Promotion (Edexcel GCSE Business)

Advertising

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

• It can reach large audiences and increase brand awareness
   
• Can also be used to create a specific brand image or message e.g. the advertising campaign run by Compare the Market (Meerkat)

• Can be expensive
   
• The effectiveness of advertising can be difficult to measure
   
• Many customers tune out or ignore ads

Branding

• Branding is the process of creating a unique and identifiable name, design, symbol, or other feature that differentiates a product/service or company from its competitors

• Branding establishes recognition and identity
   
• Branding builds trust and credibility
   
• Branding differentiates a business from its competitors

• Branding is expensive
   
• Developing a strong brand takes time

Special Offers

• These are temporary incentives or discounts such as free samples, buy one get one free (bogof), discount coupons, loyalty cards, and rebates (customers have to mail in to receive money back)

• Can quickly boost sales or customer engagement
   
• Can help to clear out stock or promote a new product
   
• Can encourage impulse purchases
  
  
• Can be targeted to specific segments of customers

• Can be expensive especially if the promotion requires heavy discounting
   
• Can attract deal-seeking customers who may not be loyal to the brand
   
• May reduce the sales of full-priced products

Sponsorship

• This is an agreement in which a company provides financial or other support to an event, team, or organization in exchange for marketing exposure
   
• Can take many forms, such as logo placement or naming rights (Arsenal Emirates Stadium)

• Can help to build brand awareness and credibility
• Can create emotional connections with target audiences
   
• Can support specific business objectives, such as entering new markets or reaching new customers

• Can be expensive, especially for high-profile events or properties
   
• May not directly drive sales
   
• 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

Product Trials

• Product trials involve testing the market by first selling the product in a confined area such as South West London, to gauge demand and collect feedback on the product

• The customer reaction may generate information on how the product or marketing mix can be improved

• Product trials may not be suitable for all types of products
   
• It takes time and money to run effective product trials