Commerce WASSCE (PC 2ND), 2018

Question 5

 

 

  1. Explain the following terms:
  2. personal selling;
  3. sales promotion.

State four merits and three demerits of advertising.                                                            

 

Observation

 

 

The question was attempted by almost all the candidates and their performance was also good.

The expected responses to the question include:

 

5a(i). Personal selling is a face-to-face interaction of sales men with potential customers for the purpose of presenting products, answering questions or explaining features and procuring orders.


  1. Sales promotion includes activities other than advertising and personal selling that stimulate immediate sale by offering customers extra incentives such as gifts, samples, point of sales display, raffles etc.                                                                                                                                                                  

  5(b)  Merits of Advertising

 

  1. It helps to increase consumers’ freedom of choice by making them aware of the existence of different products.
  1. It arouses consumers’ interest in a particular product advertised.
  1. It increases production as a result of increase in demand.
  1. It creates awareness of a new product to members of the public.
  1. It helps to sustain customers’ patronage.
  1. It creates employment opportunities for many people who work in advertising agencies.
  1. It encourages producers to maintain the quality of their products and services as advertised.
  1. It educates the consumers on how to use a particular product.

Demerits of Advertising

 

  1. It encourages too many brand names.
  1. It misleads consumers to buy what they do not plan to buy.
  1. The consumers are made to bear the cost of advertising by paying higher prices.
  1. It makes bigger firms to drive away smaller ones from production and business / Monopoly / Unhealthy competition.
  1. It is difficult to evaluate the effectiveness of advertising.
  1. Some advertisement could be pervasive and immoral.