Marketing Mix: Promotion (Cambridge (CIE) A Level Business): Revision Note

The objectives of promotion

• 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

• Enhance business image

  • Promotion helps build a strong, positive reputation that encourages trust and customer loyalty

• Compete with rivals

  • It allows a business to stand out in a crowded market and attract customers away from competitors

• Support new products

  • Promotion creates awareness and interest when launching a new product, helping it gain early sales

• Increase sales revenue

  • By encouraging more people to buy, promotion helps boost the volume of sales and overall income

• Provide information

  • Promotion informs customers about product features, prices, availability or special offers

Advertising

• Advertising makes use of the media, such as television, newspapers and radio, to promote products or brands

  • It can reach large audiences and increase brand awareness

  • Advertising can also be used to create a specific brand image or message

    • E.g. The advertising campaign run by Compare the Market (Meerkat) uses humour to make shopping for financial products more attractive

  • Specialist media can target specific market segments

    • E.g. Upmarket furniture brands place advertisements in magazines such as Homes & Antiques and Country Life

• Advertising is an expensive promotional strategy 

  • E.g. In the US high viewership for the Super Bowl means that 30-second tv advertisements have been sold for as much as $6.5 million

  • In most cases, external specialists or media agencies create attractive and creative advertisements

Sales promotion

• Sales promotion involves the use of incentives or discounts to encourage customers to buy products

  • They are often temporary and are designed to attract new customers to try a product for the first time and become loyal to the brand

  • Examples of sales promotions include free samples, buy one get one free (bogof), discount coupons, loyalty cards, and competitions

Examples of sales promotions

• Sales promotions can quickly boost sales though impulse purchases or customer engagement

• They are also an effective tool to clear out excess stock, promote a new product or raise cash quickly

• However, for a limited period, revenue per item is reduced

  • This is likely to increase the break-even point

  • Customers may be unwilling to pay a higher price once the sales promotion has come to an end

Direct promotion

• Direct promotion involves communicating directly with customers through email, text message, social media or post

  • E.g. Takeaway restaurants distribute menus to households in the local community

• Businesses can target specific audiences and personalise the message to individual customers

• Its impact is measurable, which enables businesses to track their results and adjust strategy accordingly

• However, direct promotion can be intrusive, as customers may perceive it as spam

• It can also be costly, especially if businesses do not have an established customer database or need to purchase leads

Digital promotion

• Digital promotion refers to the use of online and electronic technologies to promote a business’s products or services to consumers

Examples of digital promotional activity

• Social media marketing

  • Promoting products through platforms like Instagram, Facebook, TikTok or X

• Email marketing

  • Sending promotional emails to target customers

• Search engine marketing (SEM)

  • Paid adverts that appear in search engine results (e.g. Google Ads)

• Influencer marketing

  • Paying social media personalities to promote a brand

• Website banners and pop-ups

  • Digital adverts placed on websites

• Video marketing

  • Promotional content shared on platforms like YouTube or embedded in websites

• Content marketing

  • Creating blogs, articles or videos to provide value and attract customers

Evaluating digital promotion

The role of packaging in promotion

• Packaging is the physical container or wrapping for a product. It is also used for promotion and selling appeal

• Packaging is normally designed to

  • Present products in the most practical yet attractive way

  • Communicate the quality of the product

  • Catch the customer's eye when they shop 

  • Provide key information to customers

  • Establish the business brand image

  • Protect a product from damage

• To stand out from the competition and establish a long-lasting relationship with consumers, brands are investing more money than ever before in creative and environmentally friendly packaging designs

  • This is becoming increasingly important for businesses as they place a greater emphasis on sustainability and their CSR policies

Examples of memorable packaging

Apple iPhone	Ferrero Rocher
Apple’s IPhone packaging is designed to open slowly First customers lift the box top and a moment passes before gravity overcomes a slight vacuum and the bottom slowly descends One by one, layers within the box are revealed with elements such as cables wrapped like origami	Each chocolate is wrapped in luxurious gold foil, placed in a fluted paper cup and topped off with a gold-fonted label Chocolates are arranged and stacked in a clear carrying case with rounded edges ensuring they can be viewed from any angle
Tiffany	Pringles
Tiffany’s packaging - including its iconic Blue Box represents the entire retail enterprise The colour shade, tissue paper and satin ribbon are protected by trademark and empty boxes and bags are often posted on sites like Etsy or eBay A small silver and enamel Tiffany Blue Box is now even sold as a wearable charm	Pringles resealable paperboard tube with a metal base and plastic cap is designed to stand up as well as ensure freshness and prevent damage  Upon his death in 1998 the packaging creator insisted he be buried in a Pringles can as he loved his design so much

The role of branding in promotion

• 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 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