Page 184 - Cambridge IGCSE Business Studies

Cambridge IGCSE Business Studies Section 3 Marketing

TEST YOURSELF
1 What is the main advantage to producers of direct selling?
2 The profit per unit is less when a producer uses middlemen to distribute its
products to the final consumer. However, the total profit earned is almost always
higher. What is the explanation for this?

Promotion

As a consumer, you are likely to know of many ways businesses promote their products.
Promotion tells consumers about a product and tries to persuade them to buy it.

ACTIVITY 13.2

In small groups, or as a class, make a list of the ways you have found out about different products, or been persuaded to buy
products.

The aims of promotion

KEY TERM The main aim of promotion is to increase sales. Promotion does this by:

Promotion: marketing ■ attracting the attention of consumers by making them aware of the product, or
activities used to communicate reminding consumers that the product is still on the market
with customers and potential ■ persuading consumers to buy the product
182 customers to inform and
■ explaining how a product is better than competitors’ products
persuade them to buy a business’s
products. ■ creating and developing brand image
■ encouraging wholesalers and retailers to stock the product
■ reassuring consumers, following a problem with the product.

How promotion influences sales
Figure 13.2 shows the most common methods of promotion.

Methods of
Promotion

Sales Personal
Advertising Direct mail Sponsorship
promotion selling
KEY TERM Figure 13.2 Methods of promotion

Advertising: paid-for
communication with consumers Advertising
which uses printed and visual
Advertising involves communicating with the customer through media such as
media. The aim is to inform and

persuade consumers to buy a newspapers, magazines, radio, television and the internet. The advertising media used

product. often depends on the available budget. Television advertising is much more expensive
than newspaper advertising and is usually only afforded by larger businesses such