Michigan Residential Builders License Practice Test

Which is an example of a low-cost way to promote a business?

1. Hiring a public relations firm

2. Giving out branded items

3. Creating a television commercial

4. Renting a billboard

The correct answer is: Giving out branded items

Giving out branded items is a low-cost way to promote a business because it involves producing tangible items that can carry a business's name, logo, or slogan, which can be distributed to potential customers. Items like pens, keychains, or tote bags often have a low production cost, allowing businesses to reach a wide audience without the hefty expenses associated with traditional advertising methods. In contrast, hiring a public relations firm typically requires a significant investment, as these firms offer professional services that can include strategy development, media outreach, and event planning—services that can quickly add up in cost. Similarly, creating a television commercial is generally one of the more expensive forms of advertising due to production and airtime costs. Renting a billboard also tends to have a high price tag because it involves location fees and maintenance over time. Thus, distributing branded items is a cost-effective promotional strategy that can effectively raise awareness and foster brand loyalty without breaking the bank.