Price, product, promotion and place (4Ps): advertising, including:

The idea

Advertising is a paid form of promotion that uses media to communicate with potential customers. It sits within the promotion element of the marketing mix and can be used to inform, persuade or remind. The phrase 'including:' signals that advertising covers a range of media, such as newspapers, television, radio, cinema, online display, social media, posters and leaflets. A business selects media based on budget, target audience, reach, cost per contact and the message. For example, a local café might advertise in a local newspaper to reach nearby customers, while a national brand might use television to build awareness. Advertising aims to increase sales, build brand recognition and differentiate from competitors. It is assessed by how well students explain advantages and disadvantages, apply to context and evaluate suitability.

What earns the marks

• Define advertising as a paid form of promotion using media to reach customers.
• Identify at least two advertising media, such as newspapers, television, radio, cinema, online display, social media, posters or leaflets.
• Explain how advertising can inform, persuade or remind customers about a product.
• Explain how choice of advertising medium depends on budget, target audience, reach and cost per contact.
• Apply advertising to a business context, for example a local café using a local newspaper to reach nearby customers.
• Analyse advantages such as wide reach and brand building, and disadvantages such as high cost and difficulty measuring effectiveness.
• Evaluate the suitability of advertising for a given business situation.

Common mistakes and how to put them right

• Confusing advertising with other promotion methods such as sales promotions or personal selling.

  Put it right: Advertising is paid, non-personal communication via media.

• Assuming advertising is always expensive.

  Put it right: Low-cost options such as leaflets or social media posts can be used, though reach may be limited.

• Ignoring the target audience when choosing a medium.

  Put it right: The medium should match where the target customers are likely to see or hear the message.

Exam tips

• Use the case study context to justify why a particular advertising medium is suitable.
• When evaluating, consider both benefits and drawbacks, and reach a supported judgement.
• Use business terminology such as reach, cost per contact, brand awareness and target audience.