(a) Explain five reasons why communication is important in commerce.
(b) Explain five functions of Advertising.
Explanation
(a) Reasons why communication is important in commerce include:
(i) It facilitates mail order business.
(ii) It reduces the cost and risk of travelling for business transactions.
(iii) It facilitates payment for goods and services.
(iv) Goods and services are made known to potential buyers through communication.
(v) It facilitates contact among businessmen, irrespective of the distance between them.
(vi) Demand for goods and services could be stimulated through effective communication.
(vii) Information on government, economic and commercial policies get to the businessmen through communication.
(b) Functions of Advertising are:
(i) It promotes the image of the firm.
(ii)lt provides information that; needed by potential consumers about the product advertised.
(iii) It maintains customers’ demand or increases the number of customers, purchases by consistently arousing the interest of target customers in a particular product, i.e, creates brand loyalty.
(iv). It educates consumers on product usage and prevents the consumers from having an impression of the firm.
(v) Advertising provides employment opportunities for many people.
(vi) Advertising stimulates demand by constantly reminding potential buyers of the availability of the goods in the market.
(vii) It enhances turnover or increases the firm’s turnover.
(viii) It persuades consumers to buy, thus promoting impulse buying.
(ix) Advertisement develops large markets by creating more market segments to reach and satisfy more potential customers