Alfred Ajibola
- Mon, 23rd March, 2020 @ 08:15 PM
Topics in Commerce
Advantages of division of labor Disadvantages of division of labor Types of specialization Specialization and Exchange Historical background of commerce in Nigeria Disadvantages of barter system Contract of Employment: Terms of employment contract Principle of Marketing: People as a marketing mix and their importance Principle of Marketing: Positioning as a marketing mix Principle of Marketing: Packaging as a marketing mix Elements of promotion in marketing mix Principle of Marketing: Promotion as a marketing mix Principle of Marketing: Place as a marketing mix Principle of Marketing: Price as a marketing mix Principles of Marketing: The seven principles of marketing mix Factors necessary for division of labour Disadvantages of division of labour Advantages of division of labour Concept of Outbound Marketing Inbound Marketing explainedAcademic Questions in Commerce
In commerce, the concept of paying in advanced is termed _____.
A. Advanced payment
B. Up payment
C. Forward payment
D. Prepayment
E. Uphill payment
F. Adpayment
In commerce, the concept of 'buy now, pay later' is termed _____.
A. Unadventurous payment
B. Buy on credit payment
C. Deferred payment
D. Postponed payment
E. Owed payment
F. Future payment
In commerce, which of the following is false with regards to a commodity?
A. A commodity must always have a market value
B. Rendered services are also instances of commodities
C. Products applicable to commodities can be bought or sold with money
D. A commodity must be standardized
E. A commodity must be usable upon delivery
F. Commodities can be traded in the futures market
Whatever is being marketed must always provide value to its potential consumers.
A. True
B. False
Which of the following is not a branch of marketing?
A. Merchandising
B. Promotions
C. Forex
D. Search Media Optimization
E. Social Media Optimization
F. Copywriting
Which of the following is not a characteristics of commerce?
A. The only aim of commerce is to make profit
B. It is a discontinuous process after profit had been made
C. It is accompanied with challenges and uncertainties
D. It is 100% business and economic activity
E. Transaction processes are always involved in commerce
F. It connects the process of production and marketing
Which of the following is not a function of commerce?
A. Unnecessary in times of emergencies like earthquakes and wars
B. Facilitates mass production of goods
C. Influences transportation network within and outside a state
D. Attempts to satisfy human needs and wants
E. Improves the standard of living
F. Acts as an online business link between buyers and sellers
One of the following is a form of division of labour.
A producer may have a quality product that is needed in high demand. However, if the consumers aren't aware of such product, then the producer will not make sufficient sales regardless the product's quality. In fact, if a similar product (with lower quality) is known by the consumers, then it may likely make more sales.
The above instance is an attribute of promotion in marketing and it is crucial for every business.
Please read more on the concept of marketing here.
Promotion is a vital step in marketing and will directly lead to an increase in sales. It creates a communication bridge between the producers (of a product) and consumers (customers and potential customers that will use the product). Through this bridging process, promotion as a marketing mix therefore attempts to stimulate the consumer's interest in a specific product.
Please read the introduction to the principle of marketing mix here.
According to some scholars of advertising and marketing; for instance, McCarthy and Perreault, promotion in marketing mix is defined as any action that transmits information between a seller and its potential buyers or other members of the channel of distribution to influence their attitudes and behaviors.
Please read on retailers as channels of distribution here.
Note: Promotion in marketing functions to create awareness about a product, thus making it known, desired and remembered.
The promotion of various products is seen on a daily basis. For instance, you may see some advertisments in the course of reading this article. Some readers can become attracted to the advertisement and may eventually click on them in order to satisfy their curiosity, needs or wants.
You can read on scale of preference and opportunity cost here.
The elements, processes or tools of promotion will come in the form of marketing strategies like advertisement, product branding, publicity, discounts, freebies, handbills, posters, public relations campaigns, events, merchandizing, online awareness via social media, search engine optimization (SEO), adverts on blogs and so on.
Please read more on the elements of promotion in marketing mix here.
One of the main challenges that producers often encounter during promotion occurs in the identification of appropriate consumers for their product. This implies that there is a possibility of promoting a product through marketing to the wrong sets of consumers. For this reasons, there is this concept termed targeted advertising.
Please read more on advertising here.
You can also read on inbound marketing here.
Targeted advertising is a form of online advertisment that focuses on placing 'ads' (or adverts) based on the consumers' demographics, internet activities and previous online buying history. It is an ideal and effective means of promoting a product; and that's perhaps why it is popular on the internet. In fact, Google as an advertising giant utilizes targeted advertising in their advertisment scheme which comprises of Google AdSense and AdMob. This is why you may see adverts on webpages that relates to your needs.
Please read on place as a marketing mix here.
Another way Google goes about its targeted Advertising is by utilizing the consumer's previous activity on the internet to display relevant adverts to them. For instance, if you checked out a phone on the internet, Google may use this activity of yours to present phone adverts whenever you read an article on a website approved for Google advertising. The point is: whatever is being advertised is preferably promoted to the right audience who eventually patronizes the producer of such product or services.
You can read on price as a marketing mix here.
If promotion is done right, more sales will be guaranteed because it has proven to become a fundamental principle of the marketing mix.
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Amazing facts in Commerce
According to research, the problem isn't the amount of food produced; the actual problem is the distribution of these foods. In this regard, we actually produce enough food to feed everyone on earth, but their distribution remains an underlying problem
With Amazon Smile, you can donate 0.5 percent of your purchases to a charity of your choosing
Check it out here
The brewery, Sankt Gallen in Japan, produces a beer called Un Kono Kuro from elephant's dung
North Korea and Cuba are the only countries in the world where you can't buy Coca-Cola
Amazon is an e-commerce website launched in 1995. It did not make any profit for its first seven years.
Amazon's first profit was in 2003. Its founder 'Jeff Bezos' is the richest man in the world as at 2018/2019
Notable points in Commerce
The theory of international trade is guided by the principle of comparative cost. This principle was propounded by David Richards.
The principle of comparative cost states that a country should specialize in the production of goods and services in which they have a greater comparative advantage or the least comparative disadvantage.
Below is an instance on the principle of comparative cost.
Now, let us assume we have two countries producing and exporting rice and beans respectively.
From the above instance, it can also be said that country B is at a disadvantage with regards to the production of rice and beans. Infact, it has a bigger comparative disadvantage with regards to beans production.
The point to note here is this: A country utilizing the principle of comparative cost will always produce quality goods and services at a cheaper cost.
No single country manufactures all the goods and services in our world. This implies that every country of the world relies on certain goods and services imported (or brought in) from other countries.
Foreign trade is defined as the exchange of goods, services and capital between two or more countries.
Foreign trade is also termed as international trade.
Division of labour can be defined as the act of splitting job process into a number of different processes such that each process is done by a different person or group of persons.
Through the process of division of labour, one worker may constantly perform a specific aspect of the job and as a result, may become specialized in that area.
The result of specialization in the different department of a job will imply the production of goods with better quality.
Forms of division of labour relates the various ways through which division of labour may be carried out.
Take for instance, within a country, one state may choose to specialize in the production of a cars while another specializes in a different area, let's say agriculture.
Below are the forms of division of labour
Complex division of labour
Occupational division of labour
Geographical division of labour
Balance of Trade can be defined as the total value of goods imported and exported by a country during a specific period; usually yearly or annually.
Balance of trade can be either positive, negative or zero
A positive balance of trade implies that a country exports more goods than its imports. China as a country is likely to have a positive balance of trade since it exports a variety of goods to other countries.
A negative balance of trade is often considered as an unfavorable balance of trade since the country's importation exceeds its exportation. Nigeria (as at 2018) is likely to have a negative balance of trade.
A zero balance of trade is reached when imports equal exports.
Please read on balance of trade and balance of payments here.