(a) Define advertising (b) Explain four demerits of advertising (c) Explain five different ways producers can create awareness for their goods and services

Answer Details

(a) Define advertising

Advertising is any paid, non-personal form of communication used by an identified sponsor to inform, persuade and remind the public about goods, services or ideas, through media such as television, radio, newspapers, posters and the internet, in order to promote sales.

(b) Four demerits of advertising

1. It increases the price of goods. The heavy cost of advertising is added to the selling price and passed on to consumers.
2. It can deceive and mislead. Exaggerated or false claims may persuade people to buy inferior or harmful products.
3. It encourages wasteful spending. Persuasive adverts create artificial wants, making people buy things they do not really need.
4. It can promote unhealthy competition. Rival firms may spend excessively on adverts, and some adverts corrupt morals or exploit fear and vanity.

(c) Five ways producers can create awareness for their goods and services

1. Advertising through television, radio, newspapers, magazines, posters and billboards.
2. Personal selling by employing sales representatives to reach customers directly.
3. Sales promotion such as free samples, discounts, coupons, gifts and prize competitions.
4. Publicity and public relations through news coverage, sponsorship of events and community programmes.
5. Exhibitions and trade fairs where products are displayed and demonstrated to the public.

(Also acceptable: use of the internet and social media, and word of mouth.)