Advertising and sales promotion
Design an advertising or promotion choice around a target audience, campaign objective, media, appeal, cost and evidence of response.
Exam scope and assessment notes
This original lesson maps Cambridge IGCSE Commerce 0715 for exams in 2028 and 2029. Examples, businesses, figures and practice questions are original StudyForA material, not Cambridge questions, mark schemes or endorsements. Practice supports the knowledge, application, data interpretation, analysis and evaluation skills in the syllabus; it is self-checked and does not produce an official Cambridge grade. Full timed papers, examination-centre entry advice and review by a qualified Commerce teacher remain outside this pathway.
Before you begin
- No prior Commerce study is assumed. Work from the facts in each scenario and show calculations before making a commercial judgement.
Work on paper. Try each question before revealing help, and explain why your method works.
Quick readiness check
Which sales promotion gives a buyer a reduction at checkout?
What you will learn
- Distinguish informative, persuasive, collective and competitive advertising and explain their strengths or limits.
- Compare traditional and digital advertising media and select a method for an audience and product.
- Explain common appeals and evaluate their suitability for a product and audience.
- Choose a sales-promotion method and judge its likely cost, timing and effect.
Set the purpose before choosing the media
Informative advertising explains features or availability; persuasive advertising encourages a choice; collective advertising promotes a product category; competitive advertising compares or distinguishes a brand. A campaign can combine purposes, but its message should be clear.
Traditional media include television, radio, cinema, newspapers, magazines, leaflets, packaging, direct mail, sponsorship, catalogues, posters, vehicle displays, point-of-sale displays, signboards and word of mouth. Digital media include social advertising, search and website ads, display and video ads, email and influencer content. Compare audience reach, cost, cultural and legal rules, flexibility, timing and local or international coverage.
Appeals and promotions need a fit
Appeals can use emotion, fear, humour, reason, ambition, social acceptance, romance, adventure, music, celebrities or influencers. An appeal may attract attention but harm trust if it is misleading, inappropriate or disconnected from the product.
Sales promotion includes point-of-sale displays, special offers, sponsorship, competitions, coupons, sales periods, loss leaders, free gifts and free samples. Choose according to business type, competitor activity, cost, product, whether it is new or established and campaign timing. A temporary discount can raise short-term sales while reducing margin or training customers to wait for deals.
Sources for this lesson
Pause and explain
Why should a business check the audience before choosing a medium?
Worked example
A new refillable bottle is aimed at university students. Recommend one advertising method and one appeal, then identify how to evaluate the campaign.
Show the worked solution
- Select a digital method students can access, such as a short social video, after checking platform and audience fit.
- Use a rational or environmental appeal only if the product's claims are supported.
- Measure relevant response, such as visits, trials and sales against campaign cost.
Answer A short social video could demonstrate how the bottle works, with a factual appeal about refill use rather than an unsupported environmental claim. Evaluate reach and engagement alongside store visits, trial purchases and campaign cost; online views alone do not prove sales or profit.
Try a topic test
Choose Easy, Normal or Difficult. Save your answers and open worked review after finishing.
Test this topic →From guided practice to a new situation
Write your answer and reasoning first. Use a hint only if you are stuck. The model solution is for self-checking; your written work is not automatically marked.
A local museum wants families to visit a weekend science event. Choose one traditional and one digital advertising method, giving one reason for each.
Give me a hint
Link one method to a local audience and one to flexible targeting or sharing.
Compare my reasoning
- A poster near schools or community venues can reach nearby families.
- A local social-media video or targeted website advert can show the activities and event time.
- Include date, location, age suitability and a clear booking route.
Posters at relevant local venues can reach families already nearby; a social video can show activities and be shared with local audiences. Both should state the date, location, suitability and booking route. The museum should check cost and actual attendance, not just exposure.
Look for these in your work
- Two methods appropriate
- Reasons linked to audience
- Action details included
A company promotes a safety product using a humorous influencer video. Analyse two benefits and two risks of this choice.
Give me a hint
Consider attention, trust, reach, product seriousness, influencer fit and claims.
Compare my reasoning
- Humour may make a short message memorable and the influencer may reach a relevant audience.
- A poor fit can undermine trust, trivialise the safety purpose or fail to explain correct use.
- Check factual claims, disclosure rules, audience fit and whether buyers understand the safety instructions.
The format can attract attention and reach followers who trust the creator. It can also trivialise safety, reduce clarity or appear inauthentic if the creator is a poor fit. The company should test whether viewers understand correct use and disclose sponsorship as required.
Look for these in your work
- Benefits and risks
- Safety context used
- Testing or compliance included
A supermarket considers a loss leader to attract weekend customers. Evaluate the decision for a new product with limited stock.
Give me a hint
Consider traffic, related purchases, margin, stock availability and customer reaction.
Compare my reasoning
- A low price may attract customers and encourage purchases of other items.
- Limited stock may run out early, frustrate buyers or create a loss without enough related sales.
- Estimate demand and contribution, set an appropriate stock quantity and monitor total basket sales and complaints.
A loss leader may attract traffic and related purchases, but limited stock risks early sell-out and customer frustration. The supermarket should compare the lost margin with incremental basket contribution, plan supply and monitor complaints and repeat demand.
Look for these in your work
- Mechanism explained
- Risk of scarce stock
- Evidence-based evaluation
Common mistakes
- Assuming the largest audience gives the best return
- Using emotional appeals without checking appropriateness
- Calling every price discount a long-term strategy
- Measuring views while ignoring sales or cost
What can you explain now?
Which type of advertising aims to explain a product's features?
Compare with the explanation
Informative advertising
Informative advertising communicates facts or availability; persuasive advertising aims to influence choice.
After trying it yourself, choose your next review. This is your self-assessment.
Your review choice appears on Today. Sign in to sync it across devices.
Make it stick
Name two factors affecting advertising-medium choice and one risk of a sales promotion.
If you needed the solution, close it and solve the problem again from a blank page. A correct answer is stronger when you can explain the reason for each step.