Theory question 107
CommunicationCommerce 2 (answer any five questions)
(a) Explain five reasons why communication is important in commerce.
(b) Explain five functions of Advertising.
Show the model answer
(a) Any five, explained: links buyers and sellers – orders, enquiries and quotations can be sent quickly; speeds up business transactions and decision making; makes advertising possible through the mass media; enables control of branches and agents from head office; helps payment and banking (transfers, electronic banking); widens the market, including foreign trade; reduces the need to travel, saving time and cost; provides market information (prices, supplies); helps in emergencies and in coordinating transport.
(b) Any five, explained: informs consumers about products, prices and where to buy; persuades consumers to buy and increases sales; creates and maintains demand, aiding mass production and lower costs; introduces new products; reminds consumers of existing products and builds brand loyalty; meets competition; educates consumers on uses of products; builds the image of the firm; provides revenue for the media and employment.
Five points each, with explanation.