Above & Below the line Promotion (Edexcel IGCSE Business)

Informative advertising focuses on providing factual information about a product, service or brand

It educates and informs consumers about the features, benefits and value of a product, enabling them to make well-informed purchasing decisions

When releasing a new drug, pharmaceutical companies such as Bayer, may decide to make a television advert that provides information on the medication's proven benefits

Persuasive advertising is designed to influence consumers' attitudes and behaviours towards products or services

It aims to convince customers that a particular product or service is desirable, necessary or superior to alternatives in the market

Package holiday companies such as Eurocamp which aim their services at families, emphasise excellent weather and use images of children having fun in posters displayed on billboards

Reassuring advertising aims to remind existing customers that they made the right decision when choosing a particular product over those of rivals

It encourages customers to remain loyal and continue to purchase the product and others within the range

Coca Cola reassures its customers through the use of television advertising that promote a 'feel-good' response

Businesses can reach large audiences because mass media channels provide a high level of visibility

It is effective for creating a strong brand image, enhancing brand recognition and establishing a sense of credibility and trust among consumers

The marketing message can be communicated in an impactful manner using sound, images and graphics

Above-the-line promotion can be expensive, especially for small businesses with limited budgets

As it focuses on reaching a wide audience rather than specific target segments, advertising may not effectively reach the intended audience

With the rise of digital media, traditional media consumption has decreased, and consumers can easily filter out or ignore advertisements. 

This involves communicating directly with customers through email, text message, social media or post

• E.g. Takeaway restaurants distribute menus to households in the local community

Businesses can target specific audiences and personalise the message to individual customers

Direct marketing is measurable, which enables businesses to track their results and adjust strategy accordingly

It can be intrusive, as customers may perceive it as spam

It can also be costly, especially if businesses do not have an established customer database or need to purchase leads

Techniques that encourage the purchase of a product or service by offering temporary incentives or discounts

Examples include free samples, buy one get one free (bogof), discount coupons, loyalty cards, point of sale materials and rebates (customers have to mail in to receive money back)

Sales can receive a quick boost 

Sales promotions help clear out stock or promote a new product

They can encourage impulse purchases

They can be targeted to specific segments of customers

It can be expensive especially if promotions include heavy discounting

They are likely to attract deal-seeking customers who may not be loyal to the brand

Demand for full-priced products may fall

Where a salesperson interacts with customers one-on-one, either in person or through digital communication channels

• E.g. Luxury skincare products are often sold by brand representatives at concession stands in department stores

Businesses build relationships with their customers and understand their specific needs

It enables businesses to provide personalised advice and guidance to customers

It can be expensive due to the cost of hiring and training sales staff

It may have limited impact as it is difficult to scale to large audiences

The use of point-of-sale materials, product displays and store layout

Merchandising is particularly effective in encouraging impulse purchases

It can be 'lost' amongst other visual promotions such as special offers

Attending specialist exhibitions or trade fairs allows businesses to meet customers face-to-face at a stand or exhibit

Detailed discussions can be held and products demonstrated 

High-profile events can attract media attention which could provide positive brand exposure

Specific target markets attend particular exhibitions

• E.g. The annual London Toy Fair attracts toy and game enthusiasts and retailers

Stands at popular events can be very expensive and require representatives with excellent interpersonal skills