1.3.2 Branding & Promotion

Question 1

Promotion

Answer 1

One of the four pillars of the marketing mix. Promotion involves using a variety of methods to communicate with customers and persuade them to buy your product.

Question 2

Types of promotion

Answer 2

1. Advertising.
2. Public relations.
3. Direct marketing.
4. Sales promotion.
5. Personal selling
6. Sponsorship

Question 3

Advertising

Answer 3

TV, Radio, Brochures, leaflets.

Question 4

Benefits and drawbacks of advertising

Answer 4

+ Can reach a large audience.
+ Used to build brand loyalty.
+ Control over message.
+ Potential to go viral.
+ Target demographics.

• Expensive.
• No guarantee will increase sales.
• May cause negative PR if not appropriate.
• Customers may interpret ad in a different way.

Question 5

Public relations

Answer 5

Communicating with the media and other interested parties to enhance the image of the business and its products, and therefore increase sales.

Speeches, PR stunts and sponsorships (sponsor an event or individual to raise its profile)

Question 6

Benefits and drawbacks of public relations

Answer 6

+ Cheap.
+ Builds brand awareness.
+ Should have a direct impact on sales.

• Can’t control way that message is covered by the media.

Question 7

Direct marketing

Answer 7

Marketing activity aimed directly at the customer, such as direct mail, door-to-door leaflets or email.

Question 8

Benefits and drawbacks of direct marketing

Answer 8

+ Cheap, quick and easy.

• May not get read.

Question 9

Sales promotion

Answer 9

The use of short-term incentives to encourage buyers to purchase.

Competitions, vouchers, deals, money off.

Question 10

Benefits and drawbacks of sales promotion

Answer 10

+ Interest consumer from competitors.

• Short term effects.
• Can encourage brand switching.

Question 11

Personal selling

Answer 11

Based on face-to-face contact with customers.

Telemarketing and sales people.

Question 12

Benefits and drawbacks of personal selling

Answer 12

+ 2 way communication; can answer customer queries.

• Expensive.
• Limited number of customers.

Question 13

Key factors influencing promotional decisions and strategy

Answer 13

1. Stage in the product lifecycle.
2. Nature of the product.
3. Competition.
4. Marketing objectives and budget.
5. Target market.

Question 14

Brand types

Answer 14

1. Product brand = Brands associated with specific products.
2. Service brand = Brands that add perceived value to services.
3. Umbrella brand = Brands that are assigned to more than one product.
4. Corporate brand = Promoting the brand name of a corporate entity.
5. Own-label = Example of corporate branding where retail outlets assign their corporate branding to a range of goods or services.
6. Global brand

Question 15

Benefits and drawbacks of a product brand?

Answer 15

+ Help to build customer loyalty and trust by associating product with a specific quality.
+ Distinct identity for product to differentiate it from competitors and increase loyalty.

• Cost of promoting a new brand for each product.
• Difficult as business needs to build a brand for each product.

Question 16

Benefits and drawbacks of a own-label brand?

Answer 16

+ Retailers can offer products at lower costs than branded products.
+ Can build customer loyalty by offering exclusive products not available elsewhere.

• May have a lower perceived quality.

Question 17

Benefits and drawbacks of a umbrella brand?

Answer 17

+ Allows company to leverage existing reputation and customer base to introduce new products.
+ Builds economies of scale by promoting multiple products under one brand.

• A single bad event may affect all products.
• If company faces intense competition in one market it may affect sales of all products.

Question 18

Benefits of strong branding

Answer 18

1. Adds significant value.
2. Able to charge higher prices and demand is more price inelastic.
3. Builds customer loyalty and aspiration.

Question 19

Drawbacks of branding

Answer 19

• High costs associated with promotion to gain brand recognition in the first place.
• Constant promotion is needed to maintain brand.
• A single bad event may affect all products.

Question 20

Ways to build a brand

Answer 20

1. USP
2. Advertising
3. Sponsorship
4. Social media

Question 21

Benefits and drawbacks of a USP

Answer 21

+ Charge higher prices.
+ Differentiates brand from competition.
+ Enhances brand image.

• May not be a market for USP.
• New product, therefore sales might not meet expectation.
• Expensive to create, take time to break even.

Question 22

Benefits and drawbacks of sponsorship

Answer 22

+ Wide reach.
+ Reaches different consumer base – fans of celebrity.
+ Can find celebrities that match values.

• Expensive.
• Negative actions from celebrity can affect PR.

Question 23

Benefits and drawbacks of social media

Answer 23

+ Cheap/free.
+ Wide coverage.
+ Can associate brand with relevant trends.

• Ignored easily.
• Saturated market makes it difficult to stand out.

Question 24

Changes in branding and promotion to reflect social trends

Answer 24

1. Emotional branding
2. Viral marketing
3. Social media

Question 24

Emotional branding

Answer 24

Refers to the practice of using the emotions of a consumer to build a brand.

Question 25

Viral marketing

Answer 25

A strategy that encourages people to pass on messages to others about a product or service electronically.

Question 26

Brand

Answer 26

A characteristic, name or symbol that distinguishes one product from another rival.