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6.1 Name TWO examples of electronic media that can be used to advertise a product or a service - NSC Consumer Studies - Question 6 - 2020 - Paper 1

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6.1 Name TWO examples of electronic media that can be used to advertise a product or a service. 6.2 Define the following terms: 6.2.1 Quality control 6.2.2 Worst-... show full transcript

Worked Solution & Example Answer:6.1 Name TWO examples of electronic media that can be used to advertise a product or a service - NSC Consumer Studies - Question 6 - 2020 - Paper 1

Step 1

6.1 Name TWO examples of electronic media that can be used to advertise a product or a service.

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Answer

  1. Social media platforms such as Facebook.
  2. WhatsApp.

Step 2

6.2.1 Quality control

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Answer

Quality control is the process of inspecting products to ensure they meet the required standards.

Step 3

6.2.2 Worst-sale scenario

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A worst-sale scenario refers to a situation where a business sells less goods or services than its break-even point, resulting in a loss.

Step 4

6.3.1 Give THREE requirements that they had to consider when choosing suitable packaging for the homemade ginger beer.

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  1. The packaging must be suitable for the beverage and prevent leakage.
  2. The materials should be durable to avoid breakage.
  3. Packaging should be affordable to maintain cost-effectiveness.

Step 5

6.3.2 Explain how FOUR of the 5 P’s of the marketing mix were achieved by this small-scale business.

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  1. Product: They produced homemade ginger beer using locally available ingredients, ensuring quality.
  2. Price: Pricing was strategically set based on local market standards and affordability.
  3. Place: They used social media and local community support to distribute their product effectively.
  4. Promotion: Advertising was conducted through WhatsApp and social networks, reaching a wider audience.

Step 6

6.3.3 Quote, from the scenario above, the statement that indicates that market research (feasibility study) has been conducted.

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"Before Buhle and his friends started their business, they visited their neighbours, friends and local municipal officials, enquiring if they were interested in buying the homemade ginger beer they would be selling."

Step 7

6.3.4 Discuss TWO factors that Buhle and his friends had to consider before choosing the product for their small-scale business.

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  1. Product appeal: The ginger beer needed to appeal to local taste preferences.
  2. Availability of raw materials: Ensuring that the ingredients could be consistently sourced.

Step 8

6.3.5 Discuss factors that could contribute to the sustainable profitability of the homemade ginger beer small-scale business.

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  1. Market research to identify demand thoroughly can help in tailoring the product effectively.
  2. Eco-friendly practices may attract environmentally conscious customers, enhancing marketability.

Step 9

6.3.6 (a) Calculate the production cost of 1 litre of homemade ginger beer. Show ALL calculations.

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Total cost for 30 litres is R120. Total production cost including overheads = R120 + (75% of R120) = R120 + R90 = R210. Therefore, cost of production for 1 litre = R210 / 30 = R7.

Step 10

6.3.6 (b) Calculate the profit of 60 litres of homemade ginger beer if the mark-up is 30%. Show ALL calculations.

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Cost of production for 60 litres = 60 * R7 = R420. Selling price with a 30% mark-up = R420 + (30% of R420) = R420 + R126 = R546. Profit = Selling price - Cost price = R546 - R420 = R126.

Step 11

6.3.7 Evaluate the validity of this statement.

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Using recycled plastic bottles as packaging can positively impact the natural environment in several ways: They help reduce waste by repurposing materials, minimize production costs, and lessen the environmental footprint associated with new plastic production. However, one must also consider the potential downsides, such as whether the bottles are clean and safe for consumption.

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