A sole proprietor has been advised to advertise her business in order to increase sales.
(a) i. List four advertising media she could use.
ii. State four factors she would consider in the choice of a medium.
(b) State four advantages of advertising to her business
Explanation
(a) The advertising media she could use include:
- The press, (newspapers, magazines/journals and books) -
- Television
- Radio
- Cinema
- Hoarding (billboards)
- Window display Catalogues
- Exhibitions and trade fairs
- Handbills/ fliers Car stickers.
ii. The factors she would consider in the choice of a medium are:-
- Coverage or extent of circulation: This refers to the number of people that can be reached by the medium, i.e. the percentage of a given market covered.-
- Frequency: This means the number of times the same viewer or reader may be exposed to the same advert.
- Communication effectiveness: This refers to the ability of a medium to deliver the impact as desired by the advertiser to the target market.
- The target audience: She must consider the type and social group to which an advertisement is directed and their purchasing power.
- Cost: The cost of using a particular medium will determine the one to be chosen by the advertiser.
- Flexibility of a medium: This refers to the number of different things she can do using the same medium. For example, direct mail allows the enclosure of money, coupons and pencils.
- Nature of the goods: The nature of the products will determine the choice of media to be used for advertising.
- Geographical selectivity: This is the ability of the medium to reach out to homes in specific geographical areas such as Villages and hamlets.
-The media used by competitors: The media used by manufacturers of competing products must be carefully considered before making a choice of medium.
(b) The advantages of advertising to her business are:
- Provision of information about features: it helps her to explain the use, features, and benefits of her business to the consumers.
-Increase in cost per unit of goods will be reduced thereby attracting consumers to her business.
- Increase in profit: it increases the profitability of an organization
- Higher revenue: The advertising firms also gain in terms of revenue.
- Provision of information about the existence of goods: It provides information about the existence of her business.
- Improvement in quality of goods: It helps in improving the quality of goods as a result of healthy competition.
- Increase in production: It can lead to an increase in production as more goods/services will be demanded
- Creation of awareness: It helps her in creating awareness for her business.