Section A: Short Questions (Total: 50 marks)
1. Define price elasticity of demand. (3 marks)
a. This refers to the measure of the change in demand of a product in
relation to a change in its price
2. Explain the concept of advertising elasticity of demand. (4 marks)
a. This refers to the measure the change in demand of a brand given a
change in variables such as advertising and price. It is calculated by (%
change in quantity demanded / % change in advertising cost) x 100
3. Differentiate between advertising and marketing. (5 marks)
a. Marketing is the process of finding customers, and creating,
communicating, delivering, and exchanging products or services for the
satisfaction and retention of those customers, while advertising refers
to the business practice where companies pay to have their messaging
and brand displayed in front of customers. Advertising is limited to paid
media, while a good marketing campaign can consist of all paid, owned
and earned media.
4. Discuss the advantages and disadvantages of online advertising. (6 marks)
a. Online advertising allows for great individualisation using targeted
advertising, users will get ads specific to their interests, thus making
the ad more effective. It is also relatively cost effective to utilise online
advertising as compared to traditional advertising methods such as tv
ads. But just like tv ads, there is the danger of clutter, that is, so many
ads that consumers become desensitised and don’t focus on the
content of the ad. While online ads can be published immediately and
there is the benefit of interactivity, user distraction is a big drawback
that diminishes effectiveness of ads, as well as rapid change in the
online sphere of advertising.
5. Define banner advertising and explain its role in online marketing. (4 marks)
a. Banner advertising refers to the display of ads typically across the top,
bottom, or sides of a webpage. Banner ads are created with the
intention of capturing the attention of website visitors and encouraging
them to click on the banner, which then redirects them to the
advertiser's website. These ads often contain compelling visuals,
concise messaging, and a call-to-action. The primary role of banner
advertising in online marketing is to promote brand awareness, attract
website traffic, and drive customer engagement. By strategically placing
, banner ads on websites that have high user traffic related to the
advertiser's target audience, businesses can effectively increase their
visibility and create brand recognition. Banner advertising also plays a
vital role in generating leads and driving conversions. With a compelling
call-to-action within the banner ad, visitors can be enticed to click
through and explore the advertiser's offerings further, leading to
potential sales or desired actions such as newsletter sign-ups or
product inquiries.
6. Identify two benefits and two drawbacks of social media as a marketing tool. (5
marks)
a. One of the major advantages of social media is its extensive reach.
Platforms such as Facebook, Twitter, Instagram, and LinkedIn have
billions of active users, allowing businesses to connect with a vast
audience. This broad reach enables businesses to increase brand
visibility, expand their customer base, and reach potential customers
who may not have been accessible through traditional marketing
channels. Social media also provides a unique opportunity for
businesses to engage directly with their consumers. Through social
media platforms, companies can build relationships, interact with
customers, and receive real-time feedback. This direct engagement
allows businesses to understand customer preferences, gather insights,
and tailor their marketing strategies to meet customer needs. Moreover,
social media platforms provide a space for customers to share their
experiences, reviews, and recommendations, further enhancing brand
credibility and loyalty.
b. Social media platforms collect a vast amount of user data, which raises
concerns about privacy. Marketers must navigate privacy regulations
and ensure that they handle and use customer data responsibly.
Additionally, social media platforms may enforce their own content
guidelines and censorship policies, which may limit the type of content
businesses can share or target ads towards. Adhering to these policies
can be challenging, and businesses need to adapt their strategies
accordingly.
Social media platforms can be breeding grounds for hate speech and
misinformation. Marketers face the risk of their brand being associated
with harmful or false content due to ads appearing alongside such
content or being shared by users. Businesses need to carefully monitor
their ads' placements and consider community guidelines to mitigate
the risk of their brand being negatively impacted by hate speech or
misinformation circulating on social media
1. Define price elasticity of demand. (3 marks)
a. This refers to the measure of the change in demand of a product in
relation to a change in its price
2. Explain the concept of advertising elasticity of demand. (4 marks)
a. This refers to the measure the change in demand of a brand given a
change in variables such as advertising and price. It is calculated by (%
change in quantity demanded / % change in advertising cost) x 100
3. Differentiate between advertising and marketing. (5 marks)
a. Marketing is the process of finding customers, and creating,
communicating, delivering, and exchanging products or services for the
satisfaction and retention of those customers, while advertising refers
to the business practice where companies pay to have their messaging
and brand displayed in front of customers. Advertising is limited to paid
media, while a good marketing campaign can consist of all paid, owned
and earned media.
4. Discuss the advantages and disadvantages of online advertising. (6 marks)
a. Online advertising allows for great individualisation using targeted
advertising, users will get ads specific to their interests, thus making
the ad more effective. It is also relatively cost effective to utilise online
advertising as compared to traditional advertising methods such as tv
ads. But just like tv ads, there is the danger of clutter, that is, so many
ads that consumers become desensitised and don’t focus on the
content of the ad. While online ads can be published immediately and
there is the benefit of interactivity, user distraction is a big drawback
that diminishes effectiveness of ads, as well as rapid change in the
online sphere of advertising.
5. Define banner advertising and explain its role in online marketing. (4 marks)
a. Banner advertising refers to the display of ads typically across the top,
bottom, or sides of a webpage. Banner ads are created with the
intention of capturing the attention of website visitors and encouraging
them to click on the banner, which then redirects them to the
advertiser's website. These ads often contain compelling visuals,
concise messaging, and a call-to-action. The primary role of banner
advertising in online marketing is to promote brand awareness, attract
website traffic, and drive customer engagement. By strategically placing
, banner ads on websites that have high user traffic related to the
advertiser's target audience, businesses can effectively increase their
visibility and create brand recognition. Banner advertising also plays a
vital role in generating leads and driving conversions. With a compelling
call-to-action within the banner ad, visitors can be enticed to click
through and explore the advertiser's offerings further, leading to
potential sales or desired actions such as newsletter sign-ups or
product inquiries.
6. Identify two benefits and two drawbacks of social media as a marketing tool. (5
marks)
a. One of the major advantages of social media is its extensive reach.
Platforms such as Facebook, Twitter, Instagram, and LinkedIn have
billions of active users, allowing businesses to connect with a vast
audience. This broad reach enables businesses to increase brand
visibility, expand their customer base, and reach potential customers
who may not have been accessible through traditional marketing
channels. Social media also provides a unique opportunity for
businesses to engage directly with their consumers. Through social
media platforms, companies can build relationships, interact with
customers, and receive real-time feedback. This direct engagement
allows businesses to understand customer preferences, gather insights,
and tailor their marketing strategies to meet customer needs. Moreover,
social media platforms provide a space for customers to share their
experiences, reviews, and recommendations, further enhancing brand
credibility and loyalty.
b. Social media platforms collect a vast amount of user data, which raises
concerns about privacy. Marketers must navigate privacy regulations
and ensure that they handle and use customer data responsibly.
Additionally, social media platforms may enforce their own content
guidelines and censorship policies, which may limit the type of content
businesses can share or target ads towards. Adhering to these policies
can be challenging, and businesses need to adapt their strategies
accordingly.
Social media platforms can be breeding grounds for hate speech and
misinformation. Marketers face the risk of their brand being associated
with harmful or false content due to ads appearing alongside such
content or being shared by users. Businesses need to carefully monitor
their ads' placements and consider community guidelines to mitigate
the risk of their brand being negatively impacted by hate speech or
misinformation circulating on social media
