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O-LevelCommerceAdvertising7100/21 · Oct/Nov 2011 · Q720 Marks

Fig. 3 shows an advertisement that has been placed in a newspaper by a small company called TVS. It offers aerial and digital television services. [Figure 3] Use the information given in Fig. 3 to help you to answer the following questions.

  1. (a)State three reasons why TVS needs to advertise.[3]
  2. (b)(i)Identify one example of informative advertising given in Fig. 3.[1]
  3. (b)(ii)Identify one example of a sales promotion method given in Fig. 3.[1]
  4. (c)Explain what is meant by a quotation.[2]
  5. (d)The advertisement states “credit available”. State and explain one example of credit likely to be available to customers.[3]
  6. (e)The advertisement shows three ways of contacting TVS. Which method of communication would be the most effective to find out further details about the services offered by this company? Give reasons for your answer. Explain why you would not use the other two methods of communication.[6]
  7. (f)(i)Why should TVS not use television advertising?[2]
  8. (f)(ii)Name one other advertising medium it might use to give information about its services. Give a reason for your choice.[2]

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Mark scheme

Marking points from the official mark scheme (Oct/Nov 2011). The mark or mark type is shown in brackets.

  1. [3] (a) Any three reasons x 1 mark each: to sell its services; to inform people; to persuade people to buy; to increase its sales; to give details of its services; to stay in business. Any other relevant reason.
  2. [1] (b) (i) Cellphone number, email address, website address, digital television installations, maintenance and repair contracts offered, name of company, credit available, quotations and advice.
  3. [1] (ii) Free aerial or satellite dish with every new installation.
  4. [2] (c) Any two points x 1 mark: reply to a potential buyer/to an enquiry; giving details of the services offered; and the cost of the service; sent by supplier to the buyer. Any other relevant point.
  5. [3] (d) Any one named method of credit x 1 mark and any points of explanation x 1 mark each: monthly credit – payment to be made after a month, no interest charged until then; credit card – cost charged to customer's credit card, debt may be paid off or paid in instalments; extended credit/deferred payments – ownership immediately, payment may be made in instalments; hire purchase – instalments, ownership at end of payments, contract with finance company. Any other relevant example of credit.
  6. [6] (e) Level 2 (4-6 marks) Candidate has given a reasoned opinion about the most effective method of communication and has shown why the other two methods would not be so effective. (If a candidate has discussed only one of the methods of communication, award 4 marks max.) I would recommend that a potential customer should use the website to find out more information. It can be accessed 24/7 and can be studied when there is time to consider the information and also revisited if more information is required. More detailed information may be obtained. It may enable the customer to have greater understanding of what he/she wants and then they can ask more intelligent questions using another method of communication. I would not use the cellphone because I might not make contact or the person answering might not have time to talk. There might be a bad line so I might mishear and I would have no written record of the discussion. I would not use email because I would have to think of all the information I wanted to ask beforehand. Although quick to use, there is no guarantee that the company would reply. Level 1 (1-3 marks) Candidate has commented on one method of communication and may/may not have shown why one/both of the other methods of communication are not suitable. I would use the cellphone because I could get immediate information. It is fast to use. I can leave messages. I would not use email and the website because I do not like computers. I may not understand the website. I may not get a reply to the email.
  7. [2] (f) (i) Any two reasons x 1 mark each or one well-explained reason x 2 marks: TVS is a small company and cannot afford the cost of television advertising; television is an example of mass media – this company probably operates in a small market, not a mass market; people cannot afford television (local comment). Any other relevant point.
  8. [2] (ii) Any one medium x 1 mark and one reason x 1 mark: leaflet – can give detailed information, cheap to produce, can be kept for reference; radio – may be local radio station, reasonably cheap, may attract attention; side of work van – can give contact details, show what the business does; posters - can be placed in shop windows, used on noticeboards; business cards – can be handed out to potential clients, give contact details; 'yellow pages'/classified directories – can give detailed information, display ad. trade magazines. Any other relevant medium. Magazines/billboards/newspapers = 0 marks.

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About this question

Topic
Advertising, O-Level Commerce (syllabus 7100). Structured question, 20 marks.
Source
O-Level Commerce, Oct/Nov 2011 Paper 2 Variant 1, question 7.

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