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Promotion

IB Business Management • Unit 4

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📢 Promotion — the fourth P

Big Idea: Promotion is how a business communicates with customers to inform, persuade and remind them about its products. It's how you get the word out! 📣

The promotion mix

  • Advertising — paid messages through media (TV, online, print, social media)
  • Sales promotion — short-term incentives (discounts, BOGOF, free samples, competitions)
  • Personal selling — face-to-face interaction with customers
  • Public relations (PR) — building a positive image through press, events and sponsorships
  • Direct marketing — reaching customers directly (email, post, SMS)
  • Digital marketing — social media, SEO, influencer marketing, content marketing

📺 Above, below and through the line

Above the line (ATL)

  • Mass media advertising aimed at a wide audience
  • TV, radio, newspapers, billboards, cinema, online banner ads
  • Good for building brand awareness — expensive but reaches many people

Below the line (BTL)

  • Targeted promotion aimed at specific groups
  • Sales promotions, direct mail, loyalty schemes, sponsorship, trade shows
  • Cheaper and more targeted — can be personalised

Through the line (TTL)

  • An integrated approach combining both ATL and BTL methods
  • Uses mass media AND targeted promotion together for maximum impact
  • Example: a TV campaign (ATL) combined with social media competitions and email follow-ups (BTL)
  • Most modern campaigns are TTL — they use multiple channels at once
ATL = broad and expensive (TV ads). BTL = targeted and cheaper (email, loyalty cards). TTL = integrated mix of both. Most real-world campaigns are TTL!

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📱 Social Media Marketing

Why this matters: Social media marketing is a new 2024 syllabus requirement. It was tested in both May 2024 and May 2025 Paper 1. You must know specific advantages AND disadvantages.

Types of social media promotion

  • Organic social media — free posts, stories, reels on platforms like Instagram, TikTok, X
  • Paid social media advertising — targeted ads based on user demographics and interests
  • Influencer marketing — paying social media personalities to promote products to their followers
  • Viral marketing — creating content designed to be shared widely by users themselves
  • Content marketing — blogs, videos, podcasts that provide value rather than directly selling

Advantages

  • Low cost compared to traditional advertising (TV, print)
  • Reaches younger demographics who spend time on social media, not watching TV
  • Highly targeted — can aim ads at specific ages, locations, interests
  • Two-way communication — customers can interact, comment, share
  • Brand awareness can increase without large expenditure
  • Measurable — businesses can track clicks, views, engagement and conversion rates

Disadvantages

  • Brand reputation risk — if an influencer misbehaves or is involved in scandal, the brand suffers by association
  • May miss older demographics who use social media less
  • Negative feedback is public — complaints visible to all followers
  • Content can go viral for wrong reasons — damage is hard to undo
  • Requires constant content creation — time-consuming to maintain
In the May 2025 exam, students were asked to explain one advantage and one disadvantage of using social media influencers. The markscheme specifically credited: low cost, impact on younger consumers, and brand reputation risk if the influencer misbehaves. Be specific!

🎯 Choosing the right promotion

  • Budget — small businesses may only afford social media and flyers
  • Target audience — young people? Social media. Business clients? Personal selling
  • Product type — luxury goods need aspirational ads; everyday goods need reminders
  • Life cycle stage — launch needs heavy promotion; maturity needs reminders
  • Competitors — match or differentiate from what rivals are doing
Exam tip: Don't just say 'advertise more'. Be specific about WHICH method and WHY it suits this business.

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