1.10 Branding And Promotion

Question 1

Promotion

Answer 1

. 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

Question 2

Different promotion methods: advertising

Answer 2

Promotion through paid channels such as television, radio, print media (magazines), and online advertising

Question 3

Different promotion methods: advertising -> advantages

Answer 3

. 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

Question 4

Different promotion methods: advertising -> disadvantages

Answer 4

. Can be expensive
. The effectiveness of advertising can be difficult to measure
. Many customers tune out or ignore ads

Question 5

Different promotion methods: direct marketing

Answer 5

Communicating directly with customers through email, text message, social media or post

Question 6

Different promotion methods: direct marketing -> advantages

Answer 6

. 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

Question 7

Different promotion methods: direct marketing -> disadvantages

Answer 7

. 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

Question 8

Different promotion methods: sales promotions

Answer 8

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)

Question 9

Different promotion methods: sales promotions -> advantages

Answer 9

. 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

Question 10

Different promotion methods: sales promotions -> disadvantages

Answer 10

. 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

Question 11

Different promotion methods: personal selling

Answer 11

Occurs when a salesperson interacts with potential customers one-on-one, either in person or through digital communication channels

Question 12

Different promotion methods: personal selling -> advantages

Answer 12

. Allows businesses to build relationships with their customers and understand their specific needs
. Enables businesses to provide personalised advice and guidance to customers

Question 13

Different promotion methods: personal selling -> disadvantages

Answer 13

. 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

Question 14

Different promotion methods: sponsorship

Answer 14

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)

Question 15

Different promotion methods: sponsorship -> advantages

Answer 15

. 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

Question 16

Different promotion methods: sponsorship -> disadvantages

Answer 16

. 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

Question 17

Different promotion methods: public relations (PR)

Answer 17

. 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

Question 18

Different promotion methods: public relations ->advantages

Answer 18

. 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

Question 19

Different promotion methods: public relations -> disadvantages

Answer 19

PR can be time-consuming and is difficult to measure the direct impact of PR activities on the profits of a profits

Question 20

Different promotion methods: digital communications

Answer 20

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

Question 21

Different promotion methods: digital communications -> advantages

Answer 21

. Can be highly targeted to specific customer segments
. Can provide real-time engagement and feedback from customers

Question 22

Different promotion methods: digital communications ->

Answer 22

. 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.

Question 23

Branding

Answer 23

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

Question 24

Importance of branding

Answer 24

. 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

Question 25

Types of branding: manufacturer/corporate branding

Answer 25

. 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

Question 26

Types of branding: manufacturer/corporate branding -> advantages

Answer 26

. 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

Question 27

Types of branding: manufacturer/corporate branding -> disadvantages

Answer 27

. 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)

Question 28

Types of branding: product branding

Answer 28

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

Question 29

Types of branding: product branding -> advantages

Answer 29

. 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

Question 30

Types of branding: product branding -> disadvantages

Answer 30

. 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

Question 31

Types of branding: own brand product

Answer 31

. 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

Question 32

Types of branding: own brand product -> advantages

Answer 32

. 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

Question 33

Types of branding: own brand product -> disadvantages

Answer 33

Own brand products may have a lower perceived quality than branded products which can affect customer loyalty and trust

Question 34

Benefits of branding

Answer 34

. 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

Question 35

Ways to build a brand: unique selling point (USPs)

Answer 35

. 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

Question 36

Ways to build a brand: advertising

Answer 36

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

Question 37

Ways to build a brand: sponsorship

Answer 37

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

Question 38

Ways to build a brand: social media

Answer 38

With the right social media strategy, brands can build a loyal following and create a community around their brand Eg. Glossier

Question 39

Changes in Branding & Promotion to Reflect Social Trends

Answer 39

. 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

Question 40

Viral marketing

Answer 40

. 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

Question 41

Social media

Answer 41

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

Question 42

Emotional branding

Answer 42

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