1.3.2 Branding & Promotion: Flashcards
Promotion definition:
promotion is a part of the marketing mix (4Ps) that helps generate customer awareness, interest, desire & action.
Types of promotion:
Advertising
PR
Sponsorship
Sales promotions
Direct marketing
Digital communication
Advertising
+ increases brand awareness for wide range target audience - increase sales
+ create brand image
-expensive- decrease operating profit
-one way communication can miss the business objective and damage brand reputation
PR
+ offer 2 way communication - build relationship
+ popular brand image
+ more cost effective than advertising - increase profits
-time consuming
-difficult to measure direct impact of PR on profits
Sponsorship
+control message in sponsorships to make it direct to business objective eg entering new markets
+build brand recognition
-subject to negative branding if business sponsors controversy celebrities
- expensive, especially for high-profile events
Sales promotions
+help clear out stock for the intro of new product
+ achieve quick increase in sales- CA
-attract deal-seeking customers not be loyal to brand
-lowering prices for sales promotions can impact brand image as it can affect quality.
-shortermism
Direct marketing
+target specific audiences and personalise their message to individual customers
+measurable business track results & adjust strategy accordingly
+communicating directly w customers builds trust - customer loyalty - CA
- costly if businesses dont have established customer database
-labour intensive & can only reach a limited number of customers
Digital Marketing
+ communicating via the media helps to target specific customer segments
+ provide engagement and feedback from customers - helps with success of product to being reactive
-easily ignored by customers as it can be seen as junk - creates negative brand image
-not effective for reaching different demographics like older customer segments.
Factors influencing promotional strategies:
-stage in plc - eg sales promotions better suited for extension strategies.
- nature of good - eg promotions not necessary for necessity goods or promotions like sponsorships more appropriate for luxury goods
-comp - how to differentiate goods from comp through promotions eg promotional pricing
-target market - different promotions to reach diff audience subgroups
-budgets- how much firm can spend on advertising
Branding definition:
Branding is the creation of business’ identity that is to differentiate them from competitors.
Types of Branding:
-product branding
-own brand product
-corporate branding
Type of branding: Product branding:
Product branding is the use of specific design/label for a product
+create identity for product to differentiate from comp and gain CL - increase profits
+business can market diff products to different markets
-high cost of promoting brand for each product.
-diff products have diff qualities
Types of branding; Corporate branding:
Corporate branding promotes brand image for business
+brand recognition for company increases CL - can add value to increase profits
+allows company to market penetrate due to CL
+gain EoS by promoting multiple products under one brand,reduce marketing costs and increase profitability
- if company’s reputation damaged negative impact on all products under that brand
-comp can impact corporate branding.
Types of branding; Own brand products
Own branding is when retailers promote specific product/service to own label
+helps differentiate retailers from comp - build CL
+helps decrease selling price for own label goods which increase sales
-have lower perceived quality than branded products- damage brand reputation
Benefits of branding:
-Added Value- branding can add value and increase prices due to quality and brand loyalty
-High market share for CA
-Ability to Charge Premium Prices- customers pay for brands w high quality goods -price elastic to demand
-Reduce PeD- as customers loyal to brand and repeat purchases even with increased prices - CA
