Theory question 105
MarketingCommerce 2 (theory)
(a) State four ways in which marketing is important to a business.
(b) Jones Ltd, a textile manufacturer has been advised to use sales promotion to stimulate sales. List and explain four promotional tools Jones Ltd. could use.
Show the model answer
(a) Any four: increases sales and profit; helps the firm find out and satisfy customers' needs (market research); creates awareness of products; links production with consumption; helps the firm face competition; guides product design and pricing; helps expand the market/introduce new products; creates employment.
(b) Any four, explained: free samples – small pieces of fabric given out to let people try it; discounts/price reductions for a period; gifts/premiums with purchases; trade fairs and exhibitions where the fabrics are displayed; demonstrations/fashion shows; competitions and lotteries with prizes; window and shop displays; coupons; after-sales services; packaging/branding.
Each tool in (b) needs a short explanation, ideally linked to textiles.