Contracts - T1
What is a contract?
A contract is a legally binding agreement between two parties
What is one disadvantage of paying with a card?
Surcharge Fees/Technical Downtime (Power outage)/Privacy Concerns (Your identity maybe compromised)
When thinking about a contract what does "offer" mean?
An offer is a proposal made by one party to another to enter into a contract on specific terms.
Name an element of the promotion mix?
Advertising/Personal Selling/Relationship Marketing/ Opinion Leaders/Publicity/Public Relations/Sales Promotion.
Name one form of mass marketing advertising?
Television/Radio/Newspaper/Magazine
When you agree to buy a concert ticket online, the seller offering the ticket is showing which element of a contract.
Offer
I went and bought a new ipad for $500, I paid for it on a credit card. When I got my credit card statement it said I owe $550. This extra money is known as?
Interest
What is a "target market"?
A businesses intended audience
A business sends a well-known influencer free products to post about on Instagram. Which element of the promotion mix is this?
Opinion Leaders
A business phones individual customers to tell them about a new product. What type of advertising is this?
Telemarketing
What are the three elements of a contract?
Offer/Acceptance/Consideration
A student signs up for a streaming service and the payment is automatically taken from their account each month without needing approval each time. What payment method is this?
Direct Debit
A supermarket offers "buy one get one free" on chips for one week only. Which element of the promotion mix is this and what is its purpose?
Sales Promotion
A company sends a catalogue in the mail to homes in a specific suburb. What type of advertising is this and what is one advantage of it?
Direct Marketing
What does entering the contract under duress mean?
You were pressured into signing the contract
A student uses cash to buy lunch. One advantage is that they can't spend more than the money they physically have. This is in contrast to which payment method that allows you to "spend" the banks money?
Credit Card
What is the difference between a "debit card" and a "credit card"?
A debit card draws on the consumers money, with a credit card consumers borrow money from the bank and are required to pay it back with interest
What is the difference between publicity and advertising?
Advertising is paid and controlled by the business; publicity is unpaid media coverage that the business does not directly control (e.g. a news story about the brand).
What is the difference between e-marketing and social media advertising?
E-marketing is the use of the internet broadly to deliver advertising messages; social media advertising is specifically through platforms like Facebook and Instagram — social media is a type of e-marketing but more targeted and interactive.
A 16-year-old signs a contract to buy a luxury car. The contract is likely not valid because....?
of his legal capacity (he is a minor)
A student wants to buy concert tickets online but doesn't have a credit card or enough savings. Name two payment methods they could use and explain one advantage of each.
Buy Now Pay Later and a Personal Loan
What is a trademark
It is legal protection for a company or persons idea
A small business has a limited marketing budget which two elements of the promotion mix would you recommend for them and why?
Public relations (free and builds long-term trust) and opinion leaders/social media (cost-effective and targeted reach).
A business is deciding between billboard advertising and telemarketing. Compare the two and recommend one for a business trying to reach a large general audience.
Billboards are large signs in strategic locations reaching a wide passing audience passively; telemarketing directly contacts individual customers but can feel intrusive. For a large general audience, billboards would be recommended as they have high visibility and reach without requiring direct contact.