Promotional Methods (AQA A Level Business): Revision Note

Advertising

• Advertising is a paid form of non-personal communication used to promote a product, service, or brand to a target audience through media channels

  • It can be delivered through a wide range of media, including television, radio, print publications, outdoor billboards, public transport and online platforms

• Advertising is divided into two broad categories

The purpose and value of advertising

Builds brand awareness

• Particularly important when launching a new product or entering a new market, where potential customers have no existing knowledge of the brand

Reaches large audiences quickly

• Mass media advertising can expose a product to millions of people in a short space of time, making it highly efficient for consumer goods

Informs customers

• Communicates key product features, benefits and availability to help customers make purchase decisions

Persuades customers to buy

• Well-designed advertising creates desire and motivates customers to take action and consider purchasing

Reminds existing customers

• Keeps the brand at the top of customers' minds and encourages repeat purchases, particularly in mature markets with strong competition

Builds brand image

• Consistent advertising over time shapes how customers perceive and feel about a brand, contributing to long-term loyalty

Examples of successful advertising campaigns

• John Lewis' Christmas television adverts are not primarily designed to promote specific products

  • They are emotional storytelling campaigns that reinforce the brand's warmth and trustworthiness

• Compare the Market's meerkats campaign uses a memorable, humorous concept to build strong brand recognition in a crowded, largely undifferentiated market for insurance comparison

Social media and influencers

• Social media marketing involves using platforms such as Instagram, TikTok, YouTube, Facebook and X to promote products, build brand awareness and engage directly with customers

The purpose and value of social media promotion

Cost-effective reach

• Social media allows businesses of all sizes to reach large or highly targeted audiences at relatively low cost compared to traditional advertising

Precise targeting

• Digital platforms use detailed data on users' demographics, interests and behaviour to deliver promotional content to the most relevant audience

Two-way communication

• Unlike traditional advertising, social media allows businesses to engage in direct conversation with customers, responding to comments, questions and feedback in real time

Builds community

• Strong social media presence creates a sense of community and belonging around the brand, which supports long-term loyalty

Measurable results

• Digital tools allow businesses to track reach, engagement, click-through rates and conversions with precision, enabling continuous improvement

Influencer marketing

• Influencer marketing involves partnering with individuals who have a significant and engaged online following to promote products or services to their audience

Some well-known influencers

Sales promotions

• Sales promotions are short-term incentives designed to encourage immediate purchase, increase sales volume or reward customer loyalty

  • They are typically time-limited and offer customers additional value beyond the product itself

Types of sales promotion

• Price reductions and discounts

• Buy-one-get-one-free (BOGOF) and multipack deals

• Loyalty card schemes and reward points

• Free samples or trial offers

• Competitions and prize draws

• Limited-time vouchers and coupons, e.g. for free shipping

• Flash sales and seasonal clearance events

The purpose and value of sales promotions

Generate a short-term boost in sales

• The time-limited nature of promotions creates urgency, encouraging customers to buy now rather than delay

Attract new customers

• A promotion can give hesitant or price-sensitive customers the incentive they need to try a product for the first time

Encourage repeat purchases

• Loyalty schemes reward customers for returning, building habitual buying behaviour over time

Clear excess stock

• Discounts and clearance events allow businesses to sell slow-moving or end-of-line products before they become a costly problem

Compete during key trading periods

• Promotions allow businesses to compete aggressively during busy retail periods such as Christmas, Black Friday or back-to-school season

Support new product launches

• Free samples or introductory offers reduce the risk customers associate with trying something new

Examples of successful sales promotions

• Tesco Clubcard is one of the UK's most successful loyalty schemes, rewarding repeat shoppers with points redeemable against future purchases and driving customer retention

• McDonald's Monopoly promotion creates excitement and urgency, driving footfall and average spend during the promotion period

Sponsorship

• Sponsorship involves a business providing financial or material support to an event, individual, team, or organisation in exchange for brand visibility, positive association, and access to the sponsor's audience

Forms of sponsorship

The purpose and value of sponsorship

Builds brand awareness

• Sponsorship places the brand name in front of large audiences, often repeatedly over an extended period

Creates positive brand associations

• By linking the brand to an activity, team or event that the target market cares about, the business can transfer those positive feelings to its own brand

  • E.g. a sports sponsorship associates the brand with energy, success and teamwork

Reaches a targeted audience

• Sponsorship of a specific sport, event, or programme allows a business to reach the precise market it is targeting

Generates media coverage

• Major sponsorships attract media attention beyond the event, growing the brand's reach

Differentiates from competitors

• Exclusive sponsorship arrangements can prevent rivals from accessing the same audience and associations

Builds community goodwill

• Local or community sponsorships demonstrate that the business is invested in the communities it serves

Examples of successful sponsorship

• Amex Stadium

  • American Express sponsors Brighton and Hove Albion's ground, reflecting the bank's strong local presence in the city

• Nike

  • Nike sponsors Cristiano Ronaldo and LeBron James, two of the world's most followed athletes, as global ambassadors for the brand

Personal selling

• Personal selling is a direct, one-to-one communication between a sales representative and a potential or existing customer, intending to make a sale or build an ongoing commercial relationship

• Unlike advertising, which communicates the same message to many people simultaneously, personal selling is tailored to the specific needs and circumstances of the individual customer

The role of sales teams and account managers

The purpose and value of personal selling

Two-way communication

• Sales staff can listen to customer concerns, answer questions and address complaints directly, making the interaction far more responsive than any other promotional tool

Builds trust and rapport

• Face-to-face or one-to-one interaction creates a personal connection that other promotional methods cannot replicate

Highly persuasive

• A skilled salesperson can tailor their pitch to the specific motivations and needs of each customer, making it a flexible and persuasive form of promotion

Essential for complex or high-value products

• When a purchase requires significant explanation, technical knowledge, or negotiation (common in business-to-business B2B markets), personal selling is often the only viable approach

Supports long-term relationships

• Account managers who understand their clients generate repeat business and referrals that provide a stable, ongoing revenue stream

Produces immediate feedback

• The business gains direct insight into customer needs, complaints and competitor activity through the sales process

Examples of successful personal selling

• Pharmaceutical sales representatives visit GP practices to present clinical evidence and build relationships with doctors, who then prescribe their products to patients

• B2B software companies such as Salesforce employ large account management teams whose role is to ensure clients are getting the most from the software and to expand the relationship over time

Building a strong brand

• A brand is a name, design, symbol, or combination of these elements that identifies a business's products or services and distinguishes them from competitors

• Brand building involves creating and maintaining a consistent identity, reputation and emotional connection that customers recognise, trust and value

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 choices 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 the 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