Skip to content

Course home

5.4.6b Sales promotion, PR, sponsorship and social media

5.4.6b Sales promotion, PR, sponsorship and social media

Promotion beyond paid advertising

  1. Advertising is the promotional method a business buys space for. Alongside it sit four more methods: sales promotion, public relations, sponsorship and social media.
  2. They do different jobs. Sales promotion pushes customers to buy this week, while public relations, sponsorship and social media build how the business is seen over months and years.

Sales promotion: short-term incentives to buy

Definition

Sales promotion: a short-term incentive added to a product to encourage customers to buy it now.

  1. Point of sale displays: a stand, shelf-edge sign or basket by the till catches the shopper inside the shop and prompts an unplanned purchase, which is why Boots stacks small items at the queue. It costs the retailer selling space, and a shopper who has already decided what to buy walks straight past.
  2. Two-for-one offers: buy one get one free and similar multi-buys shift stock quickly and get customers to fill the cupboard with your brand rather than a rival's. Giving product away is expensive, and a customer who has bought two will not need any more for a fortnight.
    1. Repeating the same offer trains customers to wait for it, so the product starts to look worth only its offer price.
  3. Free gifts: a gift attached to the pack, such as a toy with a children's magazine, adds value without cutting the price, so the price the customer pays is protected. The gift has to be bought and packed, which raises the cost of every unit sold.
  4. Samples: handing out a free taste or trial size, as Lucozade does at stations, removes the risk of trying something new, which suits a launch. The business gives away product to people who may never come back, so the cost for each customer gained is high.
  5. Coupons and money off: a voucher or app code, such as the discounts Domino's sends its customers, cuts the price for the people who bother to use it and shows the business exactly how many responded. Every coupon redeemed comes straight off the profit on that sale.
  6. Competitions: an on-pack competition, of the kind Walkers has run for years, creates interest and gets customers to buy the pack to enter. The prize and the administration cost money, and some entrants buy once for the chance and never again.
Common Mistake

Sales promotion lifts sales in the short term, so do not use it as the answer to a business that needs to change how customers see it.

Public relations

Definition

Public relations: the work a business does to earn favourable coverage and a good public image without paying for advertising space.

  1. The methods include press releases about a new product or shop, launch events, charity work, sponsoring a local school team and responding openly when something goes wrong.
  2. Coverage earned this way is cheap and it is believed, because the story reaches the customer through a newspaper or news programme rather than from the business itself.
  3. The business gives up control in exchange. It cannot dictate what is written, the story may never run, and bad news travels through the same channels just as fast.
Example
  • Greggs announced its vegan sausage roll with a short film sent to journalists, and the launch was reported free of charge across national news and radio.
  • Buying that much national coverage as advertising would have cost millions, and the news reports carried more weight than an advert would have done.

Sponsorship

Definition

Sponsorship: paying a team, event, programme or person so that the business's name is associated with them.

  1. The business buys repeated exposure to a large audience that is watching willingly, on shirts, hoardings, tickets and every mention of the competition's name.
  2. It also borrows the image of whatever it sponsors, so a bank that backs a national competition looks established and trustworthy, and a sportswear brand that backs an athlete looks serious about sport.
  3. The drawbacks are the price, which puts major sponsorship out of reach of small businesses, and the risk that a losing season or a scandal involving the team or player rebounds onto the sponsor.
Example
  • Barclays pays to put its name on the Premier League, so millions of viewers in the UK and abroad see the brand every weekend of the season.
  • A village plumber achieves the same effect for a few hundred pounds by paying for the shirts of the local under-11s team, seen every Sunday by exactly the parents who need a plumber.

Social media

Definition

Social media promotion: using platforms such as Instagram, TikTok, Facebook and X to promote a business through its own posts, through paid partners and through content that customers pass on.

  1. The business's own channels: posting photographs, videos and offers costs nothing but staff time, reaches followers who have chosen to follow, and lets the business answer questions and complaints in public. An account needs feeding constantly to stay worth following, and a complaint left unanswered sits there for every other customer to read.
  2. Influencers: paying someone with a large following to use and recommend the product borrows the trust their audience already gives them, which is how Gymshark built its customer base. The business cannot control what the influencer says or does next, and paid recommendations must be declared.
  3. Content customers share: a post funny or useful enough to be shared spreads at no extra cost, which is why Aldi keeps a playful voice online. Nothing guarantees that it spreads, and a complaint or a bad review spreads by exactly the same route.
    1. Social media suits a small budget and a young audience, but a business whose customers are older or offline still needs press, radio or leaflets to reach them.
Exam technique
  • Name the exact technique, so "a free sample outside the station" or "a two for one offer on every pack", never "do a promotion".
  • When the question says analyse the benefits of using sales promotion, follow the chain: the offer attracts shoppers, shoppers raise sales volume, and volume raises revenue even though the profit on each unit falls.
  • Keep public relations and advertising apart in your answer: public relations earns coverage, advertising buys it.
  • The mistake to avoid is offering a national sponsorship deal to a business the case study describes as a small start-up.
Self review
  • What is sales promotion, and why is it described as short term?
  • Name four sales promotion techniques and say what each is for.
  • Why do customers often trust public relations coverage more than an advert?
  • What does a business gain from sponsorship, and what is the risk it takes on?
  • Give one reason a business cannot rely on social media alone.
PreviousNext

How was this guide?

Teach Genie

Review 5.4.6b Sales promotion, PR, sponsorship and social media by teaching Genie

Teach it back in your own words, spot gaps, and remember it better.

Start teaching
Genie and Baby Genie

Flashcards

Remember key concepts with flashcards

28 flashcards

Practice flashcards

What is sales promotion?

5.4.6b Sales promotion, PR, sponsorship and social media Revision Guide

  1. GCSE
  2. /Business
  3. /5.4.6b Sales promotion, PR, sponsorship and social media

Revision notes for AQA GCSE Business 5.4.6b Sales promotion, PR, sponsorship and social media: explanations and worked examples.