OTE2601 EXAM 2023 SEMESTER 2

The FourPs of Marketing:

The basic tools of a complete marketing plan

The marketing mix, commonly known as the 4Ps of marketing, consists of four essential elements
that organizations use to promote their products or services effectively. These four tools are
product, price, place and promotion. Everyone plays an important role in ensuring that the
marketing plan works and communicates effectively to the target audience.

Product:

It's about what the business sells, whether it's a physical product, a service, or an intangible product.
It includes not only physical attributes or characteristics but also the benefits and solutions it brings
to consumers (Kotler & Armstrong, 2010). A successful marketing plan requires a thorough
understanding of the product lifecycle, unique selling proposition (USP), and how it meets a
customer's need or solves a problem they are facing.

Price:

Deciding on the appropriate price involves considering factors such as cost, competition, and
perceived value (Smith, 1999). Pricing strategies can vary from premium pricing to penetration
pricing, depending on the company's goals. The right price is not only necessary for profits but also
helps position the product in the market and in the minds of consumers.

Location:

Often referred to as distribution, “place” involves determining how and where the product will be
available to consumers (McCarthy, 1960). This can be done through brick-and-mortar stores, online
platforms, or a combination of both. The channels chosen have a direct impact on the reach and
availability of the product to the target audience.

Promotion:

This includes the various strategies used to communicate product features and benefits to the target
market (Kotler, Wong, Saunders, & Armstrong, 2005). This may include advertising, public relations,
sales promotion and direct marketing. The advertising mix must be designed to attract the attention
of the target audience and convince them of the value of the product. In short, the 4Ps of marketing
serve as a guideline for businesses to plan and execute their marketing strategies effectively. They
ensure that companies offer the right product, at the right price, in the right place, and use the most
appropriate advertising techniques to reach and persuade their target market.
References:

Kotler, P., and Armstrong, G. (2010). Marketing principles. Pearson Education.

Smith, T. (1999). Pricing strategies and practices. Other. McCarthy, E. J. (1960). Basic Marketing:

A management approach. Irwin. Kotler, P., Wong, V., Saunders, J. et Armstrong, G. (2005).
Marketing principles. Prentice Hall.

2.1 Benefits of opening a Stokvel standard bank account

Standard Bank's Stokvel Account offers a unique savings solution designed to meet the needs of
Stokvel groups in South Africa. Some key benefits include:

Higher interest rates:

These accounts often offer competitive interest rates, allowing groups to grow their savings over
time (Standard Bank, 2020).

Safety and security:

Keeping money in the bank ensures the safety of the group's savings, minimizing the risks associated
with keeping large sums of money at home.

Easy accessibility:

Members have the option to access their accounts through the bank's various platforms, including
ATMs, mobile banking and online platforms.

Flexible:

Stokvel accounts allow multiple members to have access, facilitating seamless and transparent
transactions between members. Additional services:

Banks often offer financial advice, seminars, and additional services to help teams manage and grow
their funds (Standard Bank, 2020).

2.2 Elaborate the roles of different types of chargers

Stokvels, deeply rooted in South African tradition, have evolved into many different varieties to
meet different needs:

Stokvel grocery store:

They are designed for buying groceries in bulk, especially at the end of the year or during the holiday
period. Members contribute a fixed amount monthly and when the time comes, groceries are
purchased in bulk, ensuring savings and ensuring all members have enough supplies (Mkwanazi &
Chiloane-Tsoka , 2015).

Basic storage:

It's essentially a savings club to which members contribute a fixed amount regularly. The
accumulated amount will then be given to each member one by one, according to a rolling system.
This helps members access lump sum funds for immediate needs or projects (Seekings, 2013).

Stokvel funeral cover:

Recognizing the cultural importance and financial significance of funerals in the South African
community, this Stokvel ensures its members and their families a decent burial. Members'
contributions will go into a fund that can be used when a member or their family is bereaved
(Manona, 1998).

Stokvel real estate:

With the increase in real estate prices, this form of Stokvel helps members invest in real estate.
Regular contributions allow the group to purchase, invest or develop properties, ensuring members
have access to real estate opportunities (Pillay & Maharaj, 2020). Investment in Stokvel:

These aim to create long-term wealth. Members pool their funds to invest in a variety of businesses
such as stocks, bonds or small businesses. These Stokvels often collaborate with financial institutions
or experts to ensure maximum return on investment (Seekings, 2013).

References:

Standard bank. (2020). Understand Stokvels and their benefits. Standard banking group

Mkwanazi, S. and Chiloane-Tsoka, E. (2015). Stokvels and the socio-economic improvement of the
black community in South Africa. Mediterranean Journal of Social Sciences, 6(4), 489.
Research, J. (2013). Economy, society and urban services in Khayelitsha. Center for Social Science
Research, University of Cape Town.

Manona, C.W. (1998). From spontaneity to consolidation:

Development of stokvels in Langa. African Studies Conference Papers.

Pillay, K. and Maharaj, P. (2020). The role and impact of stokvels in the South African economy.
Financial Planning Magazine.

QUESTION 3.

Demonstrated experience in economic and management sciences at Mutendwahothe High School

Grant:

grade 10

Having served as a senior teacher of economics and management science at Mutendwahothe High
School, my rich experience has equipped me with a wealth of knowledge and innovative teaching
strategies. To train entrepreneurs, I will use a combination of four distinct teaching and learning
methods:

Project-based learning (PBL):

Under this method, students are tasked with carrying out specific projects that require the
application of economic and management principles. For example, they may develop a business plan
or create a fictional business. PBL promotes critical thinking, teamwork, and practical application of
theoretical knowledge (Thomas, 2000).

Case study analysis:

Drawing on historical and contemporary business scenarios, students delve deeper into case studies
to understand the business decision-making process. By analyzing successes and failures, they hone
their analytical skills and learn the nuances of entrepreneurship (Herreid, 2007).

Role play and simulation:

Through role-playing, students take on the role of business tycoons, stakeholders, or consumers. By
recreating business scenarios and playing different roles, they gain insight into different aspects of
the business world, thereby improving their empathetic understanding and decision-making skills.
their decisions (Joyce & Weil, 2004).
Interactive workshops and guest lectures:

Inviting local entrepreneurs or experts in the field allows students to gain first-hand knowledge.
These sessions can be supplemented by seminars where students actively participate in activities
such as product development, marketing strategy development or financial planning. Among these
methods, I consider project-based learning (PBL) to be the best. PBL is not just about understanding
theoretical concepts; it's about applying them in real-life situations. This approach fosters deep
understanding, cultivates business skills and encourages innovation. Students are not just passive
recipients of knowledge; they become active problem solvers. As a veteran teacher, I've found that
the lessons students remember most are the ones they experienced firsthand. When they are the
architects of their projects, the learning is deep and lasting (Bell, 2010).

Additionally, PBL prepares students for real-world challenges. As entrepreneurs, they will have to
imagine, innovate, collaborate and solve problems. PBL provides a platform where these skills are
honed, making students not only exam ready but also ready for life.

References:

Thomas,J. W. (2000). Overview of research on project-based teaching. Autodesk Foundation.

Herreid, C. F. (2007). Start with a story:

Case study method in teaching middle school science. NSTA Press.

Joyce, B. and Weil, M. (2004). Teaching models (7th ed.). Pearson Education, Inc.

Bell, S. (2010). Project-based learning for the 21st century:

Skills for the future. Clearing House, 83(2), 39-43.

1. Fiat currency:

This refers to the fact that money gains value not from the materials it is made of but from the trust
of those who use it. Most modern paper currencies, such as the US dollar or the euro, fall into this
category. Unlike commodity money such as gold or silver, which has intrinsic value, fiat money has
value because a government maintains its value or because the parties to the exchange agree on its
value (Mankiw, 2014).

2. Commodity currency:

Unlike fiat money, commodity money has intrinsic value. The object itself has value, regardless of its
use as currency. Examples from history include gold, silver, or even salt in some ancient societies.
The value of commodity money comes from the goods from which it is made, and it can be melted
down, for example, and sold for its intrinsic value (Jevons, 1875).
3. Liquidity:

Liquidity refers to how quickly and easily an asset can be converted into a medium of exchange. For
example, cash is completely liquid because it is already a medium of exchange. Other assets, such as
real estate or stocks, are less liquid because they must be sold and converted to cash or another
medium of exchange before they can be used to purchase goods. or service (Schwartz, 1987).

4. Hyperinflation:

This is extremely rapid or uncontrolled inflation. This happens when prices rise so sharply that the
concept of inflation becomes meaningless. Hyperinflation is often associated with wars, their
aftermath, political upheavals or other crises, making it unclear whether the central government will
act to prevent rising prices. In such situations, the value of the currency drops significantly, often
leading to the printing of money of higher denominations (Sargent, 1981).

5. Central Bank and monetary policy:

Central banks, such as the Federal Reserve in the United States or the European Central Bank in the
Euro Area, are institutions designed to supervise and regulate the banking system as well as its
enforcement. current monetary policy. Monetary policy refers to the actions taken by a country's
central bank to control the money supply and achieve its goals of promoting sustainable economic
growth. This often involves manipulating interest rates and influencing the amount of money
circulating in the economy (Mishkin, 2015).

In short, understanding the different aspects of money is important, not only for economists but
also for anyone who wants to understand the complexities of the modern financial world. These
concepts provide insight into the multidimensional nature of money, revealing it not only as a
medium of exchange but also as a central element of broader socioeconomic systems.

References:

Mankiw, N. G. (2014). Economic principles. Cengages learning.

Jevons, W. S. (1875). Money and exchange mechanisms. D. Appleton. Schwartz, A. J. (1987). Money
in historical perspective, University of Chicago Press. Sargent, T. J. (1981). The end of the four great
inflations. In inflation:

Cause and effect (p. 41-97). University of Chicago Press.

Mishkin, F.S. (2015). Monetary economics, banking and financial markets. Margin.