Cambridge IGCSE Business Studies 3.3 Marketing mix

3.3.4 Promotion

Aims of promotion 

• Increase sales and market share
• Create a brand image
• Introduce new products to the market
• To compete with competitors

1. Advertising

Informative advertising – Give audience detailed information about the product

Persuasive advertising – Tries to persuade audience that they need the product

Advertising methods

• Local newspaper (for local businesses) Cheap, Lots of information, Permanent copy. / Not eye-catching, boring 
• National newspaper (nation wide businesses)
• local or national television Seen by many people, video can be interesting, choose which time to advertise (ad will be seen by target audience) / Very Expensive
• Internet Lots of information, 
• Specialist magazines Read by audience with certain characteristics e.g car magazines, sport magazine 
• Social media
• Billboards
• Leaflets Cheap, Permanent copy, Range of audiences (given to anyone) / May not be read

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2. Sales promotion – Special deals to attract customers short term.

• Price reductions – Reducing the price to attract customers
• Gifts – Products for e.g. toys that comes in cereal boxes makes customers want to buy it.
• Competitions – Products that comes with entry to competitions such as winning a prize. (e.g. Win a car or airplane tickets)
• Point of sales display and demonstrations – Demonstrations to show how product works (e.g. Food displays or cooking demonstrations at supermarkets)
• After sales service – Customers like buying from shops that offer repairs and maintenance
• Free samples – Free samples can encourage customers to buy the product if they like it (e.g. Food samples at supermarkets)

Advantages of sales promotion

• Maintain high sales throughout the year
• Encourages consumers to buy the products
• More competitive

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Marketing budget – Financial plan for marketing of a product for a specific amount of time.

Which type of promotion to use?

• Stage of product life cycle
• Advertising budget
• Nature of the product itself

Public relations 

 Strategies used to promote a good image for the business. (e.g. Sponsoring activities such as sports or charity events.