BTEC Enterprise Component 3 LA A 19 February

BTEC Enterprise – Component 3 LA A 19 February 2021 What factors influence which part of the promotional mix an enterprise uses? Contents of learning…

BTEC Enterprise – Component 3 LA A 19 February 2021 What factors influence which part of the promotional mix an enterprise uses? Categories all the different types of promotion on the matrix below

BTEC Enterprise – Component 3 LA A 19 February 2021 What factors influence which part of the promotional mix an enterprise uses? High cost TV National radio / newspaper / magazine Niche targeted magazines Sponsorship: Depends on the event / team being sponsored Personal Selling Low reach (not many people will see / hear / read the promotion) Exhibitions Billboards Local radio / newspaper Side of busses High reach Promotional stunt (Many people will see / hear / read the promotion) Sales promotions e. g. BOGOF Leaflets and direct mail Social Media Low cost Factors that determine a business’s choice of promotional mix depends on: • Business size • Budget (money) available • Who the customers are (target market) Would you be able to explain these factors using this matrix?

FACTORS INFLUENCING CHOICE OF PROMOTION 4 factors: • Size of enterprise • Budgetary constraints • Appropriateness for product/service (TV for takeaway) • Target market – consider the characteristics of target market (advert of toys in morning before school) In 2015, it was estimated that a 30 second advert during a commercial interval of the Super Bowl, America’s most watched sporting event, cost $4. 5 million.

BTEC Enterprise – Component 3 LA A 19 February 2021 What factors influence which part of the promotional mix an enterprise uses?

BTEC Enterprise – Component 3 LA A 19 February 2021 What factors influence which part of the promotional mix an enterprise uses? Assessment practice: How to answer a big mark question Example question: Discuss whether sales promotion offers such as buy one get one free or advertising through social media will more beneficial for Freya when promoting her new local hair salon (8 marks) Structure: 1. State and explain a benefit of buy one get one free sales promotion will be good for Freya. 2. Then argue why it may not be very beneficial. 3. State and explain a benefit of using social media for Freya. 4. Then argue why it may not be useful. 5. Finally make a decision which method and why you think is best for Freya

BTEC Enterprise – Component 3 LA A 19 February 2021 What factors influence which part of the promotional mix an enterprise uses? answer Example question: Discuss whether sales promotion offers such as buy one get one free or advertising through social media will more beneficial for Freya when promoting her new local hair salon (8 marks) Full mark answer: 1. Buy one haircut and get the next free will be useful for Freya because it makes it cheaper for customers and will attract them to come to her new hair salon rather than other hair salons that will appear more expensive. It can be good to use to entice customers away from their normal hair salon. 2. However, it will mean that Freya loses money as she has to offer the second hair cut for free. 3. Social media will be good because not only is it cheap to set up a Facebook page, it can reach a wide audience and Freya can show pictures and videos of hair cuts she has done so customers will be more confident in Freya’s ability to cut their hair to a high standard. 4. However, it may take a while for people to start following her Facebook page as they have to like it in order to follow it. 5. Overall I think that sales promotion will work best in the short term and when Freya has managed to get lots more customers, her social media page will be better in the long run when more and more people follow her over social media to see her pictures and videos of haircuts.