(a)Explain five reasons why communication is important in commerce. (b) Explain five functions of Advertising.

Answer Details

(a) Five reasons why communication is important in commerce

1. Placing and receiving orders: Buyers and sellers use communication to place orders, confirm supplies and arrange deliveries.
2. Advertising and promotion: Communication carries information about goods and services to prospective customers, creating demand.
3. Facilitates decision making: Prompt exchange of information on prices, market conditions and stock levels enables managers to take sound decisions.
4. Maintains business relationships: It links a firm with its customers, suppliers, bankers and agents, promoting goodwill and cooperation.
5. Coordination of activities: It links the various departments and branches of a business so that their activities work smoothly together.

(b) Five functions of Advertising

1. To inform: Advertising tells consumers about the existence, features, price and availability of goods and services.
2. To persuade: It influences consumers to buy a particular product in preference to competing brands.
3. To create and increase demand: By stimulating interest, it expands the market and boosts sales.
4. To remind: It keeps existing products in the memory of consumers to sustain patronage.
5. To introduce new products: It launches new goods and educates the public on how to use them.