Promotion — Edexcel GCSE Business
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Promotion explained
Promotion aims to inform customers and persuade them to buy.
Read the full explanation
Businesses must select strategies tailored to specific market segments. For example, a sports brand might use sponsorship of athletes to reach fitness enthusiasts, while a supermarket uses special offers and product trials to attract budget-conscious shoppers. Advertising and strong branding build long-term recognition. Technology has transformed promotion, allowing highly specific targeting. Targeted advertising online uses browsing data to show relevant ads to specific demographics. Viral advertising via social media encourages users to share content, rapidly increasing reach at a low cost. Finally, e-newsletters provide direct, personalised updates to existing customers, fostering loyalty and repeat sales.
Your focus
- Select appropriate promotion strategies for different market segments.
- Explain the advantages of using product trials and special offers to attract customers.
- Analyse the impact of technology, such as targeted online advertising and viral social media campaigns, on promotional success.
Promotion exam tips
Marking Points
- Identify appropriate promotional strategies, such as sponsorship or branding, for a given target market.
- Explain how product trials and special offers encourage customer switching and initial purchases.
- Analyse the benefits of targeted online advertising in reducing promotional waste by reaching specific demographics.
- Evaluate the impact of viral advertising via social media on brand awareness and marketing costs.
- Assess how e-newsletters help maintain customer relationships and encourage repeat business.
Examiner Tips
- 💡Always link the chosen promotional strategy to the specific characteristics of the target market segment mentioned in the case study.
- 💡When discussing viral advertising, mention the cost-effectiveness of users sharing the content voluntarily.
- 💡Use the context to decide if a short-term strategy like special offers or a long-term strategy like branding is more appropriate for the business.
Common Mistakes
- Confusing advertising with promotion; correction: advertising is just one specific method within the wider promotional mix.
- Assuming viral advertising is always positive; correction: viral campaigns can sometimes spread negative publicity rapidly if poorly received.
- Stating that e-newsletters are used to reach new customers; correction: e-newsletters are primarily sent to existing contacts who have opted in, focusing on retention.