Promotion-Advertising

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Exam code:J204

The importance of promotion

Promotion refers to the set of activities that raise awareness, create interest and prompt desire for a product amongst customers
Businesses may choose to spend significant amounts on promotion for several important reasons:

What does promotion do?

It informs and reminds customers about a product

For new products, promotional activity can be used to introduce a product to consumers and inform them of its key features
- E.g. New Apple products are advertised and launched at high-profile media events
For more established products, promotional activity can remind customers of its specific attractions, such as quality
- E.g. Marmite has been sold in the UK since 1902, yet its owner Unilever continues to promote it heavily, including TV advertising and the sale of special commemorative versions

It creates and increases sales by persuading customers to buy products

Promotional activity can create desire for a product amongst customers that did not exist previously
- E.g. In 2022, heavily-promoted Prime energy drinks became a rapid favourite amongst young people, largely as a result of their association with internet personalities Logan Paul and KSI

It can establish and improve brand image

John Lewis‘s keenly-anticipated Christmas TV advertisements, often featuring children and animals, emphasise its commitment to its values as a family-focused retailer

Advertising

Advertising makes use of the media, such as television, newspapers and radio, to promote products or brands
- It can reach large audiences and increase brand awareness
Advertising can also be used to create a specific brand image or message
- E.g. The advertising campaign run by Compare the Market (Meerkat) uses humour to make shopping for financial products more attractive
Specialist media can target specific market segments
- E.g. Upmarket furniture brands place advertisements in magazines such as Homes & Antiques and Country Life
Advertising can be classified as being informative, persuasive or reassuring

Types of advertising

Classification	Explanation	Examples
Informative	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, often place adverts in medical magazines, providing information on the medicine’s proven benefits
Persuasive	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	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 its Christmas television advertising that promote a ‘feel-good’, nostalgic response

Advertising is an expensive promotional strategy
- E.g. In the US high viewership for the Super Bowl means that 30-second tv advertisements have been sold for as much as $6.5 million
- In most cases, external specialists or media agencies create attractive and creative advertisements

Different types of advertising media

Advertising media refers to means by which advertisements are broadcast to their intended audience
A business should consider factors such as cost, suitability for the target market and how advertising complements other aspects of the marketing mix
A range of advertising media can be used

Evaluation of Advertising Media

Media	Advantages	Disadvantages
Radio	Local radio allows targeting of customers in specific geographic areas Memorable music or sounds can be used in adverts	Listeners cannot see the product being advertised Adverts cannot be kept by customers for later reference
Social media	Very low cost or free to advertise Can include hyperlinks to e-commerce sites Can reach large numbers of target customers	It is difficult to stand out from the large number of rival advertisements Users can opt out from viewing adverts
TV	Can reach large numbers of potential customers Adverts can be placed on specialist channels e.g. DIY or sport	Often very expensive, especially at peak viewing times Customers often ignore or switch channels during TV adverts
Websites	Adverts can be placed on websites that have relevance to the product e.g. adverts for furniture may be placed on home improvement websites	There is a cost per click, even if viewers do not purchase a product Popups can be blocked, reducing their impact
Print media	Adverts can be kept for customers to consult later They can be targeted at customers with specific interests, e.g. fashion, cookery	Adverts rely on images and other visual content to capture attention Can be very expensive to advertise in publications with large readership

Examiner Tips and Tricks

A common misconception is that outdoor advertising is open-air. ‘Outdoor’ refers to advertising media that only exists outside of a customer’s home. Advertising on public transport and on billboards are good examples, though it also includes advertising in other spaces outside of the home, such as public buildings.

Business GCES OCR