(a) Mention five types of business environment (b) Why do companies continue to advertise in...
(a) Mention five types of business environment
(b) Why do companies continue to advertise in spite of the criticisms levelled against it?
Explanation
(a) Different types of business environments are:
(i) Economic environment (ii) Industrial environment (iii) Socio -cultural (iv) Demographic (v) Technological (vi) Legal. (vii) Political (viii) Physical (ix) Climatic.
(b) Companies continue to advertise inspite of criticism because:
(i) Advertising leads to and induces purchases and greater sales volume.
(ii) Advertising creates awareness about the existence of a product.
(iii) Advertising affords the producer the opportunity of explaining the uses and features of his products.
(iv) It informs the people about the place and price of obtaining the goods.
(v) Advertising leads to mass production as a result of increase in sales.
(vi) It arouses the interest of the consumers in a particular product.
(vii) It helps to make brand names of goods known to members of the public.
(viii) The public are informed of any changes in the name or uses of the good.