Question 16 the correct answer is 3 refer to page 333

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Question 16 The correct answer is 3 . Refer to page 333 in your prescribed book. Donna uses a sales promotional tool. Popular sales promotional tools include specialties, contests, premiums, trade show exhibits, point-of-purchase displays, free merchandise, publicity, sampling and coupons. Question 17 The correct answer is 3 . Refer to pages 333 and 334 in your prescribed book. Advertising often cannot replace trial experiences with a product, and a customer’s place of business is not always the best environment for product demonstrations. Trade show exhibits allow potential customers to get “hands on” with a product. The greatest benefit of this tool is the potential cost savings over personal selling. Many small manufacturers agree that this tool is less than one-fourth the cost of sales costs. Question 18 The correct answer is 4 . Refer to page 327 in your prescribed book.
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8 MNE3701/201 The disadvantages of television as a medium for advertising include the following: the short life of messages; consumer scepticism about claims; high campaign costs; little demographic selectivity with network stations; long-term advertiser commitments; long lead times required for production and commercial clutter. Question 19 The correct answer is 2 . Refer to page 410 in your prescribed book. To implement a policy of fair play and to cultivate good relations with suppliers, a small firm should try to observe the following purchasing practices: paying bills promptly; giving sales representatives a prompt courteous hearing; avoiding abrupt cancellation of orders merely to gain a temporary advantage; and avoiding attempts to browbeat a supplier into special concessions and/or unusual discounts. Question 20 The correct answer is 4 . Refer to page 405 in your prescribed book. The penetration pricing strategy refers to setting a lower than normal price for a product or service in order to hasten market acceptance and thus increase market share. TOTAL: 20 MARKS
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9 MNE3701/201 4 FEEDBACK ON ASSIGNMENT 02 QUESTION 1 1.1. Key factors in locating a business (10) Refer to pages 238 to 242 of Moore et al. 1 Customer accessibility This is important for the customers of retail and service businesses, and should also be considered if the cost of shipping is high relative to the product’s value when selling to a niche market. (1) 2 Environmental business conditions These would include factors such as weather, competition, crime, legal requirements and tax structures. (1) 3 Resources availability Of importance here are considerations such as proximity to raw materials (e.g. a furniture manufacturer needs to be close to a wood supplier) The suitability of the labour supply (e.g. high skilled employees in a technology-driven industry). The availability of transport (e.g. a milk farmer would require access to refrigerated carriers).
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