Promotional Decisions (AQA A Level Business): Revision Note

Influences on promotional decisions

• Promotion plays a crucial role in generating customer awareness, interest and desire for a product

  • It communicates a business's value proposition to potential customers and helps to differentiate the product or business from competitors

The main aims of promotion

• Above-the-line promotion refers to advertising  aimed at reaching a wide audience through traditional mass media channels

  • Advertising may use media such as television, radio, newspapers, magazines and outdoor sites such as billboards

• Below-the-line promotion includes marketing communications over which a business has direct control and which do not make use of mass media

  • These channels include direct marketing, sales promotions, personal selling, social media and public relations (PR)

Influences on promotional decisions

The value of branding

• A brand is the set of names, symbols, design elements and associations that customers link to a product, service or business

• It can be considered as the promise of a consistent experience every time a customer buys a branded product

The UK's favourite brands

Why strong brands matter

• Clear differentiation

  • A strong brand makes a product instantly recognisable among near‑identical alternatives

  • This simplifies choice for time‑pressed shoppers

  • For example, Innocent’s playful tone and halo logo help its smoothies stand out in crowded supermarket chiller cabinets

• Customer loyalty and repeat sales

  • Familiar, trusted brands reduce perceived risk, so buyers return without comparing prices each time

  • This loyalty lowers the firm’s long‑run promotion costs

  • For example, Colgate maintains market‑leading toothpaste share despite many cheaper own‑label options

• Ability to charge premium prices

  • A well‑regarded brand lets the firm add value beyond improvements to the physical product, increasing profit margins

  • For example, Apple sells iPhones at higher prices than comparable rivals because the customers associate the brand with design and quality

• Easier new‑product launches

  • Positive associations of a strong brand rub off on new items, cutting the need for heavy introductory advertising

  • For example, Cadbury's reputation for quality chocolate ensured success for its launches of hot chocolate powder and ice cream bars

• Stronger bargaining power with retailers

  • Stockists such as supermarkets want well-known names that pull in customers, so big brands gain better shelf space and promotional support

  • For example, Supermarkets run prominent displays on end‑aisles for Coca‑Cola, knowing it attracts shoppers

• Intangible asset value

  • A respected brand appears on balance sheets under goodwill and can be sold or licensed, generating extra income

  • For example, Manchester United licenses its crest for global merchandise, creating revenue far beyond match tickets

Social media and viral marketing

• Social media marketing involves using platforms such as Instagram, TikTok, X (Twitter) and YouTube to reach, engage and influence target audiences in real time

Ways brands use social media

Viral marketing

• Viral marketing is where consumers are encouraged to share information about a company's goods or services via the internet

• However, virality cannot be guaranteed

  • Promotions can be share‑worthy, but the crowd cannot be forced to participate

How viral marketing campaigns are built and spread

• Start with a strong emotional hook

  • Something funny, surprising or heart‑warming makes people want to share

  • For example, Old Spice’s “The Man Your Man Could Smell Like” adverts used quick jokes and unexpected visuals to grab attention

• Keep the idea simple and easy to copy

  • Viewers should be able to recreate or remix it with little effort e.g.dance moves, short phrases or quick challenges

  • For example, the ALS “Ice Bucket Challenge” needed only a bucket of ice water, a phone camera and three friends to tag next

• Give the first push through the right people

  • Brands often send the content to influencers or loyal fans who will post it to their followers and create the first wave of views

  • For example, Chipotle’s #GuacDance began with popular TikTok dancers who already had large audiences

• Let the snowball roll as engagement climbs

  • When lots of people like, comment and share in the first hours, the platform shows the content to even more users, creating rapid, chain‑reaction growth

  • For example, a short video of a man on a skateboard drinking Ocean Spray cranberry juice took off after millions liked it, turning into a worldwide trend

Advantages and disadvantages of viral marketing