Plan advertising and sales promotion
Distinguish advertising from sales promotion and select a method for an audience and objective.
Exam scope and assessment notes
Cambridge IGCSE (9–1) Business Studies 0986, 2026 syllabus, Version 2. This is the separate 9–1 legacy route; 0774 replaces it for first assessment June 2027. Candidates are not assessed on constructing income statements or statements of financial position, nor on price-elasticity or exchange-rate calculations. Simple cash-flow forecast construction is assessed. Written practice is self-checked, not an official Cambridge grade; timed-paper evidence and human subject-teacher review remain outstanding.
Before you begin
- No previous marketing study is assumed. Identify the customer group, the business objective and the evidence in each situation before choosing a response.
Work on paper. Try each question before revealing help, and explain why your method works.
Quick readiness check
Which is a sales-promotion method?
What you will learn
- Explain why businesses promote products
- Recognise advertising and sales-promotion methods
- Recommend a method using audience and cost
Promotion informs and persuades
Businesses promote to inform customers, remind them of an offer, differentiate products or encourage purchase. The syllabus examples of sales promotion include vouchers, reward schemes, competitions and special offers or discounts.
Advertising examples include social media, direct or targeted emails, leaflets and billboards. Sales promotions often provide a temporary incentive, while advertising communicates a message to an audience.
Choose a method that reaches the target
Social media can target or reach some online audiences but may miss others. Targeted emails can be personalised but depend on a suitable contact list. Leaflets may reach a local area; billboards provide visibility but are less personalised.
Discounts can trigger short-term purchases but reduce revenue per unit. A method should match the audience, objective, budget and product; evaluate whether the response can be measured.
Pause and explain
What should a firm check before offering a deep discount?
Worked example
A local restaurant wants to attract nearby families to a new weekend menu. Suggest one advertising method and one sales promotion, each with a reason.
Show the worked solution
- The audience is local families.
- A local leaflet can communicate the menu and location.
- A limited family offer is a sales promotion.
Answer A leaflet distributed locally could introduce the weekend menu to nearby families. A time-limited family offer could encourage a trial, though the restaurant should compare the discount with its contribution per meal.
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 museum wants to increase weekday visits among local teachers and families. Recommend an advertising method and a sales promotion.
Give me a hint
Match both choices to a local audience and a measurable offer.
Compare my reasoning
- Targeted emails to schools or local groups could explain weekday visits.
- A family voucher or limited weekday offer can encourage a trial.
- Track bookings by campaign and compare revenue with discount cost.
The museum could send targeted emails to local schools and groups, then offer a weekday family voucher. It should track bookings and compare the added visits with the promotion cost.
Look for these in your work
- Advertising method fits audience
- Promotion method fits objective
- Measurement included
A business gets many social-media views but few sales. Explain two possible reasons and one improvement to its evaluation.
Give me a hint
Views show exposure, not necessarily interest, access or purchase.
Compare my reasoning
- The viewers may not be the target customers.
- The offer, price or purchase path may deter buyers.
- Track clicks, enquiries and completed sales by audience.
The post may reach people outside the target market, or viewers may reject the price or find the purchase process difficult. The business should track qualified visits and completed sales, not views alone, and test a relevant change.
Look for these in your work
- Two plausible causes
- Exposure separated from sales
- Better measures suggested
A shop rewards every purchase with a prize draw. Explain one possible benefit and one limitation compared with a discount voucher.
Give me a hint
Both are promotions, but they create different incentives and costs.
Compare my reasoning
- A prize draw may encourage participation without discounting every item.
- The chance of winning may not motivate every customer.
- A voucher gives a clearer value but reduces revenue on redeemed purchases.
A prize draw may attract attention while limiting the cost to a few prizes, but some customers may value the uncertain chance little. A voucher provides a clear saving but reduces revenue for each redemption; test which suits the audience.
Look for these in your work
- Promotion types compared
- Customer response considered
- Cost difference stated
Common mistakes
- Calling a discount an advertising method
- Using a channel without checking the target audience
- Measuring views instead of purchases when the goal is sales
What can you explain now?
Which is a sales-promotion method?
Compare with the explanation
A voucher
A voucher gives customers a temporary incentive.
After trying it yourself, choose your next review. This is your self-assessment.
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Make it stick
How does a sales promotion differ from advertising, and why do businesses often combine them?
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.