Price, product, promotion and place (4Ps): Reasons for promotion:

The idea

Promotion is the 'P' of the marketing mix concerned with communicating with customers. A business promotes for several connected reasons. It may need to make potential customers aware that a product exists, especially for a new product or a new market. It may need to remind existing customers, or persuade them to choose its brand rather than a rival's. Promotion can also inform customers about product features, price changes or where to buy, and it can help build a brand image and customer loyalty. A further reason is to increase sales and market share, perhaps by encouraging repeat purchase or attracting new segments. The reason chosen shapes the method: awareness may suit advertising, while persuasion may suit special offers.

What earns the marks

• Identifies promotion as the communication element of the marketing mix, distinct from price, product and place.
• Explains that promotion raises awareness of a product, particularly for new products or new markets.
• Explains that promotion reminds existing customers and encourages repeat purchase or loyalty.
• Explains that promotion persuades customers to choose one brand over a competitor's.
• Explains that promotion can inform customers about features, price changes or where to buy.
• Explains that promotion supports sales growth and market share, and can build brand image.

Common mistakes and how to put them right

• Treating promotion as only advertising.

  Put it right: Promotion also includes sales promotions, public relations, sponsorship, direct marketing and personal selling.

• Confusing promotion with price.

  Put it right: Promotion communicates with customers, while price is the amount charged.

• Assuming promotion always increases sales.

  Put it right: Promotion may fail if the message, method or budget is unsuitable for the target market.

Exam tips

• Link each reason to a specific method, such as using advertising to build awareness or a special offer to encourage trial.
• Use business context from the case study rather than writing about promotion in general.
• Develop each reason with a consequence, such as increased sales leading to higher market share.