Advantages of public relations
Disadvantages of public relations
5. Point of purchase (Window) display
This is where the items are arranged in the shops strategically, allowing the customers to see them easily. The arrangement is meant to attract the customer’s attention and induce them to buy goods as they pass close to the shop
Advantages of Point of purchase display
Disadvantages of point of purchase
6. Direct mail Advertisement
A form of advertisement which is sent to the potential customers directly in the form of a mail, for example the pricelist being sent to the potential customers.
Advantages of direct mail advertisement
Disadvantages of direct mail advertisement
7. Catalogue
A booklet that gives information about the product that the organization deals in. It gives the description about the product, the picture as well as the prices of the product.
Advantages of catalogue
Disadvantages of catalogue
8. Guarantee (warranty issue)
An assurance given to the customer that the product will serve as expected if used according to the instructions given by the manufacturer. For the guaranteed period the seller will be willing to maintain repair or replace the product for the customer
Advantages Guarantee
Disadvantages of guarantee
9. Discount
This is a reduction in price of the commodity, allowing the buyer to pay less than what he would have paid the goods.
Types of discount
10. Loss leaderSelling the price below the market price to entice the customer to buy
11. Psychological sellingPlaying with the customer’s psychology in terms of pricing by quoting odd prices such as 999, 199, 99, etc. to convince the customer that the price has been reduced 12. Credit facilitiesWhere the customer is allowed to take a product for his consumption and pay for it later. This entices the customer to buy more of the product 13. After sales serviceThese are services offered to the buyer after the goods have been bought. They may be in terms of packaging, transportation or installation which may be offered to the customers free of charge. This makes the customer to buy more goods with confidence Sales promotion
These are activities carried out to increase the sales volume of a business. They are activities out of the ordinary routine of business that is carried out by the seller to increase his sales volume.
The methods of carrying out sales promotion includes all the methods of carrying out product promotion as discussed earlier, that is, shows and trade fair, showrooms, free gifts, free sample, personal selling, advertisement, window display, credit facilities, after sales services, etc. Factors to consider when choosing a promotion method
Ethical issues in product promotion
These are rules and regulations to be followed when carrying out promotion to avoid violating other people or businesses right. They include;
Trends in product promotion
The following are some changes that have taken place to improve the product promotion activities
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​Highlight four ways in which a legal-political environment can impact negatively on entrepreneurs27/3/2021 Highlight four ways in which a legal-political environment can impact negatively on entrepreneurs. (4 mks)
Mention whether the following transactions have an increase, decrease or no effect on the assets, capital and liabilities of a business. (4 mks)  Define the following terms as used in Business Studies. (4 mks)(i) Economics
It refers to the study of how human beings strive to satisfy their unlimited wants using the limited / scarce resources.
(ii) Entrepreneurship
It refers to the process of identifying business opportunity and acquiring necessary resources to maximize the profit.
(iii) Opportunity cost
This is the value of the best next alternative forgone when acquiring or when a choice has been made.
(iv) Scale of preference
It is a list of wants showing the order in which they are satisfied from the most urgent to the least urgent.
The following information relates to Liston traders for the period ended 31st March 2012.The following information relates to Liston traders for the period ended 31st March 2012.
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Highlight four advantages of indirect tax. (4 mks)
Distinguish between the following terms of sales as used in international trade. (4 mks)(i) Free on rail (FOR)Price quoted includes expenses for transporting the goods up to the nearest railway station. The buyer meets railway charges and all other expenses.  (ii) Free on board (FOB)Price quoted includes the movement of goods up to when they are in the ship. The buyer meets all the other expenses. (iii) In bondPrice quoted includes all the expenses up to handling the goods into the exporters bonded warehouse. The buyer / importer meets all other charges such as duty and storage. (iv) On nearest offer (ONO)The exporter is willing to accept the quoted price or any other nearest to the quoted one.
Highlight four duties of commercial attaches in trade promotion. (4 mks)
Give the difference between: (4 mks)(a) Double and co-insurance
It is where an insured takes the same insurance policy / insures the same subject matter against the same risk with more than one insurance company. Whereas co-insurance is whereby one insurance company invites other insurers to insure with them the same property against the same risk.
(b) Premiums and surrender value
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Business Studies Notes Form 1 - 4
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November 2022
AuthorAtika School Team |
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