A-AS Level (CIE) Business Studies Paper-2: Specimen Questions with Answers 9 - 10 of 52

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Case Study-1

Promotion is one of the most powerful elements in the marketing mix. It means to communicate and persuade the target market — by identifying the needs of the target segment — to buy the company՚s products. The promotion concept includes all marketing activities used to inform, persuade, and remind the target market about a firm and its products or services, in such a way as to build a favorable image in the mind of the customer (Sidhanta & Chakrabarty, 2010) . In the same context, Kotler, and Armstrong (2012) defined promotion as human activities based on a communication process that can be directed via personal selling points or indirectly via advertising messages through the media.

The main objective of the promotion process is to identify the firm and its products or services for the target market, and to increase the level of purchasing. The brand establishment and the brand name are based on the promotion process. The SME sector in Al Buraimi focuses on the promotion process to identify the products and services of the individual firm and to persuade their customers to buy their products or services repeatedly. However, the promotion process is affected by the decisions of SME marketing managers regarding the level of marketing expenditure or promotion. The promotion process comprises of a few components such as advertising, personal selling, sales promotion, and public relations. All these components blend to create the promotion mix aimed at achieving the organization՚s marketing objectives. Advertising is the most powerful element of the promotion mix, due to its involvement in developing the image of the product in the market, or positioning the product in the mind of the customer (Latif & Abideen, 2011) .

Question 9 (4 of 6 Based on Passage)

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Short Answer▾

“All organizations need marketing.” Do you agree with this statement? If so, give reasons for your answers.

Explanation

Marketing as a managerial activity involves analyzing the market opportunities, planning the market activities, implementing marketing plans, and setting control mechanisms in such a way that organizational objectives are accomplished at minimum cost. In other words, marketing is:

Organizational Objectives

Question 10 (5 of 6 Based on Passage)

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Short Answer▾

Explain the terms:

b. Promotion mix

Explanation

Firms select a mix of promotional tools to effectively communicate with their target customer. The different elements of this mix are:

  • Advertising
  • Personal selling
  • Sales promotion
  • Public relations

For example, advertising is known to give results in the cold drinks industry, personal selling is effective in selling personal computers and software. Thus, in case of consumer non-durables, advertising plays a bigger role, whereas, personal selling is important in case of consumer durables, service marketing, and industrial products. Sales promotion and publicity have an equal significance in all type of products.

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