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Business Studies for Secondary Schools
It is also commonly known as third-party Business philosophy: Some businesses
endorsement. This type of promotion uses follow a philosophy that dictates where
news media to offer a favourable mention most promotional spending occurs. For
of the marketing company or product instance, some organisations select the
without direct payment to the publisher method of conducting all promotions
of the information. Importantly, the through salespeople. Other organisations
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message communicated through publicity prefer to focus attention on product
is considered trustworthy by the target development, hoping that word-of-mouth
audience. communication from satisfied customers
In general, both publicity and public will help create interest in the products.
relations increase awareness about a Target market: Customers’ characteristics
product or business among the target dictate how promotion should be
audience and, therefore, influence the undertaken. Characteristics such as
product’s demand. They are important in size, location, and type of target market
business because they are linked to the affect how marketers communicate with
business image and relations between the customers. For instance, for a small
business and its stakeholders. marketer serving business markets with
Factors affecting the choice of promotion widely dispersed customers, it may be very
mix expensive to utilise a sales force compared
Advertisements, personal selling, sales to the use of advertisement.
promotions, public relations, and publicity Product: Different products require
are elements that fall into the promotion different promotional methods. With
mix. However, decisions for the element(s) regards to the consumer market, products
of promotion to be used by businesses are falling into the convenience and shopping
affected by the following factors: goods categories are likely to use mass-
market promotional methods. Otherwise,
Availability of resources: The amount of
money and other resources available for higher-end specialty or luxury goods
promotion affects a marketer’s choice are likely to use personalised selling.
of promotion methods. Marketers with Thus, products that are complex and take
large promotional budgets can spread customers longer time to make a purchase
spending among all promotion options, decision may require personal selling
while marketers with limited funds must rather than advertising.
be more selective about the promotion Price: The higher the price of a product,
techniques they use. the more likely a marketer will need
to engage in personalized promotion
compared to lower-priced products that
can be marketed using mass promotion
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