1.3.2 Branding & Promotion Flashcards
What types of promotion are there?
- Digital communications
- Sponsorship
- Public relations
- Advertising
- Direct marketing
- Sales promotions
- Personal selling
What are the advantages and disadvantages of advertising?
Advantages:
* Can reach large audiences & increase brand awareness
* Also be used to create a specific brand image or message
Disadvantages:
* Can be expensive
* Effectiveness of advertising can be difficult to measure-many customers tune out/ignore ads
What are the advantages & disadvantages of direct marketing?
Advantages:
* Businesses can target specific audiences & personalise their message to individual customers
Disadvantages:
* Can be intrusive as customers may percieve as spam
What are the advantages & disadvantages of sales promotions?
(e.g. buy one get one free)
Advantages:
* Can quickly boost sales or customer engagement
Disadvantages:
* Can be expensive, especially if the promotion requires a heavy discounting
What are the advantages & disadvantages of personal selling?
Advanatges:
* Allows businesses to build relationships with their customers & understand their specific needs
Disadvantages:
* 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
What are the advantages & disadvantages of sponsorship?
Advantages:
* Can help to build brand awareness & credibility
Disadvantages:
* Can be expensive- especially for high profile events or properties
What are the advantages & disadvantages of public relations?
Advantages:
* Can enhance a businesses reputation & credibility
Disadvantages:
* PR can be time consuming & is difficult to measure the direct impact of PR activites on the profits
What are the advantages & disadvantages of digital communication?
Advantages:
* Can be highly targeted to specific customers segments
Disadvantages:
* Can be easily ignored/filtered out by customers
* May require significant investment in technology
What is branding?
- The process of creating a unique & identifable name,design,symbol that differentiates a product/service or company from its competitors
What is manufacture/corporate branding?
- Refers to the use of a company name or logo to promote all the products or services offered by the company
What are the advantages & disadvantages of corporate branding?
Advantages:
- Creates a strong brand recognition reputation for the company which can increase customer loyalty & trust
- Allows the company to leverage it’s existing reputation & customer base to introduce new products more easily
Disadvantage:
- If a businesses reputation is damaged by a product it can have a negative impact on all the products offered under that brand
- If company faces intense competition it may affect the sales of all the products offered across other markets
What is product branding?
- Refers to the use of a unique name,design ,symbol to promote a specific product
What are the advantages & disadvantages of product branding?
Advantages:
* Creates distinct identity for the product which can help to differentiate it from competitiors & increase brand loyalty
Disadvantages:
* Cost of creating & promoting a new brand for each product
* Different products within the brand may have different levels of quality which can affect customer satisfaction
What is an own brand product?
- Refers to the use of a retailers name to promote a specific product/service & is often used by supermarkets
What are the advantages & disadvantages of an own brand product?
Advantages:
- 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 & profitability
Disadvantages:
- Own brand products may have a lower percieved quality than branded products which can affect customer loyalty & trust
What are the benefits of strong branding?
Added value
Ability to charge premium prices
Reduced price elasticity of demand
How can branding add value to a business?
Strong branding can add value to a product by creating a perception of quality,reliability & trust
How can strong branding mean that a business has the ability to charge premium prices?
- Customers will be willing to pay more for product that’s associated with a well-established brand
- As percieve products w strong branding to be of higher quality & therefore worth the xtra cost
How can strong branding reduce price elasticity of demand?
Can reduce PED for a product as customers are less sensitive to price changes
Customers who are loyal to a brand are more likely to continue purchasing the product even if price increases
What ways are there to build a brand?
Can be built by using any one/combination of following:
* By developing a USP
* Through advertising
* Through sponsorship
* Through social media
What are the three current social trends that businesses are aware of and adapting to?
- Viral marketing
- Social media
- Emotional branding
What is viral marketing?
- A strategy where a business use online platforms to promote their products by creating content at specific times
Which can easily be shared & commented on
What is the point of social media for a business?
To help keep up with the latest ‘trends’
What is emotional branding?
- A strategy where companies build strong emotional connections with their customers by appealing to their values,beliefs & emotions
