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6.1 Name FOUR criteria that are essential for a good advertisement - NSC Consumer Studies - Question 6 - 2016 - Paper 1
Question 6
6.1 Name FOUR criteria that are essential for a good advertisement. (4) 6.2 Explain the following terms with regard to small business practice: 6.2.1 Sustainable pr... show full transcript
Worked Solution & Example Answer:6.1 Name FOUR criteria that are essential for a good advertisement - NSC Consumer Studies - Question 6 - 2016 - Paper 1
Step 1
Name FOUR criteria that are essential for a good advertisement.
Answer
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Attention-Grabbing: The advertisement must be designed to attract attention, making it colorful, eye-catching, and relevant to the target audience.
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Clarity and Legibility: The information must be clear and easy to read, ensuring that all text is legible.
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Descriptive Content: It should provide a clear and concise description of the product or service being offered.
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Call to Action: The ad should encourage customers to take action, such as visiting a store or making a purchase.
Step 2
Explain the following terms with regard to small business practice:
Answer
6.2.1 Sustainable Profitability: This refers to a business's ability to maintain stable production levels and sales while ensuring that it does not deplete its available resources. A profitable business must implement strategies that ensure growth and profitability over the long term.
6.2.2 Mark-up: This is the percentage added to the cost of goods to determine the selling price. It reflects the additional amount that is charged to ensure that the business remains profitable.
Step 3
Give THREE reasons for packaging products.
Answer
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Protection: Packaging helps protect the product from damage during transportation and storage, ensuring that it reaches the customer in good condition.
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Hygiene: It maintains product hygiene, making sure that the product is safe for consumption.
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Marketing Tool: Well-designed packaging serves as a marketing tool, attracting consumers and providing them with essential product information.
Step 4
Explain why Maya should do routine or preventative maintenance instead of corrective maintenance for her sewing machines.
Answer
Routine or preventative maintenance ensures that Maya's sewing machines operate smoothly and prevents unexpected breakdowns that could disrupt production. This proactive approach reduces the likelihood of costly repairs and unscheduled maintenance downtime. Regular maintenance helps extend the machines’ lifespan and ultimately supports consistent production quality.
Step 5
Write a paragraph to describe how Maya achieves good customer relations.
Answer
Maya achieves good customer relations by paying special attention to her customers' needs throughout their purchasing journey. She engages with them by encouraging feedback on their fitting sessions and provides refreshments to create a welcoming environment. Additionally, by employing timely production and quality service, she ensures customer satisfaction, fostering loyalty and encouraging repeat business.
Step 6
Consider THREE factors in the scenario that can contribute to the growth of Maya's small business enterprise.
Answer
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Skill and Talent: Maya's natural talent for sewing allows her to produce high-quality items, which can attract a loyal customer base.
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Customer Focus: Her attention to customer feedback and satisfaction ensures that she meets and exceeds customer expectations, encouraging word-of-mouth referrals.
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Flexible Workforce: The employment of skilled workers ensures timely production, allowing her to scale operations and meet growing demand efficiently.
Step 7
Calculate the selling price of ONE doughnut. Show ALL calculations and round off the final amount to the nearest rand.
Answer
To calculate the selling price of one doughnut:
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Calculate Total Costs:
- Ingredients Cost: R35.00
- Other Costs: R150.00
- Total Costs = R35.00 + R150.00 = R185.00
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Apply Mark-Up:
- Mark-up = 50%
- Selling Price = Total Costs + (Total Costs × Mark-Up)
- Selling Price = R185.00 + (R185.00 × 0.50) = R185.00 + R92.50 = R277.50
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Selling Price per Doughnut:
- Selling Price per Doughnut = Total Selling Price / Number of Doughnuts
- Selling Price per Doughnut = R277.50 / 100 = R2.78 (rounded off to R3.00)
Step 8
Suggest reasons for the fluctuations in the cash-flow projection.
Answer
Fluctuations in the cash-flow projection can be attributed to several factors:
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Seasonal Demand: During the school holiday period, sales may decrease as children and parents focus on holiday activities rather than purchasing baked goods.
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Increased Competition: With the bakery nearby closing, Peter's sales increased initially, but competition may resume, impacting his customer base.
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Variability in Expenses: Monthly operational costs may vary due to supply chain costs, changes in ingredient prices, or maintenance needs, which can affect overall cash flow.