Topics in CommerceContract of Employment: Terms of employment contract Principle of Marketing: People as a marketing mix and their importance Principle of Marketing: Positioning as a marketing mix Principle of Marketing: Packaging as a marketing mix Elements of promotion in marketing mix Principle of Marketing: Promotion as a marketing mix Principle of Marketing: Place as a marketing mix Principle of Marketing: Price as a marketing mix Principles of Marketing: The seven principles of marketing mix Factors necessary for division of labour Disadvantages of division of labour Advantages of division of labour Concept of Outbound Marketing Inbound Marketing explained Types of production in commerce Commerce: Definitions and Scopes of Commerce Differences between balance of trade and balance of payments Balance of payment deficit and balance of payment surplus Disadvantages of foreign trade Divisions of foreign trade
Academic Questions in Commerce
In commerce, which of the following is false with regards to a commodity?
A. A commodity must always have a market value
B. Rendered services are also instances of commodities
C. Products applicable to commodities can be bought or sold with money
D. A commodity must be standardized
E. A commodity must be usable upon delivery
F. Commodities can be traded in the futures market
Whatever is being marketed must always provide value to its potential consumers.
Which of the following is not a branch of marketing?
D. Search Media Optimization
E. Social Media Optimization
Which of the following is not a characteristics of commerce?
A. The only aim of commerce is to make profit
B. It is a discontinuous process after profit had been made
C. It is accompanied with challenges and uncertainties
D. It is 100% business and economic activity
E. Transaction processes are always involved in commerce
F. It connects the process of production and marketing
Which of the following is not a function of commerce?
A. Unnecessary in times of emergencies like earthquakes and wars
B. Facilitates mass production of goods
C. Influences transportation network within and outside a state
D. Attempts to satisfy human needs and wants
E. Improves the standard of living
F. Acts as an online business link between buyers and sellers
One of the following is a form of division of labour.
A place where people buy homogenous goods in large quantities is called _____.
A. Wholesaler's Market
B. Goods Market
C. Products Market
D. General Market
E. Commodity Market
F. Forex Market
Any activity aimed at getting people interested in a company's product or service is termed _____.
C. Financial Accounting
Promotion in marketing mix is defined as any action that prompts an individual to buy a product after hearing about such product through the elements of promotion.
The elements of promotion in marketing mix are also referred to as the tools, means, processes or components of promotion. Together (or in isolation), the promotion mix successfully accomplishes the awareness created on a product or service when used appropriately. In simple terms, the elements of promotion therefore promotes whatever is being marketed.
At minimum, we have five of these elements of promotion; but we shall consider six in this article. They include:
Public Relations (PR)
Sales Promotion and Merchandizing
In simple words, advertising refers to the act of creating awareness about a product through a variety of media which includes:
Prints, Newspaper and Magazines
Word of Mouth
Posters and Handbills
Advertising is visibly the most popular tool or element of promotion in our world today. In fact, the bulk of promotional budget is allocated to the various media of advertising like social media, radio, handbills and so on.
The awareness created during advertising is preferably directed towards the consumers of the specific product via a process termed targeted advertising.
Meanwhile, in certain instances, advertising may be carried out on a product through an act of good will, which will inturn remind people on the mission of the advertised product or brand.
The goal of public relations (as a promotional tool of marketing) focuses on building a favorable image of one's business and its products through their relationships or activities with the public.
An instance of public relations is seen when a water producing factory opens free water outlet for the consumption of those living within the community. In doing this, the owner's business is being promoted.
The organization(s) involved carry out some expenses when using public relations as a promotional tool. Typically, public relations is considered as a duty of the organization towards a the public (or specific group of people). To this end, the main goal of public relations (as a promotional tool) is to build and maintain a favourable image of an organization with the public.
Publicity is quite different from public relations (PR). Unlike public relations, publicity as a promotional tool is always free of charge; and are not typically done by the company whose product is marketed.
The uniqueness of publicity is the fact that an organization does not need to market itself or its product. They don't pay a dime for promoting their services; rather the public does this through various reporters, journalist, columnists, media practitioners and so on. For instance, Len Academy encourages all students and teachers to like its facebook, twitter and google news pages. Through this process, Len Academy indirectly promotes facebook, twitter and google news respectively with each brand making no form of payment.
Publicity may also be carried out on various radio and television programmes as part of their promotional strategy.
This promotional strategy focuses on offering discounts and special offers with the aim of enticing consumers towards patronizing a product or service.
Sales promotions and merchandizing is achieved through activities like coupons codes that offers discounts on a product, free usage of product for some specific time frame, incentives on purchases, prizes, loyalty programs, raffle draws and rebates.
Note: Some of the target audience may be attracted to a specific promotional method when compared to others.
The main aim of sales promotion is to entice consumers towards buying a product. An excessive use of this promotional tool (sales promotion) may result to an eventual loss in the business.
Personal Sale as a tool of promotion simply means promoting your product yourself or employing a salesperson to help promote and sell your product. In fact, certain people refer to themselves as promoters due to the nature of their job.
Personal sale is typically an oral, face to face method of convincing potential customers to buy a product.
When one hires an ideal promoter or salesperson, the profit made from the sale of his or her product may significantly outweigh the cost spent in the form of wages (or salaries) on the salesperson or promoter.
An advantage of personal sale when measuring promotional feedback is the fact that an immediate feedback is derived from this promotional tool.
Various organizations put out events for one reason or another. However, one fact remains constant. The fact is: 'They put out events to promote their products while also supporting the target (or consumers) of their products'.
Based on the above fact, numerous events which can act as promotional tools for the respective companies are organized. Below are some instances:
MTN Project Fame (Nigeria)
Bournvita Brain Match (Nigeria)
Cowbell Mathematics Competition (Nigeria)
Barclays Premier League (England)
Who wants to be a Millionaire (MTN Nigeria)
Need more answers to this topic? Please enter your search below:
Kindly share this article via the links below:
Please contact Alfred via the above whatsapp link for a comprehensive online academic coaching in Biology, Chemistry, Basic Science and ICT
Click here to read the amazing features of the Len Academy Smart School Software. However, contact Alfred through the above whatsapp link if you require a standard website for your business or school at an affordable price
Please click here to follow Len Academy on Google News.
Please like and follow our official facebook page here for great educational write-ups.
You can follow Len Academy on twitter here.Thank you.
Amazing facts in Commerce
With Amazon Smile, you can donate 0.5 percent of your purchases to a charity of your choosing
Check it out here
The brewery, Sankt Gallen in Japan, produces a beer called Un Kono Kuro from elephant's dung
North Korea and Cuba are the only countries in the world where you can't buy Coca-Cola
Amazon is an e-commerce website launched in 1995. It did not make any profit for its first seven years.
Amazon's first profit was in 2003. Its founder 'Jeff Bezos' is the richest man in the world as at 2018/2019
NOTABLE POINTS IN Commerce
A prepayment is somewhat an opposition to deferred payment. This is true because the concept of prepayment oversees that the buyer makes payment beforehand and must wait to enjoy whatever had been paid for after some significant time had elapse.
In short, you can think of a prepayment as 'paying in advance'. An example is when a tenant pays in advance to a landlord for an apartment yet to be used. Another example is an online payment for items yet to be received.
Deferred payment is defined as a future payment eventually made after a buyer receives goods and services without an initial payment. Think of it as the: 'buy now, pay later' type of transaction.
From the perspective of the seller, the money yet to be received after the supply of goods or services is called an accrued revenue, unrealized revenue or accrued assets.
According to the buyer, the money yet to be paid after the delivery of goods or services is called an accrued expense. For instance, a company that owes employees salary can be said to have an accrued expense.
For an item to be considered a commodity, it must satisfy three conditions. These are:
It must be standardized. In the case of agricultural commodities, they must be in their unprocessed state.
It must be usable upon delivery
The price of a commodity item must vary.
A commodity market can therefore be defined a place where people buy and sell homogenous goods in large quantities.
Homogeneous goods are products that essentially have the same physical characteristics (or qualities) as similar products from other brands.
It is noteworthy to state that foreign currencies, data and bandwidth have all been included as part of today's commodity markets. In this regard, a commodity market will always have it's own set of rules and regulations.
Marketing is a broad field of study. Below are branches or divisions of marketing:
Search Engine Optimization (SEO)
Social Media Optimization (SMO)
Customer Relationship Management (CRM)
Marketing is defined as any activity or process aimed at getting people interested in a company’s product or service.
The processes utilized in marketing can take place via posters, public relations campaigns, handbills, social media, radio and television, buses, walls along the streets, the internet or just anywhere.
Below are some of the branches of marketing:
Search Engine Optimization (SEO)
Social Media Optimization (SMO)
Customer Relationship Management (CRM)