Unit 2:Growing as a Business
Promotional activities

 Advertising – most widely recognised
Other forms of promotion:
 PR – raise profile of business often through media
 Personal selling – dedicated sales team
 Sales promotions - BOGOF
Promotional activities and
a Growing Business

 Target audience – internet reaches many people,
local paper a much smaller focused audience. Not
just geographical but also income related – The
Times v The Sun. generally a growing business will
use methods designed to hit a bigger target audience
 Cost – as a business grows it’s resources increase
which means they can afford more expensive forms
of promotion like TV adverts
Promotional activities and
a Growing Business

 Methods of communication – TV is the most
powerful but very expensive
 Factors to consider: cost, coverage no of people hit,
quality, media ( sound v print v sound & images)
Place

 How the products (goods and services) are
distributed to the consumers
 Chain of distribution runs producers – wholesalersretailers
 Wth online selling the chain is being reduced
sometimes to the extent that producers carry out all
of the above functions
 Wholesalers and retailers are intermediaries in the
distribution channel
Distribution channel
connections

 Online selling – most popular form of direct selling
(also mail order and telesales) Most businesses have
their own website and offer the customers the option
to buy online
 Mail oreder – catalogues which customers order
from
 Telesales – sell products over the phone e.g. double
glazing
Levels of Distribution

 Zero level – producers sell direct to the consumer
9most modern)
 One level – one intermediary between producer
consumers
 Two level – two intermediaries between producer
and consumer (traditional)
Advantages of
intermediaries

 Increased access to a wider market when selling
through retailers
 Retailers offer a market where consumers can
compare brands
Disadvantages of
intermediaries

 Obviously add cost to the product and therefore its
price
 Loss of control over how the product is sold and the
brand image of the product
Selecting the right
channel of distribution

 Ultimately decided by cost
 Loss of control over the brand
 Type of product sold – products wised often which
are perishable mean that they have to be readily
available in many places
 More expensive products need to be available in less
places as bought very rarely – can be sold direct on
the Internet.