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

(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.