Reasons for Promotion
Business: Cambridge International GCSE (2027 Exams), topic 3.3.15
Reasons for Promotion
There are 4 main reasons why businesses use promotion:
To inform/remind customers about the product
- A business cannot sell a product (or service) if no customers know about it.
- Businesses must be able to inform their target market about their product (or service) and remind people, at the right time, in the hope that they will buy it.
- Reminding customers at the right time is key. There is not much point in promoting Christmas baubles on the 26th December.
To create or increase sales
- Informing customers that are not aware of a business’ products can ‘create’ new sales.
- By constantly reminding existing customers about a product (or service) and its benefits, businesses can increase the sales from each customer.
- This is more likely to happen during the periods before short “sales windows” like Easter and Christmas.
To create or change the image of a product (or service)
- A promotion can have a large impact on how customers see a product. If a celebrity uses the product, a business can give the product a fun, luxury or innovative image.
- UnderArmour sponsored golfers like Jordan Spieth to create a youthful and cool image after they launched their golf and sporting wear ranges.
- A promotion can help to change customers’ perception of a product.
To persuade customers to buy the product
- Promotions are often used to advertise the benefits of using a product and to explain why you should buy it.
- These are attempts to persuade the customer that this is the best product for them.
Test yourself on Reasons for Promotion
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