How does a business make customers aware of its product and persuade them to buy?
Appropriate promotion strategies for different market segments (advertising, sponsorship, product trials, special offers, branding) and the use of technology in promotion (targeted advertising online, viral advertising via social media, e-newsletters).
A focused answer to Edexcel GCSE Business 2.2.3, covering promotion strategies for different market segments (advertising, sponsorship, product trials, special offers, branding) and the use of technology in promotion (targeted online advertising, viral social media, e-newsletters).
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What this dot point is asking
Edexcel wants you to explain the promotion strategies a business uses for different market segments (advertising, sponsorship, product trials, special offers, branding) and how technology is used in promotion (targeted online advertising, viral social media, e-newsletters).
Promotion strategies
Each method does a different job. Advertising builds awareness; sponsorship links the brand to something customers like; product trials reduce the risk of trying something new; special offers drive a short-term sales boost; and branding builds long-term loyalty and lets a business charge more. Strong businesses combine several methods rather than relying on one.
Matching promotion to the market segment
There is no single best promotion method; it depends on who the customers are and where they pay attention. Promoting to teenagers through newspaper adverts, or to elderly customers only through a social-media app, wastes money. The exam rewards you for choosing a promotion method that fits the target segment in the question.
Using technology in promotion
Technology-based promotion is cheaper and far more precise than traditional advertising, which is why it has become central. Targeted online advertising shows the right advert to the right person, cutting waste. Viral advertising on social media can spread a message to millions at almost no cost if customers share it, though virality is unpredictable. E-newsletters keep existing customers engaged and encourage repeat purchases. For a small business with a limited budget, these methods are transformative: they allow precise, low-cost promotion that once only large firms could afford. The risk is that poor content, or neglected accounts, can damage rather than build the brand.
Try this
Q1. State one method of promotion suited to attracting customers to try a brand-new product. [1 mark]
- Cue. Product trials (free samples) or special offers.
Q2. Explain one advantage to a small business of using targeted online advertising. [3 marks]
- Cue. It reaches exactly the right customers (by age, location, interests) at low cost, so a limited budget goes further.
Exam-style practice questions
Practice questions written in the style of Pearson Edexcel exam questions on this dot point, with worked answer explainers. The year tag is the paper they imitate, not the source.
Edexcel 20192 marksState two methods of promotion a business could use. (Paper 2, Section A)Show worked answer →
A 2-mark state question, one mark per correct method.
Any two of: advertising, sponsorship, product trials, special offers, branding.
Markers want two distinct promotion methods from the specification list. Choose two clearly different ones, for example "advertising" and "sponsorship".
Edexcel 20226 marksDiscuss how a small business could use technology to promote its products effectively. (Paper 2, Section B)Show worked answer →
A 6-mark discuss question rewards developed analysis of technology-based promotion, applied, with a judgement.
Chain one: targeted online advertising and social media let the business reach exactly the right customers (by age, location and interests) at low cost, so a small business with a limited budget can promote far more efficiently than with print or TV adverts.
Chain two: viral advertising via social media and e-newsletters can spread the business's message widely and cheaply, building awareness and keeping existing customers engaged, though viral success is unpredictable and poor or pushy content can damage the brand.
A strong answer judges that technology-based promotion is usually ideal for a small business because of its low cost and precise targeting, provided the business creates good content and manages its accounts well. Markers reward developed application, not a list of methods.
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Sources & how we know this
- Pearson Edexcel GCSE (9-1) Business (1BS0) specification — Pearson Edexcel (2017)