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
This is the sixth principle of the marketing mix. Think of positioning as the way people think about your company as a result of its rendered services and actions in the past. To this end, your company ranks somewhere in the minds of various customers.
In simple terms, positioning in marketing mix refers to the necessary steps a business should take towards improving its services in order to gain more customers.
When a company becomes well positioned, the customers will become more knowledgeable about its products and services. As a result, positioning (if done right) will always lead to higher sales of the company's product, accompanied with an increased customer database.
As an organization, an important question to be asked is:
The way and manner at which you are evaluated by customers is crucial and will act as a determining factor in a competitive market. To this end, one may think of a company as 'excellent in the kind of product they offer' while the same person may think of a competitive and similar company as 'excellent in customer service'. For instance, your choice of mobile network which you are subscribed to (through your SIM card) is a result of the position you have attributed to them in regards to calls and data services.
Personally, I have observed that some people may be eager to click on a web search (through google, bing or another search engine) after seeing the website to which the article is attributed. This is so because the website has indeed created a position or niche for itself. An instance on a google search is shown below - (in the case of Len Academy).
The proper positioning of an organization in a competitive market can be achieved through the following means:
SEO or 'Search Engine Optimization' is the reason why some websites are positioned highly on search engines like google while others aren't.
SEO can be implemented on the contents of a website through the use of appropriate titles, keywords and contents of the written topic (or article); including the responsiveness and speed of the website.
The positioning of websites on search engines presents an important criteria in the global ranking of the website. For instance, wikipedia, a website highly ranked by google sits among the first 20 most visited websites in the world.
Note: An instance of SEO for one of Len Academy's article is seen in the screenshot of the google snippet above.
Advertisments are often considered as the first means through which an organization (or a business firm) positions itself. Typical examples of such advertisments are seen in various online platforms, for instance, google adSense.
In google adSense, the adverts are country specific. This means that the google adverts you see on a specific webpage will be different from what another person from a different country sees on the same web page. In short, the advertisments we see on various websites (through google adSense) are more likely to be tailored to our country of residence.
Understand that when two people living within the same country visits a specific web page, both may be shown different advertisements. In this case, the adverts shown may be from the result of the previous online activities of each user's browser.
The above instances shows that the advertisments you see on websites are positioned to satisfy your curiosity for one or more products.
The price of a product is a significant factor in the positioning of such product. This is why people often associate higher prices to products with higher quality and lower prices with products of lower qualities.
One of the methods utilized in the proper positioning of an organization's product is by making its prices neither too high nor too low. This process will involve a detailed analysis on the product until a medium price is agreed upon. In this way, the product will neither become the cheapest nor most expensive in its spectrum; and that's fair enough.
Another way to go about the setting of an appropriate price is to manufacture products of varying qualities. For instance, samsung is an organization with a variety of products (of varying qualities) that sells at different prices. Within Nigeria, a Samsung phone could be purchased as high as N500,000 or as low as N30,000. Other phones manufactured by samsung may also sell at a medium price of about N75,000.
From the above instance, we can't clearly state that a samsung phone is either too cheap or too expensive since it has been appropriately positioned to satisfy the needs and wants of various customers in regards to their financial strength.
The amount of sales generated from a product will be directly affected by the place and position where the product is sold.
For instance, a person who sell phones in a major market within Lagos state, Nigeria, will likely make more sales than another who sells the same specifications of phones in another major market located in Bornu state, Nigeria.
Similarly, a person who sell phones in a major market within Lagos, will also make more sales than another who sells the same specifications of phones in a scantly populated street in another part of Lagos. The point is:
The position in which a business is located will go a long way in determining the level of sales that the business makes.
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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)