1.3.2 Flashcards
What is Promotion?
Promotions generate customer awareness and interest for a product or service.
What are 6 types of Promotion?
Advertising
Sales Promotion
Direct Marketing
Personal Selling
Sponsorships
Public Relations
What is Advertising as a promotion method?
Advertising is using paid channels to promote products or services.
1 ADV of Advertising promotion method?
Reach large audience.
2 DISADV of Advertising as a promotion method?
Expensive
Not as targeted
What is Sales Promotion as a promotional method?
Offering temporary incentives to encourage purchases.
2 ADV of Sales Promotion?
Helps clear out unwanted stock
Can quickly boost sales.
2 DISADV of Sales Promotion?
Attracts non loyal customers looking for deals
Expensive if requires large discount
What is Direct Marketing?
Communicating directly with customers through email, text or social media.
1 ADV of Direct Mail?
Target a specific audience.
1 DISADV of Direct mail?
Costly if firms do not have a pre existing customer base.
What is Personal Selling?
Occurs when sales people interact with customers one to one.
1 ADV of Personal selling.
Targets specific audience.
2 DISADV of Personal Selling.
Expensive to hire new employees
Customers may find it intrusive
What is a Sponsorship?
Occurs when a firm provides financial support in return for marketing exposure from another organisation.
3 ADV of Sp onsorships>?
Can create emotional connections
Brand awareness
Reach target audience
2 DISADV of sponsorships?
Expensive for high profile organisations
Could be subject to negative publicity
What are Public Relations?
Building relations with the public and managing their reputation.
2 ADV of Public Relations?
Can enhance business reliability
Increase customer loyalty
What is Branding?
Branding is when a firm has differentiated itself from others and become recognisable.
Why is Branding important to have? 7 reasons
Firm becomes recognisable
Firm begins to have trust and reliability
Ability to charge premium prices
Helps repeat Purchases
Add value (perceived as higher quality and trust)
Develop barriers of entry
Reduce the price elasticity
What are 3 types of Branding?
Product branding
Manufacture/corporate branding
Own brand Branding
What is Product Branding?
Refers to using a unique name or design to remote specific products.
What are 1 ADV of product branding?
Allows the firm to make products for different market segments
What are 2 DISADV of product branding?
Cost of creature bag a new brand for each product can be expensive
Introducing new products under different brands is time consuming.
What is Manufacturer/Corporate Branding?
Refers to the use of a company name or logo to promote a product.
What are 2 ADV of Corporate branding?
Economies of scale by promoting multitalented products under one brand
Strong brand recognition increases trust
2 DISADV of Corporate Branding?
If companies reputation is damaged it may affect all products negatively.
If company faces intense competition in one market it may impact other products offered.
What is Own Brand Branding?
Refers to the use of retailers name to promote specific products.
2 ADV of Own branding?
Build customer loyalty if products aren’t sold elsewhere
Promote products cheaper which can pass on lower prices to customers.
1 DISADV of Own Brand Branding?
Quality can be perceived as poor.
What are 3 ways to build a brand?
USP
Advertising
Sponsorships
How could USP build a brand?
USP are features that make a product stand out over rivals
Emphasising USP in their marketing efforts
How could advertising be used to build a brand?
This way firms can build emotional connections and inspire brand loyalty.
How can sponsorships build brands?
Firms can gain exposure by showing what values align with them and create a community.
Changes in Branding and promotion to reflect social trends?
Businesses which respond quickly to social trends can better meet customer needs
Quickly adapting branding, will help gain customers and develop connections.
What is Viral Marketing?
A strategy where business create content and post it on social media at specific times, in order to promote products.
What is social media?
As social media evolves, business must adapt their strategies to keep up with latest trends.
What is Emotional Branding?
Emotional branding is a strategy where companies build strong connections with their customers to appeal to their values.
