Page 185 - Cambridge IGCSE Business Studies

13: Marketing mix: place and promotion

as a national supermarket chain. Newspaper advertising can be in local or national
newspapers. A hairdresser and taxi company are unlikely to advertise in national
newspapers as their market is usually local. However, a business that sells its products
throughout a country is more likely to use national newspapers, for example a car
manufacturer. This type of promotion is sometimes called above-the-line promotion.

Most advertising is aimed at the final consumer. However, some advertising tries to

KEY TERMS
persuade wholesalers and retailers to stock the product.

Informative advertising: There are two main forms of promotional advertising:
information about the product
is communicated to consumers ■ Informative advertising provides information to potential consumers about
to create product awareness and the product. This can include information about the price of the product, what
attract their interest. the product can be used for and the place the consumer can buy it. This form of
Persuasive advertising: advertising is often used when a new product is being launched onto the market or

communication with consumers into a new market.
aimed at getting them to buy
■ Persuasive advertising is the most common form of advertising.
a firm’s product rather than a
competitor’s product. The business uses this form of advertising to try to convince consumers that they
need the product and that their product is better than competitors’ products.

ACTIVITY 13.3

In pairs or small groups design an advertisement for your school. You might want to look at newspaper and magazine
advertisements to get some ideas of the layout and the sort of information you need to include.

183
KEY TERMS
Sales promotion
Below-the-line promotion: This type of promotion is sometimes called below-the-line promotion.

promotion that is not paid-

There are a number of different activities that are forms of sales promotion.

for communication but uses
incentives to encourage Th ese include:
consumers to buy.

■ money-off coupons or vouchers
Sales promotion: incentives
used to encourage short-term ■ point of sale displays in shops
increases in sales or repeat ■ loyalty reward schemes
purchases. ■ competitions and games
with cash or other prizes.
The main advantage of sales

TOP TIP promotion is that it is usually very
Remember that increased specific to the business or its

sales will not necessarily mean products. The consumer must buy

increased profits. It will depend the product to use the vouchers
on whether the revenue from the

or money-off coupons. Loyalty
increased sales is greater than the
cost of the promotion to generate reward points are given when
the extra sales. consumers spend money in a
particular business. Supermarkets,
coffee shops and airlines oft en

have loyalty reward schemes. Point of sale display