Theory question 103
Business Environment and Social ResponsibilityCommerce 2
(a) Mention five types of business environment.
(b) Why do companies continue to advertise inspite of the criticism levelled against it?
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(a) Five: economic environment; political and legal environment; social (socio-cultural) environment; technological environment; demographic environment; physical/ecological (natural) environment; competitive environment.
(b) Reasons (any five): to create and increase demand and sales; to introduce new products; to inform consumers of prices, uses and where to buy; to meet and beat competition; to build brand loyalty and the company's image; to remind customers and keep sales steady; to support salesmen and retailers (stock movement); to educate the public on use of the product; to increase profit through large-scale sales and lower unit costs.
In (b), give the benefits advertising brings to the firm.