Promotion (AQA GCSE Business): Revision Note

Advertising

• Promotion occurs through paid channels such as television, radio, print media (magazines), billboards and online advertising

• It can reach large audiences and increase brand awareness

• It can also be used to create a specific brand image or message, e.g. Compare the Market's ongoing Meerkat campaign

• It can be expensive

• The effectiveness of advertising can be difficult to measure

• Many customers tune out, switch over or ignore ads

Sales Promotions

• Marketing techniques that encourage the purchase of a product at the point of sale by offering temporary incentives or discounts

• Examples include free gifts or samples, buy one, get one free (bogof), discount coupons, and competitions

• It can quickly boost sales or customer engagement

• It can help to clear out stock or promote a new product

• It can encourage impulse purchases

• It can be targeted to specific segments of customers

• It can be expensive, especially if the promotion requires a heavy discount

• It can attract deal-seeking customers who may not be loyal to the brand

• It may reduce the volume of sales of full-priced products

Sponsorship

• An agreement whereby a company provides financial or other support to an event, team, or organisation in exchange for marketing exposure

• It can take many forms, such as logo placement or naming rights E.g Arsenal FC plays at the Emirates Stadium

• It can help to build brand awareness and credibility

• It can create emotional connections with target audiences

• It can also support specific business objectives, such as entering new markets or reaching new customers

• It can be expensive, especially for high-profile events or properties

• It may not directly drive sales

• It may be subject to negative publicity if the sponsored entity experiences a scandal or controversy

  • e.g. In 2022 Kanye West was dropped by Adidas after his anti Semitic outbursts

Public Relations (PR)

• Building positive relationships with the public and managing reputation

• Activities include media relations, crisis management and community outreach

• E.g. In 2018 KFC ran out of chicken due to supply chain issues. It ran a brilliant PR strategy in which they rearranged the letters in their name to FCK and owned the problem

• It can enhance a business's reputation and credibility

• This can lead to increased customer loyalty and sales

• It can be cost-effective when compared to advertising or personal selling

• PR can be time-consuming and is difficult to measure the direct impact of PR activities on business profits

• The cost of employing PR specialists can be significant

• Social media platforms have billions of active users, which allow businesses to reach a vast audience across different demographics and locations

• Social media platforms enable businesses to deliver  promotional content to specific groups based on demographics, interests and behaviours, increasing the chances of reaching the right audience

• Businesses can create and share content easily, increasing brand visibility and exposure, which helps generate brand awareness 

• Social media marketing can achieve organic reach and engagement without a large budget

• Effective social media marketing requires consistent effort and time to create quality content, manage multiple platforms, and engage with the audience, which can be time-consuming, especially for small businesses with limited resources

• Social media opens up channels for public feedback and reviews, which can include negative comments or complaints which can be viewed by all other users

• Social media platforms frequently update their algorithms, which may affect the visibility and reach of content

• Businesses face the challenge of breaking through the noise and capturing users' attention amidst the large volume of competing content