product In groups,

1. Based on the customer survey template above, design
   one for any selected product of your choice.
2. Present to the class.

3.2.4 Market research report
A research report is a systematic, articulate and orderly presentation of research work in written form. It is a document that contains basic aspects of the research project. It involves relevant information on the research work carried out. It may be handwritten, typed or computerized.

Here are the main sections of the standard report writing format: Title section: This includes the name of the author(s) and the date of report preparation.
Introduction: The first page of the report needs to have an introduction.
You will explain the problem and show the reader why the report is being made. You need to give a definition of terms if you did not include these in the title section and explain how the details of the report are arranged.
Body: This is the main section of the report. There needs to be several sections, with each having a subtitle. Information is usually arranged in order of importance with the most important information coming first.
Conclusion: This is where everything comes together. Keep this section clear and to the point as most people will read the summary and the conclusion.
Recommendations: This is what needs to be done. In plain English, explain your recommendations putting them in order of priority.
Summary: There is need to come up with a summary of the major points, conclusions and recommendations. It needs to be short as it is a general overview of the report. Some people only read the summary and skim the report. So make sure you include all the relevant information. It would be best to write this last so that you include everything, even the points that might be added at the last minute.
Appendices: This includes information that the experts in the field will read. It has all the technical details that support your conclusions.

Writing a market research report activity 3.10 In your group,
1. Identify a product.
Visit your community to carry out market research about that product.
2 Write a market research report about the product after.
3 Present a report to the class.

Reflective questions
I. Have you ever bought a bottle of soda?

2. Do you know where soda is manufactured?
3. Identify examples of products that you use on a daily basis.
4. Which companies produce those products?
5. How do those products reach other businesses that market them and to the final consumers like you? You have been at sale points where products are sold. Take an example: you buy books, pens, pencils and rubbers for school use but those products are produced far away from your home area. This implies that there are parties involved in making sure that the products reach to you as a user. Those parties are what we call channels of distribution.

3.3.1 Understanding channels of distribution
Entrepreneurs look for ways through which they make their products reach the customers. They use distribution channels. A channel of distribution, therefore, is the path or route through which products move from the producer to the final consumer. The choice of a distribution channel depends on the choice of the entrepreneur and other factors in favour of the business, as shall be handled later.

Types of channels of distribution
You should note that channels of distribution are categorised into two
types, that is direct channel and indirect channel of distribution.

1. Direct channel: It is the simplest and shortest mode of distribution since manufacturers or producers sell goods directly to the consumers. They do not involve any middlemen in this form of distribution. This includes selling through the post office, internet, door to door, telemarketing and company
   owned retail outlets, etc.
2. Indirect channels: This is a mode of distribution where the producer or manufacturer use middlemen to distribute his/ her products. These include the following.
   a) Manufacturer — retailer — customer: The manufacturer uses the retailers who sell goods to the final consumers of the product, for example Toyota, DS TV, MTN, Airtel and many others, sell their products through approved retailers.
   b) Manufacturer — wholesaler — retailer — customer: This is the most frequently used channel of distribution. The manufacturer uses the wholesaler and retailers in order to link to the customer. Examples include most of the packed food items, soap, clothes, utensils, etc.
   c) Manufacturer — agent — wholesaler — retailer —
   Customer: Here, the manufacturer supplies goods toagents who, in turn, supply them to wholesalers and then wholesalers to retailers who in turn supply to the customer as the final consumer. This is usually used by manufacturers who deal in limited or scarce products and yet they want to cover a wide market.

Activity 3.11
Identifying and explaining channels of distribution In your group,
1.Study the flow chart on distribution channels in Figure
2 Identify and explain the various distribution channels shown.
4 In each case, suggest an example of a product that suits it.
5 Make a write-up of your work and present it to the class.

3.3.2 Factors considered when selecting adistribution channel

When selecting the type of distribution channel to use for a given
product, the producer of a product must consider several factors, depending on the nature of their products or services. There are several factors considered when selecting the distribution channel. However, these are divided into three groups, i.e. product related factors, company characteristics, market forces, competitive factors and environmental factors.

Nature of the product: In case of expensive products. for example airplanes or trains, a short channel of distribution like producer to consumer should be preferred Since they are technical, expensive,
made on order and purchased by a few buyers. Consumer goods like sugar. television sets, among others. can be distributed through channels as they are less expensive, not technical and frequently
purchased.
Perishability of the product: Perishable like fruits or vegetables are distributed through short channels while non- perishable products like soap, oil, sugar. rice and salt, among Others, are distributed through longer channels.
Value of the product: In products having low value such as long channels of distribution are preferred, while in products with high value such as diamond and gold jewellery, short channels of distribution ate used.
Product complexity: Short channels of distribution are for technically complex products such as industrial or engineering, products. for example machinery like generators, while non-complex or simple product are distributed through long channels.
Financial strength : Companies that have huge funds at their disposal go for direct channels of distribution, whereas companies without such funds usually use indirect channels of distribution,
Need for control: In cases where management wants greater control over the channel memtx2rs, short channels to distribution are used. Otherwise a company can go in for longer channels of distribution.
Size of the market: In cases where the size of the market is small, like for industrial products , short channels of distribution are preferred, while for a bigger market size, long channels of distribution are preferred.
Quantity purchased: Long channels of distribution are used in cases where quantity purchase is of smallersizes, while in cases where the quantity purchased is in bigger sizes or orders, direct channels of
distribution are used.
Competitive factors: A business can decide to adopt the same channels of distribution as for its competitor or choose its own channel of distribution. For example, if MTN has selected a particular channel, say big bazaars, for sale of their products, other companies like Airtel have also selected similar channels of distribution.

Environmental factors: Economic factors such as economic conditions and legal regulations also play a vital role in selecting channels to distribution. For example, in a depressed economy,
genelly shorter channels to distribution are used,

activitY 3.’2 Discussing the factors considered when selecting a distribution channel.
In your group,
1.2.3.3.3

1 Read and discuss the above text on factors considorod
when selecting a distribution channel,
2 Share your findings with the class.
Selecting the most appropriate channel of distribution for specific products

In your group,
1.Select the most appropriate channel of distribution for the products given in Table 3.3.
2 Give reasons for your choice. Fill in the responses in the table below.
3 Present and share the work with the class.

Advertisement and Sales Promotion

Reflective questions
1 Do you have any adverts running on the media that interest
you?
2 Which companies advertising products in your community
do you know?
3 How do businesses in your community promote their
products?
4 Have you ever bought a product after sellers have attracted
you through advertisement or promotion?
5 How would you define advertisement then?

Entrepreneurs create awareness about products they deal in. To
achieve this, information about the availability of the product on
the market is provided to the potential customers, which makes
them more interested in buying the product. This whole practice
is referred to as advertisement. Advertisement can be persuasive
or informative.
Types of advertisement
Informative advertisement is described as a situation where the seller of goods or services only makes the public aware of the availability of the product on the market, the price and the location to find the products among other things, but does not persuade the public to buy.

On the other hand, persuasive advertising involves attracting and convincing the public to buy more goods/services from the seller.

3.4.1 Importance of advertising
Advertisement is important to an entrepreneur in a number of ways.
Activity 3.14
Discussing the importance of advertising
In your group,

1. Read and discuss the importance of advertising.
2. Make a summary of what you have discussed.
4. Share it with other groups and class in a presentation.

Importance of advertising include:
Widens market for a given product: Advertising expands the market for the producer. This enables the producer to increase production thereby lowering the production costs, which enables
the producer to earn more profits.
It gives a business a positive image: Advertising tells business
consumers and competitors that it is open and ready for business. Dynamic and positive advertising can entice consumers to the business.
It enables a business to compete favourably with its rivals:
Advertising helps sellers to convince customers to choose to buy

from it, to keep customers update about Its us services and to keep pace with the competition for customers.
It creates awareness: Advertising creates awareness about the
existence of goods and services on the market. This alerts the customers to come and buy particular goods or services.
Advertising and sales promotion enables sellers to make
more money: Advertising attracts customers to buy the products of a certain business and increases their sales. Description of products: Some advertisements are used to explain the use of a product. This mainly applies to technology products such as machinery, and digital products like phones and
computers, among others.
Better quality: It makes a business improve on the quality of its products since it wants to use quality as a method to promote their products.
Product differentiation: Advertising helps businesses to differentiate its products from those of the competitors, and communicates its features and advantages to the target groups. Increases goodwill: Advertising increases goodwill of the brand among the customers.
Value for money: Advertising delivers messages to a wide range Of audiences thus value for money for the products being advertised.

Methods of advertisement

There are different methods of advertising:

Identifying the methods of advertisement
:tivity 3.15
In your group,

1. Study Figures 3.4—3.13 and identify, name and explain
   the method of advertisement in each figure.
2. Fill your responses in Table 3.4 below and share it with
   other groups.

3. Using one of the methods of your choice, design a
   commodity of your choice and advertise it in class.

Sales promotion
Many times sales promotion is confused with advertising. The two terms are, however, so different as you are going to realize. Have you ever been to a fuel station and noticed that after a car has refuelled,
the pump attendant gets water to clean the car screens at no cost or offers powder soap to the car owner? Or have you seen a fuel station having a shop attached to it for easy access to particular products by their clients? This is regarded as sales promotion.

Sales promotion, therefore, is the process of persuading/attracting
potential customers to buy the product. This mainly focuses on short-
term strategies which temporarily attract customers, but they keep
changing over time.
Examples of promotions include winning school fees, a trip to a national
park, winning an additional product, rewarding customers who spend a
defined amount while buying products from the business, for example
bonus, among others.
Businesses which do sales promotions include telecommunication
companies, radio and television stations, supermarkets, banks, soft drink
companies, decoder dealers like GoTv, and oil companies, among others.
Methods of sales promotion

•Activity 3.16
Discussing the methods and importance of sales
promotion
In your group,

1. Use the available school resources to research and
   discuss the methods of sales promotion presented in the
   chart below:

2. Identify examples in Uganda where each method is used.
3 Role-play any of the methods selected above to the class.
4 Point out the importance of each method of sales promotion.
5 Discuss the general importance of sales promotion.
6 Do a write-up of your work and present it to the class.

Reflective questions
1.Have you ever wondered whether the price you pay for the
products you buy is fair?
2 Do you know some examples of counterfeit products being
sold in your home area?
3 Do you have any idea how sellers cheat customers in your
home area?
4 If sellers cheated you in any way, what could you do to
protect your rights as a customer?
Consumer protection is a basic requirement in the business world., People buying products must be safe from profit-hungry business people. Therefore, there are institutions which are responsible for protecting users of services like the internet, electricity, banking services and the like.
It is also applicable to products from agriculture and industry, and measuring equipment of all types. It involves all effort made to ensure that products on the market are safe for use and meet the standards set by the government.

Surveying consumers about sellers’ exploitation
Activity 3.17 In your group,
I. Carry out a survey to interview consumers around your school or in your community to get information on how they have been exploited in the forms given in Table 3.5 below.
2 Collect your evidence and make a report about consumer exploitation in your community that you will
present to class.

3.5.1 Importance of consumer protection
You probably have studied the ways through which the consumers are exploited in your community. The next thing is to analyse the reasons for consumer protection. Why do you think there should be a deliberate government policy and civil society initiatives to protect consumers?
Activity 3.18
Portraying the need for consumer protection
In your group, read the following passage carefully and perform the tasks that follow:
How customer Francis Kamanda was cheated
Francis Kamanda from Kyambogo University recently bought an electric motorcycle from one renowned electric vehicle company at Sh 3.2m. He was assured by the manager that the
motorcycle when fully charged can cover a distance of 60km. However, on his first attempt to ride, Kamanda says the bike did not cover 25 km, which is not even half the distance that he
was told. A disappointed Kamanda then took the motorcycle back the following day to demand an explanation from the management. “The manager failed to explain why the bike
could not cover the distance he said it would,” he says.

He says someone informed him that ho could not now batteries because all their battori09 had boon
since they were kept on the floor in their otoro, “J hoy to pay back but tossed me around till I decided to a lawyor,” he says. Unlike Kamanda, who knew his rights as a connutnor, tnany
consumers’ rights have been abused by business people and unfortunately never purguo
because they are ignorant of their rights as consumers. Consumers also have the right to got accurato intownation about any product they intend to consume in order to mako
informed choices. Uganda National Bureau of Standards (UNBS) chocks weighing scales and fuel pumps to ensure that thoy moasuro accurately, and on verification, issues UNBS stamps.
Consumer protection is not only an act of promoting fair trade but also protecting consumers from being cheated. Consumers are encouraged to report any product they find on the market that does not meet the standard, not to just sit back. UNBS has a toll-free line which consumers can always
call to re ort such issues and that is 080 1

Tasks
1.In which ways was Kamanda cheated?
2 Explain why Kamanda should be protected against
cheating.
3 Present your findings to the class.

3.5.2 Methods of protecting consumers
Consumers need to be protected in order to avoid being exploited and facing negative health issues. Consumers can be protected against exploitation using the following methods: Use of Uganda National Bureau of Standards (UNBS): This body monitors the quality of products on the market. Uganda National
Bureau of Standards (UNBS) sets standards for the quality of various products made in the country or imported into the country.

A standards bureau has a standardisation mark that it puts on an goods tested and approved before they are put on the market. Th
quality standards are based on quantity, weight and moisture content
Use of price controls: In this case, a maximum price for an essential product is set so that it becomes illegal for traders to sell above th set price. To enforce this, sometimes the government takes ove
ownership of certain firms and the production of certain essential products at reduced prices.
Imposing trade restrictions: In order to discourage dumped and harmful products from coming into the country, some trade restrictions are put in place. Some imported dumped commodities may endanger
the health of citizens of the country,
Through the implementation of the Trade and Description Act:
This ensures that the goods sold to the consumers bear proper and right descriptions so that consumers are not misled by the false descriptions.
Using business associations: Business associations such as Uganda Manufacturers Association and Uganda Small Scale Industries Association, among others. ensure that the quality goods are produced
and put on the market through sensitising their members in workshops.
Using the Weights and Measures Act by the government: This ensures that traders use appropriate weights and measures. Hence, making consumers get rightful quantities. Through making a law on advertising: This discourages traders from using persuasive advertisements which may mislead consumers
into bu in inferior product

Use of veterinary services: Using the Department of Veterinary Services from the Ministry of Agriculture, Animal Industry and Fisheries. This sends out officials to examine the animals before they are slaughtered for meat.
Ensuring construction and rehabilitation of roads: Roads connect places of plenty to places of scarcity to avoid overcharging of the consumers in the form of high prices. Roads are constructed and
rehabilitated by the government.

Using consumers’ associations: These are aimed at safeguarding consumers’ interests by carrying out investigations regarding the quality and prices of certain products in order to avoid being exploited.
Formation of consumer cooperative societies: These buy goods directly from the producers, hence avoiding the high cost middlemen.
Using resale price maintenance: This is done by producers fixing the prices on their products through a system known as resale price maintenance, so that consumers are not overcharged by the traders.
Through withdrawal of licenses: Withdrawing operating government licenses from unscrupulous traders selling expired products and harmful products.

activity 3.79
Discussing the methods of protecting consumers In your group, discuss and find out:

1. Some firms that government is owning to provide cheaper services and products to the consumers.
2. Services and products that the government banned from advertising in order to protect consumers.
3. The animals whose movement and slaughter was controlled due to the need to protect the consumers.
4. Five products in Uganda whose prices are fixed by the manufacturer to ensure consumer protection.
   Identify a method of protecting consumers in each of the four tasks and present your work to the class.

3.5.3 Agents involved in consumer protection

Taking Uganda National Bureau of Standards (UNBS) as one of the government departments responsible for protecting consumers, visit the website https://www.unbs. go.ug/content.php? src=/egal- metrology-department&pg=content or any other available school
resource to find out the responsibilities of this institution in relation to consumer protection.

Discussing the major agents involved in consumer activity 3.20
protection In your group,
1.Discuss the following major agents involved in consumer protection.
2 Write a report that gives their explanations.
3 Present it to your class.

Uganda National Bureau
of Standards (UNBS)
Ugandan Government

• Consumers’ associations
  Business associations
  The Uganda Communications
  Commission
  Uganda Police
• Bank of Uganda (BOU)
  Uganda Revenue
  Authority (URA)
• Ministry of Health
• Ministry of Agriculture
  and Animal Husbandry

3.5.4 Challenges encountered in enforcing consumer protection There are many hinderances faced in the process of protecting consumers. Read some of the ones given below and discuss them in your group:
Lack of regulation and supervision: The supervision made by the agents responsible for customer protection like UNBS and Ministry of Health have not fully reached the local people. Few people know
about what they do to protect consumers. As a result, these agencies cannot get information from the public and this makes enforcing customer protection hard.

Lack of awareness about obligations of consumers by consumers: Very few consumers understand their obligations as product users. They never complain about what is not good from suppliers and therefore they cannot be helped.

Lack of awareness about consumer protection laws by the
consumer: The majority of the consumers in the country are not aware about the existing laws that protect them from exploitation, hence are exploited easily.
Attitude of consumers to the enforcement of their rights:
Sometimes consumers will not want to challenge the utility agencies and other authorities to assert their rights. They leave their dissatisfaction unexpressed.

This makes it challenging for them to get a fair hearing if they complain
to the authorities about the products they bought.
poverty: Many Ugandans would not want to waste their little money in pursuing their rights. This makes enforcing customer protection by the authorities hard.
Lack of faith in the judicial system: Many individuals do not have trust in the legal system because of rampant corruption. Customers do not want to file legal cases for fear of losing and that it may even cost
them penalties.
Corporate might: There are instances where the name, status and reputation of the producer or supplier works to intimidate consumers from even darling to sue this limits enforcing orang consumer protection.

Activity 3.21 Reading a passage that shows consumer exploitation
In your group, read the passage below carefully and answer the questions that follow it:
“Goods once sold are not returnable”
Mr Maiteki, a resident and a farmer in Kayunga district, central Uganda, was told that “Goods once told are not returnable” by the shopkeeper from whom he purchased herbicides.
Mr Maiteki purchased herbicides to spray his coffee farm. Surprisingly when he sprayed, the weeds did not dry. He used only a half of the herbicides on seeing that the chemicals were not good. He decided to take them back to the seller. However, the seller just showed him the words “goods
once sold are not returnable” on the cash receipt he had given him on payment. Mr Maiteki is an example of consumers suffering quietly after having a bad deal in the market. Common cases include;
counterfeit products, duplicate goods, expired drugs, fake currency notes, dangerous pharmaceuticals, substandard works and inferior telecom quality of services. Others include unfit supplies, underweight confectionary products, defective electronics, shoddy services, adulterated drinks, harmful food additives, misleading labels, imitated product models, forged documents, corrupt and negligent
public officials, immoral and unjust systems, exploitative adverts and abusive practices, among others.

Tasks
1.Why do you think many sellers print the word “Goods once sold are not returnable” on their cash receipts?
2 Using the passage above, identify the indicators of consumer exploitation in Uganda.
3 Explain the challenges of consumer protection basing on the indicator identified above.

4Suggest solutions to the challenges encountered while enforcing customer protection in your community.
5 Do a write-up of your work and present it to the class.

Sample Activity of Integration

Context
Gulele is a single rural mother of four children. She lives by the road side in a remote area of Bududa District. She makes crafts using beads, waste bottletops and rings, banana fibres, cloth, seeds, and palm leaves and other easily accessible waste materials. She has spent 15 years
there without any progress in her business. One of the reasons is that she hardly markets her products, never researched her market and did not bother to get a UNBS logo. A friend advised her to try marketing her products in Bududa Town and Kampala District for quality customers.

Task
Develop a simple marketing plan that Gulele would use to market her products in urban centres of Bududa District and Kampala City.

Chapter Summary
In this chapter, you have learnt about:
the differences between marketing and selling.
a simple marketing plan.
the importance of marketing in business.
the challenges faced during marketing.
the importance of market research.
a market survey tool for a selected product.
market research.
a market research report.
the channels of distribution.
the factors considered when selecting a distribution channel.
the most appropriate distribution channel to distribute the products.
the importance of advertising and sales promotion.
the correct methods for advertising and sales promotion.
different products.
the importance of customer protection.
methods of protecting consumers.
agents involved in consumer protection.
challenges encountered in enforcing consumer protection in Uganda
and other countries.