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Read the information supplied and answer the questions which follow - Leaving Cert Business - Question Question 1 - 2018
Question Question 1
Read the information supplied and answer the questions which follow. Social Media Advertising Ireland Ltd Niamh O’Byrne is a Business Studies student from the Univ... show full transcript
Worked Solution & Example Answer:Read the information supplied and answer the questions which follow - Leaving Cert Business - Question Question 1 - 2018
Step 1
Outline two functions of advertising.
Answer
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To inform or give information to consumers: Advertising serves to inform potential customers about a product or service, making them aware of its features and benefits.
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To create awareness of new products and services: Through advertising, businesses can promote new offerings in the market, helping consumers learn about new options that may fulfill their needs.
Step 2
Explain the two market research methods and give one example of each method.
Answer
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Desk Research: This method involves gathering existing information that has already been collected. It includes secondary research such as accessing reports, websites, or data from industry publications. An example would be studying market trends from government statistical reports.
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Field Research: This method entails primary data collection by going directly into the market to gather information firsthand. This could include surveys or interviews with customers to find out their preferences.
Step 3
Calculate the Working Capital Ratio and the Acid Test Ratio of Genoa Italian Restaurant from the data below.
Answer
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Acid Test Ratio:
( \text{Acid Test Ratio} = \frac{\text{Current Assets} - \text{Closing Stock}}{\text{Current Liabilities}} )
( = \frac{84,000 - 14,000}{42,000} = \frac{70,000}{42,000} = 1.66 )
Step 4
Step 5
Discuss two sales promotions techniques a restaurant could use to increase its sales.
Answer
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Price Reduction/Discounts: The Genoa Restaurant could offer a 20% discount on certain menu items during specific days to attract more customers.
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Loyalty Programs: The restaurant could implement a loyalty program where customers accumulate points for every purchase, allowing them to enjoy a free meal or discounts after a certain number of visits.