GCSE Business Studies

GCSE Business Studies
Marketing Mix - Promotion
With the person next to you, list all of the
methods that you can think of that
businesses use in order to promote
their products.
Divide the list into three
1. Used by small companies only
2. Used by large companies
3. Used by both
Add any more methods you can think of
Have you included the following for small
businesses on a low budget
• Local newspapers
• Internet
• Personnel Recommendation
• Business cards
The Importance of promotion
Promotion is concerned with how a
business is to market its product.
A business must inform customers that it
has a product to sell, and make
customers feel that they need to buy the
Linking Promotion to the other Ps.
The product needs to be brought to the attention of the
consumer. Promotion could extend a product life cycle
Some promotions can focus on price
A business may need to inform customers of a new
shop opening or where the product is on sale.
The aims of promotion
• To inform customers about a product (especially when new
or changed)
• To keep a business ahead of its competitors
• To create or change the image of a business
• To create a brand and customer loyalty
• To maintain or increase sales
• To inform customers about where they can buy a
Methods of Promotion
There are many different methods of promotion
that a business might use. These include:
Sales promotion.
2. Public relations.
3. Sponsorship.
4. Advertising.
1. Sales Promotion
Sales Promotion can be divided into many parts:
 Price reductions: e.g. Jan sales (to get rid of old stock)
 Loss leaders: Often used by supermarkets. Essential
products are reduced so that there is little or no profit
being made. This brings customers into the store
 Added Value: Often used by the food industry. Involves
giving 30% extra free etc.
1. Sales Promotion
 Gifts: May be given with a product in order to
increase sales. Eg: Breakfast Cereals.
 Point of sale: Large display of a certain product near
the entrance/tills. Used by supermarkets
 Competitions: Used to boost sales, where customers
are entered into a prize draw.
 Free samples: Used in cosmetics and other
businesses to let the consumer try the product.
1. Sales Promotion
 Merchandising: When a new film is released, certain
products on sale are connected to the film.
 After-sales service: Can also be used as a sales
Sales promotion
taskor extend an
promotion. A business
may offer
existing guarantee.
 BOGOF or 3 for 2: Means that people buy more of
the product
1. Sales Promotion - Task
2. Public relations
PR involves managing information between the
company and the public
The main difference between Public Relations (PR) and
other promotion methods is that PR is often free.
It can include winning industry awards, working with the
press, organising launch events
PR brings the business to the attention of the public at
no cost.
2. Public relations - Task
Explain how a local business like the Metro café in
Bingham could partake in PR
3. Sponsorship
Sponsorship is becoming an ever popular method of
promoting businesses.
Though the sponsor may have a personal interest in
the team, there is a clear business aim in promoting
the name of the business to as wide an audience as
With sport on TV, there is an increasing opportunity for
a business to make its products known to a world-wide
3. Sponsorship - Task
Name 5 companies and the events/programmes they
4. Advertising
Advertising is giving information to the public and
persuading them to buy a particular product or service
Examples include
• TV (national and local)
• Radio (national and local)
• Leaflets/flyers
• Bill boards
• Notice boards
4. Advertising - Task
How could a small company like Metro Café advertise?