Commerce WASSCE (SC), 2017

Question 6

  • Define advertising.
  • Explain four demerits of advertising.
  • Explain five different ways producers can create awareness for their goods and services.
  • Observation

    Few candidates also attempted this question and the performance was not impressive.

    Candidates who attempted the question performed well 6(a. and b.). However, most candidates mentioned the means of advertising like radio, television without explaining how they are used by producers to create awareness for their goods and services. 

    The expected responses are.

    6a.       Advertising
    It is a paid form of non-personal means of bringing the existence of goods and services to the
    knowledge of members of the public and to persuade them to buy and use the goods and
    services.

                6b.       Demerits of Advertising

    1. It encourages adulteration of fast moving products.
    2. At times it interrupts interesting programmes i.e. football matches/drama series/
      topical discussion being viewed by audience.
    3. It is instrumental to higher cost of products in the market, thereby making some
      products unaffordable.
    4. Successful advertising leads to monopoly in the production and supply of some goods
      as it enables the bigger firms to drive away the smaller ones out of production and
      business.
    5. Some advertising through persuasion, mislead consumers to buy goods that they do
      not need.
    6. Some advertising is unethical as a result it corrupts 6the minds of young people.
      Advertising leads to higher cost of production which may lead to liquidation

     

     

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    6c.       Ways in which producers can create awareness for their products

    1. This is done through the print media e.g. newspapers, magazines, journals and
      catalogue which have state, national and international coverage.
    2. The electronic media such as radio, television and cinema where products are
      displayed, and their uses demonstrated.
    3. Personal selling- This involves engagement of salesmen who move from one place to
      another explaining the features, benefits and uses of the products to members of the
      public.
    4. Sales promotion - This involves giving out free gifts like T-shirts, openers, bags, caps
      and stickers that have the products' name or logo to attract buyers.
    5. Through organised Trade Fairs and Exhibitions at well-known locations/centres to
      explain/educate their audience on the usage and benefits of the goods.
    6. Use of Bill boards/ Hoardings mounted on top of buildings and other well designed
      structures at strategic locations with display of such products for the attention of
      passers-by.
    7. Window display - This is used by sellers to display their goods in peculiar ways or
      unique design to attract passers-by.
    8. Handbills/fliers/posters - Manufacturers engage the services of young school leavers who move about distributing these handbills/fliers to people.
    9. Public address system/or ringing of bells to herald their presence before bringing the product to the knowledge of the people gathered around.
    10. Internet/Telephone - companies send unsolicited short message service (SMS) /
      emails to prospective customers to create awareness.

    (b) Types of after sales services

    (i) Advice on product usage;

    (ii) Home delivery;

    (iii) Installation of industrial equipment;

    (iv) Demonstration;

    (v) Replacement of entire product under warranty;

    (vi) Maintenance and repair services;

    (vii) Free replacement of faulty part under guarantee.

    (c) Benefits of after sales services

    (i) It is used to retain customers who patronize a particular seller;

    (ii) It offers guarantee in the form of repair work or routine maintenance which creates goodwill and confidence in the buyer;

    (iii) It is used as a competitive tool by retailers;

    (iv) It is used to cope with the greater complexity of goods being manufactured;

    (v) It is sometimes used to demonstrate the use of the product which are sold through retail outlets;

    (vi) It gives assurance to the consumer that the seller will support the product he is selling;

    (vii) It allows the consumer the opportunity of asking all the questions he was not able to ask at the time of purchase.