Theory question 106
AdvertisingCommerce 2 (theory)
(a) Define advertising.
(b) Explain four demerits of advertising.
(c) Explain five different ways producers can create awareness for their goods and services.
Show the model answer
(a) Advertising is a paid, non-personal presentation of information about goods, services or ideas by an identified sponsor through the mass media, to inform and persuade people to buy.
(b) Any four, explained: raises the cost and price of goods; can mislead with false claims; encourages people to buy things they do not need; may promote harmful products (alcohol, tobacco); can lead to monopoly by big firms; some adverts are indecent/offend culture; waste of resources in competitive advertising.
(c) Any five, explained: advertising in the print media (newspapers, magazines); electronic media (radio, TV, internet/social media); personal selling by sales representatives; sales promotion (free samples, gifts, discounts); trade fairs and exhibitions; public relations/sponsorship of events; billboards and posters; window display; branding and attractive packaging.
Demerits are mostly about cost and misleading consumers.