Above & Below the line Promotion (Edexcel IGCSE Business)

Informative

• Informative advertising focuses on providing factual information about a product, service or brand
  
  
• It educates and informs consumers about the features, benefits and value of a product, enabling them to make well-informed purchasing decisions

• When releasing a new drug, pharmaceutical companies such as Bayer, may decide to make a television advert that provides information on the medication's proven benefits

Persuasive

• Persuasive advertising is designed to influence consumers' attitudes and behaviours towards products or services
  
  
• It aims to convince customers that a particular product or service is desirable, necessary or superior to alternatives in the market

• Package holiday companies such as Eurocamp which aim their services at families, emphasise excellent weather and use images of children having fun in posters displayed on billboards

• Reassuring advertising aims to remind existing customers that they made the right decision when choosing a particular product over those of rivals
  
  
• It encourages customers to remain loyal and continue to purchase the product and others within the range

• Coca Cola reassures its customers through the use of television advertising that promote a 'feel-good' response

• Businesses can reach large audiences because mass media channels provide a high level of visibility
  
  
• It is effective for creating a strong brand image, enhancing brand recognition and establishing a sense of credibility and trust among consumers
  
  
• The marketing message can be communicated in an impactful manner using sound, images and graphics

• Above-the-line promotion can be expensive, especially for small businesses with limited budgets
  
  
• As it focuses on reaching a wide audience rather than specific target segments, advertising may not effectively reach the intended audience
  
  
• With the rise of digital media, traditional media consumption has decreased, and consumers can easily filter out or ignore advertisements. 

Direct
Marketing

• This involves communicating directly with customers through email, text message, social media or post
  
  • E.g. Takeaway restaurants distribute menus to households in the local community

• Businesses can target specific audiences and personalise the message to individual customers
  
  
• Direct marketing is measurable, which enables businesses to track their results and adjust strategy accordingly

• It can be intrusive, as customers may perceive it as spam
  
  
• It can also be costly, especially if businesses do not have an established customer database or need to purchase leads

Sales
Promotions

• Techniques that encourage the purchase of a product or service by offering temporary incentives or discounts
  
  
• Examples include free samples, buy one get one free (bogof), discount coupons, loyalty cards, point of sale materials and rebates (customers have to mail in to receive money back)

• Sales can receive a quick boost 
  
  
• Sales promotions help clear out stock or promote a new product
  
  
• They can encourage impulse purchases
  
  
• They can be targeted to specific segments of customers

• It can be expensive especially if promotions include heavy discounting
  
  
• They are likely to attract deal-seeking customers who may not be loyal to the brand
  
  
• Demand for full-priced products may fall

Personal
Selling

• Where a salesperson interacts with customers one-on-one, either in person or through digital communication channels
  
  • E.g. Luxury skincare products are often sold by brand representatives at concession stands in department stores

• Businesses build relationships with their customers and understand their specific needs
  
  
• It enables businesses to provide personalised advice and guidance to customers

• It can be expensive due to the cost of hiring and training sales staff
  
  
• It may have limited impact as it is difficult to scale to large audiences

Merchandising

• The use of point-of-sale materials, product displays and store layout

• Merchandising is particularly effective in encouraging impulse purchases

• It can be 'lost' amongst other visual promotions such as special offers

Exhibitions & Trade Fairs

• Attending specialist exhibitions or trade fairs allows businesses to meet customers face-to-face at a stand or exhibit
  
  
• Detailed discussions can be held and products demonstrated 

• High-profile events can attract media attention which could provide positive brand exposure
  
  
• Specific target markets attend particular exhibitions
  • E.g. The annual London Toy Fair attracts toy and game enthusiasts and retailers

• Stands at popular events can be very expensive and require representatives with excellent interpersonal skills