14 The marketing mix: promotion

and technology in marketing

Revision answers
1 Promotion gives consumers information about the rest of the marketing mix.
Without it consumers would not know about the product, the price it sells for
and where it is sold. It is essential for the creation of a brand image.
2 Examples:
i) To introduce new products to the market.
ii) To compete with competitors’ products.
iii) To improve the company image.
iv) To increase sales.
v) To create a brand image.
3 Because products are different; the products are at different stages of their life
cycle; the target market might be different.
Student’s own examples should be included.
4 Examples include: cut prices; special promotional offers; advertise more; change
the menu.
5 Examples:
i) Can promote sales at quiet times of the year.
ii) Encourages new customers to try an existing product.
iii) Encourages new customers to try a new product.
iv) Encourages customers to buy your product instead of a competitor’s
product.
6 a) Informative advertising is where the emphasis of advertising or sales
promotion is to give full information about the product.
Persuasive advertising is trying to persuade the consumer that they really
need the product and should buy it.
b) Student’s own answer. Most probably informative advertising.
7 Student’s own explanation.
8 a) Figure 14.1 shows that sales and advertising expenditure are positively
correlated in this case; this means that if one increases then so does the
other. However, there is a time lag between the advertising expenditure and
its impact on sales. Thus, the rise in advertising expenditure in January is
followed by an increase in sales in February.
b) Advertising in this example does have an impact on sales. This does not
mean that it is cost effective. The increased advertising costs may be higher
than the increased revenue from more sales.
9 Examples:
i) Social networking sites, for example, Facebook.
ii) Tweets.
iii) Pop-ups, sponsored links.
iv) Paying search engines to put your websites at the top of searches.
v) Own reviews on websites.
vi) Blogs.
10 Examples:
i) Reaches a global market.
ii) Can target specific demographic group.
iii) Guarantees target customers see advert when they go onto Facebook.
iv) Information can be updated regularly.
v) Cheap to use.
vi) Control of advertising as it is on your own site.

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 14 The marketing mix: promotion and technology in marketing

vii) Interactive adverts can make the adverts more attractive than those in other
forms of advertising media such as magazines and posters.
viii) Can provide more information in adverts and link to other pages with further
information and pictures.

Answers to activities
Activity 14.1
Student’s own answer.
Activity 14.2
Student’s own answer.
Activity 14.3
a) Leisure shoe: the shoe is sold to teenagers and must therefore be advertised in
places where it will be seen by teenagers, places such as the cinema, radio,
magazines for teenagers, possibly television if it is not too expensive and
can be shown at times when teenagers will be watching. These methods
of advertising cover the whole country and will probably be seen by most
teenagers.
b) A new bicycle: this will probably be purchased mainly by enthusiasts and
therefore specialist bicycle magazines would be the best place to advertise as it
will be seen just by the target audience. Other places to advertise will be seen by
many people who would not consider buying the bicycle and therefore the advert
could be a waste of money. Posters and leaflets to be placed in shops which sell
the bicycle would also be helpful as it will draw the attention of the potential
purchaser to their particular bicycle when at the point of sale, i.e. the bicycle
shop.
c) A new computer game: this will probably be purchased mainly by younger
people and therefore similar places to the leisure shoe could be used. However,
adults and possibly younger children might also be part of the target audience
and therefore television may be used, particularly if it is an expensive computer
game suitable for use on PCs rather than a specific system. A PC game would
have a wider target audience and therefore the places to advertise would be
more varied.
d) A new local restaurant: this will probably be used by adults and only local
people, therefore only local sources of advertisement need to be used. Any form
of national advertising would be a waste of money. Advertising on local radio,
local newspapers and possibly local billboards, and leaflets handed out around
the town, should reach the target audience.
e) Fizzy soft drink: this is aimed at a wide section of people from younger children
to older adults. It may be targeted particularly at younger people but television
advertising would probably be used so that a wide selection of people would
see the advert. Billboards, cinema and radio may also be used to target, more
specifically, the younger population.
f) Local town festival: this is similar to the local restaurant, only local sources will
be used, local radio, local newspapers, billboards and possibly leaflets.

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 14 The marketing mix: promotion and technology in marketing

Activity 14.4
Student’s own answer.
Activity 14.5
a) A new magazine aimed at teenage boys: price reductions, free gifts with the
magazine, competitions.
b) A new type of pen which is very comfortable to use and does not smudge:
point-of-sale displays and demonstrations.
c) A company making a famous brand of football boots wants to expand sales:
competitions, free gifts.
d) A new fast food takeaway opens in a small town: money-off coupons, price
reductions, competitions.
e) A soft toy has been invented that changes colour when hugged and can be
dressed in different clothes which change colour when warmed: point-of-sale
displays and demonstrations.
Activity 14.6
Student’s own answer.
Activity 14.7
Student’s own answer.
Activity 14.8
Advantages Disadvantages
Tweets Reach wide market; target groups; Many customers may not read
easily forwarded from one person to tweets; expectation that they will
another; instant form of marketing be regularly updated; length of
text
Blogs Reach wide market; target groups; Many customers may not read
instant form of marketing blogs; expectation that they will be
regularly updated; someone has to
write it
Specialised apps to Instantly updates potential customers; Need a phone that will download
be downloaded for reaches target market; product apps; may not know about apps;
the business/brand of information can be selective costs to develop app
products
Text messages Direct to the receiver; easily targeted; May be annoying to recipient;
convenient for the customer; less alienates potential customer
likely to look at competitors’ products

Activity 14.9
Student’s own answer.

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 14 The marketing mix: promotion and technology in marketing

Sample answers to Paper 1 style questions

(with mark annotations for Question 2)
1 a) A group of people for whom a particular product is designed.
b) i) Television
ii) Radio
iii) Cinema
iv) Newspaper
v) Internet
c) i) To know where to advertise, so that marketing costs are not wasted on
advertising expensive shoes where women do not look.
ii) Select suitable media to be effective, so that target market of women is reached.
d) i) To introduce new shoes to the market, so that consumers are aware of the
existence of the shoes and buy them, therefore increasing sales.
ii) To compete with competitors’ shoes, so consumers are attracted away
from the competitors’ shoes, and increase sales of the business’s expensive
shoes.
iii) To create a brand image and make consumers believe the shoes are high
quality and therefore be willing to pay a high price for them.
iv) To increase sales by persuading consumers to buy the shoes rather than
the competitors’ or to simply buy a larger quantity of the product.
e) Yes, because customers will think the product is of a high quality and
advertising is needed to reinforce the brand image to justify the high price.
No, because customers may already like the product and any new shoes may
sell because of the brand name already established.
Overall conclusion/judgement needed.
2 a) An advertising budget is a financial plan for the marketing of a product or
product range for some specified period of time. [2K]
b) i) National newspapers
ii) Posters in city centres
iii) Leaflets given out in the street [2App]
Other answers possible.
c) i) To inform customers of the availability of the glasses so they will buy them.
[1K; 1App]
ii) To give the glasses a brand image so that customers will think they are
of good quality and will be attracted to buying them to use for special
occasions. [1K; 1App]
d) i) BOGOF (buy one get one free) to encourage customers to buy the glasses
as they will get other glasses free and then they may buy more sets of
glasses. [1K; 1App; 1An]
ii) Buy one glass and get a second one at a discount, so that customers are
more willing to buy the second glass as it is cheaper so sales of the glasses
should be higher. [1K; 1App; 1An]
e) Yes: it is a different market segment buying the plain glasses and so the
places to advertise need to be different to attract different customers. There is
likely to be more competition for the plain glasses than the specially designed
glasses, which will often be purchased as gifts.
No: customers who buy glasses will see the adverts wherever they are and it
could be cheaper to promote an image for the business that will cover all the
styles of glasses.
Student’s overall conclusion. [1K; 1App; 2An] + [2Eval]

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 14 The marketing mix: promotion and technology in marketing

Answers to revision test

1 4)
2 3)
3 4)
4 3)
5 3)
6 1)
7 2)
8 2)
9 4)
10 4)
11 1)
12 1)
13 4)
14 2)

Cambridge IGCSE Business Studies 4th edition Teacher’s CD © Hodder & Stoughton Ltd 2013 5