Advertising

This is the most expensive type of promotion. It can take place through a number of mediums:

- Television

- Cinema

- Radio

- Posters

- Newspapers

- Magazines

- The Internet

Advertising allows businesses to reach a wider audience and thereby have a greater impact. Advertisements tend to come under three types:

Informative advertisements: they let consumers know that the product is available and provide information on its characteristics, how it works and its purpose.
Persuasive advertisements: they attempt to get consumers to buy the product.
Corporate advertising: this focuses on the business in attempt to improve and promote its image rather than a particular product.

In order for an advertisement to be effective it should meet the following criteria:

It has to reach its target audience.
It must be attractive and appealing to its target audience, for example by using particular images or personalities.
It must bring in a higher amount of money through sales revenue then it took to produce the campaign.

Within the UK there are two bodies which monitor advertisements:

The Advertising Standards Authority (ASA): this ensures that any advertisements shown in newspapers, magazines or posters are ‘true, decent, fair and legal’. If consumers complain about an advertisement then it’ll be looked into and could end up being banned.

The Independent Television Commission (ITC): this keeps a check on advertisements broadcast on the radio, television and cinema. As with the ASA, consumer complaints are taken very seriously and could lead to a business being banned from advertising completely.

A-Level Business Studies: Managing a Business