Promotion Cambridge IGCSE Business Studies (9–1) revision
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In plain words
Promotion is how a business tells people about its product and nudges them to buy. It covers everything from a television advert to a "buy one, get one free" sticker.
It is expensive, so the question is always whether the extra sales are worth what it cost.
6 things to know
- The aims of promotion: to inform customers about the product, to persuade them to buy, to build a brand image, and to increase sales.
- Advertising is paid-for communication through media: television, radio, newspapers, posters, websites and social media. It may be informative or persuasive.
- Sales promotion is a short-term incentive to buy: discounts, free samples, coupons, competitions, loyalty cards and special offers.
- Sponsorship is paying to have the brand linked to an event or a team. Public relations is building a good image through news stories and events.
- Above-the-line promotion uses paid mass media, such as television and press adverts. Below-the-line promotion is everything else, such as sales promotions, sponsorship and direct mail.
- Technology allows adverts aimed at particular people online, messages that spread through social media, and newsletters by email.
Tips and tricks
- Cost-effective means the right people are reached for the least money. A television advert reaches millions, which is a waste if the product is aimed at local plumbers.
- Sales promotions lift sales for a short time. Advertising builds the brand over a long time. Say which the business needs.
It lands in your notebook with its questions as flashcards.
Promotion: 5 questions and answers
These are the quiz’s questions. Do the quiz first, then come back here for the ones that got you.
Which is an example of sales promotion?
It is a short-term incentive to buy.
A sports drink company pays to have its name on a football team's shirts. This is
It links the brand to the team.
Which is above-the-line promotion?
It is paid-for advertising in the mass media.
What does "cost-effective" promotion mean?
The result is judged against the money spent.
Which is an advantage of promoting through social media?
Adverts can be aimed at particular groups, and users pass them on.
Quiz
5 questions
Tap an answer and you’ll see straight away whether it’s right, and why.
Worksheet
3 questions, 8 marks. Write your answers on paper, then check them.
Promotion
Cambridge IGCSE Business Studies (9–1) 0986 · 8 marks · papermunch.org
Name ______________________________ Date ______________
State two aims of promotion.[2]
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Any two of: to inform customers about a product, to persuade them to buy it, to create a brand image, to increase sales.
Explain why a local restaurant is unlikely to advertise on national television.[3]
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It is very expensive, and most of the people who see the advert live too far away to visit. Leaflets or local social media would reach likely customers for much less.
Explain the difference between advertising and sales promotion.[3]
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Advertising is paid-for messages in the media to inform or persuade customers, and builds awareness over time. Sales promotion uses short-term incentives, such as discounts or free samples, to increase sales quickly.
Answers: Promotion
- 1. Any two of: to inform customers about a product, to persuade them to buy it, to create a brand image, to increase sales.
- 2. It is very expensive, and most of the people who see the advert live too far away to visit. Leaflets or local social media would reach likely customers for much less.
- 3. Advertising is paid-for messages in the media to inform or persuade customers, and builds awareness over time. Sales promotion uses short-term incentives, such as discounts or free samples, to increase sales quickly.