O-LevelCommerceAdvertising7100/22 · May/June 2019 · Q216 Marks

Businesses in the tertiary sector spend millions of dollars each year on social media and television advertising.

(a)Identify the two other sectors of industry that tertiary activity supports. 1 2[2]
(b)Describe what is meant by social media.[2]
(c)Should businesses expect to benefit from expenditure on advertising? Give reasons for your answer.[4]
(d)Cost is a major factor when advertising products. Describe two other factors that a toy business needs to consider when using television as an advertising medium. Explain which is the more important factor. Give reasons for your answer.[8]

Mark scheme

Marking points from the official mark scheme (May/June 2019). The mark or mark type is shown in brackets.

[1] Primary
[1] Secondary
[1] Online / mobile app / channel / platform
[1] e.g. Facebook/Twitter
[1] used to share / post / exchange content
[1] such as pictures/videos/opinions
[1] via the internet
[1] No - an increase in the level of advertising does not necessarily lead to an increase in sales
[1] because it may be giving information
[1] e.g. contains vitamins / times of opening
[1] the advertisement does not work
[1] making it very costly
[1] Advertising alone will not change sales that much
[1] the product needs to be effective
[1] affordable
[1] easily available
[1] targeting the right market
[1] Not everyone has access to the media
[1] e.g. do not own a television
[1] Yes - if a product is launched without advertising it would not become known
[1] advertising provides information / persuades people
[1] more people buy product
[1] can lead to brand loyalty
[1] increased market share
[1] giving it a competitive edge
[1] increasing sales/profits
[1] Advertising is important to remind consumers that a business and its products are still around/operating
[1] to maintain its presence in the public eye
[1] to continually attract new customers
[1] even some who may not have been interested in the product when it first came out
[1] Target market/audience – the age of the children the advertiser wishes to reach
[1] Coverage/channels/frequency – how many children can be reached / where
[1] Type of toy - some toys may need detailed information/demonstration
[1] Brand loyalty – to develop brand names to stick in children's minds
[1] Using more than one medium so as to reinforce the message
[1] Competitor's use of TV – the need to match/beat the competition
[1] Impact required – is the toy suited to being on television
[1] Flexibility - more difficult/expensive to change a television advertisement
[1] Advertising laws/morality – is it legal/morally to make a child want toys that parents may not be able to afford
[1] Timing - best to do the advertising during children's programmes
[1] Length of advertisement/life-span – usually less than a minute to make an impression and becomes outdated relatively quickly
[1] Method of appeal – e.g. bright colours, fast-moving images and music
[X] Example of Evaluation: The cost of a TV advert is high so it is important the toy business get the advert right so that it does increase sales or it will have wasted its money. It is also important for the advert to be legal/moral or the business can be fined and lose customers instead of gaining them. I think being legal and moral is most important because otherwise the advert will not be aired so the business wasted money making it.