1.3.2 Branding and Promotion Flashcards
promotion
-generates customer awareness, interest and desire for a product/ service
-builds brand awareness and loyalty, leading to repeat purchases and referrals
give different promotional strategies
advertising
direct marketing
sales promotion
personal selling
sponsorship
public relations (PR)
digital communications
advertising
paid channels such as television, radio, print media and online ads
+ of advertising
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 (Meerkat)
- of advertising
Can be expensive
The effectiveness of advertising can be difficult to measure
Many customers tune out or ignore ads
direct marketing
Involves communicating directly with customers through email, text message, social media or post
+ of direct marketing
Business 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
- of direct marketing
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
Sales promotion
offering temporary incentives or discounts such as free samples, buy one get one free (bogof), discount coupons, loyalty cards
+ of sales promotion
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
- of sales promotion
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
personal selling
Occurs when a salesperson interacts with potential customers one-on-one, either in person or through digital communication channels
+ of personal selling
Allows businesses to build relationships with their customers and understand their specific needs
Enables businesses to provide personalised advice and guidance to customers
- of personal selling
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
sponsorship
an agreement in which a company provides financial or other support to an event, team, or organization in exchange for marketing exposure
+ of sponsorship
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
- of sponsorship
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
PR
public relations
The business seeks to build relationships with the public and manage their reputation
Public relations activities can include media relations, crisis management and community outreach
+ of PR
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
- of PR
PR can be time-consuming and is difficult to measure the direct impact of PR activities on the profits of a profits
digital communications
Refer to any form of marketing or communication that is delivered electronically
+ of digital communications
Can be highly targeted to specific customer segments
Can provide real-time engagement and feedback from customers
- of digital communications
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.
branding
the process of creating a unique and identifiable name, design or symbol that differentiates a product or service form its competitors
why is branding important to a business?
-establishes recognition and identity
-builds trust and credibility
-differentiates a business from its competitors
-creates an emotional connection with customers which helps to generate repeat purchases
-supports marketing and advertising efforts
give the three different types of branding
product branding
own brand product
manufacturer/ corporate branding
Manufacturer/Corporate branding
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
+ of Manufacturer/Corporate branding
Creates a 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
Helps to build economies of scale by promoting multiple products under one brand, which can reduce marketing costs and increase profitability
- of Manufacturer/Corporate branding
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)
Product branding
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
+ of product branding
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
- of product branding
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
own brand product or private label branding
the use of a retailer’s name to promote a specific product or service and is often used by supermarkets
+ of own brand products
It can help retailers to 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
- of own brand products
Own brand products may have a lower perceived quality than branded products which can affect customer loyalty and trust
give 3 benefits of strong branding
- added value
- ability to charge premium prices
- reduced price elasticity of demand
give 4 ways to build a brand
-USP
-advertising
-sponsorship
-use of social media
how can having a USP build a brand?
Brands can build their reputation by emphasising these unique qualities in their marketing efforts
-they are making a product or service stand out from its competitors
how can advertising build a brand?
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 = brand loyalty
how can sponsorship build a brand?
gives brands exposure, building their reputation through partnerships.
-aligning themselves with positive associations or values
how can social media build a brand?
With the right social media strategy, brands can build a loyal following and create a community around their brand
give the 3 current social trends that businesses are aware of and adpating to
-viral marketing
-social media
-emotional branding
what is viral marketing
-social trend
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
what is the use of social media- for social trends
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
- or more recently shifting focus to TikTok- short-form video content
what is emotional branding in social trends
Emotional branding is a strategy where companies build strong emotional connections with their customers by appealing to their values, beliefs, and emotions
