Cambridge AS & A Level Business standard
answers
Short Question Chapter No.17
1. Explain one difference between advertising and
sales promotion. [3]
Definition:
Advertising is a paid form of non-personal
communication that promotes a product through
various media, while sales promotion includes short-
term incentives to encourage immediate sales.
Explanation:
Advertising is used to build brand awareness and
create long-term demand, whereas sales promotion
offers direct incentives, such as discounts, to boost
immediate sales.
Example:
Coca-Cola Pakistan runs TV ads (advertising) to
maintain its brand image, while offering buy-one-get-
one-free deals (sales promotion) to encourage more
sales.
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2. Explain one reason why a business might
advertise an existing product. [3]
Definition:
Advertising helps businesses increase brand
awareness and maintain consumer interest.
Explanation:
An existing product may require advertising to remind
customers about its benefits, differentiate it from
competitors, or introduce new features.
Example:
Pepsi Pakistan frequently advertises Pepsi Black to
attract health-conscious consumers and remain relevant
in the market.
3. Explain one way a business can measure the
success of its promotion spending. [3]
Definition:
Promotion success can be measured by tracking sales,
consumer awareness, and return on investment
(ROI).
Explanation:
Businesses compare sales before and after a
campaign, analyze website traffic, social media
engagement, or track coupon redemption rates.
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Example:
[Link] tracks the increase in website traffic and
sales after a social media ad campaign.
4. Explain one reason why spending more money
on advertising might fail to increase sales to the
expected level. [3]
Definition:
Increased advertising does not always guarantee higher
sales due to consumer preferences, poor product
positioning, or ineffective messaging.
Explanation:
If the product does not meet customer needs or the
advertising message is unclear, then additional
spending will not generate desired results.
Example:
Sony’s guerrilla ad campaign for the PlayStation
Portable (PSP) failed as it was perceived as
vandalism, leading to negative publicity.
5. Analyse one reason why branded goods are often
sold at higher prices than similar non-branded
goods. [5]
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Definition:
Branded goods have a strong reputation, consumer
loyalty, and perceived quality, allowing companies to
charge higher prices.
Explanation:
Branding creates an emotional connection with
consumers, reducing price sensitivity and making
customers willing to pay more.
Example:
Nike and Adidas charge higher prices than generic
sportswear because their brands symbolize quality and
status.
Arrowed Chain Analysis:
Strong Brand Identity → Higher Perceived Value →
Greater Customer Loyalty → Higher Pricing Power
6. Analyse one way to assess whether a
promotional campaign has achieved its objectives
or not. [5]
Definition:
Businesses assess promotional success using sales
performance, consumer awareness surveys, and
social media engagement.
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Explanation:
A successful campaign leads to higher sales,
increased brand recall, and stronger customer
interaction.
Example:
Nike tracks social media engagement and product
sales after a major ad campaign to evaluate its
effectiveness.
Arrowed Chain Analysis:
Higher Sales & Awareness → More Customer
Engagement → Improved Brand Equity → Long-Term
Market Growth
7. Explain one method of direct promotion. [3]
Definition:
Direct promotion involves directly reaching consumers
without using mass media.
Explanation:
One method is email marketing, where businesses
send personalized offers or product updates to
customers.
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Example:
[Link] sends discount emails to loyal customers
before big sales events.
8. Explain one way in which promotion can be used
to extend a product’s life cycle. [3]
Definition:
Promotion can revitalize demand for a product in its
maturity or decline stage.
Explanation:
Businesses may use discounts, rebranding, or new
advertising campaigns to attract new customers.
Example:
Apple reduces iPhone prices when launching newer
models to maintain demand for older versions.
9. Explain one benefit of using point-of-sale
displays as a form of promotion. [3]
Definition:
Point-of-sale (POS) displays showcase products at
checkout counters or key store locations.
Explanation:
They increase impulse purchases by catching
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customer attention when they are about to buy
something.
Example:
Nestlé places chocolates near cash counters in
supermarkets to encourage last-minute purchases.
10. Analyse one role of product packaging in
promotion. [5]
Definition:
Product packaging influences consumer perception,
branding, and purchase decisions.
Explanation:
Attractive packaging reinforces brand identity,
provides product information, and differentiates
products on shelves.
Example:
Coca-Cola’s signature red can design strengthens
brand recognition worldwide.
Arrowed Chain Analysis:
Eye-Catching Packaging → Stronger Brand Recall →
Higher Sales Conversion → Greater Market Share
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11. Explain one reason why public relations is important to a
business. [3]
Definition:
Public relations (PR) helps businesses maintain a
positive image and manage their relationship with the
public.
Explanation:
Good PR can increase brand trust, enhance
customer loyalty, and manage crises effectively.
Example:
Engro Pakistan uses CSR initiatives, such as
environmental sustainability programs, to enhance its
corporate reputation.
12. Explain one method of digital promotion. [3]
Definition:
Digital promotion refers to the use of online platforms
to market products and services.
Explanation:
One common method is social media marketing,
where businesses use platforms like Facebook,
Instagram, and TikTok to promote products and
engage with customers.
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Example:
Khaadi Pakistan frequently runs Instagram ad
campaigns to showcase new clothing collections.
13. Analyse one function performed by wholesalers in a
traditional channel of distribution. [5]
Definition:
A wholesaler is an intermediary that buys goods in
bulk from manufacturers and sells them to
retailers.
Explanation:
Wholesalers help manufacturers by reducing storage
costs, providing bulk purchasing benefits, and
distributing goods efficiently.
Example:
Metro Cash & Carry Pakistan acts as a wholesaler
by supplying products to small grocery stores across
the country.
Arrowed Chain Analysis:
Wholesaler Buys in Bulk → Manufacturers Reduce
Inventory Costs → Retailers Get Consistent Supply →
Improved Market Efficiency
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14. Analyse one reason why a small specialist clothing
manufacturer might decide not to sell online. [5]
Definition:
A specialist clothing manufacturer produces niche,
high-quality clothing in small quantities.
Explanation:
Selling online may lead to higher return rates,
logistical challenges, and increased competition
with larger brands.
Example:
A Pakistani bridal couture brand like HSY may prefer
exclusive in-store experiences over online sales to
maintain brand prestige.
Arrowed Chain Analysis:
Avoiding Online Sales → Exclusive Brand Image
Maintained → Higher Perceived Value → Premium Pricing
Justified
15. Explain one way a business could improve the brand image
of its products. [3]
Definition:
Brand image is the perception consumers have
about a business and its products.
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Explanation:
A business can improve brand image by offering high-
quality products, strong customer service, and
effective advertising.
Example:
Nishat Linen (Pakistan) improved its brand image by
introducing eco-friendly packaging and ethical
sourcing.
16. Analyse one way in which the internet has changed the
marketing of recorded music. [5]
Definition:
The internet has revolutionized the music industry,
shifting it from physical sales (CDs, cassettes) to
digital streaming and downloads.
Explanation:
Musicians now promote their work through social
media, YouTube, and streaming platforms instead of
relying on record labels.
Example:
Spotify and YouTube Music allow Pakistani artists
like Atif Aslam to distribute their music globally without
record label dependency.
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Arrowed Chain Analysis:
Digital Music Marketing → Wider Audience Reach →
Higher Streaming Revenue → Reduced Dependence on
Physical Sales
17. Analyse one benefit of channels of distribution that could
be used by a manufacturer of mountain bikes. [5]
Definition:
A channel of distribution refers to the path a
product takes from manufacturer to end consumer.
Explanation:
For mountain bikes, using retailers and e-commerce
platforms ensures wider market reach and
increased sales.
Example:
Giant Bicycles Pakistan sells through bike shops and
online stores, ensuring accessibility.
Arrowed Chain Analysis:
Effective Distribution Channels → Easier Customer
Access → Higher Sales → Increased Market Share
18. Explain one way in which a sports-shoe manufacturer might
use sales promotion. [3]
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Definition:
Sales promotion includes short-term incentives to
boost product demand.
Explanation:
A shoe brand may use limited-time discounts or free
trials to attract customers.
Example:
Nike Pakistan offers discounts during major sports
events to encourage purchases.
19. Explain one difference between digital and physical
distribution. [3]
Definition:
Digital distribution involves selling and delivering
products online, while physical distribution relies on
warehouses, transportation, and retail stores.
Explanation:
Digital distribution is faster and cost-effective,
whereas physical distribution involves logistics and
inventory management.
Example:
Netflix distributes movies digitally, while
McDonald’s relies on physical supply chains for
food products.
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9299065)
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20. Analyse one reason why a business might spend less on TV
advertising and more on digital promotion. [5]
Definition:
Digital promotion offers targeted, cost-effective
advertising compared to traditional TV ads.
Explanation:
Digital platforms allow better audience segmentation,
real-time tracking, and higher engagement.
Example:
[Link] (Pakistan) invests in social media ads
rather than TV commercials, as online promotions
reach younger audiences more effectively.
Arrowed Chain Analysis:
Shift to Digital Ads → More Targeted Marketing →
Higher ROI → Lower Advertising Costs
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9299065)
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