Question

How the auxiliaries to trade remove the hindrance of sales promotion?

Answer 1

Auxiliaries to Trade :- All those activities which help in removing various 
hindrances which arise in connection with the production and distribution of 
goods are called auxiliaries to trade. An overview of these activities is given 
below. 
(i) Transportation and Communication :- The production of goods takes 
place at one place where as these are demanded in different parts of the 
country The obstacle of place is removed by the transport. Along with 
transport communication is also an important service. It helps in exchange 
of information between producers, consumers and traders. The common 
communication services are postal service, telephone, fax, internet etc. 
(ii) Banking and Finance :- Business needs funds for acquiring assets, 
purchasing raw materials and meeting other expenses. Necessary funds 
can be obtained from a bank. 
(iii) Insurance :- It provides a cover against the loss of goods, in the process 
of transit, storage, theft, fire and other natural calamities. 
(iv) Warehousing :- There is generally a time lag between the production 
and consumption of goods. This problem can be solved by storing the 
goods in warehouses from the time of production till the time they are 
demanded by customers. 
(v) Advertising :- Advertising brings goods and services to the knowledge 
of prospective buyers. It is through advertising that the customers come 
to know about the new products and their utility.