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A Level Business Year 12 Until 1.3.5 > 1.3.2 Branding And Promotion > Flashcards

1.3.2 Branding And Promotion Flashcards

1
Q

What is promotion used for

A
  • Tell consumers about a new product
  • Remind customers about an existing product
  • Reach a widely dispersed, target audience
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2
Q

Definition: Promotion

A

• The use of marketing tools to bring a product or service to the attention of potential buyers

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3
Q

Types of promotion

A
  1. Personal selling
  2. Direct marketing
  3. Above-the-line marketing
  4. Below-the-line marketing
  5. Public Relations (PR)
  6. Sponsorship
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4
Q

What is personal selling?

A

• Personal selling is an effective way to manage business to customer relationships
• The sales person acts on behalf of the organisation and is useful to customers as a technical advisor
• Sales people are well trained in the approaches and techniques of personal selling
• However, sales people are very expensive in terms of salary, training, commission

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5
Q

What is direct marketing

A

• Highly focussed targeted mail based on what customers have bought before
• Can be e-mail or by post
• May be special offers to re-engage customers who have stopped buying
• Carefully tailored to items that customers have bought before e.g. holidays, hotels, travel deals

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6
Q

What is above the line advertising?

A

• Above-the-line (ATL) marketing involves mass media methods for targeting larger and more general customers
• Radio
• TV
• Cinema
• Print adverts e.g. in newspapers and major magazines
• Outside adverts e.g. billboards

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7
Q

Above-the-line advantages and disadvantages

A

Advantages:

• ATL is tailored to reach a mass audience
• Advert communication is repeated so the message is clear e.g. “simples” and “go compare”
• Great for building brand awareness

Disadvantages:

• Disadvantages are that this is a very expensive method and it is difficult to measure clear results from campaigns
• Very expensive e.g. A radio ad on a national station can cost about £10,000 for a week

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8
Q

Below the line Advertising

A

• Below-the-line (BTL) marketing is the same as direct marketing for reaching smaller but more targeted audiences
• The main methods include:
• Public relations e.g. Ryanair PR
stunts
• Search engines
• Events e.g. restaurant launch
• Social media marketing

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9
Q

Below-the-line advantages and disadvantages

A

Advantages :

• Easy to measure if the campaign has reached an audience e.g. through number of website visits, conversion rates, click through rates
• Easy and inexpensive to use social media to increase brand awareness
• BTL is more targeted to specific niche segments rather than aiming at the whole mass market

Disadvantages :

• Extensive training on working social media and IT may be needed for marketing staff
• Deeper understanding of customer or buyer behaviour is required e.g. what do they read, what websites do they visit
• Targeting diverse cultures with the same theme is difficult

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10
Q

Public Relations

A

• Public relations is also known as PR
• PR aims to build a relationship between the business and the public, to create a favourable corporate image
• PR is unpaid communication about an organisation which appears in mass media
• PR can include publicity stunts

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11
Q

Public relations long-term

A

• PR is a long-term not a short-term strategy
• PR is very low expenditure –e.g. a business could send its products to the local paper for a “review”
• PR gives the business less control over what is said BUT consumers find it more believable / authentic

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12
Q

Sponsorship

A

• Positive association of the product with a celebrity or a sport
• Can be very expensive e.g. £125m
• Difficult to tell what impact this has on brand loyalty or sales

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13
Q

Different sales types of sales promotions?

A
  1. BOGOFF
  2. Price discounts
  3. Money off coupons
  4. Samples / giveaways
  5. Special events
  6. Point of sale
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14
Q

What is BOGOF?

A

❑ BOGOF stands for buy one get one free
❑ In a BOGOF sales promotion a business offers one item free when another one is bought
❑ Used to encourage customers to go into the shop or buy the item

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15
Q

Advantages of BOGOF?

A

✔ Very popular with shoppers
✔ Encourages trial and use of the product
✔ Good way to encourage shoppers to switch from their normal brand
✔ Boosts sales, therefore sales revenue will increase

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16
Q

Disadvantages of BOGOF?

A

£ Loss of profit because there is an increase in costs, this will not be balanced by the increase in sales
£ Only useful in the short-term

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17
Q

Price discounts

A

Price discounts means that the normal RRP (recommended retail price) of the product or service has been reduced

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18
Q

Advantages of price discounts

A

Great way to clear old or out-of-date stock

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19
Q

Disadvantages of price discounts

A

£ Customers may regard the business as a cheap option
£ Too many discounts and customers become suspicious
e.g. the DFS sale that is always on

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20
Q

Money off coupons

A

❑ Coupons can be used to capture new customers – to add an incentive
❑ Coupons can also be used with existing customers to encourage an impulse spend
❑ Companies like BZZ agent give out coupons in return for reviews

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21
Q

Advantages of Money off coupons?

A

✔ Coupons can help the customer feel they are getting better value for money
✔ Coupons are available from websites, loyalty cards, store magazines and on the back of some packs to encourage repeat purchase

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22
Q

Disadvantages of Money off coupons?

A

£ Reduced profits from the cost of running the promotion
£ Some customers may be waiting for the coupons before
they purchase
£ Customers may have been wanting to make a purchase
anyway

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23
Q

Samples / giveaways

A

❑ This is where a business may send out or give customers free samples in order to persuade them to try the product for the first time
❑ Giveaways may occur on the front of a magazine e.g. matchattax cards on a football magazine

24
Q

Advantages of Samples / giveaways?

A

✔ Ideal for new product launches
✔ Works especially well with some products e.g. shampoo, food etc.
✔ Encourages word-of-mouth promotion

25
Q

Disadvantages of Samples / giveaways?

A

£ Can be complicated to send in the post – needs a database of customers
£ Can be expensive as giving away some of the product for free

26
Q

Special events

A

❑ Special events are activities that the business does to encourage consumers to try the product
❑ Events can be; shows, fetes, fairs, or an events at the business e.g. a special tasting evening at a restaurant

27
Q

Advantages of special events?

A

✔ Encourages customers to attend
✔ Rewards loyal customers with a special event
✔ Ideal for small businesses

28
Q

Disadvantages of special events?

A

£ Can be expensive
£ Hard to measure how valuable this
marketing is

29
Q

Point of sale

A

❑ Point of sale display is usually a cardboard display stand located close to the till within a shop
❑ This is to draw customer attention and trigger an “impulse” purchase

30
Q

Advantages of point of sales?

A

✔ Ideal way to promote new products
✔ Works best with products that have an event or holiday tie in e.g. crème eggs for Easter
✔ Manufacturers can add extra punch to the promotion by giving a discount

31
Q

Disadvantages of point of sales?

A

£ Only successful if the product meets the needs of the customer
£ Needs to be designed and out to stores in time for the event / holiday
£ Displays may be put in poor locations by shops e.g. next to a broken till or one that is rarely opened

32
Q

Different types of digital communications?

A
  1. Online adverts
  2. Mobile communications
  3. “Advergaming”
  4. Social media
  5. Consumer generated content
  6. Viral strategies
33
Q

Advantages and disadvantages of online adverts?

A

✔ Powerful ad management tools can deliver accurate data and statistics about effectiveness of the adverts
✔ Potential to reach large markets of customers shopping online

£ Customers may ignore the ads
£ Ads may get lost amongst all the content
and other ads
£ Click through ads can be expensive

34
Q

Advantages and disadvantages of mobile communications?

A

✔ Mobile marketing can be used to extend the online reach so that customers can interact with the brand whilst on the move
✔ Doing m-commerce transactions do not require the users to plug in a computer or wait for the laptop to load

• Small screen the message may be lost or distorted
• Security issues of conducting transactions online
• Websites now need to be adapted to be mobile friendly
which can be an expensive process

35
Q

What is advergaming ?

A

❑ An advergame is a video game which contains an advert for a product, service or business
❑ It may also be a corporate website that contains a game which is designed to attract customers
❑ For example in a car racing game the cars may pass billboards which are genuine adverts

36
Q

Advantages and disadvantages of Advergaming?

A

✔ Customers will be concentrating on the game so are more likely to concentrate on the brand message
✔ Many games are multi-player reaching huge audiences
✔ Many consumers except that there will be adverts in games

£ If the game and the brand don’t make sense together the message is lost – wrongly targeting a game with car adverts for example
£ Many games are played by consumers too young to make a purchase decision

37
Q

Advantages and disadvantages of social media?

A

✔ Customers can be kept informed of new products
✔ Increases customer engagement with the brand
✔ Can show customer service with a quick response

• Blogs, twitter, Facebook pages all need to be updated on a regular basis which means hiring committed staff – which is an additional cost

38
Q

What is consumer generated content?

A

❑ This means any form of
content such as video, blogs, discussion form posts, digital images, audio files, and other forms of media that was created by consumers

39
Q

Advantages and disadvantages of Consumer generated content?

A

✔ Opportunities for consumers to read reviews before they make the purchase e.g. Trip Advisor
✔ Positive responses to complaints can be very valuable marketing and reputation enhancement for the business

• Consumers have lots of ways of publicly complaining about a product or service
• Not just about brands anymore, now about online reputation, which could be expensive to manage (hire staff)

40
Q

What are viral strategies?

A

❑ Viral marketing describes any strategy that encourages customers to pass on a marketing message to others, creating the potential for exponential growth in the message’s exposure and influence.
❑ Like viruses, such strategies take advantage of rapid multiplication to explode the message to thousands, to millions

41
Q

Advantages and disadvantages of viral strategies?

A

✔ Consumers spread the message amongst themselves which reduces costs and also increase authenticity of the brand message as it is endorsed by a friend

£ Can be so complex that the original message is lost
£ Still new idea so hard to get funding for this kind of campaign from some of the more traditional companies

42
Q

Definition: Branding

A

A brand is a characteristic name or symbol that distinguishes one product from another supplier

43
Q

Advantages and disadvantages of Manufacturer / corporate branding

A

Advantages:
- Spreads the cost of marketing across all the individual brands
- Awareness of the company can be worldwide e.g. Coca Cola

Disadvantages:
-Takes a long time to build a solid brand image
- Any unfavourable incidents e.g. a product recall and the whole brand suffers
- Too much advertising exposure can cause indifference towards the brand

44
Q

Advantages and disadvantages of product branding?

A

Advantages:
-Branded products can command higher prices that non-branded
- Businesses therefore can expect higher profits from branded cash cows
- Good branding differentiates the product and creates customer loyalty

Disadvantages:
- Product branding may require a high investment
- Product branding may take many years to build up
- Limited flexibility when the product tries to develop new lines in the range beyond what they are known for

45
Q

Advantages and disadvantages of Own brand products

A

Advantages:
- Boosts customer loyalty to the supermarket
- Competes with manufacturers brands
- Fills gaps left by the competition

Disadvantages:
- Store brands are a mixed bag and can be made by numerous companies under the supermarket’s name, so ketchup might be great but cornflakes might taste like carpet tiles

46
Q

What is rebranding?

A

Rebranding is a marketing strategy in which a new:
• Name
• Symbol
• Term
• Design
• Or combination of the above

47
Q

The benefits of strong branding

A
  • added value
  • Ability to charge premium prices
  • Reduced PED : A well known brand will make the product more price inelastic- in other words it will reduce the PED
48
Q

Ways to build a brand

A
  • USP’s / Differentiation
  • Advertising
  • Sponsorship
  • Social media
49
Q

What is a USP?

A

• USP stands for unique selling point – these are the small details that makes one product or business different from another
• These USPs can be exploited to build the brand

50
Q

Emotional branding

A

The practice of using the emotions of a consumer to build a brand

51
Q

Generic brands

A

Products that only contain the name of the product category rather than the company or product name

52
Q

Manufacturer bands

A

Brands created by the producers of goods or services

53
Q

Marketing mix

A

The elements of a business marketing that are designed to meet the needs of customers. The four elements are often called the four ps, product , price, promotion and place.

54
Q

Merchandising

A

A promotion, specifically at the point of sale of a product

55
Q

Own-label,private brands

A

Products that are manufactured for wholesalers or retailers by other businesses

56
Q

Viral marketing

A

Any strategy that encourages people to pass on messages to others about a product or a business electronically

A Level Business Year 12 Until 1.3.5 (10 decks)

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