Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which of the following is a component of promotion?

1. Logistics

2. Direct selling

3. Costs of goods sold

4. Research and development

The correct answer is: Direct selling

Promotion is one of the key components of the marketing mix, which also includes product, price, and place. It encompasses various activities aimed at communicating the benefits and features of a product or service to potential customers with the intention of increasing sales and brand awareness. Direct selling is a clear component of promotion because it involves personal interactions between sales representatives and consumers. This approach allows for direct communication of product benefits, addressing customer concerns, and providing personalized service, all of which enhance the promotional aspect by actively engaging with the target audience. In contrast, logistics is primarily concerned with the distribution and transportation of goods, while costs of goods sold (COGS) relate to the expenses incurred in production, pricing strategy, and profitability analysis. Research and development focuses on creating and improving products rather than their promotion. Hence, these options do not directly contribute to the promotional activities focused on informing and persuading consumers.