Promotion Strategies
The main ways a business promotes its products - advertising, sponsorship, product trials, special offers and branding - including digital methods, and how to match the promotion to the market segment and budget.
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Free interactive practice at using the material, which is what the marks are for.
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Getting the message out
A great product will not sell if nobody knows about it. Promotion is how a business tells customers a product exists, persuades them to buy it, and builds a brand they trust. Promotion is one part of the marketing mix (product, price, place and promotion). In this module you will meet the main promotion methods and learn how a business picks the right ones.
The main promotion methods
Edexcel names five promotion strategies:
Match each method
- Advertising
- Sponsorship
- A product trial
- A special offer
- A paid message about the product on TV or online
- Paying to link the brand to a team or event
- Letting customers try the product for free
- A discount or deal to boost sales quickly
Name that method
A soft-drinks company pays to have its name and logo on a football team's shirts. Which promotion method is this?
- Sponsorship
- A product trial
- A special offer
- Branding
Traditional and digital promotion
Businesses now use technology as well as traditional methods to promote products.
Promotion using technology
Select the TWO promotion methods that use technology.
- Targeted online advertising
- E-newsletters sent to customers
- A poster at a bus stop
- A paper flyer posted through doors
Why businesses promote
Promotion is not just about selling today. A business promotes a product to raise awareness so people know it exists, to persuade customers to buy, and to increase or maintain sales. Over the longer term, good promotion and branding build a strong image and keep customers loyal, so they choose the brand again and again.
Promotion in words
Promotion is used to raise _____ of a product and to _____ customers to buy it. A business might pay a team or celebrity through _____, or let people try the product for free with a product _____. To reach a large audience cheaply online, many firms now use _____ advertising.
Plan a promotion
Put the steps of planning a promotion campaign in a sensible order.
- Decide the aim, such as raising awareness of a new product
- Identify the target market segment to reach
- Choose promotion methods that suit the segment and the budget
- Run the promotion
- Measure the results, such as sales and awareness
Spot the promotion
A new gym did several things when it opened. Tap the TWO that are promotion methods.
- Ran adverts on local radio
- Hired ten members of staff
- Offered a free trial week
- Bought new exercise equipment
- Signed a lease on the building
Advise the business
Recommend the most suitable promotion for each business.
- A small local bakery has a very small marketing budget. Which promotion is most suitable?
- A large sportswear brand wants to reach young people across the whole country. Which fits best?
- A firm wants its existing customers to keep buying and feel loyal. Which is most useful?
Recommend a strategy
A new independent coffee shop wants to attract customers. Recommend TWO promotion methods it should use, and justify your choice. Write in clear, full sentences.
- Name two suitable promotion methods for the coffee shop
- Explain why each one suits its target customers
- Explain why each one suits a small budget
- Link your choices to raising awareness and increasing sales