Page 188 - Cambridge IGCSE Business Studies

Cambridge IGCSE Business Studies Section 3 Marketing

EXPLORE!

Research local newspapers, magazines, radio, television and the internet to find examples
of how businesses promote their products in your country.
Use your research above to produce a poster or PowerPoint presentation
showing the different methods of promotion you have discovered. Use your poster or

PowerPoint to give a short presentation of your research findings to your class.

ACTIVITY 13.4

Ali and Fatima are the owners of Impact Fitness Ltd. (IF). They have successfully operated a fitness studio for the past seven
years. Recently, they bought another fitness studio in the next town. This business was not very successful due to poor
facilities and poor management. IF has installed the latest fitness equipment in the new studio. Fatima is in charge of its
promotion. She has a marketing budget of $2,000 for the new studio. She is going to spend $1,000 on advertising in the
local paper.

1 What is meant by the term ‘marketing budget’?

2 Identify two different types of advertising IF might use for its new studio.
3 Explain why a marketing budget is important to promotion decisions.
4 Identify and explain two reasons why IF needs to promote the new fitness studio.

5 IF could use money-off vouchers or free T-shirts to promote its new fitness studio. Which do you think is better? Justify
your choice.

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TEST YOURSELF
1 What are the main aims of promotion?
2 What is meant by the term ‘sales promotion’?

3 Explain how a business might assess the effectiveness of its marketing budget.

Technology and the marketing mix

The development of technology has affected many areas of business activity.
In particular the internet and social networks have changed the ways many
businesses market and sell their products.
E-commerce

KEY TERM Many businesses, from sole traders through to multinational companies,
have websites. One of the main benefits of this is to help them to sell their
E-commerce: the use of the products over the internet. For this to work, customers must be prepared to
internet and other technologies
use the internet to buy goods and services. The good news for businesses is
used by businesses to market
and sell goods and services to that more and more consumers are using the internet to make purchases of
customers. items such as their weekly family shopping, books, clothing, furniture and
much more.
Examples of e-commerce are shown in Figure 13.3.