Promotion (Cambridge (CIE) IGCSE Business)

Promotion through paid channels such as television, radio, print media, online advertising and outdoor advertising

Can reach large audiences and increase brand awareness

Can create a specific brand image or message, e.g. the advertising campaign run by Compare the Market (Meerkat)

Memorable advertising campaigns can be very expensive 

The effectiveness of advertising is often difficult to measure

Many customers tune out or ignore advertising 

Communicating directly with customers through email, text message, social media or post

Targets specific audiences and allows personalisation of the message to individual customers

Businesses can track results (for example, online advert clicks) and adjust their strategy accordingly

Can be intrusive as customers may perceive it as spam

Can also be costly, especially if businesses need to purchase customer databases

Temporary incentives or discounts such as free samples, buy one get one free (bogof), discount coupons, loyalty cards,] and rebates (customers have to mail in to receive money back)

Can quickly boost sales or customer engagement through impulse purchases

Can help to clear out stock or promote a new product

Can be targeted at specific groups of customers

Heavy discounting reduces revenue significantly

Attract deal-seeking customers who may not be loyal to the brand

May reduce sales of full-priced products

A salesperson interacts with potential customers one-on-one either in person or through digital channels

Builds relationships with customers and helps to understand their specific needs

Can provide personalised advice and guidance to customers

Hiring and training sales staff increases costs

Difficult to scale the approach to larger audiences

Agreement where a business provides financial or other support to an event, team, or organisation in exchange for marketing exposure
 

Can take many forms, such as logo placement or naming rights (For example, Arsenal's Emirates Stadium)

Builds brand awareness and credibility

Creates emotional connections with the  target audience

May support specific business objectives such as entering new markets or reaching new customers

Sponsoring high-profile events or properties can be expensive

May not directly drive sales

Negative publicity is a risk

• E.g. In 2022 Kanye West was dropped by sponsor Adidas when he made a series of offensive statements 

Building relationships with the public and manage business reputation

Include media relations, product launches, crisis management and community outreach

Can enhance a business's reputation and credibility

• For example, a brilliant PR strategy helped KFC to communicate with customers in 2018 when supply chain issues causes UK and Ireland KFC outlets to run out of chicken
  

Cost-effective when compared with advertising or personal selling

Can be time-consuming

Difficult to measure the direct impact of PR activities on profits

Promotions or communication delivered electronically, such as social media, search engine optimisation (SEO) or social media apps such as Instagram and Twitter

Can be used for building brand awareness, generating leads or driving sales

Can be highly targeted to specific customer segments

Can provide real-time engagement and feedback from customers

Easily ignored or filtered out by customers

May require significant investment in technology or data infrastructure

May not be effective for reaching older or less tech-savvy customer segments