What is the purpose of advertising? Write the acronym AIDA in full here-below. Discuss the AIDA principle of advertising in detail. Explain what each word means.

Here are the answers to Question 4.1 and Question 5.

QUESTION 4.1

Here is Masemola's completed budget for Entrepreneur's Day:

Item	Amount (R)
EXPECTED INCOME
Sales of 100 cupcakes @ R4 each	400
Total income expected	400
EXPECTED EXPENDITURE
Cost of cupcakes (100 @ R2 each)	200
Transport to bakery	20
Packaging boxes (15 @ R1 each)	15
Trading license	20
Stall rental	25
Advertising leaflets	30
Total expenditure expected	310
Net Profit (Total Income - Total Expenses)	90

QUESTION 5

5.1 The purpose of advertising is to inform potential customers about a product or service, persuade them to buy it, and remind existing customers about its benefits to encourage repeat purchases.

5.2 Here is the AIDA principle of advertising:

• a) A: Attention This step aims to capture the target audience's attention and make them aware of the product or service.
• b) I: Interest Once attention is gained, the advertisement must generate interest in the product's features, benefits, and how it can meet the customer's needs.
• c) D: Desire After creating interest, the ad should build a strong desire for the product, making the customer feel they want or need it.
• d) A: Action The final step is to prompt the customer to take a specific action, such as making a purchase, visiting a store, or requesting more information.