1.10 Branding And Promotion Flashcards
Promotion
. Important element of marketing mix -> generates customer awareness, interest and desire
. Business can communicate value proposition (reason why customer would choose your product or service)
. Helps build brand awareness and loyalty
Different promotion methods: advertising
Promotion through paid channels such as television, radio, print media (magazines), and online advertising
Different promotion methods: advertising -> advantages
. It can reach large audiences and increase brand awareness
. Can also be used to create a specific brand image or message, e.g. the advertising campaign run by Compare the Market
Different promotion methods: advertising -> disadvantages
. Can be expensive
. The effectiveness of advertising can be difficult to measure
. Many customers tune out or ignore ads
Different promotion methods: direct marketing
Communicating directly with customers through email, text message, social media or post
Different promotion methods: direct marketing -> advantages
. Businesses can target specific audiences and personalise their message to individual customers
. Direct marketing is also measurable, which enables businesses to track their results and adjust their strategy accordingly
Different promotion methods: direct marketing -> disadvantages
. Can be intrusive as customers may perceive it as spam
. Can also be costly, especially if businesses do not have an established customer database or need to purchase leads
Different promotion methods: sales promotions
Techniques that encourage the purchase of a product by offering temporary incentives or discounts such as free samples, buy one get one free (bogof), discount coupons, loyalty cards, and rebates (customers have to mail in to receive money back)
Different promotion methods: sales promotions -> advantages
. Can quickly boost sales or customer engagement
. Can help to clear out stock or promote a new product
. Can encourage impulse purchases
. Can be targeted to specific segments of customers
Different promotion methods: sales promotions -> disadvantages
. Can be expensive especially if the promotion requires a heavy discounting
. Can attract deal-seeking customers who may not be loyal to the brand
. May reduce the sales of full-priced products
Different promotion methods: personal selling
Occurs when a salesperson interacts with potential customers one-on-one, either in person or through digital communication channels
Different promotion methods: personal selling -> advantages
. Allows businesses to build relationships with their customers and understand their specific needs
. Enables businesses to provide personalised advice and guidance to customers
Different promotion methods: personal selling -> disadvantages
. Can be expensive due to the cost of hiring and training sales staff
. The impact of personal selling can be limited as it is difficult to scale to large audiences
Different promotion methods: sponsorship
An agreement where a company provides financial or other support to an event, team, or organization in exchange for marketing exposure
Can take many forms, such as logo placement or naming rights (Arsenal Emirates Stadium)
Different promotion methods: sponsorship -> advantages
. Can help to build brand awareness and credibility
. Can create emotional connections with target audiences
. Can support specific business objectives, such as entering new markets or reaching new customers
Different promotion methods: sponsorship -> disadvantages
. Can be expensive, especially for high-profile events or properties
. May not directly drive sales
. May be subject to negative publicity if the sponsored entity experiences a scandal or controversy e.g. In 2022 Kanye West was dropped by Adidas after his anti Semitic outbursts
Different promotion methods: public relations (PR)
. Building relationships with the public and managing reputation
. Public relations activities can include media relations, crisis management and community outreach
E.g.in 2018 KFC in Ireland ran out of chicken due to some supply chain issues and ran a brilliant PR strategy in which they rearranged the letters in their name to FCK and owned the problem
Different promotion methods: public relations ->advantages
. Can enhance a business’s reputation and credibility
. This can lead to increased customer loyalty and sales
. Can be cost-effective when compared to advertising or personal selling
Different promotion methods: public relations -> disadvantages
PR can be time-consuming and is difficult to measure the direct impact of PR activities on the profits of a profits
Different promotion methods: digital communications
Any form of marketing or communication that is delivered electronically, such as social media, search engine optimisation (SEO), or mobile apps such as Instagram and Twitter
- Can be used for building brand awareness, generating leads, or driving sales
Different promotion methods: digital communications -> advantages
. Can be highly targeted to specific customer segments
. Can provide real-time engagement and feedback from customers
Different promotion methods: digital communications ->
. Can be easily ignored or filtered out by customers
. May require significant investment in technology or data infrastructure
. May be subject to data privacy regulations or security breaches
. May not be effective for reaching older or less digitally-savvy customer segments.
Branding
Branding is the process of creating a unique and identifiable name, design, symbol, or other feature that differentiates a product or company from its competitors
Importance of branding
. Establishes recognition and identity
. Builds trust and credibility
. Differentiation from competitors
. Creates emotional connection w/customers -> generates repeat purchases
. Branding supports marketing and advertising efforts
Types of branding: manufacturer/corporate branding
. This refers to the use of a company name or logo to promote all the products or services offered by the company
. This type of branding is used by companies like Nestlé, Nike, and Apple
Types of branding: manufacturer/corporate branding -> advantages
. Creates strong brand recognition and reputation for the company, which can increase customer loyalty and trust
. Allows the company to leverage its existing reputation and customer base to introduce new products more easily
. It helps build economies of scale by promoting multiple products under one brand, which can reduce marketing costs and increase profitability
Types of branding: manufacturer/corporate branding -> disadvantages
. If a company’s reputation is damaged by a product, it can have a negative impact on all the products offered under that brand
. If the company faces intense competition in one market (e.g. smartphones), it may affect the sales of all the products offered across other markets (e.g .laptops and desktops)
Types of branding: product branding
This refers to the use of a unique name, design, or symbol to promote a specific product
E.g. KitKat, Coca-Cola, and McDonald’s Big Mac
Types of branding: product branding -> advantages
. Creates a distinct identity for the product, which can help to differentiate it from competitors and increase brand loyalty
. Allows the company to market different products to different segments of the market, e.g. Coco Cola and Coke Zero
. Can help to build customer loyalty and trust by associating the product with a specific quality and benefits, e.g. Dyson Vacuum Cleaners
Types of branding: product branding -> disadvantages
. The cost of creating and promoting a new brand for each product can be expensive
. Introducing new products under different brands is difficult as the business must build a new brand for each product from scratch
. Different products within the brand may have different levels of quality, which can affect customer satisfaction
Types of branding: own brand product
. Own brand or private label branding refers to the use of a retailer’s name to promote a specific product or service
. Own branding is often used by supermarkets
E.g. ASDA chocolate, Tesco’s Finest range, and Sainsbury’s Basics range
Types of branding: own brand product -> advantages
. It can help retailers differentiate themselves from their competitors by offering unique products
. It allows retailers to offer products at a lower cost than branded products, which can help to increase sales and profitability
. It can help to build customer loyalty by offering exclusive products that are not available elsewhere
Types of branding: own brand product -> disadvantages
Own brand products may have a lower perceived quality than branded products which can affect customer loyalty and trust
Benefits of branding
. Added value
. Ability to charge premium prices -> customer will be willing to pay more + brand perceived as higher quality
. Reduced elasticity of demand -> more loyal customers
Ways to build a brand: unique selling point (USPs)
. USPs are the features that make a product/service stand out from its competitors
. Brands can build their reputation by emphasising these unique qualities in their marketing efforts
Eg. Apple is known for its innovative and sleek designs and use of quality materials
Ways to build a brand: advertising
Brands can create compelling ads that resonate with their target audience, raise brand awareness, and communicate their value proposition
With the right advertising strategy, brands create a strong emotional connection with their audience and inspire brand loyalty
Eg. Coca Cola “share a coke” campaign
Ways to build a brand: sponsorship
Partnering with events, organisations, or individuals can help brands gain exposure and build their reputation by aligning themselves with positive associations or values
Eg. Nike sponsors high-profile athletes
Ways to build a brand: social media
With the right social media strategy, brands can build a loyal following and create a community around their brand
Eg. Glossier
Changes in Branding & Promotion to Reflect Social Trends
. Being able to adapt quickly their branding and promotion methods will ensure that they maximise communication opportunities with customers
- develops brand and loyalty and increase profits
Viral marketing
. Is a strategy where businesses use online platforms to promote their products by creating content at specific times, which can easily be shared and commented on
E.g. During the COVID-19 pandemic, Coca-Cola and McDonald’s ran campaigns that emphasised community, which aligned with the public’s need for social support
Social media
As social media platforms evolve, businesses must also adapt their social media strategies to keep up with the latest trends
E.g. Instagram has been a popular platform for businesses to promote their products through influencer partnerships
More recently, many businesses have shifted their focus to promoting their brands through short-form video content on platforms like TikTok
Emotional branding
Emotional branding is a strategy where companies build strong emotional connections with their customers by appealing to their values, beliefs, and emotions
E.g. Brands like Patagonia and TOMS have built their entire brand identities around their commitments to environmental and social causes, which resonates with customers who prioritise these values
