Promotion: Advertising (OCR GCSE Business): Revision Note

The importance of promotion

• Promotion refers to the set of activities that raise awareness, create interest and prompt desire for a product amongst customers

• Businesses may choose to spend significant amounts on promotion for several important reasons:

What does promotion do?

It informs and reminds customers about a product

• For new products, promotional activity can be used to introduce a product to consumers and inform them of its key features

  • E.g. New Apple products are advertised and launched at high-profile media events

• For more established products, promotional activity can remind customers of its specific attractions, such as quality

  • E.g. Marmite has been sold in the UK since 1902, yet its owner Unilever continues to promote it heavily, including TV advertising and the sale of special commemorative versions

It creates and increases sales by persuading customers to buy products

• Promotional activity can create desire for a product amongst customers that did not exist previously

  • E.g. In 2022, heavily-promoted Prime energy drinks became a rapid favourite amongst young people, largely as a result of their association with internet personalities Logan Paul and KSI

It can establish and improve brand image

• John Lewis's keenly-anticipated Christmas TV advertisements, often featuring children and animals, emphasise its commitment to its values as a family-focused retailer

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 can be classified as being informative, persuasive or reassuring

Types of advertising

• 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

Different types of advertising media

• Advertising media refers to means by which advertisements are broadcast to their intended audience

• A business should consider factors such as cost, suitability for the target market and how advertising complements other aspects of the marketing mix

• A range of advertising media can be used

Evaluation of Advertising Media