1.3.2 Branding And Promotion

Question 1

What are the below-the-line types of promotion

Answer 1

• sales promotions
• personal selling
• direct marketing
• public relations PR
• sponsorship
• merchandising

Question 2

explain and evaluate personal selling

Answer 2

• Salespeople act on behalf of the organisation
• well-trained people with knowledge about the products
  + allows people to engage with someone ask questions, gain trust for the business
  X people may find it intrusive and not engage, this can also negatively affect brand image
  X this may make it inefficient as the salespeople do not engage with enough people

Question 3

What is direct marketing

Answer 3

• highly focused mail based on the customer’s activity
• carefully tailored to re-engage customers

Question 4

What is above-the-line advertising (give example)

Answer 4

• advertising through mass media that the business pays for
• targets a large audience and general customers
  E.g. radio or TV

Question 5

What is below-the-line advertising (give example)

Answer 5

• Direct marketing for reaching smaller and more targeted customer bases
  E.g. leaflets, posters, local radio

Question 6

What are public relations

Answer 6

• Aims to build a relationship between the business and the public
• unpaid communication about an organisation in mass media

Question 7

What is sponsorship

Answer 7

Positive association of a product/service with a popular celebrity or sport

Question 8

Define branding

Answer 8

• A brand is a characteristic name or symbol that distinguishes one product from another supplier
• characteristics that make a business recognisable

Question 9

Name all the types of branding

Answer 9

• manufacturer/corporate branding
• product branding
• own brand products
• rebranding

Question 10

What is manufacturer or corporate branding

Answer 10

• aims to build communications and relationships between the business name and the consumer
• business may own several brands e.g. nestle owning Kitkat
• may use images and slogans to establish brand

Question 11

Pros and cons of corporate branding

Answer 11

Pros
- spreads cost of marketing across all brands
- awareness of the company can be worldwide
Cons
- time consuming to build a solid brand
- unfavourable incidents affect whole brand
- too much advertising causes indifference towards the brand

Question 12

What is product branding

Answer 12

• Aims to show the customer the feature and benefits of a product to differentiate it

Question 13

Pros and cons of product branding

Answer 13

Pros
- well branded products can command higher prices = higher profits
- builds customer loyalty
Cons
- branding requires high investment
- branding can take years
- limited flexibility when developing the brand

Question 14

What are own brand products

Answer 14

products made by a manufacturer on behalf of a supermarket

Question 15

Pros and cons of own brand products

Answer 15

Pros
- builds customer loyalty for the supermarket
- competes with brands
- fills gaps left by competition (low pricing)
Cons
- some products can be bad

Question 16

What is rebranding

Answer 16

• Marketing strategy in which a new name, symbol, term, design or combination is developed
• aims to differentiate identity amongst customers, investor and competition

Question 17

What are the benefits of strong branding

Answer 17

• added value
  E.g. the kudos of designer clothes
• the ability to charge premium prices
  E.g. Vaseline + biro
• reduced PED and YED
  Consumers are likely to pay for the brand despite price changes
• brand loyalty
• aids new product development, consumers more confident to purchase products from trusted recognisable brands

Question 18

Name the ways to build a brand

Answer 18

• ULTIMATELY built through promotion
• USP’s /differentiation- helps convince customers for one brand over another
• advertising, maintains consumer awareness
• sponsorship
• social media, viral marketing on social media such as TikTok can spread brand awareness at a rapid rate, this can be a low cost technique if successful, however a business may experience a loss of control on social media as negative images spread

Question 19

What is emotional branding

Answer 19

Branding Triggers an emotional response so people buy the product
E.g. maltesers have created an emphasis on sharing and enjoying time with friends
- this type of branding requires lots of market research

Question 20

what is merchandising and how is it achieved

Answer 20

• refers to how the product is displayed and laid out to be eye-catching
• posters, leaflets, lighting
• business would also want to keep shelves well stocked to convey a positive image

Question 21

what is sales promotion and how is it achieved

Answer 21

• incentives encouraging people to buy
• includes coupons, free gifts, loyalty cards etc.
• helps boost sales in the short term
• can be used to gain increased market share
• can also be used to maintain customers