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.
6.2 Explain the following terms with regard to small business practice:
6.2.1 Sustainable profi... 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.
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Answer
Attract Attention: An advertisement must catch the eye of potential customers, making it colorful and engaging.
Create Awareness: It should inform the audience about the product or service offered.
Persuade Customers: The advertisement should encourage customers to take action, such as making a purchase.
Maintain Customer Relations: Continuously reminding customers about the product/service fosters loyalty.
Step 2
Explain the following terms with regard to small business practice:
6.2.1 Sustainable profitability
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Sustainable profitability refers to the ability of a business to maintain a stable level of production and sales over time without depleting resources. This includes having a well-thought-out plan that ensures the business can grow while remaining profitable.
Step 3
6.2.2 Mark-up
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Mark-up is the percentage amount added to the cost price of goods to establish a selling price. It reflects the business's intention to generate profit while covering overhead expenses.
Step 4
Give THREE reasons for packaging products.
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Protection: Packaging protects the product and ensures it remains safe and hygienic.
Attractiveness: Well-designed packaging can capture consumer interest and enhance visibility in the market.
Information: Packaging provides essential details about the product, such as ingredients and usage instructions, guiding customer decisions.
Step 5
Explain why Maya should do routine or preventative maintenance instead of corrective maintenance of her sewing machines.
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Routine maintenance helps to prevent unexpected breakdowns, ensuring uninterrupted production. It reduces the likelihood of repairs and minimizes downtime, thereby increasing efficiency. Corrective maintenance, on the other hand, often leads to greater expenses and more significant delays in production when machines break down unexpectedly.
Step 6
Write a paragraph to describe how Maya achieves good customer relations.
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Maya achieves strong customer relations by paying special attention to her customers' needs. She encourages feedback during final fittings, which fosters a collaborative atmosphere. By serving refreshments during these meetings, she creates a welcoming environment. Additionally, her commitment to timely deliveries and high-quality products ensures customer satisfaction, further solidifying their loyalty.
Step 7
Consider THREE factors in the scenario that can contribute to the growth of Maya's small business enterprise.
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Natural Talent: Maya's inherent sewing skills enable her to produce quality garments, which attracts and retains customers.
Customer Focus: By paying attention to customer feedback and needs, she enhances her service and builds loyalty, leading to repeat business.
Workforce Management: Employing skilled workers allows Maya to handle larger orders efficiently, thus expanding her market reach.
Step 8
Calculate the selling price of ONE doughnut. Show ALL calculations and round off the final amount to the nearest rand.
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Answer
To calculate the selling price of one doughnut:
Total costs for 100 doughnuts: $R35,00 + R150,00 = R185,00.
Mark-up = 50% of R185,00:
ext{Mark-up} = R185,00 imes rac{50}{100} = R92,50
Total selling price = Total costs + Mark-up:
extSellingprice=R185,00+R92,50=R277,50
Selling price of one doughnut = rac{R277,50}{100} = R2,78,
rounding off gives R3,00.