GCSE Business Studies

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GCSE Business Studies

• Marketing Mix - Promotion

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Activity

• With the person next to you, list all of the
  methods that you can think of that businesses use
  in order to promote their products.

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Activity

• Divide the list into three
• Used by small companies only
• Used by large companies
• Used by both
• Add any more methods you can think of

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Activity

• Have you included the following for small
  businesses on a low budget
• Local newspapers
• Internet
• Personnel Recommendation
• Business cards

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The Importance of promotion

• Promotion is concerned with how a
• business is to market its product.
• A business must inform customers that it
• has a product to sell, and make
• customers feel that they need to buy the
• product.

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Linking Promotion to the other Ps.

• Product
• The product needs to be brought to the attention
  of the
• consumer. Promotion could extend a product life
  cycle
• Price
• Some promotions can focus on price
• Place
• A business may need to inform customers of a new
• shop opening or where the product is on sale.

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The aims of promotion

• To inform customers about a product (especially
  when new or changed)
• To keep a business ahead of its competitors
• To create or change the image of a business
• To create a brand and customer loyalty
• To maintain or increase sales
• To inform customers about where they can buy a
  product/service

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Methods of Promotion

• There are many different methods of promotion
  that a business might use. These include
• Sales promotion.
• Public relations.
• Sponsorship.
• Advertising.

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1. Sales Promotion

• Sales Promotion can be divided into many parts
• Price reductions e.g. Jan sales (to get rid of
  old stock)
• Loss leaders Often used by supermarkets.
  Essential products are reduced so that there is
  little or no profit being made. This brings
  customers into the store
• Added Value Often used by the food industry.
  Involves giving 30 extra free etc.

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1. Sales Promotion

• Gifts May be given with a product in order to
  increase sales. Eg Breakfast Cereals.
• Point of sale Large display of a certain product
  near the entrance/tills. Used by supermarkets
• Competitions Used to boost sales, where
  customers are entered into a prize draw.
• Free samples Used in cosmetics and other
  businesses to let the consumer try the product.

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1. Sales Promotion

• Merchandising When a new film is released,
  certain products on sale are connected to the
  film.
• After-sales service Can also be used as a sales
  promotion. A business may offer or extend an
  existing guarantee.
• BOGOF or 3 for 2 Means that people buy more of
  the product

• Sales promotion task

• Sales promotion task

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1. Sales Promotion - Task
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2. Public relations

• PR involves managing information between the
• company and the public
• The main difference between Public Relations (PR)
  and
• other promotion methods is that PR is often free.
  
• It can include winning industry awards, working
  with the
• press, organising launch events
• PR brings the business to the attention of the
  public at
• no cost.

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2. Public relations - Task

• Question
• Explain how a local business like the Metro café
  in
• Bingham could partake in PR

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3. Sponsorship

• Sponsorship is becoming an ever popular method of
• promoting businesses.
• Though the sponsor may have a personal interest
  in
• the team, there is a clear business aim in
  promoting
• the name of the business to as wide an audience
  as
• possible.
• With sport on TV, there is an increasing
  opportunity for
• a business to make its products known to a
  world-wide
• audience.

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3. Sponsorship - Task

• Name 5 companies and the events/programmes they
• sponsor

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4. Advertising

• Advertising is giving information to the public
  and
• persuading them to buy a particular product or
  service
• Examples include
• TV (national and local)
• Radio (national and local)
• Leaflets/flyers
• Bill boards
• Notice boards

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4. Advertising - Task

• How could a small company like Metro Café
  advertise?