1.3.2 Branding and Promotion Flashcards
What is Promotion and why is designed?
Promotion is designed to inform consumers about a product, or persuade them to buy it.
What is promotional mix
The combination of promotional activities that a business uses in order to create consumer awareness and generate sales
What are the main element of the promotional mix?
- Advertising
- Sales promotion
- Merchandising
- Personal selling
- Public relations
- Direct Marketing
What are some uses of promotion?
- Increase sales
- Attract new customers
- Encourage customer loyalty
- Create awareness
- Inform
- Launch a new product
- Encourage brand switching
What are the two main aims of promotion?
- Informative Advertising –> To ensure that customers are aware of the existence and positioning of
products - Persuasive Advertising –> To persuade customers that the product is better than competing
products and to remind customers about why they may want to buy
What are 7 types of promotion?
- Sponsorships
- Personal selling
- Sales promotion
- Public Relations
- Direct Marketing
- Viral Marketing
- Branding
What are some uses of promotion?
- Increase sales
- Attract new customers
- Encourage customer loyalty
- Create awareness
- Inform
- Launch a new product
- Encourage brand switching
What key factors influence promotional decisions and strategy?
- Stage in the product’s life cycle
- Nature of the product
- Competition
- Marketing objectives and budget
- Target Market
What are the advantages of advertising?
- Wide coverage
- Control of message
- Repetition means that the message can be communicated effectively
- effective for building brand awareness and loyalty
What are the disadvantages of advertising?
- Often expensive
- Impersonal
- One way communication
- Lacks flexibility
- Limited ability to close a sale
What is Personal Selling?
Promotion on a person-to-person basis
What are the advantages of personal selling?
- High customer attention
- Message is customised
- Persuasive impact
- Potential for development of relationship
- Adaptable
- Opportunity to close the sale
What are the disadvantages of personal selling?
- High cost
- Labour intensive
- Expensive
- Can only reach a limited number of customers
What are some examples of sales promotion?
- Coupons
- Money off of product
- Free samples
- Loyalty points
- Free gifts
- BOGOF
- Merchandising
- Trade in offers
What are the advantages of sales promotion?
- Effective at achieving a quick boost to sales
2. Encourages customers to trial a product or switch brands
What are the disadvantages of sales promotion?
- Sales effect may only be short-term
- Customers may come to expect or anticipate further promotions
- May damage brand image
What is Public Relations (PR)?
Communicating with the media such as newspapers, television and radio in order to get favourable publicity for the organisation.
What are typical PR activities?
- Promoting new products
- Enhancing public awareness
- Projecting a business image
- Promote social responsibility
- Projecting business as a good employer
- Obtain favourable product reviews / recommendations
What is sponsorship?
A method of promotion in which a business gives money to an organisation or event. In return, the organisation or event displays the business’s name.
What is Direct Marketing?
It is promotional material directed through mail, email, social media or phone to individuals or businesses
What are the advantages of direct marketing?
- Focus limited resources on targeted promotion
- Can personalise the marketing message
- Easy to test different marketing messages
- Cost-effective if customer database is well-managed
What are the disadvantages of direct marketing?
- Negative image of junk mail and email spam
2. Databases expensive to maintain and keep accurate
What is Viral Marketing?
Uses social media and online platforms to try to produce increases in brand awareness or to achieve other marketing objectives
What is a Brand?
A clear and obvious logo, name or statement that customers can instantly recognise as being related to a certain product or business.
What are the benefits of effective/strong branding?
- Adds value
- Able to charge higher prices, and demand is more inelastic
–> If a product is inelastic, a business can charge a higher price because a price decrease
will only very slightly reduce demand. - Builds customer loyalty
What way are their to build a brand?
- USP / Differentiation
- Advertising
- Sponsorship
- The use of social media
What are the types of branding?
- Product brand
- Service brand
- Umbrella (‘family’) brand
- Corporate brands
- Own-label brands
- Global brand
What is a Product Brand?
Brands associated with specific products.
What are the advantages of product branding?
- Branded products can charge a higher price than non-branded products
- -> Businesses therefore can expect higher profits from branded cash cows - Good/Effective branding differentiates the product and creates customer loyalty
What are the disadvantages of product branding?
- Product branding may require a high investment
2. Product branding may take many years to build up
What is a Service Brand?
Brands that add perceived value to services, either delivered face-to-face or via online & apps
What is an Umbrella (‘Service’) Brand
Brands that are assigned to more than one product. Umbrella branding makes different product lines easily identifiable by the consumer by grouping them under one brand name.
What is a Corporate Brand?
A corporate brand promotes the brand name of a corporate entity, as opposed to specific products or services.
What are Own-Label Brands?
Retail outlets assign their corporate branding to a range of goods and services
–> E.G.Essential Waitrose, Tesco finest, Sainsbury’s basics etc
What are Global Brands?
Brands which are easily recognised and operates worldwide.
What is Brand Extension?
When a business uses a brand name on a new product that has some of brand’s characteristics
What causes changes in branding and promotion to reflect social trends?
- Viral Marketing
- Social Media
- Emotional Branding
