11: Branding and Promotion Flashcards
1
Q
Branding (3)
A
- The process of creating a distinctive and lasting identity
- In the minds of consumers
- Takes considerable time and marketing effort
2
Q
Advantages of strong branding COA (7)
A
- Strong branding creates brand loyalty
- as customers feel an affinity to the brand
= Lower price elasticity
- as customers are less price sensitive
- Enabling producers to raise prices and maintain sales volumes
= Higher contribution per unit
= Higher gross profit margin
3
Q
Types of Brand (3)
A
- Individual brand
- Brand family
- Corporate brand
4
Q
What are Individual brands + benefit (2)
A
- Stand on their own brands e.g. marmite
+ Bad publicity for one has no effect on the others
5
Q
What is a brand family + benefit (4)
A
- A series of products branded together
- Adds value and acceptability
- Meaning consumers are more willing to try new products
- So NPD is more likely to be a success
6
Q
What is a corporate brand + benefit (2)
A
- A firm that puts its logo on everything
+ Reinforcing corporate brand adds credibility to the individual brand names
7
Q
(1) Ways to build a brand (8)
A
- Sponsorship
- E.g. Red Bull extreme sports
- Digital Media
- E.g. using Adwords
8
Q
(2) Ways to build a brand (8)
A
- USPs
- Can be a temporary benefit as features are copied
Advertising
- Reinforces messages of the quality of the brand
9
Q
Advantages of using digital marketing (3)
A
- Target specific demographics/locations/market segments
- Interactivity between consumer and brand with social media
- Can create a bond/heightened interest
- So greater brand loyalty
- as customers feel an affinity to the brand
= Lower price elasticity
- as customers are less price sensitive
- Enabling producers to raise prices and maintain sales volumes
= Higher contribution per unit
= Higher gross profit margin
10
Q
What is Emotional Branding and a benefit (3)
A
- A marketing attempt to create a two-way connection with the brand
- By appealing to consumers’ emotions
- Long term brand loyalty and product differentiation
11
Q
Long-term promotional strategies (5)
A
- Public relations
- Affecting consumers’ image of a product
- Persuasive advertising
- Designed to create a distinctive image
- Which creates product differentiation
12
Q
Short-term promotional strategies (5)
A
- Seasonal price promotion
- E.g. seaside hotels
- Effective way to boost capacity utilisation and cash flow
- BOGOF
- Undermines credibility for short-term boost in demand
13
Q
Corporate brand (1)
A
- A brand that represents the whole company as well as its products
14
Q
Crowdfunding (2)
A
- Obtaining external finance from many individual, small investments
- Usually through a web-based appeal
