GCSE Business Studies

Marketing Mix - Promotion

Activity

With the person next to you, list all of the

methods that you can think of that
businesses use in order to promote
their products.
 Activity

Divide the list into three

1. Used by small companies only
2. Used by large companies
3. Used by both

Add any more methods you can think of

Activity

Have you included the following for small

businesses on a low budget

• Local newspapers
• Internet
• Personnel Recommendation
• Business cards
The Importance of promotion

Promotion is concerned with how a

business is to market its product.

A business must inform customers that it

has a product to sell, and make
customers feel that they need to buy the
product.
Linking Promotion to the other Ps.

Product
The product needs to be brought to the attention of the
consumer. Promotion could extend a product life cycle

Price
Some promotions can focus on price

Place
A business may need to inform customers of a new
shop opening or where the product is on sale.
The aims of promotion
• To inform customers about a product (especially when new
or changed)

• To keep a business ahead of its competitors

• To create or change the image of a business

• To create a brand and customer loyalty

• To maintain or increase sales

• To inform customers about where they can buy a

product/service
Methods of Promotion

There are many different methods of promotion

that a business might use. These include:

1. Sales promotion.
2. Public relations.
3. Sponsorship.
4. Advertising.
 1. Sales Promotion
Sales Promotion can be divided into many parts:
 Price reductions: e.g. Jan sales (to get rid of old stock)

 Loss leaders: Often used by supermarkets. Essential

products are reduced so that there is little or no profit
being made. This brings customers into the store

 Added Value: Often used by the food industry. Involves

giving 30% extra free etc.
1. Sales Promotion
 Gifts: May be given with a product in order to
increase sales. Eg: Breakfast Cereals.

 Point of sale: Large display of a certain product near

the entrance/tills. Used by supermarkets

 Competitions: Used to boost sales, where customers

are entered into a prize draw.

 Free samples: Used in cosmetics and other

businesses to let the consumer try the product.
1. Sales Promotion
 Merchandising: When a new film is released, certain
products on sale are connected to the film.

 After-sales service: Can also be used as a sales

promotion. A business may offer
Sales promotion taskor extend an
existing guarantee.

 BOGOF or 3 for 2: Means that people buy more of

the product
1. Sales Promotion - Task
 2. Public relations
PR involves managing information between the
company and the public

The main difference between Public Relations (PR) and

other promotion methods is that PR is often free.

It can include winning industry awards, working with the

press, organising launch events

PR brings the business to the attention of the public at

no cost.
2. Public relations - Task

Question:

Explain how a local business like the Metro café in

Bingham could partake in PR
3. Sponsorship
Sponsorship is becoming an ever popular method of
promoting businesses.

Though the sponsor may have a personal interest in

the team, there is a clear business aim in promoting
the name of the business to as wide an audience as
possible.

With sport on TV, there is an increasing opportunity for

a business to make its products known to a world-wide
audience.
3. Sponsorship - Task

Name 5 companies and the events/programmes they

sponsor
4. Advertising

Advertising is giving information to the public and

persuading them to buy a particular product or service

Examples include
• TV (national and local)
• Radio (national and local)
• Leaflets/flyers
• Bill boards
• Notice boards
4. Advertising - Task

How could a small company like Metro Café advertise?