Business Studies Year 10 LO8 – Marketing

Learning Outcome 8 – Marketing

Learning outcomes:
• 8.1j Define promotion.
(Sales promotion, advertising, direct selling)
• 8.2j Explain the advantages and/or disadvantages of advertising.
• 8.3j Discuss an organisation’s choice of promotion methods.

1. Promotion
Promotion, the fourth element of the marketing mix, plays a crucial role in
informing consumers about a product's features and benefits, as well as
persuading them to buy it.

Businesses employ various methods to ensure consumers are ________ of

their new products and feel motivated to ____ them. These methods range
from word-of-mouth recommendations to elaborate advertising campaigns.
Additionally, to incentivise purchases, businesses may offer complimentary
gifts or enticing deals such as 'buy one, get one free' promotions.

Let’s briefly go through some of the main types of promotion:

•The sponsor gets •Is the practice of •Is part of the

exposure to a managing company's image
specific audience communication and can give instant
through their between an recognition to the
support of an event organisation and its company / brand.
or a sports team. audience to build a
positive reputation. •Eg: Chanel perfume
•Eg: Emirates packaging shows
sponsors Real •Eg: press release in sheer luxury
Madrid football club newspaper or a
beach clean up

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Business Studies Year 10 LO8 – Marketing

•Involves the paid •Is the use of short- •Products or services

promotion of term incentives or are sold directly to
tactics to encourage
products / services the purchase or sale of
consumers in a non-
through various a product or service. retail environment,
media channels. •Eg: discounts, coupons often through
•Eg: An advert on and samples personal
social media or interactions.
television •Eg: door-to-door
sales.

Let’s now go through advertising, sales promotion and direct selling in more
detail.

2. Advertising
Advertising is the ______________________________ form of promotion.
It is used to __________ and ___________ customers to buy a business’
products/services. Businesses can use a variety of different media to get
their advertising message across:

• TV commercials are a popular way to reach a wide

audience.
• They can be short and catchy, capturing viewers' attention
during breaks in their favorite shows.

• Includes ads in newspapers, magazines, and posters.

• These allow businesses to target specific demographics and
reach people who enjoy reading or flipping through
physical publications.

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Business Studies Year 10 LO8 – Marketing

• Involves commercials aired on radio stations.

• These ads can be effective for reaching people while
they're driving, working, or relaxing at home.

• Includes billboards, posters, bus ads, and signage

displayed in public spaces.
• These ads can capture the attention of people passing by
on foot or in vehicles.

• Involves sending promotional materials directly to

people's homes or businesses.
• This method allows for personalised messaging and
targeting specific geographic areas.

• Includes websites, social media, search engines,

collaboration with influencers and mobile apps.
• Businesses can use banner ads, sponsored posts, or
video ads to target specific audiences based on their
online behavior and interests.

When choosing the right advertising medium, businesses consider several

factors:

• ______________________ – understanding the demographics,

interests, and behaviours of the target audience helps determine
which mediums they are most likely to engage with. For example,
younger audiences may be more receptive to digital ads on social
media, while older audiences may prefer print or television.

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Business Studies Year 10 LO8 – Marketing

• ______________ – Different mediums have varying costs associated

with production, placement, and reach. Businesses must consider
their budget constraints and choose mediums that offer the best
value for their advertising dollars. For example, TV advertising is one
of the most expensive, whilst social media advertising is one of the
more affordable options.

• __________________________ – The nature of the advertising

message and the desired objectives influence the choice of medium.
For instance, if the goal is to create visually striking ads, outdoor or
digital mediums may be preferred. If the objective is to provide
detailed information, print or digital mediums may be more suitable.

The purpose is to give information. Advertisements are designed to

It is mainly used by the
government to inform the public
about a particular issue, such as
drink-driving campaigns during the
Christmas period.
persuade the public to buy a given
product/service. When designing
such ads, various tactics are used:
• Famous personalities
• Appealing story
• Sex appeal
• Cute images

• Timing and Frequency – Some mediums offer flexibility in terms of

timing and frequency of ads. Businesses may choose mediums that
allow for targeted placements during specific times of the day, week,
or year to maximise effectiveness. For example, restaurants and fast-
food chains often run ads during meal times to target hungry
consumers.

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Business Studies Year 10 LO8 – Marketing

Advantages of advertising

• Effective advertising campaigns can lead to increased sales

and revenue for businesses by attracting new customers,
encouraging repeat purchases, and promoting products or
services.

• Advertising helps to raise awareness of a brand among

consumers, making it more recognisable and memorable.

• Through careful selection of media channels and audience

targeting techniques, advertising allows businesses to
deliver tailored messages to specific demographic,
geographic, or psychographic segments, increasing
relevance and effectiveness.

• Strategic advertising can differentiate a brand from

competitors, helping businesses stand out in crowded
markets and attract customers' attention.

• Advertising provides a platform for educating consumers

about products, features, benefits, and usage instructions,
addressing common questions or misconceptions and
facilitating informed purchasing decisions.

Disadvantages of advertising

• Advertising can be expensive, especially for small businesses

with limited budgets.

• Consumers may perceive advertising messages as biased or

exaggerated, leading to distrust towards brands.

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Business Studies Year 10 LO8 – Marketing

• In a saturated advertising landscape, consumers are

bombarded with numerous messages daily, leading to
message fatigue and reduced effectiveness.

• With the rise of ad-blocking technologies and consumers'

ability to skip or ignore ads, reaching and engaging target
audiences becomes more challenging.

• Poorly executed or controversial advertisements can

generate negative publicity, backlash, or boycotts, damaging
brand reputation and customer relationships.

Advertising agency
Large businesses may employ their own
advertising team, but many businesses
contract _____________________________
to do the work for them. The agency plans the
complete advertising campaign, including
carrying out the market research. This
information is then used to develop the campaign. Graphic designers and
artists draw up the advertisements, including the graphics and the text to
be used. The agency has the advertisements produced, either in printed
format or as film footage for a television advertisement, and buys the space
in the newspapers or magazines or the time slot on television.

Therefore, advertising agencies have ___________________ and

_____________ in creating effective advertising campaigns across various
media channels. Additionally, outsourcing _____________ for businesses
to focus on their core activities. However, hiring an advertising agency can
be _____________, especially for small businesses with limited budgets.

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Business Studies Year 10 LO8 – Marketing

3. Sales promotion
Sales promotion is a method of _______________ or of trying to persuade
the customer to try the product for the first time. Unlike advertising, which
focuses on long-term brand building, sales promotion techniques are
____________ and aimed at driving immediate action from consumers.

The goal of sales promotion is to create a sense of urgency or excitement

among consumers, motivating them to act quickly and take advantage of
the promotional offer. By offering incentives or added value, businesses aim
to boost sales, attract new customers, retain existing ones, and ultimately
_______________________________________.

Sales promotions are usually ________________ through various channels

to reach their target audience. A display regarding the sales promotion is
usually placed in a prominent place in the store. Social media posts and
other online adverts are also commonly used nowadays.

Types of sales promotion:

• Buy one, get one free

• Selling in larger quantities - eg: 25% extra free
• Offering free goods if customers have collected enough
tokens

• Offering free gifts as an enticement to buy the

product/service
• Eg: some fast food restaurants give free gifts with their
meals

• Customers are encouraged to buy the product by getting

a reduced price

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• Businesses may run competitions

• Coca-Cola offers its customers chances to win world cup
match tickets

• Many supermarkets and retail outlets give their

customers loyalty cards
• Each time they use the store, their purchases gain points
or rewards. These can then be exchanged for either cash
or products

• Fairs in which businesses selling similar products /

services join together under one roof to promote their
goods to their customers

Let’s go through some real-life examples of successful sales promotion:

Amazon Prime Day is an annual sales event

exclusively for Amazon Prime members, offering
discounts on a wide range of products across
various categories.

McDonald's Monopoly is a promotional campaign

where customers can collect game pieces from
their food and beverage purchases for a chance to
win prizes, including cash, free food, or vacations.

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Business Studies Year 10 LO8 – Marketing

IKEA Family is a loyalty program that offers

members exclusive discounts, special offers, and
perks such as free coffee and discounted meals at
IKEA restaurants.

Starbucks Happy Hour is a recurring promotion

where customers can enjoy discounted drinks
during specified time periods, typically in the
afternoon or evening.

Choosing the type of sales promotion method involves careful consideration

of various factors to ensure its effectiveness in achieving marketing
objectives and driving desired consumer behaviour. The below is a step-by-
step guide on how to choose the appropriate sales promotion method:

• Step 1 – _____________________________
o Decide what you want to achieve with the promotion, like
selling more products, clearing excess inventory, or attracting
new customers.
• Step 2 – _____________________________
o Think about who your customers are and what they like by
considering factors such as age, income level, lifestyle and so
on. Choose promotion methods that they'll respond to.
• Step 3 – _____________________________
o Consider what you're selling and what makes it special. Some
promotions work better for certain products, for example, a
budget-friendly product like fast-food meals may benefit from
price-based promotions such as "buy one, get one free" offers
to attract price-conscious consumers.

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Business Studies Year 10 LO8 – Marketing

• Step 4 – _____________________________
o See what other businesses are doing. You want to stand out
and offer something unique.
• Step 5 – _____________________________
o Think about how much money and resources you have to spend
on the promotion.
• Step 6 – _____________________________
o Based on all these factors, pick the promotion method that fits
your goals, customers, product, budget, and competition.
• Step 7 – _____________________________
o Make a plan for how you'll run the promotion and keep an eye
on how it's doing. If something isn't working, be ready to
change it.

4. Direct selling
Direct selling is a method of selling products or services _______________
_________, typically outside of a traditional retail environment. In direct
selling, businesses sell products directly to customers through _________
____________, ______________, or ________________. This approach
allows companies to bypass intermediaries such as retailers and
wholesalers and engage directly with consumers.

Direct selling often involves _______________________ between the

seller and the customer, allowing for personalised product demonstrations,
explanations, and recommendations. Representatives may build
_________________ with customers over time, providing _____________
service and support to meet their needs and preferences.

While e-commerce facilitates direct transactions between

businesses and consumers, traditional direct selling often
involves a more personalised approach and direct interaction
between sales representatives and customers.

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Business Studies Year 10 LO8 – Marketing

Let’s go through some real-life examples of companies using direct selling:

Tupperware is a famous direct selling company that

specialises in kitchen and food storage products.
Tupperware Consultants sell products directly to
customers through home parties, demonstrations,
and online sales channels.

Avon is a well-known direct selling company that

sells beauty and skincare products through a
network of independent representatives, known as
Avon Representatives. Representatives sell
products directly to customers through personal
interactions, home parties, and catalogues.

Herbalife is a direct selling company that specialises

in nutrition and weight management products.
Independent Distributors sell Herbalife products
through one-on-one consultations, group meetings,
and online sales channels.

Pampered Chef is a direct selling company that

offers kitchen tools, cookware, and cooking
accessories. Independent Consultants, known as
Pampered Chef Consultants, sell products through
cooking demonstrations, home parties, and online
sales channels.

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5. Choice of promotion method

When an organisation selects promotion methods such as advertising, sales
promotion, and direct selling, it often considers various factors to ensure
effective communication with its target audience and achievement of
marketing objectives:

Advertising is effective for reaching a large

ADVERTISING

audience simultaneously through various

channels like television, radio, print media, and
online platforms.
Advertising is instrumental in building brand
awareness and shaping brand perception
through consistent messaging and creative
visuals.
While advertising can have a long-lasting impact
on brand recognition and perception, it may take
time to yield measurable results in terms of
sales.
Advertising campaigns, especially on traditional
media like TV or radio, can be expensive and
require significant budget allocation.

Sales promotions, such as discounts, coupons,

SALES PROMOTION

and limited-time offers, are effective for

generating immediate sales and encouraging
purchase decisions.
Promotional offers provide tangible incentives for
customers to buy products or services, especially
when they perceive added value or savings.

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Business Studies Year 10 LO8 – Marketing

Interactive promotions, contests, or loyalty

programs can enhance customer engagement
and foster brand loyalty.
Sales promotions can be tailored to fit various
budget levels, offering flexibility in resource
allocation and scalability.

Direct selling allows for personalised interactions

DIRECT SELLING

between sales representatives and customers,

facilitating product demonstrations,
consultations, and relationship-building.
Direct selling enables immediate feedback from
customers, allowing organisations to address
concerns, overcome objections, and tailor
offerings to individual needs.
It's particularly effective for high-involvement or
complex products where customers seek expert
advice, customisation, or hands-on experience
before making a purchase.
Direct selling requires investments in recruiting,
training, and managing sales representatives,
making it resource-intensive compared to other
promotion methods.

By carefully evaluating these factors and selecting the most appropriate

promotion methods, organisations can effectively reach their target
audience, achieve marketing goals, and drive business success.

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Business Studies Year 10 LO8 – Marketing

Task 1: Go through the below scenarios and choose the promotion method
that you believe would be most effective in addressing the given challenge
for each scenario. Be specific and justify your choice by explaining why you
believe it will best achieve the desired outcomes. More than one promotion
method can be used for a given scenario.

Scenario 1
You are launching a new line of eco-friendly reusable water bottles
targeted at environmentally-conscious consumers. Your goal is to
increase awareness and encourage trial purchases.
Promotion method(s)
chosen

Reason

Scenario 2
Your family-owned restaurant is celebrating its 10th anniversary and
wants to attract more customers to the establishment. You want to offer
a promotion that will drive foot traffic and increase sales during the
anniversary month.
Promotion method(s)
chosen

Reason

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Business Studies Year 10 LO8 – Marketing

Scenario 3
Your online clothing boutique is introducing a new collection of summer
dresses aimed at young adults aged 18-30. You want to generate
excitement and encourage online purchases among your target audience.
Promotion method(s)
chosen

Reason

Scenario 4
Your local bookstore is facing stiff competition from online retailers and
wants to increase foot traffic and sales. You need a promotion that will
appeal to book lovers and encourage them to visit the store.
Promotion method(s)
chosen

Reason

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Business Studies Year 10 LO8 – Marketing

Scenario 5
You are a startup company launching a new meal kit delivery service
targeting busy professionals and families. Your goal is to attract new
subscribers and increase sign-ups for your service.
Promotion method(s)
chosen

Reason

Task 2: Research a company's promotion strategy

Choose a popular company of your choice (e.g., Nike, Coca-Cola,

McDonald's, Amazon) and research its promotion strategy. Gather
information about the promotion methods the company uses to market its
products or services, such as advertising, sales promotion, direct selling,
sponsorships, or digital marketing and answer the following questions.

1. What is the name of the company you researched, and what products
or services does it offer?

___________________________________________________________
___________________________________________________________

2. What is the target audience of the company you chose?

___________________________________________________________
___________________________________________________________

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Business Studies Year 10 LO8 – Marketing

3. What promotion methods (advertising, sales promotion, direct

selling) does the company use to market its products or services?
Provide examples.

___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________

4. What are some strengths and weaknesses of the company's

promotion strategy based on your research?

___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________

5. Is there any information about the amount of money spent on

promotion / advertising by the company in a given year? If yes,
provide the amount and the year it relates to.

___________________________________________________________
___________________________________________________________

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Business Studies Year 10 LO8 – Marketing

6. Can you identify any recent promotions, advertisements or marketing

campaigns conducted by the company? Describe one of these
campaigns in detail.

___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________

7. How effective do you think is the company’s promotion strategy in

reaching its target audience?

___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________

Task 3: Choose a product that you would like to promote. It can be a real
product or a fictional one that you create. Design an advertisement for your
chosen product using your preferred medium (e.g., poster, digital banner,
video, radio jingle).

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