Marketing strategies: promotion, the communication process, place, the extended mix (people, processes, physical evidence) and e-marketing (HSC Business Studies)
“Marketing strategies - promotion (elements of the promotional mix - advertising, personal selling and relationship marketing, sales promotions, publicity and public relations); place/distribution (channel choice including intermediaries, intensity, physical distribution); people, processes and physical evidence; e-marketing; global marketing”
Promotion is how a business communicates with its target market, using the promotion mix: advertising, personal selling and relationship marketing, sales promotions, and publicity and public relations, plus the communication process (opinion leaders and word of mouth). Place gets the product to customers: the distribution channel (direct or through intermediaries), channel choice (intensive, selective or exclusive) and physical distribution (transport, warehousing, inventory). Services add people, processes and physical evidence, because customers judge an intangible service by who delivers it, how, and where. E-marketing uses digital channels for all of these. Global marketing is covered on its own page.
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What this dot point is asking
The syllabus lists: "promotion: elements of the promotion mix (advertising, personal selling and relationship marketing, sales promotions, publicity and public relations); the communication process (opinion leaders, word of mouth)"; "place/distribution: distribution channels; channel choice (intensive, selective, exclusive); physical distribution issues (transport, warehousing, inventory)"; "people, processes and physical evidence"; "e-marketing"; and "global marketing". A "students learn to" point asks you to "assess why a mix of promotional strategies is important in the marketing of goods and services".
Promotion
Promotion is the communication a business uses to inform, persuade and remind its target market about its products. The promotion mix is the combination of methods chosen.
| Element | What it is | Strengths | Limitations |
|---|---|---|---|
| Advertising | Paid, non-personal messages in media (TV, radio, print, outdoor, online, social) | Reaches large audiences quickly; builds awareness and image | Costly; one-way; audiences ignore or skip ads |
| Personal selling and relationship marketing | Face-to-face or direct communication by a salesperson; building long-term relationships with customers | Two-way, tailored, persuasive; builds loyalty | Expensive per contact; reaches few people |
| Sales promotions | Short-term incentives: discounts, coupons, samples, competitions, loyalty points, bundles | Prompts immediate purchase; encourages trial | Short-lived; overuse cheapens the brand; can mislead if not genuine |
| Publicity and public relations | Unpaid media coverage (publicity) and planned activities to build goodwill (PR: media releases, sponsorship, events, community programs) | Credible (third-party); low cost | Business cannot control what is reported; negative publicity spreads fast |
Relationship marketing
Relationship marketing focuses on keeping customers and increasing their lifetime value, not just making one sale. Tools include loyalty programs, personalised offers, account managers for business customers and after-sales contact. Keeping an existing customer is usually cheaper than winning a new one.
Examples. Woolworths' Everyday Rewards program sends members personalised "Boost" offers through its app and email. Bunnings relaunched its trade program as PowerPass Pro Rewards in July 2026, with six membership tiers and rewards that grow with a member's annual spend, a deliberate strategy to reward and retain high-value trade customers.
Publicity, public relations and reputation
Publicity can be positive (a product launch covered in the news) or negative (a scandal). Crisis public relations aims to limit the damage: acknowledging problems quickly, apologising, explaining what will change, and following through. Recent Australian cases show the stakes: the 2025 Optus Triple Zero outage and the Qantas "ghost flights" penalty generated sustained negative publicity that advertising alone could not offset.
Choosing the promotion mix
The best mix depends on:
- The product: complex, expensive products (cars, business software) need personal selling; cheap, frequently bought products rely on advertising and sales promotions.
- The target market: B2B buyers expect personal selling and relationships; mass consumer markets need mass media.
- The product life cycle: introduction needs awareness (advertising, publicity, samples); maturity needs reminders and promotions to defend share.
- The budget: small businesses rely on social media, publicity and word of mouth.
- Push or pull strategy: a push strategy promotes to intermediaries (trade discounts) so they push the product to consumers; a pull strategy promotes to consumers so they demand it from retailers.
The communication process
Promotion works through a communication process: a sender encodes a message, sends it through a channel to a receiver, who decodes it and responds (feedback); "noise" (competing messages, distraction) can distort it.
The syllabus highlights two influences on how messages spread:
- Opinion leaders are people whose opinions others respect and follow: experts, celebrities, sports stars and social media influencers. Businesses use them because their endorsement is more persuasive than an ad.
- Word of mouth is customers telling others about their experiences, face to face or through reviews and social media. It is highly trusted and free, but negative word of mouth spreads fast.
Influencers and the law. On 7 December 2023 the ACCC released the findings of a sweep of 118 social media influencers: 81 per cent made posts that raised concerns under the Australian Consumer Law, mainly by not disclosing (or only vaguely disclosing) brand relationships, and the rate was highest among fashion influencers (96 per cent). Businesses that pay opinion leaders must make sure the relationship is clearly disclosed, because hidden advertising can be misleading and breaches the advertising codes.
Place (distribution)
Place is getting the product to the target market at the right time, in the right quantity and condition, at the lowest reasonable cost.
Distribution channels
A distribution channel is the path a product takes from producer to consumer. Intermediaries (wholesalers, retailers, agents) sit between them.
- Direct channel: the producer sells straight to consumers (own stores, website, sales force). More control and margin, but the producer carries all the distribution costs.
- Indirect channel: intermediaries hold stock, reach many customers and provide local presence, in return for a share of the margin and less control.
Many businesses use multichannel or omnichannel distribution: stores, online ordering, click-and-collect and home delivery, integrated so customers can move between them.
Channel choice: distribution intensity
| Intensity | Meaning | Suits | Example product types |
|---|---|---|---|
| Intensive | As many outlets as possible | Convenience goods bought often and on impulse | Soft drinks, bread, confectionery |
| Selective | A limited number of chosen outlets | Shopping goods that customers compare | Appliances, clothing brands, smartphones |
| Exclusive | One or very few outlets per area, often with exclusive rights | Luxury, specialist or technical products needing expert service | Prestige cars, high-end watches |
Physical distribution issues
Physical distribution is the movement and storage of goods; the syllabus names three issues:
- Transport: choosing the mode (road, rail, sea, air) by cost, speed, reliability and the nature of the product (perishable, fragile, high value).
- Warehousing: where and how goods are stored before sale; the number and location of distribution centres, and the use of automation.
- Inventory: how much stock to hold at each point; too much ties up cash, too little causes stock-outs.
Example: Kmart and Catch. In January 2025 Wesfarmers announced that Catch would stop trading as a standalone business and that its online fulfilment centres at Moorebank (NSW) and Truganina (Victoria) would transfer to Kmart Group. Wesfarmers expected centralised fulfilment to deliver faster deliveries at a lower unit cost while relieving pressure on busy Kmart stores that had been picking online orders. It is a place decision combining channel (online), warehousing and inventory. Place connects closely to supply chain management in global factors of operations.
People, processes and physical evidence
Services are intangible (cannot be seen or tested before purchase), inseparable (produced and consumed at the same time, with the provider present), variable (quality depends on who delivers them and when) and perishable (cannot be stored). The traditional 4Ps therefore extend to the 7Ps with three more elements.
People
People are all the staff who deliver the service and interact with customers, and sometimes other customers. In services, the people are part of the product: a rude call-centre operator or an expert, friendly adviser changes the whole experience.
Marketing strategies: recruit for attitude as well as skills; train staff in product knowledge and customer service; empower them to solve problems; set service standards; reward good service; align culture with the brand promise.
Example: Optus. On 24 September 2025 the Federal Court ordered Optus to pay a $100 million penalty for unconscionable sales practices, including pressuring vulnerable customers into phones and plans they did not need or could not afford. Optus's commitments included a new training and induction system for sales staff and a specialist care team for vulnerable customers. The case shows how sales targets and weak people management can damage a service brand, and why people strategies are part of marketing.
Processes
Processes are the procedures, systems and flow of activities by which the service is delivered: bookings, queues, ordering, payment, delivery, complaints handling, refunds and cancellations. Good processes make the service fast, consistent and reliable; poor ones create frustration however friendly the staff.
Marketing strategies: map the customer journey and remove unnecessary steps; standardise key tasks; use technology for self-service where customers prefer it; keep customers informed; make complaints and refunds easy.
Example: Qantas. In October 2024 the Federal Court ordered Qantas to pay $100 million in penalties for selling tickets on flights it had already decided to cancel and for failing to notify about 884,000 customers of cancellations promptly. The failure was in Qantas's cancellation and notification processes, and its effect on trust was a marketing problem.
Physical evidence
Physical evidence is the tangible environment and items that help customers judge an intangible service: the premises (layout, décor, cleanliness, signage), staff uniforms, equipment, brochures, tickets and receipts, and digital evidence such as the website, app and online reviews.
Marketing strategies: design premises to match the brand position (a premium spa versus a budget gym); keep facilities clean and well maintained; make websites and apps easy to use; display credentials, awards and reviews.
Most goods are sold with services: advice in store, delivery, installation, returns and support. A retailer's staff (people), checkout and returns procedures (processes) and store and website (physical evidence) shape how customers see the goods themselves.
E-marketing
E-marketing is the use of the internet and digital technologies to achieve marketing objectives. It touches every element of the mix:
| Element | E-marketing examples |
|---|---|
| Product | Digital products and services; customisation online; customer reviews shaping product development |
| Price | Dynamic pricing; easy price comparison online (which increases price competition) |
| Promotion | Search engine optimisation (SEO) and paid search; social media content and advertising; influencer marketing; email and SMS; display and video advertising |
| Place | E-commerce websites and apps; online marketplaces; click-and-collect; home delivery |
| People, processes, physical evidence | Chat support; self-service accounts; website and app design as the "shop front" |
Advantages: reaches large or precisely targeted audiences at low cost; measurable (clicks, conversions, cost per sale); two-way interaction; available 24/7; personalisation using customer data.
Disadvantages and risks: intense competition for attention; rapid change in platforms; privacy and data security obligations under the Privacy Act; consent requirements for commercial emails and SMS under the Spam Act 2003; negative reviews and comments spread quickly; and new rules, such as the requirement since 10 December 2025 that age-restricted social media platforms prevent Australians under 16 from holding accounts, which removes those platforms as channels for reaching younger teenagers.
Stem. A new physiotherapy clinic in a regional town wants to build a client base.
- Promotion: local search and a Google Business profile (e-marketing) so people searching for physiotherapists find it; publicity through a free community injury-prevention workshop; relationship marketing with local GPs and sporting clubs; an introductory assessment offer (sales promotion); encourage satisfied clients to leave reviews (word of mouth).
- Place: a single, accessible location (direct channel) plus online booking and telehealth follow-ups.
- People: qualified, friendly physiotherapists and reception staff trained in customer service.
- Processes: online booking, reminders by SMS (with consent), short waiting times, simple payment and health fund claiming.
- Physical evidence: a clean, modern clinic; qualifications displayed; a professional website with clear prices.
Why it works: each element targets a stage of the buying process and builds trust in an intangible service.
The syllabus asks why a mix is important. Explain what each element does best and how they complement each other for the target market.
The channel is the route (direct or through intermediaries); intensity is how many outlets (intensive, selective, exclusive). They are separate decisions.
They are syllabus content and essential for services. Define each and give an example of a strategy for each.
E-marketing includes websites, search, email, apps, online marketplaces, data and personalisation, and it changes every P, not just promotion.
How this dot point appears in the HSC
- Section I: identify a promotion element, the intensity of distribution, or which extended-mix element a scenario shows.
- Section II: explain why a promotion mix is used, distinguish distribution intensities, or explain people, processes and physical evidence (3 to 6 marks).
- Section III: recommend promotion, place and service strategies for a hypothetical business, justified by its target market and objectives.
- Section IV: evaluate the marketing strategies of a good or service, including how well the promotion mix and distribution suit the target market.
Exam-style questions
Questions in the style of NESA exam questions on this dot point, each with a worked answer. They are written by ExamExplained unless tagged "Past paper"; the year shows the paper a question is modelled on.
Original5 marksExplain why a business uses a mix of promotional strategies rather than a single strategy.Show worked answer →
Marks guide (Original, modelled on NESA criteria). 5 marks: explains the purpose of several promotion mix elements and why combining them is more effective, with cause and effect and an example. 3-4 marks: describes promotion elements with some explanation of combining them. 1-2 marks: lists elements.
Model answer. Each element of the promotion mix does a different job. Advertising reaches a large audience quickly and builds awareness, but is one-way and expensive. Personal selling and relationship marketing give two-way, tailored communication that answers questions and builds long-term loyalty, but reach few people. Sales promotions (discounts, samples, competitions, loyalty points) create a short-term incentive to buy now, but can cheapen a brand if overused. Publicity and public relations build credibility because the message comes from a third party, but the business cannot fully control it.
Customers move through stages (awareness, interest, desire, action, loyalty), and no single element works well at every stage. For example, a new phone plan might use advertising to create awareness, publicity and reviews for credibility, in-store personal selling to help customers choose, a sales promotion (a bonus data offer) to prompt action, and a loyalty program to retain customers. Combining elements, with a consistent message, reaches more of the target market, suits different stages of the buying process and spreads risk, so it achieves marketing objectives more effectively than any one element alone.
Original4 marksDistinguish between intensive, selective and exclusive distribution. Give an example of a product suited to each.Show worked answer →
Marks guide (Original, modelled on NESA criteria). 4 marks: clearly distinguishes the three, linked to the type of product, with a suitable example of each. 2-3 marks: describes the three. 1 mark: some relevant information.
Intensive distribution places a product in as many outlets as possible, so it is available wherever and whenever customers want it. It suits cheap, frequently bought convenience goods such as soft drinks, bread and chocolate bars.
Selective distribution uses a limited number of outlets chosen for their location, image and service. It suits shopping goods that customers compare before buying, such as appliances, clothing brands and smartphones sold through selected electronics retailers and the brand's own stores.
Exclusive distribution uses one or very few outlets in each area, often with exclusive rights, to protect a premium image and ensure expert service. It suits luxury and specialist products such as prestige cars and high-end watches.
Distinction. As products become more expensive, more specialised and more image-sensitive, distribution becomes less intensive, trading reach for control over presentation and service.
Original6 marksExplain how people, processes and physical evidence contribute to the marketing of a service. Use examples.Show worked answer →
Marks guide (Original, modelled on NESA criteria). 5-6 marks: explains each of the three elements and how it shapes customers' experience and perceptions of a service, with accurate examples. 3-4 marks: describes the elements with some examples. 1-2 marks: some relevant information.
Why services need them. Services are intangible, produced and consumed at the same time, and vary with the person delivering them, so customers judge them by the people, the process and the physical surroundings.
People are everyone who delivers or influences the service. Their skills, attitude and training determine service quality. When the Federal Court ordered Optus to pay a $100 million penalty in September 2025 for unconscionable sales practices towards vulnerable customers, Optus committed to new training and induction for sales staff and a specialist team for vulnerable customers: a people strategy to rebuild trust.
Processes are the procedures and systems that deliver the service, such as booking, queuing, payment, complaints and refunds. Efficient, reliable processes make the service consistent. Qantas's failure to promptly notify customers of cancelled flights, for which the Federal Court ordered $100 million in penalties in October 2024, shows how a broken process damages the customer experience and the brand.
Physical evidence is the tangible environment and items that signal quality: premises, décor, cleanliness, uniforms, websites, apps, tickets and receipts. Because customers cannot test a service in advance, a well-designed app or a clean, attractive store signals that the service will be good.
Together the three make an intangible service more consistent, visible and trustworthy.
Practise this
Sources & how we know this
- Business Studies Stage 6 Syllabus (2010) — NSW Education Standards Authority (2010)
- Findings of the ACCC's internet sweep of testimonials and endorsements by social media influencers — ACCC (2023)
- Federal Court orders Optus to pay penalty for unconscionable conduct — ACCC (2025)
- Federal Court orders Qantas to pay penalties for misleading consumers — ACCC (2024)
- Catch wind down and OneDigital update — Wesfarmers (ASX announcement, 21 January 2025) (2025)
- PowerPass Pro Rewards — Bunnings Trade
- Everyday Rewards — Woolworths Group
- Social media age restrictions — eSafety Commissioner
- Business Studies HSC exam papers — NESA